The End of the IT Service Lifecycle? Why ITIL® 4 Framework Replaced the Old Way

Monday, 20 October 2025

For years, the ITIL service lifecycle was the cornerstone of IT service management. Its five rigid, sequential stages—Service Strategy, Service Design, Service Transition, Service Operation, and Continual Service Improvement—provided a stable framework for a stable IT world. But today's reality is anything but stable. With the rapid rise of Cloud computing, Agile methodologies, DevOps, and digital-first business models, the old lifecycle has become too slow and inflexible.

That's why ITIL® 4 has declared the service lifecycle dead. It's been replaced by the Service Value System (SVS), a new framework built to handle the speed and complexity of the modern digital landscape. Organizations that have adopted the SVS are already reporting better adaptability to change.

Goodbye Rigid Stages, Hello Agility 👋

The core difference between the old lifecycle and the new SVS is flexibility. Unlike the linear, step-by-step approach of the past, the SVS is a dynamic framework that integrates key components to drive continuous value creation. It's designed to be a fluid, collaborative system rather than a fixed process.

The foundation of this system, which provides the strategic direction for all activities, is its core set of principles.

The North Star of SVS: Guiding Principles

At the core of the SVS are the Guiding Principles, which consist of:

Focus on value
Start where you are
Progress iteratively with feedback
Collaborate and promote visibility
Think and work holistically
Keep it simple and practical
Optimize and automate

These principles act as a north star for organizations, providing a compass for teams, helping them stay adaptable, collaborative, and focused on value regardless of the situation. By following these rules, organizations can ensure their actions are aligned with a broader purpose of delivering value effectively and efficiently.

The Engine of SVS: Service Value Chain

The Service Value Chain is the operational engine of the SVS. It replaces the old linear lifecycle with a flexible model of interconnected activities. Instead of being locked into a fixed order, these activities—Plan, Engage, Design & Transition, Obtain/Build, Deliver & Support, and Improve—can be combined, looped, or iterated upon as needed. This flexibility allows organizations to create specific value streams that respond directly to business needs, enabling a more agile and responsive approach to service management.

Why It Matters?

Organizations that have embraced ITIL® 4’s SVS report greater adaptability to change—a critical advantage in today’s fast-moving business world. If your company is still relying on the old lifecycle, it might be time to ask: are we built for agility?

UP NEXT: Practices, Governance & Continual Improvement

The SVS also includes other critical components: Practices, Governance, and Continual Improvement. These elements work together with the Guiding Principles and the Service Value Chain to form a complete, end-to-end system for managing services and creating value.

To learn more about ITIL 4 and its components, explore ITIL 4 Foundation and ITIL 4 Specialist: CDS courses at Multimatics.

Ready to master the framework built for today’s IT challenges?

Learn more & register here