Overview of Service Strategy Stage

Author: Eashani Rodrigo

Purpose of Service Strategy

The purpose of the service strategy stage of the service life cycle is to define the perspective, position, plans and patterns that a service provider needs to be able to execute to meet an organization’s business outcomes.

The value delivered by Service Strategy to the business:

• Support the ability to link activities performed by the service provider to outcomes
• Have a clear understanding of types and levels of service will make customers satisfied 
• Respond quickly and effectively to changes in the business environment
• Support the creation and maintenance of a portfolio of quantified services
• Facilitate functional and transparent communication between customer and provider
• Provide means to organize to provide services in an efficient and effective manner

Service Strategy Processes

There are four main processes under Service Strategy stage of ITIL lifecycle: 

• Service Portfolio Management
• Financial Management
• Business Relationship Management
• Demand Management. 

Business Relationship Management process helps to establish and maintain a business relationship between the service provider and the customer and also helps to identify customer needs.

Service Portfolio Management process helps to ensure that the service provider has the right mix of services to balance the investment in IT with the ability to meet business outcomes.

Financial Management process helps to manage service provider's budgeting, accounting and charging requirements.

Demand Management process helps to understand, anticipate and influence customer demand for services.