1. Opportunity and demand

Opportunity: situation that allows an organization to expand its existing operation, either by introducing new products and services or by moving into a new market

Demand: input to the service value system based on opportunities and needs of internal and external stakeholders

• Environmental changes impact demand in three ways:
  • Variations in demand from the same market for the same products and services
  • Demand from new markets for existing products and services
  • Demand from new or existing markets for new products and services
• Strategy defines how an organization responds to changes in demand

2. Value

Value: the perceived benefits, usefulness and importance of something

Unique value proposition: short statement that explains the unique value an organization provides

Tactical and operational elements focus on the value of individual services, products and value streams

Strategy focuses on the overall ability to co-create value in a particular environment:

• Meet demand and fulfill opportunities
• Defines the value propositions that must be achieved by a product/service

3. Governance

Organizational governance: the system by which an organization is directed and controlled

Activities of governance:

• Evaluate: governing body evaluates strategy, portfolio, etc. keeping in mind the stakeholder
• Direct: governing body assigns responsibility for the preparation and implementation of the strategy and policies
• Monitor: ensures performance conforms with policies and direction

4. Continual improvement

Use the model to develop organizational strategy:

• Within the strategy management practice (improvement of activities, plans, etc.)
• Organizational improvement can be the basis for its strategy (improving delivery time to become more competitive in a time-critical market)

5. Practices

Strategy specifies how the organization will meet its objectives

Practices provide the processes, resources and technologies and to define, build, implement and operate value streams

Strategy management and architecture management map organizational capabilities and assets to the desired outcomes of the organization

Practices must evolve along with the strategy

Go back to ITIL 4 Strategic Leader Certification Course: Environmental Analysis to finish this chapter or to the main page ITIL 4 Strategic Leader Certification Course.