Introduction
In today’s dynamic IT landscape, Managed Service Providers (MSPs) play a crucial role in delivering efficient and reliable IT services to businesses. To ensure these services are aligned with customer needs and business goals, it is essential to adopt a structured approach to service delivery. This presentation focuses on creating ITIL service value streams for an MSP team, providing a comprehensive framework to enhance service value and operational efficiency.
We will explore the service value system and service value chain, key components of the ITIL framework, and how they integrate various activities and practices to enable value creation. By understanding and implementing service value streams, MSP teams can streamline their processes, improve service quality, and achieve better alignment with customer expectations. By the end of this presentation, you will have a clear understanding of how to create service value streams especially for an MSP team. As this article focuses on creating a value stream for provisioning a new cloud service, part two will explore service value stream for the restoration of an existing MSP service.
Service Value System Overview
The SVS is the overarching framework that defines how all the components and activities of an organization work together to enable value creation. It includes:
Image source: Axelos, “ITIL Foundation, ITIL 4 Edition” (2019)
- Guiding Principles: Core recommendations that guide the organization.
- Governance: Oversight and decision-making structures.
- Service Value Chain: The key activities required to create value.
- Practices: Organizational capabilities (e.g., incident management, change enablement).
- Continual Improvement: Ongoing optimization of services and processes.
Service Value Chain and Service Value Streams Overview
Image source: Axelos, “ITIL Foundation, ITIL 4 Edition” (2019)
The core component of the service value system is the service value chain; an operational model that defines the essential activities needed to address demand and enable value realization through the development, management, and utilization of products and services.
Service value stream represents a set of activities that flow through the service value chain, starting from customer demand and ending with value delivery.
These streams map out the journey through various value-adding steps required to fulfil a specific need or scenario.
Each service value stream visualizes how different activities within the service value chain work together to produce customer value.
Difference between a process and value stream: A process can be considered as many sets of interrelated activities that transform inputs into outputs. Value streams are focused on the flow of activity from demand or opportunity to customer value.
Service Value Chain Activities Explained
The service value chain consists of six interconnected activities that work together to deliver value:
- Plan: This activity ensures that all stakeholders share a clear understanding of the organization’s vision, status, and future direction. It sets the stage for consistent, aligned decision-making.
- Engage: Focuses on interactions with customers, stakeholders, and partners to ensure that services are tailored to meet their needs and expectations. Effective engagement fosters strong relationships and aligns service outcomes with business goals.
- Design and Transition: This activity involves creating or evolving services to meet customer requirements. It has two key elements:
- Design: Defines the service’s structure, functionality, and how it will fulfill customer needs.
- Transition: Implements the design, ensuring it is successfully deployed and ready for live operation.
- Obtain/Build: Involves acquiring or developing the necessary resources, such as infrastructure, technology, and tools, needed to deliver and support services effectively.
- Obtain: Acquiring components required to deliver and support a service.
- Build: Configuring, or developing the components required to deliver and support a service.
- Deliver and Support: Focuses on the ongoing delivery, maintenance, and support of services to customers, ensuring they operate as intended and meet agreed service levels.
- Improve: A continuous process of enhancing services and their supporting components to increase value. This involves analyzing performance, gathering feedback, and implementing changes to optimize service quality.
Practices, Tools and Technologies
Practices:
ITIL practices are structured sets of organizational resources designed to perform specific tasks or achieve objectives. They provide guidelines and best practices to manage IT services effectively.
Examples of ITIL practices include:
- Incident Management: Resolving disruptions in IT services.
- Change Enablement: Managing changes to IT services with minimal disruption.
- Service Desk: Acting as a single point of contact for users.
- Problem Management: Identifying and managing the root causes of recurring incidents.
- In ITIL V4, there are 34 practices in total.
Tools and Technologies:
Tools and technologies in ITIL refer to software, infrastructure, platforms and frameworks that assist in implementing and managing ITIL practices. These tools and technologies automate and streamline processes, improve efficiency, and ensure consistency in service delivery.
Examples of tools and technologies include:
- IT Service Management (ITSM) Tools: ServiceNow, Fresh Service.
- Monitoring and alerting tools: Datadog, AWS CloudWatch.
- Collaboration tools: Microsoft Teams, Slack, Zoom.
- DevOps tools: Jenkins, GitLab, Kubernetes.
- Infrastructure as Code (IaC): Terraform.
- Cloud Platforms: AWS, Microsoft Azure, Google Cloud.
- Configuration management: Ansible, Puppet, Chef.
Steps To Design a Service Value Stream
Designing an effective service value stream involves several key steps to ensure that demand is transformed into valuable outcomes for customers.
Below is an expanded guide to one approach for creating a well-defined value stream:
Steps 1: Define the Use Case or Scenario
| Service value stream name | |
| Owned by | <Name of the service value stream owner> |
| Description | <Description of the value stream and its use case> |
| Demand or Trigger | <Identify the customer need or business requirement or Determine the event or action that initiates the value stream> |
| Outcomes | <Describe the expected results or deliverables from the value stream. Ensure they align with customer expectations and business goals> |
| Value created | <Define how value is perceived within this scenario as perceived by the customer> |
| Estimated or target lead time | <How long it will take to provide the service> |
| Roles and Responsibilities | <RACI model> |
Steps 2: Document the Steps from Demand to Value
Outline the key steps required to move through the service value chain, transforming the initial demand into a delivered value.
Each step should be well-documented, capturing:
- Activities: High-level actions needed to achieve the outcome.
- Milestones: Important checkpoints or deliverables at each stage.
Steps 3: Map Steps to Service Value Chain Activities
Align each documented step with the appropriate activities within the Service Value Chain:
| Value Stream Step | Mapped SVC |
| <Step 1> | Engage |
| <Step 2> | Plan |
| <Step 3> | Design and Transition |
| <Step 4> | Obtain/Build |
| <Step 5> | Design and Transition |
| <Step 6> | Deliver and Support |
| <Step 7> | Improve |
Steps 4: Decompose Steps into Actions and Tasks
If needed, break down each step into smaller, manageable actions and tasks. This decomposition provides clarity and ensures that each part of the process is well-defined and executable. Consider:
- Detailed Tasks: Specific actions required to complete each step.
- Dependencies: Identify any tasks that rely on others to be completed first.
| Value Stream Step | Mapped SVC | Task/Action |
| <Step 1> | Engage | –<Actions 1> –<Tasks 1> |
| <Step 2> | Plan | –<Actions 2> –<Tasks 2> |
| <Step 3> | Design and Transition | –<Actions 3> –<Tasks 3> |
| <Step 4> | Obtain/Build | –<Actions 4> –<Tasks 4> |
| <Step 5> | Design and Transition | –<Actions 5> –<Tasks 5> |
| <Step 6> | Deliver and Support | –<Actions 6> –<Tasks 6> |
| <Step 7> | Improve | –<Actions 7> –<Tasks 7> |
Steps 5 . Identify Contributing Practices, Tools and Technologies and Applicable service offerings
- Identify all the contributing practices; contribute to the successful completion of each step, action, or task.
- Tools and Technology: Specify the tools, platforms, and systems required to support the tasks.
| Value Stream Step | Mapped SVC | Task/Action | Practices | Tools and Technologies |
| <Step 1> | Engage | –<Actions 1> –<Tasks 1> | – <Relevant practices> | –<Relevant tools and technologies> |
| <Step 2> | Plan | –<Actions 2> –<Tasks 2> | –<Relevant practices> – | –<Relevant tools and technologies> – |
| <Step 3> | Design and Transition | –<Actions 3> –<Tasks 3> | –<Relevant practices> – | –<Relevant tools and technologies> – |
| <Step 4> | Obtain/Build | –<Actions 4> –<Tasks 4> | –<Relevant practices> – | –<Relevant tools and technologies> – |
| <Step 5> | Design and Transition | –<Actions 5> –<Tasks 5> | –<Relevant practices> – | –<Relevant tools and technologies> – |
| <Step 6> | Deliver and Support | –<Actions 6> –<Tasks 6> | –<Relevant practices> – | –<Relevant tools and technologies> – |
| <Step 7> | Improve | –<Actions 7> –<Tasks 7> | –<Relevant practices> – | –<Relevant tools and technologies> – |
Service Value Stream Types
Organizations design multiple value streams to address different scenarios.
Each value stream follows a distinct path and may navigate through various stages within the service value chain model before reaching the customer.
The two primary value streams are developing a new service and restoring an existing service.
These can be further divided into more specific value streams tailored to meet the unique needs of your organization or team.
Developing a New Service Value Stream
Image source: Axelos, “ITIL Foundation, ITIL 4 Edition” (2019)
The value stream model for development of a new service describes the common patterns of work required to create a new service, something that requires significant effort and coordination across the organization.
Restoring and Existing Service Value Stream
Image source: Axelos, “ITIL Foundation, ITIL 4 Edition” (2019)
The value stream model for restoration of a service describes how activities are indifferent to the nature of the service and can be used to describe a value stream to support services provided to consumers within the organization or external to the organization.
Key Considerations When Creating Service Value Streams
Important factors to consider when developing service value streams are:
- Understand Customer Needs and Expectations: Identify the specific outcomes the customer desires (value realization). Consider customer pain points, requirements, and expectations for speed, quality, and efficiency.
- Reusable Value Streams: Many services share common processes (e.g., design, build, support). You can define broad, reusable value streams that apply to multiple services and make minor adjustments as needed.
- Modular Approach: Build a modular value stream framework where each module represents a key activity (e.g., planning, design, delivery). You can combine and customize these modules based on the specific service.
- Service Complexity: For highly complex or critical services, creating a dedicated value stream may be necessary to address unique requirements, risks, or regulatory needs. For simple services, a generic value stream may suffice.
- Continuously Improve: Adopt a culture of continual improvement by regularly analyzing performance data. Adjust the value stream to remain aligned with changing customer or business needs.
Examples of Service Value Streams for a Managed Service Provider (MSP) Team
Creating Service Value Streams for Provisioning a new Cloud Service for MSP Team
We will revisit the process of creating a new value stream, this time with a focus on developing a value stream for provisioning a new cloud service for an MSP team.
The examples provided are not exhaustive but serve as a clear guideline, to help you start creating service value streams for your team or organization.
This article is part one of a series. Part two will guide you through the process of creating a service value stream for restoring an existing service for an MSP team.
Steps 1: Define the Use Case or Scenario
| Service value stream: Provision a new MSP cloud service | |
| Owned by | John Doe |
| Description | Involves designing, deploying, and configuring cloud infrastructure or applications based on customer or business requirements. The process ensures the cloud service is delivered efficiently, securely, and in alignment with organizational goals. |
| Demand or Trigger | Demand from a customer wishing to provision a new service in their cloud environment. |
| Outcomes | Fully provisioned and operational cloud service aligned with client requirements. |
| Value created | Avoid the technical complexities involved, saving time and resources. This allows the client to focus on more strategic tasks. |
| Estimated or target lead time | – Simple Service: 1-3 days. – Complex Service: 1-2 weeks. – Custom Requirements: 2-4 weeks. |
| Roles and Responsibilities | – Client: Initiates the request, defines business requirements, and approves the final service deployment. – L1 Engineer: Triage (1st response, categorizes, prioritizes and escalates). – Cloud Enablement Engineer: Designs the cloud infrastructure, selects appropriate cloud services, and ensures alignment with standards. – Cloud Enablement Engineer: Designs, configures and releases new service. – L2 Engineers: Continual monitoring and enhancement of new service. |
Steps 2: Document the Steps from Demand to Value
Outline the key steps required to move a request for a new cloud service through the service value chain, transforming the initial demand into a delivered value.
Each step should be well-documented, capturing:
- Activities: High-level actions needed to achieve the outcome.
- Milestones: Important checkpoints or deliverables at each stage.
Steps 3: Map Steps to Service Value Chain Activities
Align each documented step with the appropriate activities within the Service Value Chain:
Image source: Axelos, “ITIL Foundation, ITIL 4 Edition” (2019)
| Value Stream Step | Mapped SVC |
| Understand customer requirements and expectations. | Engage (Step 1). |
| Create a strategy and roadmap for provisioning the cloud service. | Plan (Step 2). |
| Design and architecture the new service to meet customer requirements. | Design |
| Configure the service components. | |
| Deploy service components in preparation for launch. | |
| Release new service to customer. | Deliver and Support (Step 6) |
| Continuously look for ways to improve service offering. | Improve (Step 7) |
*Observe how steps 3 and 5 loop back to the value chain activity “Design & Transition,” first connecting to Design and then to Transition.
Steps 4: Decompose Steps into Actions and Tasks
If needed, break down each step into smaller, manageable actions and tasks. This decomposition provides clarity and ensures that each part of the process is well-defined and executable.
| Value Stream Step | Mapped SVC | Task/Action |
| Understand customer requirements and expectations. | Engage | – Identify the cloud service requirements. – Log an SR ticket in the service desk tool and add it to the Cloud Enablement sprint board. – Engage with stakeholders to align on business needs and outcomes. |
| Create a strategy and roadmap for provisioning the cloud service. | Plan | – Assess the customer’s existing environment and readiness. – Develop a risk assessment and mitigation plan. – Establish a project timeline and resource allocation. |
| Design and architecture the new service to meet customer requirements. | Design | – Design the cloud infrastructure and services. – Create configuration templates (Infrastructure-as-Code, if applicable). – Plan for integration with existing systems and services. |
| Configure the service components. | – Provision cloud resources. – Set up access controls and identity management – Implement security and compliance configurations. – Develop automation scripts for deployment and monitoring | |
| Deploy service components in preparation for launch. | – Deploy the cloud service in a test environment for validation. – Conduct user acceptance testing (UAT) and obtain sign-off from stakeholders. – Transition the service to the live environment. – Provide documentation and training for end-users and support teams. | |
| Release new service to customer. | Deliver and Support | – Transition the service to the live environment. – Provide documentation and training for end-users and support teams. – Grant access to the client with necessary credentials and permissions. – Conduct a handover session, demonstrating key functionalities. – Provide user guides or training for managing the AWS account. |
| Continuously look for ways to improve service offering. | Improve | – Continuously monitor account usage and performance. – Gather client feedback to identify areas for enhancement. |
Steps 5 . Identify Contributing Practices, Tools and Technologies
| Value Stream Step | Mapped SVC | Task/Action | Practices | Tools and Technologies |
| Understand customer requirements and expectations. | Engage | – Identify the cloud service requirements. – Log an SR ticket in the service desk tool. – Engage with stakeholders to align on business needs and outcomes. | – Business analysis – Relationship management – Service level management – Service desk | – Service desk tools (e.g., ServiceNow, Fresh Service). – Meeting tools (e.g., Microsoft Teams, Zoom). |
| Create a strategy and roadmap for provisioning the cloud service. | Plan | – Assess the customer’s existing environment and readiness. – Develop a risk assessment and mitigation plan. – Establish a project timeline and resource allocation. | •Business analysis •Infrastructure and platform management •Service level management •Project management | – Project management tools (e.g., Microsoft Project, Jira), – Risk assessment tools (e.g., RiskWatch). |
| Design and architecture the new service to meet customer requirements. | Design | – Design the cloud infrastructure and services. – Create configuration templates (Infrastructure-as-Code, if applicable). – Plan for integration with existing systems and services. | •Architecture management •Capacity and performance management •Service continuity management •Supplier management | – Cloud architecture tools (e.g., AWS CloudFormation, Azure Resource Manager. – Diagramming tools (e.g., Visio). |
| Configure the service components. | Obtain/Build | – Provision cloud resources. – Set up access controls and identity management. – Implement security and compliance configurations. – Develop automation scripts for deployment and monitoring | •Infrastructure and platform management •Project management •Service configuration management •Service validation and testing •Supplier management | – Cloud management platforms (e.g., AWS Management Console, Terraform). – Security tools (e.g., AWS IAM). |
| Deploy service components in preparation for launch. | – Deploy the cloud service in a test environment for validation. – Conduct user acceptance testing (UAT) and obtain sign-off from stakeholders. – Transition the service to the live environment. – Provide documentation and training for end-users and support teams. | – Change enablement – Deployment management – Incident management – Release management – Knowledge management | – Testing tools (e.g., Selenium). – CI/CD tools (e.g., Jenkins, GitHub Actions). | |
| Release new service to customer. | Deliver and Support | – Transition the service to the live environment. – Provide documentation and training for end-users and support teams. – Grant access to the client with necessary credentials and permissions. – Conduct a handover session, demonstrating key functionalities. – Provide user guides or training for managing the AWS account. | – Incident management – Infrastructure and platform management – Problem management – Relationship management – Release management | – Documentation tools (e.g., Confluence, SharePoint). – Knowledge base tools (e.g., Zendesk Guide). |
| Continuously look for ways to improve service offering. | Improve | – Continuously monitor account usage and performance. – Gather client feedback to identify areas for enhancement. | – Incident management – Service desk – Relationship management – Knowledge management | – Monitoring tools (e.g., CloudWatch, New Relic). – Feedback tools (e.g., SurveyMonkey), Service desk tools. |
Conclusion
By following a structured approach; defining use cases, documenting steps, mapping them to the Service value chain, decomposing them into actionable tasks, and identifying supporting practices and tools, teams can ensure that each step contributes directly to achieving business outcomes.
Value streams, whether for developing new services or restoring existing ones, empower MSP teams to operate with clarity, efficiency, and alignment with customer needs.
Creating service value streams for a Managed Service Provider (MSP) team is a crucial process for aligning organizational activities to deliver measurable value to customers.
As this article focuses on creating a value stream for provisioning a new cloud service, part two will explore the restoration of an existing service, ensuring comprehensive guidance for MSP teams aiming to optimize their operational effectiveness.
About Author
Eusoph is a certified ITIL specialist with over 15 years of experience in IT service management. He is a dynamic and versatile professional with a proven track record in implementing and optimizing ITIL and Agile-based methodologies and processes. His focus is on delivering outstanding IT services that create value for the clients.
Eusoph holds a (BBA) in Computer and Management Information Systems and a (Postgraduate Diploma) in Knowledge and Information Systems. He has also earned over 12 IT-related certifications, including credentials in Project Management, Agile, Service Desk Management, Cloud Computing, and ITIL.
For further discussion on this article or any topics related to IT Service Management, feel free to reach out to Eusoph at: eusophsimba@gmail.com.
