ITIL® 4 and IT4ITTM

Rob Akershoek

White Paper
June 2020
Contents
1
Introduction 03

2 What are ITIL 4 and the IT4IT standard 05

3 A unified model for managing IT: Mapping ITIL 4 and IT4IT 15

4 Developing an operating model using the ITIL continual improvement model 21

5 Conclusion 22

6
About the author 23

7 Sources and further reading 24

8
About AXELOS 25

9 Trade marks and statements 25

02 ITIL 4 and IT4IT AXELOS.COM

1 Introduction
IT’s current operating model is being challenged. The growth in complexity and the rate of change of IT
has exposed limitations in current ways of working. In today’s environment, a digital management system
that can holistically manage IT service and product lifecycles is integral to success. Organizations need an
operating model that was designed specifically for the new digital reality.

This white paper explains how ITIL® 4 and the IT4IT™ standard
can unite to manage the new digital reality. The combination
of these two frameworks enables a more streamlined and “A digital management
automated delivery model: one which leverages Agile and DevOps
methodologies. system that can
There are several synergies between ITIL and the IT4IT standard.
holistically manage IT
Both approaches are vendor agnostic and outcome centric: they service and product
focus on creating value. Also, they both consider the value chain
holistically. lifecycles is integral to
However, there are some key differences. For example, ITIL’s
emphasis is on practices, culture, and behaviour, and IT4IT’s
success.”
emphasis is on information flows and automating IT activities.

1.1 THE DIGITAL AGE AND DIGITAL TRANSFORMATION: WHY

CHANGE IS IMPORTANT
Disruption from digital transformation challenges how IT is organized and managed. What’s more,
technology is increasingly integrating into businesses and directly affecting the customer and business
experience. IT is no longer a support technology, but an enabler of innovation. It enhances competitive
advantage, boosts productivity, and reduces costs.

Four significant themes and challenges that are shaping future IT operating models are:

zz Digital business IT is a strategic asset that can enable new business models, boost customer
satisfaction, and automate business processes. Organizations are transforming the way they engage with
customers, employees, and other parties by creating a connected digital ecosystem. Budgets are shifting
from IT departments to other departments, so IT managers have less control over how technology is
selected, implemented, and managed. IT departments must collaborate to co-create digital offerings that
optimize value streams and customer journeys.
zz Technology ecosystem New technologies provide opportunities and risks. These include migrating
legacy applications to the cloud and leveraging opportunities such as big data, artificial intelligence, and
the Internet of Things. New technologies must be managed efficiently and effectively.
zz Increasing demand IT must deliver faster and improve product quality while reducing costs and risks
and complying with regulations.
zz Transform IT delivery New delivery paradigms, such as DevOps, Agile, and CI/CD, are emerging. A
key theme is automating activities, including building, testing, deployment, and monitoring activities.
New deployment methods, such as infrastructure as code, are adopted across multiple vendors in the
ecosystem.

These themes are illustrated in Figure 1.1.

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Figure 1.1 Key forces affecting the IT operating model

1.1.1 Why today’s IT will not work tomorrow

Often, organizations do not plan or design future operating models and value streams because they
are busy with day-to-day operations. Instead, fragmented initiatives improve siloed IT management
capabilities. These initiatives typically include:

zz transitioning from waterfall to Agile delivery, such as by creating an Agile backlog

zz creating DevOps teams that are organized around products
zz implementing an integrated CI/CD pipeline (automating build, test, and deployment)
zz improving test automation
zz improving self-service and self-help capabilities
zz improving collaboration and communication between stakeholders
zz continually monitoring compliance
zz monitoring security and event management
zz improving software asset/license management
zz upgrading or migrating current IT management tools
zz implementing log monitoring and analytics
zz monitoring services from a business/end-user perspective, such as application performance monitoring
zz improving the data quality of the configuration management database, such as by using discovery and
automated inventories
zz improving cost transparency and allocating costs based on actual consumption
zz managing cloud environments, such as SAAS, PAAS, and IAAS.

These initiatives will not deliver the expected benefits if they are not well planned. To succeed in an
increasingly complex and connected digital ecosystem, organizations need a different approach, as is
illustrated in Figure 1.2.

04 ITIL 4 and IT4IT AXELOS.COM

Figure 1.2 The IT ecosystem’s increasing demand and complexity

Most IT organizations are not equipped to handle these increasing demands. Without a more effective
digital management model for IT, organizations will not be able to respond to opportunities or threats
quickly, resulting in higher costs, longer lead times, and lost revenue.

Organizations need to adopt a new operating model: one where IT is integrated, streamlined, and
automated.

2 What are ITIL 4 and the IT4IT standard?

2.1 ITIL 4
ITIL is the most widely used IT service management framework in the world. ITIL 4 embraces new ways
of working, including Agile, DevOps, and continuous integration/continuous deployment (CI/CD) and
retains the best and most effective elements of previous evolutions of ITIL. It uses a value stream approach
to model activities that co-create value and helps organizations to address modern service management
challenges. It is designed to ensure a flexible, coordinated, and integrated system for the governance and
management of IT-enabled services.

The key components of ITIL 4 are the service value system (SVS), shown in Figure 2.1; the four
dimensions of service management, shown in Figure 2.2; and the service value chain, shown in Figure
2.3.

The SVS represents how the various components and activities of the organization work together to
facilitate value creation through IT-enabled services.

To ensure a holistic approach to service management, ITIL outlines four dimensions of service
management. These are:

zz Organizations and people An organization needs a culture that supports its objectives, as well as the
right level of capacity and competency among its workforce.

AXELOS.COM ITIL 4 and IT4IT 05

zz Information and technology In the context of a value chain, this includes the information, knowledge,
and technologies required for the management of services.
zz Partners and suppliers This refers to an organization’s relationships with other organizations that are
involved in the design, deployment, delivery, support, and continual improvement of services.
zz Value streams and processes How the various parts of the organization work together to enable value
creation through products and services.

All four dimensions must be considered so that the service value chain remains balanced and effective.

The service value chain models a generic end-to-end value chain from demand to value. The service value
chain’s flexibility allows organizations to effectively and efficiently react to changes in demand.

Figure 2.1 The service value system

Figure 2.2 The four dimensions of service management

06 ITIL 4 and IT4IT AXELOS.COM

Figure 2.3 The service value chain

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The value chain activities are enabled by management practices. There are 34 practices in ITIL, listed in
Table 2.1.
Table 2.1 ITIL management practices

General management practices Service management practices Technical management practices

Architecture management
Continual improvement
Information security management Capacity and performance
Knowledge management
Measurement and reporting
Organizational change
management
Portfolio management
Project management
Relationship management
Risk management
Service financial management
Strategy management
Supplier management
Workforce and talent
management
Availability management Deployment management
Business analysis Infrastructure and platform
management
management Software development and
management
Change enablement
Incident management
IT asset management
Monitoring and event
management
Problem management
Release management
Service catalogue management
Service configuration
management
Service continuity management
Service design
Service desk
Service level management
Service request management
Service validation and testing

2.2 THE IT4IT STANDARD

The IT4IT standard is a reference architecture for managing a digital enterprise. It uses a value chain
approach to model the IT functions and identify activities that contribute to business competitiveness. Its
objectives include:

zz providing the capabilities for managing IT, thereby enabling better, faster, cheaper, and less risky ways of
working across the entire value chain
zz providing guidance on integrating and automating IT Value Chains with a common service model
backbone
zz defining a common information model for IT management
zz supporting real-world use-cases driven by the digital economy, such as cloud sourcing, Agile, DevOps,
and service brokering
zz embracing existing process frameworks and methodologies, such as ITIL, COBIT, SAFe, SCRUM, and

08 ITIL 4 and IT4IT AXELOS.COM

 TOGAF®, by focusing on data during implementation: essentially specifying an information model
across the entire value chain
zz being industry-independent and able to solve the same problems for every organization
zz being applicable in existing organizations and accommodating future IT paradigms.

ITIL and the IT4IT standard have a comparable focus on value chains. Where ITIL refers to the service
value chain, the IT4IT standard uses the IT Value Chain.

IT4IT definition: IT Value Chain

The operating model for the IT business function. It includes primary activities, which are concerned
with the production or delivery of products or services, and supporting activities, which make the
primary activities more efficient and effective.

The operating model for the IT business function. It includes primary activities, which are concerned with
the production or delivery of products or services, and supporting activities, which make the primary
activities more efficient and effective.

The IT4IT Value Chain is shown in Figure 2.4.

Figure 2.4 The IT Value Chain

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2.2.1 The four value streams
ITIL and IT4IT use slightly different definitions of ‘value stream’.

ITIL definition: Value stream

A series of steps that an organization uses to create and deliver products and services to a service
consumer. Value streams involve multiple value chain activities and are supported by multiple
practices.

Examples of value streams described in ITIL include:

zz processing a demand for a new or current service or product

zz processing a service request from a user
zz resolving an incident
zz analysing and addressing feedback
zz updating products due to technology lifecycle management events, such as end of life/support.

IT4IT definition: Value stream

A description of the key activities for a discrete area within the IT Value Chain where some unit of
net value is created or added to the service as it progresses through its lifecycle. Each value stream
encapsulates capabilities that are necessary to manage aspects of the service/product lifecycle.

The IT Value Chain has four value streams that outline how value can be added at every stage of the
product or service lifecycle. They are:

zz Strategy to portfolio Define your strategy to balance and

broker your portfolio.
zz Requirement to deploy Prioritize every requirement to build “The IT Value Chain has
the best services and deploy them.
zz Request to fulfil Handle each request by streamlining the
four value streams that
process to fulfil it. outline how value can
zz Detect to correct Seek to detect issues and correct them
before they impact the user. be added at every stage
Each value stream is centred on a key aspect of the service of the product or service
model backbone. The functional components define which
building blocks or capabilities are needed to automate and
lifecycle.”
enable service management activities.

10 ITIL 4 and IT4IT AXELOS.COM

 IT4IT definitions:

Service model backbone

A central element in the IT4IT standard consisting of the key data objects that define the products
and services, including blueprints, service catalogues, service offerings, and live products and
services.

Functional component
A logical system that needs to be present in any IT organization to provide specific management
capabilities to support IT staff who are performing IT management activities. Functional components
manage specific IT management data and have defined inputs and outputs that are data objects.

The four value streams, shown in Figure 2.5, are vital for helping the IT function control the service model
as it advances through its lifecycle. Figure 2.6 shows how the four value streams interconnect.

Figure 2.5 IT4IT value streams

2.2.1.1 Strategy to portfolio

This value stream provides IT organizations with the optimal framework for connecting the functions in-
volved in managing the portfolio of services. Its activities include capturing demand for IT services, prioritiz-
ing and forecasting investments, and managing portfolios and projects. These activities require consistent
and transparent data in order to maintain alignment between the business strategy and the IT portfolio.

2.2.1.2 Requirement to deploy

This value stream is about orchestrating changes to the services. It covers planning, designing, coding,
integrating, and testing new releases. This value stream typically includes managing the Agile backlog,
source code, CI/CD pipeline, and tests.

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2.2.1.3 Request to fulfil
This value stream is about fulfilling standard and repeatable requests from a standard catalogue, such as a
web shop, or directly consuming services through an application programming interface.

2.2.1.4 Detect to correct

This value stream is about ensuring continuous operations by monitoring services and proactively resolving
issues before the customer is affected.

Figure 2.6 highlights the IT4IT standard’s focus on the entire IT Value Chain, and it contains the most
important functional components within the IT function.

Implementing the IT4IT standard requires a careful selection of IT management tools that support the
identified interfaces and enable end-to-end workflows across the value streams.

Figure 2.7 highlights key data objects organized around the service
model backbone. They store data about every service across its
lifecycle and create and maintain the traceability of key information
“In both ITIL and and
IT4IT, the value decision-making across the entire value chain. Consistent links
between the data allow organizations to control the costs, risks, and
stream’s goal is to value associated with service management.
convert demand into A value stream is triggered by demand and ends in value; the value
value.” stream’s goal is to convert demand into value. These fundamental
rules are suggested by both ITIL and IT4IT. Despite the differences in
terminology, the two models can be effectively used together.

12 ITIL 4 and IT4IT AXELOS.COM

Figure 2.6 The IT4IT reference architecture, level 1

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Figure 2.7 Data links that enable transparency and traceability

14 ITIL 4 and IT4IT AXELOS.COM

3 A unified model for managing IT: Mapping ITIL 4 and IT4IT
ITIL 4 and IT4IT are complementary. They can be used to create an operating model that will centralize
IT in digital organizations. This operating model would cover the IT management capabilities and building
blocks needed to manage the end-to-end lifecycles of digital services.

Figure 3.1 is an overview of how ITIL and IT4IT can be used to build an integrated IT operating model.
ITIL recommends work practices and ways of working, and IT4IT provides the information flows and
systems needed to automate end to-end workflows, enable flow, and provide transparency and traceability.

Figure 3.1 Combining ITIL and IT4IT to build an IT operating model

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3.1 ITIL VALUE CHAIN ACTIVITIES AND IT4IT VALUE STREAMS
IT4IT’s value streams can be mapped to the ITIL value chain activities, as shown in Figure 3.2.

Figure 3.2 ITIL value chain activities and IT4IT value streams.

16 ITIL 4 and IT4IT AXELOS.COM

The engage value chain activity, for example, includes all interactions with stakeholders. The IT4IT
standard defines four value streams, each of which has several key interactions with stakeholders and
users, as outlined in Table 3.1.
Table 3.1 IT4IT value stream interactions with the engage value chain activity

IT4IT value stream Engage value chain activity Example data objects
Strategy to portfolio Collaboration with stakeholders Business demands
about demand and opportunities
New ideas/improvement
Collaboration with vendors about opportunities
technology roadmaps and new
opportunities Feedback from the organization,
such as service reviews
Requirement to deploy Collaboration with vendors, New feature requests/
stakeholders, and users about requirements
new or modified requirements
and features Feedback from key users
Request to fulfil Collaboration with consumers Service requests, such as
about service requests from the requests to access an application
standard service catalogue or cloud resources
Brokering services across
multiple vendors
Detect to correct Collaboration with consumers to Incidents
report incidents, raise questions,
provide feedback, and so on Questions
Complaints
Feedback

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3.2 ITIL PRACTICES AND IT4IT VALUE STREAMS
The 34 ITIL management practices enable the four IT4IT value streams and can be plotted against them,
as shown in Figure 3.3.

Figure 3.3 Visualization of the primary mapping of ITIL practices to the IT4IT value streams

18 ITIL 4 and IT4IT AXELOS.COM

Table 3.2 maps the IT4IT value streams and their functional components to the ITIL practices.
Table 3.2 ITIL management practices grouped by IT4IT value stream

IT4IT value IT4IT functional Primary ITIL 4 practices Other ITIL 4 practices
stream component enabling this value stream supporting this value stream
Strategy to Enterprise Strategy management Continual improvement
portfolio architecture
Architecture management Risk management
Policy
Portfolio management Service financial management
Proposal
Relationship management Information security
Portfolio demand management
IT investment Supplier management
portfolio
Service portfolio
Requirement Project Project management Architecture management
to deploy
Requirement Business analysis Availability management
Service design Service design Capacity and performance
management
Source Software development and
control management Risk management
Build Service validation and testing Service continuity management
Build package Release management Information security
management
Release composition Deployment management
Infrastructure and platform
Test management
Defect
Request to Engagement Service catalogue management Capacity and performance
fulfil experience portal management
Service request management
Offer consumption Information security
Deployment management management
Offer management
Infrastructure and platform IT asset management
Catalogue management
composition Service configuration
Knowledge management management
Request
rationalization Service financial management
Fulfilment execution
Usage
Chargeback/
showback
Knowledge and
collaboration

AXELOS.COM ITIL 4 and IT4IT 19

 Detect to Service monitoring Service desk Availability management
correct
Event Service level management Capacity and performance
management
Incident Monitoring and event
management Service continuity management
Problem
Incident management Information security
Change control management
Problem management
Configuration Infrastructure and platform
management Change enablement management
Asset IT asset management
Diagnostics and Service configuration
remediation management
Service level
Supporting Governance, risk, Risk management Information security
activities and compliance management
Sourcing and Supplier management -
vendors
Intelligence and Measurement and reporting -
reporting
Finance and assets Service financial management IT asset management

zz Cost modelling
zz Investment
zz Asset
Resource Workforce and talent -
management management
- - Organizational change -
management

20 ITIL 4 and IT4IT AXELOS.COM

4 Developing an operating model using the ITIL continual
improvement model
ITIL offers a universal model for continual improvement, shown in Figure 4.1, that can enable the
development of an operating model based on ITIL and the IT4IT standard.

Figure 4.1 The ITIL continual improvement model

Table 4.1 lists useful tools from ITIL and IT4IT that are relevant to each step of the continual improvement
model.
Table 4.1 Useful continual improvement tools from ITIL and IT4IT

Continual improvement model Tools provided by ITIL Tools provided by IT4IT

step
What is the vision? SVS IT Value Chain
Discourse on planning in ITIL® 4: Value streams
Direct, Plan and Improve
Service model
Discourse on digital
transformation in ITIL® 4: High- The reference architecture model
velocity IT
Where are we now? Discourse on value stream Functional model
mapping in ITIL® 4: Create,
Deliver and Support and ITIL® 4: Functional components
Drive Stakeholder Value
The reference architecture model

AXELOS.COM ITIL 4 and IT4IT 21

 Where do we want to be?
How do we get there?
Service value chain
Practice library
Practice library
Value stream design
recommendations in ITIL® 4:
Create, Deliver and Support
Value streams
Functional model
Functional components
The reference architecture model
Functional model
Functional components
The reference architecture model

Discourse on improvement in
ITIL® 4: Direct, Plan and Improve
Take action. Practice guides Functional model
Discourse on digital tools in ITIL® Functional components
4: High-velocity IT
The reference architecture model
Did we get there? Evaluation recommendations in Example KPIs
ITIL® 4: Direct, Plan and Improve
Example metrics in the practice
guides
How do we keep the momentum ITIL guiding principles -
going?

5 Conclusion
IT organizations are being challenged to manage digital ecosystems consisting of fast-changing hybrid
environments and increasing numbers of services, components, and vendors. As a response to these
challenges, organizations are working on many fragmented initiatives to improve and transform the IT
function. These include introducing new ways of working (Agile, DevOps, CI/CD) and modernizing their
IT-tooling landscape.

Typically, however, a blueprint of the target IT operating model that would connect and maximize all
this progress is missing. Without this blueprint, most initiatives will fail. To be successful, an integrated
approach that connects teams, processes, and tools, enables transparency, and optimizes end-to-end
workflows is needed.

Digital journeys should begin with modern IT operating models. One can be created by combining ITIL 4
and the IT4IT standard into a holistic blueprint. This blueprint can help to diagnose the organization’s
current state, find gaps, and create a transformation map to coordinate improvements.

22 ITIL 4 and IT4IT AXELOS.COM

6 About the author
Rob Akershoek is the Chair of the IT4IT Forum within The
Open Group and IT Management Architect at Fruition Partners
(a DXC company).

Rob helps IT organizations to transform and implement

new IT operating models to manage digital ecosystems. He
combines multiple practices, such as ITIL, IT4IT, DevOps,
and Agile. He assists IT organizations in their IT automation
journey through the entire IT value chain, including portfolio
management, the DevOps toolchain (including CI/CD, test
management, monitoring and event management, and risk
and security management) ITSM, CMDB, cloud orchestration,
and so on. He also assists organizations in leveraging new
IT management technologies, such as artificial intelligence,
ChatBots, Operational data analytics, and self-service portals.

Rob Akershoek is author of numerous articles and the IT4IT

management guide (managing the business of IT).

AXELOS.COM ITIL 4 and IT4IT 23

7 Sources and further reading
Akershoek, R. (2016). The IT4IT Management Guide for managing the business of IT. Van Haren
Publishing, Zaltbommel.

Akershoek, R. (2019). DevOps + ITSM: A Merge Request. Webinar. Accessible at: www.brighttalk.com/
webinar/devops-itsm-a-merge-request/ [Accessed 18 March 2020]

Akershoek, R. (2019). Is ITIL 4 DevOps Ready? Webinar. Accessible at: www.brighttalk.com/webinar/is-itil-

4-devops-ready/ [Accessed 18 March 2020]

Akershoek, R. (2019). ITIL 4 service value chain data flows (input and outputs). Online infographic.
Accessible at: www.slideshare.net/robakershoek/itil-4-service-value-chain-data-flows-input-and-
outputs-135507433 [Accessed 18 March 2020]

Anand, A. (2019). ITIL 4: Connecting Key Concepts – Part 1. AXELOS. Online. Available at: www.axelos.
com/news/blogs/april-2019/itil-4-connecting-the-key-concepts-blog-part-1 [Accessed 18 March 2020]

AXELOS (2019) ITIL® Foundation: ITIL 4 Edition. TSO, London.

AXELOS (2020) ITIL® 4: Create, Deliver and Support. TSO, London.

AXELOS (2020) ITIL® 4: Direct, Plan and Improve. TSO, London

AXELOS (2020) ITIL® 4: Drive Stakeholder Value. TSO, London.

AXELOS (2020) ITIL® 4: High-velocity IT. TSO, London.

IT4IT™ Reference Architecture, Version 2.1, ©The Open Group. (2017) Online. Available at: https://pubs.
opengroup.org/it4it/refarch21/[Accessed 18 March 2020]

Lykov, A. Jouravlev, R. (2018). . AXELOS. Online. Accessible at: www.axelos.com/case-studies-and-white-

papers/taking-it4it-on-the-itsm-journey [Accessed 18 March 2020]

The Open Group site: www.opengroup.org/IT4IT [Accessed 18 March 2020]

24 ITIL 4 and IT4IT AXELOS.COM

8 About AXELOS
AXELOS is a joint venture company co-owned by the UK Government’s Cabinet Office and Capita plc.

It is responsible for developing, enhancing and promoting a number of best practice methodologies used
globally by professionals working primarily in project, programme and portfolio management, IT service
management and cyber resilience.

The methodologies, including ITIL®, PRINCE2®, PRINCE2 Agile®, MSP®, RESILIA® and its newest
addition AgileSHIFT® are adopted in more than 150 countries to improve employees’ skills, knowledge
and competence in order to make both individuals and organizations work more effectively. 

In addition to globally recognized qualifications, AXELOS equips professionals with a wide range of content,
templates and toolkits through the CPD aligned My AXELOS and our online community of practitioners and
experts.

Visit www.AXELOS.com for the latest news about how AXELOS is ‘Making organizations
more effective’ and registration details to join AXELOS’ online community. If you have specific queries,
requests or would like to be added to the AXELOS mailing list please contact
Ask@AXELOS.com.

9 Trade marks and statements

AXELOS®, the AXELOS swirl logo®, ITIL®, PRINCE2®, PRINCE2 Agile®, MSP®, AgileSHIFT®, M_o_
R®, P3M3®, P3O®, MoP®, MoV®, RESILIA® are registered trade marks of AXELOS Limited. All rights
reserved. Copyright © AXELOS Limited 2020.

Image credits: Front cover ©/Getty/J614

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A copy of these terms can be provided on application to AXELOS at Licensing@AXELOS.com

Our White Paper series should not be taken as constituting advice of any sort and no liability is accepted
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to change without notice.

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AXELOS.COM ITIL 4 and IT4IT 25