While there are many differences between the ITIL version 2 (v2) and v3, the newest version represents more of an evolution than a revolution. Major changes include:

From Alignment to Integration

The underlying philosophy of v2 is the alignment of technology with business objectives and the creation of a common language to facilitate communication between IT and business owners. v3 takes a quantum leap with respect to the IT/business relationship. The new philosophy is one of integrating IT with the business.

As the distinction between IT and the business blurs, and the language of the business replaces the language of IT, communication with business managers is easier. In addition, you gain visibility into the relationship of technology to services and business processes so you can make decisions based on business impact.

A Lifecycle Approach

One of the shortcomings of v2 is that each process has its own module. This modularity prevents you from viewing activities in terms of the lifespan of a service. v3, in contrast, helps you think more strategically across the full lifespan of a service.

The new guidelines define five stages of the service lifecycle: service strategy, service design, service transition, service operation, and continual service improvement. The new model contains the processes you need to manage services within this lifecycle structure. The objective of every stage is to produce business value.

v3 promotes a flexible model for service provisioning using a value network approach. It also introduces the concept of adaptable models. This is a key component of service transition, in which guidance is offered for selecting a fit-for-purpose model for each type of service transition that moves from design into the live environment. Adaptable models make it possible to respond quickly to rapidly changing business requirements.

Finally, improvement is no longer viewed as the last process event in service provision. Instead, continual service improvement has evolved to exert influence throughout the service lifecycle by identifying triggers for improvement at every stage of service management.

Process Changes and Enhancements

Processes have been enhanced in v3 to operate in a lifecycle context. Gaps have been eliminated and practices have become more versatile. Here are just a few examples:

Services Become Assets

v3 introduces the concept of services as assets. Service assets consist of utility and warranty. Utility is the service itself. It is provided by a combination of people, processes, and technology. An online retail order-entry service and an online company health plan enrollment service are utility examples. The IT Infrastructure Library (ITIL) version 3 (v3) books have hit the streets. As you and your staff become familiar with the v3 practices, you will probably have many questions: Will this new version provide better guidance to help the IT organization work more efficiently, even in a cost-constrained environment? Will it speed IT implementations and make deployments run more smoothly? How will current ITIL processes be affected?

While there are many differences between the ITIL version 2 (v2) and v3, the newest version represents more of an evolution than a revolution. Major changes include:

From Alignment to Integration

The underlying philosophy of v2 is the alignment of technology with business objectives and the creation of a common language to facilitate communication between IT and business owners. v3 takes a quantum leap with respect to the IT/business relationship. The new philosophy is one of integrating IT with the business.

As the distinction between IT and the business blurs, and the language of the business replaces the language of IT, communication with business managers is easier. In addition, you gain visibility into the relationship of technology to services and business processes so you can make decisions based on business impact.

A Lifecycle Approach

One of the shortcomings of v2 is that each process has its own module. This modularity prevents you from viewing activities in terms of the lifespan of a service. v3, in contrast, helps you think more strategically across the full lifespan of a service.

The new guidelines define five stages of the service lifecycle: service strategy, service design, service transition, service operation, and continual service improvement. The new model contains the processes you need to manage services within this lifecycle structure. The objective of every stage is to produce business value.

v3 promotes a flexible model for service provisioning using a value network approach. It also introduces the concept of adaptable models. This is a key component of service transition, in which guidance is offered for selecting a fit-for-purpose model for each type of service transition that moves from design into the live environment. Adaptable models make it possible to respond quickly to rapidly changing business requirements.

Finally, improvement is no longer viewed as the last process event in service provision. Instead, continual service improvement has evolved to exert influence throughout the service lifecycle by identifying triggers for improvement at every stage of service management.

Process Changes and Enhancements

Processes have been enhanced in v3 to operate in a lifecycle context. Gaps have been eliminated and practices have become more versatile. Here are just a few examples:

Services Become Assets

v3 introduces the concept of services as assets. Service assets consist of utility and warranty. Utility is the service itself. It is provided by a combination of people, processes, and technology. An online retail order-entry service and an online company health plan enrollment service are utility examples.
The IT Infrastructure Library (ITIL) version 3 (v3) books have hit the streets. As you and your staff become familiar with the v3 practices, you will probably have many questions: Will this new version provide better guidance to help the IT organization work more efficiently, even in a cost-constrained environment? Will it speed IT implementations and make deployments run more smoothly? How will current ITIL processes be affected?

While there are many differences between the ITIL version 2 (v2) and v3, the newest version represents more of an evolution than a revolution. Major changes include:

From Alignment to Integration

The underlying philosophy of v2 is the alignment of technology with business objectives and the creation of a common language to facilitate communication between IT and business owners. v3 takes a quantum leap with respect to the IT/business relationship. The new philosophy is one of integrating IT with the business.

As the distinction between IT and the business blurs, and the language of the business replaces the language of IT, communication with business managers is easier. In addition, you gain visibility into the relationship of technology to services and business processes so you can make decisions based on business impact.

A Lifecycle Approach

One of the shortcomings of v2 is that each process has its own module. This modularity prevents you from viewing activities in terms of the lifespan of a service. v3, in contrast, helps you think more strategically across the full lifespan of a service.

The new guidelines define five stages of the service lifecycle: service strategy, service design, service transition, service operation, and continual service improvement. The new model contains the processes you need to manage services within this lifecycle structure. The objective of every stage is to produce business value.

v3 promotes a flexible model for service provisioning using a value network approach. It also introduces the concept of adaptable models. This is a key component of service transition, in which guidance is offered for selecting a fit-for-purpose model for each type of service transition that moves from design into the live environment. Adaptable models make it possible to respond quickly to rapidly changing business requirements.

Finally, improvement is no longer viewed as the last process event in service provision. Instead, continual service improvement has evolved to exert influence throughout the service lifecycle by identifying triggers for improvement at every stage of service management.

Process Changes and Enhancements

Processes have been enhanced in v3 to operate in a lifecycle context. Gaps have been eliminated and practices have become more versatile. Here are just a few examples:

Services Become Assets

v3 introduces the concept of services as assets. Service assets consist of utility and warranty. Utility is the service itself. It is provided by a combination of people, processes, and technology. An online retail order-entry service and an online company health plan enrollment service are utility examples.
Warranty is the assurance that the utility will perform at an expected level. An online order-entry utility, for example, may warrant in/out of stock and delivery time. Some services, such as online order entry, are consumed by external customers. Others, such as health plan enrollment, are consumed by internal customers.

The new ITIL guidelines re-categorize asset information defined in v2 under either the utility or warranty category. Utility and warranty act upon each other to create asset value. Assets have a direct impact on business value because they produce something of value for the business. As a result, you can weight the value of service assets based on business impact and use this weighting to prioritize actions according to the business value of the service assets involved.

Metrics Demonstrate Value

v3 expands the definition of “return” to include such key indicators as higher customer and employee satisfaction. The new framework helps you quantify, measure, and optimize both return-on-investment (ROI) and return-on-value (ROV). The v3 Service Strategy book provides guidelines for calculating ROI and ROV for a particular business context, enabling you to understand what these metrics cover and what they do not cover. It also assists in determining what generates value and how the definition of value must be accepted by both IT and business managers.

According to v3, you can evaluate the ROV of a project in eight key dimensions: competitive, financial, functional, process, relationship, strategic, technical, and/or usage values. You can develop a comprehensive picture of value using these appropriate key metrics to communicate the ROV of any projects you are championing. The v3 Service Design book guides you in determining the mechanics for measuring ROI and ROV, providing insight into:

The bottom line is that v3 differs substantially from v2. While many of the changes are minor tweaks, others represent major advances in IT management. The good news is that all of your efforts in implementing v2 apply to the v3 environment. Moreover, the exciting changes in v3 will enable your enterprise to take full advantage of its investment in IT to make the business more innovative and successful.

Sharon Taylor, president of the Aspect Group, is the chief architect and chief examiner for ITIL, the author of ITSM books, and regular columnist for a variety of IT management publication. Taylor also chairs the itSMF International Publications Executive Committee and is president of the North American Institute of Certified Service Management Professionals.