What does the term 'value stream' refer to in ITIL 4?

The term 'value stream' in ITIL 4 specifically refers to a sequence of steps that creates value when delivering a service. In the context of ITIL, value streams illustrate the activities involved in transforming inputs (such as demand and resources) into outputs (like services or products) that are valuable to customers. By mapping out these steps, organizations can identify how their processes deliver value and where improvements can be made to enhance efficiency, reduce waste, and optimize service delivery.

Understanding value streams is essential for organizations aiming to align their services with customer needs, as it emphasizes the flow of value creation rather than merely focusing on isolated tasks or functions. This holistic view helps organizations enable better collaboration and integration of services, ultimately leading to enhanced customer satisfaction and improved business outcomes.