Which practice within ITIL is focused on aligning IT services with business needs?

The practice that is focused on aligning IT services with business needs is Strategy Management. This practice is fundamentally about understanding the organization’s objectives and ensuring that the IT service strategy is in sync with these goals. Through effective Strategy Management, an organization can make informed decisions on service investments and prioritize resources such that IT services are not just reactive but are designed and planned to meet the current and future needs of the business.

Strategy Management emphasizes the importance of developing a clear understanding of customer needs and the market landscape, which allows IT to contribute to value creation. This proactive approach ensures that the services provided are not only supportive of business objectives but can also drive innovation and competitive advantage.

In contrast, the other practices mentioned, such as Service Design, Service Transition, and Service Operation, focus on specific life cycle stages or aspects of service delivery rather than directly aligning IT with business objectives. Service Design involves creating services that meet customer requirements; Service Transition deals with managing changes and ensuring services are delivered correctly; and Service Operation focuses on ensuring services are delivered efficiently on a day-to-day basis. While these practices contribute to overall service quality and effectiveness, they do not encapsulate the strategic alignment aspect that is central to Strategy Management.