For those who study or adopt ITIL (Information Technology Infrastructure Library), certain concepts can lead to great doubts, especially when it comes to distinguishing terms that may be confused as synonyms. One of the most prominent examples within ITIL involves the Portfolio and Service Catalog.
This article will explore what each concept entails and the difference between them to enable a better working environment within the IT field.
What is a Service Portfolio according to ITIL?
Firstly, it is worth noting how IT is increasingly present in service provider areas, becoming proactive to the company’s needs. This has made the correct differentiation between the Portfolio and Service Catalog more important than ever.
In this sense, it is important to understand what a Service Portfolio means, according to ITIL specifications. According to the ITIL library, a Service Portfolio is “a complete set of services that will be delivered by the provider.” As such, it describes services in terms of strategic value, size, and discipline, specifying what they are, how they are grouped, and the benefits they provide.
From the customer’s perspective, a Service Portfolio of IT can answer certain questions:
- Why should customers buy the service?
- Why should customers buy the service from your company?
- What resources and components do customers desire and are willing to pay for?
- What is the demand for the service?
- How much are customers willing to pay for this service?
- What resources are required to provide the service?
In other words, the Service Portfolio encompasses the services delivered by the IT department or IT company (in cases of external service providers). It also includes obsolete services (“retired” ones) and proposed or under development services, which may or may not become active services in the future. The goal of the Service Portfolio is to manage services throughout their entire life cycle, with a focus on the value they deliver to the business.
What is a Service Catalog according to ITIL?
On the other hand, the Service Catalog would be a “part of the Portfolio available to a customer”, that is, the active services in the view of a specific customer. An IT Service Catalog, according to ITIL, refers to a work order and a demand channeling mechanism, a term that may sound sophisticated for a website. It takes services from the Service Portfolio and describes them as offerings that a customer can purchase through an online service catalog.
Eventually, it becomes evident that the Service Portfolio is needed before creating a useful Service Catalog. Unfortunately, many IT organizations rush to define the catalog without starting with the portfolio. And what does that result in? Lack of understanding of the services and insufficient definition.
For companies that are reviewing their Service Catalog due to this situation, they need to consider certain strategies:
- Define business services that provide direct support to strategic resources.
- Define technical services to support business services.
- Implement good Service Portfolio management practices to launch a new service, retire one, or improve services in general.
In addition, the portfolio can be rationalized or the strategy can be changed for specific products, so that opportunities for savings can be identified and funds released.
In any case, Service Catalog management is meant to ensure that all information about active services is clearly available and efficiently specified for customers.
Differences between Service Portfolio and Service Catalog
In summary, the differences between Service Portfolio and Service Catalog according to ITIL are clear. The Service Portfolio contains all services (including obsolete and proposed ones), and its management process is strategic. You can find all the information on this subject in the first ITIL service life cycle: Service Strategy.
The IT Service Catalog, on the other hand, contains only active services for a customer. Its management process is tactical and is described in the second phase of the ITIL life cycle: Service Design.
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