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10. Glossary

A fast-reference list of the key terms from this guide. Use it for last-minute review — cover the definition, recall it from the term, and check.

Agentic AI — AI that acts with a degree of autonomy, taking actions and decisions to pursue goals with limited human direction.

AI (Artificial Intelligence) — the capability of a machine or system to perform tasks that typically require human intelligence, such as learning and reasoning.

AI governance — directing and controlling an organization's use of AI to ensure it is responsible, ethical, transparent, and aligned with objectives and law.

AI maturity — how advanced and well-integrated an organization's adoption and use of AI is.

Basic service relationship — a transactional, arm's-length relationship with limited joint working.

Build — the lifecycle activity of creating and assembling product or service components.

Business as usual (BAU) — the normal, ongoing execution of routine operations.

Collaborative service relationship — the closest relationship type: deep, ongoing partnership with shared risks and joint innovation.

Continual improvement — the ongoing alignment of practices and services with changing needs; woven throughout the value system.

Continuous delivery — keeping code in an always-releasable state; a human decides when to release to production.

Continuous deployment — automatically releasing every change that passes testing to production, with no manual gate.

Continuous integration (CI) — frequently merging and testing code changes.

Cooperative service relationship — a relationship with more coordination and shared information than a basic one.

Core value stream — a value stream that directly creates and delivers value to external customers.

Cost — the money or resources spent on an activity or resource; services create value partly by removing costs from the consumer.

Critical success factor (CSF) — a necessary precondition for achieving an intended result.

Customer — the person who defines requirements and is accountable for the outcomes of service consumption.

Digital product — a product that consists of or is delivered through digital technology.

Digital product vendor — a party that supplies digital products that others use to provide or consume services.

Digital service — a service delivered or consumed through digital channels.

Disaster — a sudden major event causing serious disruption requiring significant recovery effort.

Enabling value stream — a value stream that supports the core value streams without directly facing the customer.

Error — a flaw or vulnerability that may cause incidents.

Event — any change of state significant for the management of a service or component (not inherently negative).

Experience level agreement (XLA) — an agreement focused on experience outcomes rather than only technical metrics.

Feedback — information about a service, its use, and its value, flowing from consumer to provider.

GenAI (Generative AI) — AI that creates new content based on patterns learned from data.

Good — a tangible or intangible item whose ownership transfers from provider to consumer.

Governance — the means by which an organization is directed and controlled (evaluate, direct, monitor).

Guiding principles — recommendations that guide good decisions in any circumstance; there are seven.

Human-centred design — an approach that puts people's real needs at the centre of design decisions.

Incident — an unplanned interruption to a service or a reduction in its quality.

ITIL AI Capability Model — a model for assessing an organization's capabilities for adopting, using, and governing AI across the four dimensions.

ITIL Practice Guides — detailed, individually-maintained documents, one per management practice.

ITIL Product and Service Lifecycle — the model of activities products and services move through: discover, design, acquire, build, transition, operate, deliver, support.

ITIL Value System — the model describing how the organization's components and activities work together to co-create value.

Known error — a problem that has been analysed and whose cause is understood, but not yet permanently resolved.

Management practice — a set of organizational resources designed for performing work or accomplishing an objective.

Metric — a measurement or calculation monitored or reported for management and improvement.

Observability — the ability to understand a system's internal state from the data it emits.

Operating model — the conceptual representation of how an organization runs to create and deliver value.

Outcome — a result for a stakeholder, enabled by one or more outputs.

Output — a tangible or intangible deliverable produced by an activity.

PESTLE — external factors: Political, Economic, Social, Technological, Legal, Environmental.

Problem — a cause, or potential cause, of one or more incidents.

Product — a configuration of an organization's resources designed to offer value to a consumer.

Reliability — the degree to which a service performs its intended function consistently over time.

Risk — a possible event that could cause harm or loss or affect objectives; includes positive (opportunity) uncertainty.

Service — a means of enabling value co-creation by facilitating outcomes customers want, without their managing specific costs and risks.

Service action — an activity the provider performs as part of a service.

Service consumer — an organization (or part) that uses services.

Service journey — the complete end-to-end experience a consumer has with a provider across all touchpoints over time.

Service level — a defined, measurable target for an aspect of a service.

Service level agreement (SLA) — a documented agreement between provider and consumer specifying services and expected service levels.

Service offering — a formal description of one or more services for a target consumer group; may include goods, access to resources, and service actions.

Service provider — an organization (or part) that provides services and takes on the associated costs and risks.

Site Reliability Engineering (SRE) — a discipline applying engineering and software practices to operations to improve reliability and scalability.

Sponsor — the person who authorizes the budget for service consumption.

Sustainability — the ability to maintain value over the long term, balancing economic, social, and environmental considerations.

Transformation — a fundamental, often large-scale shift in how an organization operates or creates value.

User — the person who actually uses a service.

Utility — the functionality of a product or service; fitness for purpose.

Value — the perceived benefits, usefulness, and importance of something.

Value chain — the set of interconnected activities an organization performs to create value.

Value co-creation — the active collaboration between provider and consumer (and others) that produces mutual value.

Value stream — a series of steps an organization undertakes to create and deliver value.

Value stream management — the ongoing practice of planning, assessing, and improving the flow of value through value streams.

Value stream mapping — creating a visual representation of a value stream to understand and analyse its flow.

Warranty — the assurance that a product or service meets agreed requirements; fitness for use.

Alvin Varughese
Written byAlvin Varughese
Founder18 professional certifications