The world of technology has changed—and the way we manage services had to evolve with it. With the launch of ITIL 5, the focus is no longer only on infrastructure; it now embraces digital product management in a holistic way. If you want to stay relevant in the market, understanding the key concepts of ITIL v5 is the first step toward a successful career.

In this new edition, the framework positions itself as the foundation for organizations that want to create value with digital products and services in complex, AI-driven environments. Below, we break down the pillars that support this new version.

Read also: The Definitive Guide to ITIL 5

The Four Dimensions of Product and Service Management

To ensure value delivery is effective, ITIL Version 5 defines four critical dimensions. They must be considered in a balanced way, because failure in any one of them can compromise the quality of the final product.

Organizations and People: Focuses not only on the org chart, but also on culture, capabilities, and the communication needed to achieve objectives.

Information and Technology: Covers the knowledge required for management, as well as the technologies (such as AI and automation) that enable services.

Partners and Suppliers: Reflects the importance of the ecosystem of external partners that help create and deliver value.

Value Streams and Processes: Defines how activities are organized to transform inputs into useful outcomes in an agile way.

In practice, if your company decides to implement a new AI tool, it shouldn’t look only at the technology—but also at how people will be trained and how current processes will be impacted.

The Value System (VS): The Governance and Management Model

One of the most notable changes in ITIL Version 5 is the evolution of the former SVS into the Value System (VS). This system represents how all components of the organization work together to facilitate value creation.

The Value System is made up of five fundamental elements:

Guiding Principles: Recommendations that guide the organization in any circumstance.

Governance: The system by which the organization is directed and controlled.

Value Chain: A set of high-level activities to manage the lifecycle of products.

Practices: 34 sets of organizational resources used to perform work (e.g., Incident Management, Architecture).

Continual Improvement: The recurring activity of ensuring the organization’s performance consistently meets expectations.

The 7 Guiding Principles of ITIL Version 5

Guiding principles are the IT professional’s compass. They help with decision-making even when there is no detailed process defined. They are:

Focus on Value: Everything the organization does should generate value for stakeholders.

Start Where You Are: Leverage what already works before trying to rebuild everything from scratch.

Progress Iteratively with Feedback: Work in small steps and use customer feedback to adjust direction.

Collaborate and Promote Visibility: Break down silos and work transparently.

Think and Work Holistically: Understand that no part of the organization operates in isolation.

Keep It Simple and Practical: If a process doesn’t add value, eliminate it.

Optimize and Automate: Use technology to scale and reduce human error.

Value Chain and Value Streams: From Theory to Practice

Many professionals confuse these two concepts. In ITIL Version 5, the Value Chain is the fixed model of activities (such as Discover, Design, Build, Support) that the organization can perform.

Value Streams, on the other hand, are the specific combinations of those activities for a real-world scenario. For example, the value stream for “fix a critical app bug” is different from the value stream for “launch a new digital product.”

Mapping these streams is essential to identify bottlenecks and ensure technology truly supports the business—rather than becoming a cost with no clear return.

The Product and Service Lifecycle (ITIL PSLM)

To ensure quality, ITIL Version 5 introduces the Product and Service Lifecycle Model. It describes management activities at each stage—from discovering a need to ongoing support.

Unlike older models, this lifecycle is flexible and adaptable to the organization’s context. It allows companies using methods like Agile and DevOps to integrate their practices natively into the ITIL framework.

How does ITIL Version 5 boost your career?

Mastering the key concepts of ITIL Version 5 isn’t just about earning a certification—it’s about gaining the strategic perspective modern companies demand. Professionals who understand the Value System and know how to apply the guiding principles become leaders capable of managing digital complexity.

Want to become an expert and master these transformations?

PMG Academy offers comprehensive training so you can master ITIL Version 5 with a practical, market-focused approach. Get ready for the official certifications and transform your professional journey!

Have you already started applying the new Value Chain concepts in your company? Leave a comment below and share your experience!