ITIL v3 vs ITIL v4: Which ITIL Framework Version is Better?

Is your IT service management approach keeping up with today’s demands? ITIL v3 vs ITIL v4 represents more than just an update. It’s a significant change in how organisations deliver and manage IT services. ITIL v3 is based on structured processes and a lifecycle model, aiming for stability and control. ITIL v4, however, focuses on adaptability, continuous value delivery, and alignment with agile and DevOps methodologies.

This comparison highlights how each version fits different operational needs. Understanding the shift from v3 to v4 helps businesses choose the right framework to stay efficient, responsive, and aligned with modern IT challenges.

Table of Content

1) ITIL v3: An overview

2) ITIL v4: An Overview

3) Why ITIL v4 was Needed

4) Framework of ITIL v4

5) What is the motive of the new version of ITIL 4?

6) Conclusion

ITIL v3: An Overview

ITIL v3 was launched as part of the prestigious ITIL Refresh initiative, on schedule in May 2007 by the Office of Government Commerce (OGC) in the UK. ITIL V3 established a lifecycle methodology for IT service management by grouping 26 processes and functions into five core phases like,

1) Service Strategy

2) Service Design

3) Service Transition, Service Operation

4) Continual Service Improvement.

These phases provided formal guidance to enable organisations to map IT services against business objectives to better improve service quality and better manage risks throughout the organisation. ITIL v3 introduced consistency, control and predictability to the IT operations through its well-defined processes.

It gained a wide acceptance as a popular framework for companies wishing for a stable and dependable method of service management. Yet its inflexibility made it increasingly difficult to fit into the rapid which changing needs of digital settings. With the progression of technology and agile approaches becoming more popular, ITIL v3 came to display its flaws, resulting in the creation and launch of the more adaptable ITIL v4.

ITIL v4: An Overview

ITIL v4 was launched in February 2019 by AXELOS as an update to meet the needs of today’s fast-paced and digital-first world. It was built from the base of the structure of ITIL v3.  In contrast, it became as a highly flexible and value-focused approach. Its service value system, supported by the Four Dimensions Model, which together help organisations to deliver services that more adaptable, efficient and aligned with business goals. ITIL v4 is designed to work seamlessly with modern practices and ways of working.

One of the biggest changes in ITIL v4 is its embrace of agile, DevOps and Lean principles. Instead of strictly following set processes, it encourages organisations to use guiding principles and proven practices that can evolve with the business. This makes it easier to respond to change, drive continuous improvement, and focus on delivering real value to customers. ITIL v4 helps teams collaborate better and manage services in a more integrated and responsive way.

Why ITIL v4 was Needed?

Several shifts in technology and business practices highlighted the limitations of ITIL v3 and created the need for a more modern, adaptable framework. Below are the key reasons that led to the development of ITIL v4:

a) Changing Business Needs: The way businesses operate today is faster and more dynamic than before. ITIL v3's structured approach couldn’t keep up with the speed and flexibility modern organisations needed.

b) Rise of Modern Practices: Teams were adopting agile, DevOps, and Lean because they promote quick delivery and better collaboration. ITIL needed to evolve to fit into these more flexible ways of working.

c) Digital Transformation: With cloud computing, automation, and digital tools becoming the norm, organisations needed a service management approach that could keep pace with constant change.

d) Improved Collaboration: ITIL v3 often led to siloed teams. ITIL v4 was designed to bring people together, encouraging more communication and shared responsibility across departments.

e) Focus on Value Delivery: Instead of just ticking boxes with set processes, ITIL v4 puts the spotlight on delivering real value to users and the business.

f) Need for Continuous Improvement: Change isn’t something that happens once, It's ongoing. ITIL v4 supports continuous learning and improvement, helping businesses stay relevant.

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Framework of ITIL v4

ITIL v4 is structured around two core elements, the Four Dimensions Model and the Service Value System. These components work together to ensure effective, value-driven service management. Let us discern the framework in detail:

ITIL v4: Core Components and Structure

ITIL v4 connects effective IT service delivery with business goals. It provides a practical and modern way for organisations to manage services in today’s fast-moving environment. Two main elements form the foundation of ITIL v4: 

1) Four Dimensions Model

2) ITIL Service Value System (SVS). 

The Four Dimensions Model

This model is based on an earlier concept from ITIL v3, which focused on people, products, processes, and partners. ITIL v4 takes that further by showing how each part of service management is connected. A change in one area will likely affect the others. The model includes:

1) Organisations and People: Having clear roles and responsibilities helps teams work better and support the organisation’s goals.

2) Information and Technology: The tools and knowledge used to support and deliver services.

3) Partners and Suppliers: The external support and agreements that help provide services.

4) Value Streams and Processes: The steps and activities involved in creating and delivering services to customers.

ITIL Service Value System (SVS)

The SVS brings all the key parts of service management together. It helps make sure everything works toward delivering value. Here are the main components:

1) Service Value Chain: A series of connected activities that help deliver quality services.

2) Guiding Principles: Seven practical rules that help teams stay focused and make smart choices.

3) Governance: The structure that keeps everything under control and aligned with business needs.

4) Continual Improvement: The habit of regularly finding ways to improve services and results.

5) Practices: A collection of 34 methods that help manage different parts of service delivery and support business success. 

Key differences of ITIL v3 and ITIL v4

To understand how ITIL has evolved, the table below highlights the key differences between ITIL v3 and ITIL v4 across core concepts, structure, and certification paths:

ITIL v3 Processes and ITIL v4 Practices

a) ITIL v3 consists of 26 processes aligned to five service lifecycle phases.

b) These processes provide structured steps for service delivery and support.

c) They help standardise IT operations but often lack adaptability.

d) ITIL v4 introduces 34 flexible practices across three categories: general, service, and technical.

e) Practices are not tied to lifecycle stages, allowing better use across diverse setups.

f) ITIL v4 supports integration with Agile, DevOps, and Lean working models.

g) This makes it more relevant for current organisational needs.

ITIL v3 vs ITIL v4: Guiding Principles

a) ITIL v3 does not formally include guiding principles in its structure.

b) It focuses more on defined processes and lifecycle flows.

c) ITIL v4 introduces seven guiding principles that apply universally.

d) These include focus on value, start where you are, and progress iteratively.

e) Other principles are collaborate, think holistically, keep it simple, and optimise.

f) They support informed decision-making across service areas.

g) These principles encourage adaptability, consistency, and outcome-driven practices.

Definition of ‘Service’ in ITIL v3 and ITIL v4

a) ITIL v3 defines a service as delivering value without the customer managing risks.

b) The focus is on achieving business outcomes reliably.

c) ITIL v4 retains this core definition but adds a focus on co-creation.

d) Value is now seen as a joint responsibility between provider and consumer.

e) This shift reflects increased collaboration in service delivery.

f) ITIL v4 encourages feedback and shared ownership of outcomes.

g) Services become more user-centric and aligned with real needs.

ITIL v3 Service Lifecycle vs ITIL v4 Service Value System

a) ITIL v3 uses a five-stage lifecycle: Strategy, Design, Transition, Operation, and Improvement.

b) It offers a step-by-step model for delivering IT services.

c) This structure promotes order but may be too linear for modern needs.

d) ITIL v4 replaces this with the Service Value System (SVS).

e) SVS includes components like the value chain, governance, practices, and improvement.

f) It offers a more flexible, end-to-end view of service delivery.

g) The SVS helps align all efforts with business value.

Continual Service Improvement vs Continual Improvement

a) ITIL v3 contains Continual Service Improvement as one of its lifecycle stages.

b) It focuses mainly on service reviews and gradual updates.

c) Improvement efforts are planned and executed in isolation from other stages.

d) ITIL v4 embeds Continual Improvement across its entire framework.

e) It applies to all practices, roles, and decision-making areas.

f) This creates a culture of ongoing enhancement and feedback.

g) Improvement becomes continuous, agile, and more integrated into daily operations.

Roadmap to ITIL v3 and ITIL v4 Certification

a) ITIL v3 has a multi-level certification: Foundation, Intermediate, Expert, and Master.

b) It includes modules focused on lifecycle and capability streams.

c) This path can be lengthy and complex for learners.

d) ITIL v4 offers a simpler and more direct structure.

e) It begins with Foundation and continues to Managing Professional or Strategic Leader.

f) Each path is tailored to practical or leadership skills.

g) A Master level is planned, focusing on practical knowledge in real settings.

What Is the Motive of New Version of ITIL 4?

The main goal of ITIL 4 was to overcome the limitations of previous versions and modernise the framework to meet today’s fast-changing business and technology landscape. Here’s a closer look at why this update was necessary:

Background and Evolution:

1) ITIL began in the late 1980s and evolved through several iterations.

2) ITIL V2 (2000) refined the framework into eight core books.

3) ITIL V3 (2007) focused heavily on roles and processes within the service lifecycle.

4) However, V3 received criticism for being rigid, overly process-driven, and lacking high-level guidance.

Challenges with ITIL V3:

1) Too prescriptive: Organisations found V3’s strict process guidelines didn’t always suit their specific needs.

2) No guiding principles: It lacked strategic direction or decision-making principles.

3) Value delivery gap: It didn’t fully address how IT contributes to broader business value.

Why ITIL Needed an Update:

1) To shift away from process-heavy approaches.

2) To bring focus on value, outcomes, cost, and risk.

3) To support modern digital transformation efforts.

4) To create stronger alignment between IT operations and business goals.

What’s New in ITIL 4:

1) Value-driven model: Greater emphasis on delivering measurable value while balancing cost and risk.

2) Flexible and integrated: Supports multiple frameworks like Agile, Lean, and DevOps.

3) Modern alignment: Built to help organisations adapt to digital practices and evolving customer expectations.

Conclusion

ITIL v4 is a major step forward from ITIL v3, moving from rigid process structures to a flexible, value-focused approach. It works well with Agile, DevOps, and other modern practices, helping organisations adapt and grow. With a stronger focus on collaboration, continuous improvement, and business alignment, ITIL v4 enables teams to deliver better outcomes and stay competitive in a fast-changing digital environment. It is a practical framework built to meet today’s service management challenges.