The service portfolio provides a complete, strategic view of all services across their entire lifecycle (pipeline, catalogue, retired). It contains critical business information not typically found in a service catalogue, such as business cases, risks, investment priorities, and value propositions. For the company in the scenario, which is facing dipping profits and needs to control costs and investments, service portfolio management offers direct value. It enables a holistic view of resource utilization and lifecycle costs. Most importantly, it provides a structured framework for evaluating and comparing potential new services against existing ones, ensuring that limited investment funds are allocated to opportunities that offer the best value and support strategic objectives.

A. This option incorrectly includes operational details like "support terms and conditions" and "ordering and request procedures" as portfolio-specific elements; these are typically part of the service catalogue.

B. While the list of portfolio elements is largely correct, the described value focuses on sales opportunities rather than addressing the company's core problems of profitability, lifecycle cost management, and investment prioritization.

C. This option is fundamentally flawed as it lists elements (service level targets, supplier details) that the scenario explicitly states are already in the existing service catalogue.

1. AXELOS, ITIL® Service Strategy, 2011 Edition. The Stationery Office.

Section 4.4.1, Purpose and objectives: "The purpose of the service portfolio management process is to manage the service portfolio. Service portfolio management ensures that the service provider has the right mix of services to meet required business outcomes at an appropriate level of investment and risk." This supports the value statement in option D regarding making sound investment decisions.

Section 4.4.4.2, Define: This section details the activities of defining services, which includes creating a business case for each new or changed service. The business case should document costs, risks, and the expected value, aligning with the elements listed in option D.

Figure 4.16, Service portfolio: This figure illustrates that the service portfolio contains the service pipeline, service catalogue, and retired services, providing a view of the entire service lifecycle and the resources used, as mentioned in option D.

2. AXELOS, ITIL® Foundation, ITIL 4 Edition. The Stationery Office, 2019.

Section 5.2.10, Portfolio management: "The purpose of the portfolio management practice is to ensure that the organization has the right mix of programmes, projects, products, and services to execute its strategy within its funding and resource constraints." This directly supports the value proposition in option D of comparing investments and making decisions within a restricted budget.