Which stage of the service lifecycle identifies, defines and aligns the IT solution with the business requirements?

Service Transition is responsible for building, testing, and deploying services into production - it does not identify or define the original solution alignment with business requirements.

Service Design takes the service requirements defined in Service Strategy and produces detailed designs for new or changed services, ensuring the IT solution is aligned with business needs. It covers design of the service itself, the supporting systems, processes, technology, and measurement frameworks needed to meet agreed requirements.

Service Operation manages the day-to-day delivery and support of live services and does not concern itself with defining or aligning IT solutions to business requirements.

Service Configuration is not a recognized stage in the ITIL service lifecycle; configuration management is a process, not a lifecycle phase.