Skip to main content

Value Elements

Image
By
When discussing the elements of value creation through the delivery of services we always talk about customer preferences, perceptions and the business outcomes they generate.  We also throw in the elements of utility and warranty.  These are all critical in ensuring our ability to create value for our customers and capture value for ourselves as service providers.

The service relationship between service providers and their customers revolves around the use of and interaction of assets.   Assets are made up of both resources and capabilities and are provided by both the service provider and the customer.  These are critical value elements in the creation of usable, customer aligned services.

Many of our customers utilize our services in conjunction with their own assets to then build and deliver services or products our customers then deliver to their customers. We, as the service provider, consider these customer assets.  Without these there would be no basis for defining the value of a service. Therefore, performance of customer assets is a primary concern for service management. 

Organizations use resources and capabilities to create value in the form of goods and services.  Resources direct inputs for production.  Capabilities represent an organization’s ability to coordinate, control and deploy resources to produce value. They are characteristically experience driven, knowledge intensive and information based.  They are derived from the organization’s people, systems, processes and technologies.

Service providers must continually develop new and distinctive capabilities that align to the changing customer needs in order to retain customers with the suitable value offerings that would be difficult for the competition to duplicate, thus giving us the competitive advantage.  These must be balanced with the appropriate and adequate resources which the service provider is dependent upon for the delivery of fitting services.

For more information please click through to http://www.itsmacademy.com/lifecycle/ 
Labels:

Comments

Post a Comment

Popular posts from this blog

Four Service Characteristics

By
Recently I came across several articles by researchers and experts that laid out definitions and characteristics of services. ITIL provides us with a definition that can help drive the creation of value-laden services: A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks. An area that ITIL is not so clear is in terms of service characteristics. Several researchers and experts put forth that services have four basic characteristics (IHIP): Intangibility—Services are the results of actions not things. They have no physical presence and represent a logical set of elements. One way to think of service is “work done for others.”  Heterogeneity—Also known as “variability”; services are unique items because of the mechanisms used to deliver services, which is people. Because the people element adds variability, the service is variable. This holds true, especially for the value proposition—not eve...
Post a Comment
Read more

What Is A Service Offering?

By
The ITIL 4 Best Practice Guidance defines a “Service Offering” as a description of one or more services designed to address the needs of a target customer or group.   As a service provider, we can’t stop there!   We must know what the contracts of our service offering are and be able to put them into context as required by the customer.     Let’s explore the three elements that comprise a Service Offering. A “Service Offering” may include:     Goods, Access to Resources, and Service Actions 1. Goods – When we think of “Goods” within a service offering these are the items where ownership is transferred to the consumer and the consumer takes responsibility for the future use of these goods.   Example of goods that are being provided in the offering – If this is a hotel service then toiletries or chocolates are yours to take with you.   You the consumer own these and they are yours to take with you.      ...
Post a Comment
Read more

What is the difference between Process Owner, Process Manager and Process Practitioner?

By
This article was originally published in 2015. With the Introduction of ITIL 4, some of this best practice has changed. See  ITIL 4 and the Evolving Role of Roles . Updated Definitions in ITIL 4: Process Owner: In ITIL 4, the concept of 'processes' has expanded into broader 'practices.' Consequently, the Process Owner is now often referred to as the 'Practice Owner.' This individual is accountable for the overall design, performance, integration, and improvement of a specific practice within the organization. They ensure that the practice achieves its intended outcomes and aligns with the organization's objectives. Process Manager: Now commonly known as the 'Practice Manager' in ITIL 4, this role is responsible for the day-to-day management of the practice. The Practice Manager ensures that activities are carried out as intended, manages resources assigned to the practice, and oversees the practitioners performing the work. Process Practit...
Post a Comment
Read more