At the core of ITSM is the idea of delivering services to customers, how these services will be engaged to deliver some form of value to the customer and the customer’s organization, and the value captured by the service provider.  For this to be accomplished we must first understand the key elements of an IT service and how, as a service provider, we deliver the correct set of services effectively and efficiently.   “A service is a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks”.  This allows the customer to create the desired business outcome without having to invest in specialized tools or skills.  By linking activities performed by the service provider to the desired business outcomes the provider can be seen as contributing value, not just as a cost to the business. The value of a service is derived from what it enables someone to accomplish or what outco...

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...

What is the difference between a service and a good? When answering questions like these, I attempt to look at things from a simplified view. I try to stay away from complexity and decompose or deconstruct the parts of an answer to its most basic form. As a result, for me the difference between a service and good is very simple. A service is intangible (an abstraction or an idea) while a good is tangible (having physical characteristics). In terms of the creation or production of each, they are both “manufactured” or “created” using the exact same approach. Raw materials are “processed” into a finished output. So both services and goods could be considered “products” of a manufacturing “process.” In this way services and goods are the same thing. The difficulty arises for many people when it comes to the idea of “manufacturing” services. Because they can see, taste, smell or feel a service as it makes its way through the “manufacturing” process, they end up thinking or believing that...