{"id":4463,"date":"2014-11-25T21:06:38","date_gmt":"2014-11-25T21:06:38","guid":{"rendered":"https:\/\/multiacademstg.wpengine.com\/20000academy\/blog\/2014\/11\/25\/itil-framing-the-value-of-services-part-ii\/"},"modified":"2025-06-13T14:15:21","modified_gmt":"2025-06-13T14:15:21","slug":"itil-framing-the-value-of-services-part-ii","status":"publish","type":"post","link":"https:\/\/advisera.com\/20000academy\/blog\/2014\/11\/25\/itil-framing-the-value-of-services-part-ii\/","title":{"rendered":"ITIL \u2013 Framing the value of services (part II)"},"content":{"rendered":"<p>In my previous article, <a href=\"https:\/\/advisera.com\/20000academy\/blog\/2014\/11\/11\/itil-strategy-framing-the-value-of-services-part-i\/\" target=\"_blank\" rel=\"noopener noreferrer\">ITIL \u2013 Framing the value of services (part I)<\/a>,\u00a0using the Help Desk (or Service Desk) as a service example, we\u2019ve established that value is a byproduct of service outcomes, and not the service itself. With both tangible and intangible service outcomes, value comes mainly from <strong>utility<\/strong> (fit for purpose) and <strong>warranty<\/strong> (fit for use) elements, and in today\u2019s article we\u2019ll explore that paradigm.<\/p>\n<h2 style=\"padding-top: 10px; padding-bottom: 10px;\">Utility plus warranty equals value<\/h2>\n<p>In our Help Desk \/ Service Desk example from the previous article, effective <a href=\"https:\/\/advisera.com\/20000academy\/iso-20000-documentation-toolkit\/?rel=resolution-and-fulfillment-processes&amp;doc=incident-record\" target=\"_blank\" rel=\"noopener\">incident resolution<\/a>\u00a0will eliminate any issues that prevent end-users (customers) from continuing with their daily operations. By fulfilling <strong>the need for quick service restoration when it gets down<\/strong>, our Help Desk service is providing <strong>utility<\/strong> (fit for purpose). If we look at performance across all of our end-users, we will see that there are always some whose issues weren\u2019t resolved in time (low performance), and some with minimum or no downtime in daily operations (high performance), but most of them will fall somewhere in between those two extreme conditions. When service is more <strong>fit for purpose<\/strong>, utility has a positive effect on performance, and consequently on service value (as shown in Figure 1).<br \/>\n<div id=\"middle-banner\" class=\"banner-shortcode\"><\/div><script>loadMiddleBanner();<\/script><br \/>\n<div id=\"side-banner-trigger\" class=\"banner-shortcode\"><\/div><br \/>\nAs people run the Help Desk, we can\u2019t expect that every person will be equally effective in their performance. Such variation may decrease service value; that\u2019s why we establish procedures, e-mail, and other templates when communicating with customers, all in order to minimize or completely eliminate variations each individual may bring into the system. <strong>By providing enough capacity, availability, and continuity<\/strong>, we are creating <strong>warranty<\/strong> (fit for use)<strong>. <\/strong>Warranty doesn\u2019t increase performance in absolute terms, but rather ensures a uniformed service experience as shown in Figure 1. Both utility and warranty together result in a better performance average with the least deviation, i.e., value created for the customer.<\/p>\n<p style=\"text-align: center;\"><em><img decoding=\"async\" class=\"aligncenter size-full wp-image-5222\" src=\"https:\/\/advisera.com\/wp-content\/uploads\/sites\/6\/2014\/11\/Utility_and_warranty_effect_on_performance.png\" alt=\"Utility_and_warranty_effect_on_performance\" width=\"609\" height=\"372\" srcset=\"\/wp-content\/uploads\/sites\/6\/2014\/11\/Utility_and_warranty_effect_on_performance.png 609w, \/wp-content\/uploads\/sites\/6\/2014\/11\/Utility_and_warranty_effect_on_performance-300x183.png 300w\" sizes=\"(max-width: 609px) 100vw, 609px\" \/>Figure 1 &#8211; Utility and warranty effect on performance<\/em><\/p>\n<h2 style=\"padding-top: 10px; padding-bottom: 10px;\">How do you measure value?<\/h2>\n<p>By simply reading books on <a href=\"https:\/\/advisera.com\/20000academy\/what-is-itil\/\" target=\"_blank\" rel=\"noopener noreferrer\">ITIL<\/a>, one might get the feeling that doing utility and warranty right will result in happy and satisfied customers who consume high-quality services. While that might be true, there is still an unanswered question regarding exact value measurement.<\/p>\n<p>Since <strong>utility<\/strong> is <strong><em>perceived by the customer<\/em><\/strong><em> from the attributes of the service that have a positive effect on the performance of tasks associated with desired outcomes<\/em>, how do we measure the \u201cperceived by the customer\u201d part?<\/p>\n<p>Luckily, there is a way of <a href=\"https:\/\/advisera.com\/20000academy\/iso-20000-documentation-toolkit\/?rel=relationship-and-agreement-processes&amp;doc=service-report\" target=\"_blank\" rel=\"noopener\">measuring<\/a>\u00a0what\u2019s perceived, and while it\u2019s not something from ITIL, it has been around since the 1980s. It\u2019s SERVQUAL (later known as RATER) \u2013 a quality management framework that identifies five elements of service quality:<\/p>\n<ol>\n<li><strong>Reliability<\/strong> is the &#8220;Ability to perform the promised service dependably and accurately.&#8221; From an ITIL perspective: it\u2019s utility.<\/li>\n<li><strong>Assurance<\/strong> is the &#8220;Knowledge and courtesy of employees and their ability to inspire trust and confidence.&#8221; Inspiring trust and confidence during interactions with consumers spans continuity and security, and thus, is part of warranty.<\/li>\n<li><strong>Tangibles<\/strong> describe the &#8220;Appearance of physical facilities, equipment, personnel, and communication materials&#8221; \u2013 think the usability of documentation, interfaces, handsets, keyboards, monitors, etc.; all of which fit neatly under the &#8220;how it\u2019s delivered&#8221; concept of warranty.<\/li>\n<li><strong>Empathy<\/strong> is the &#8220;Caring, individualized attention the firm provides its customers.&#8221; Empathy can arise from offering convenient business hours or being available for support or service when needed, and so on \u2013 another component of warranty.<\/li>\n<li><strong>Responsiveness<\/strong> is the &#8220;Willingness to help customers and provide prompt service.&#8221; Providing prompt service is applicable to the concepts of capacity, performance, and latency \u2013 making the dimension of Responsiveness an attribute of warranty.<\/li>\n<\/ol>\n<h2 style=\"padding-top: 10px; padding-bottom: 10px;\">Perceived value is an individual thing<\/h2>\n<p>To sum up: the greatest impact on service value has both <strong>utility<\/strong> and <strong>warranty<\/strong>. Utility impacts service value either by removing existing constraints, or by improving the outcomes for the customer \u2013 thus, fit for purpose. Warranty, on the other hand, describes how well those outcomes are delivered to the customer, or how fit for use they are in terms of availability, capacity, performance, security, and continuity.<\/p>\n<p>Value comes from the ability to fulfill the <a href=\"https:\/\/advisera.com\/20000academy\/iso-20000-documentation-toolkit\/?rel=relationship-and-agreement-processes&amp;doc=service-level-requirements\" target=\"_blank\" rel=\"noopener\">need<\/a>, so understanding the need is a basic requirement for value creation.\u00a0 However, needs change with time, place, and other conditions, and may even vary from person to person; a bottle of water has little or no value in our everyday lives, but to a dehydrated person in the middle of the desert, it has more value than its weight in gold.<\/p>\n<p><em>To implement ISO 20000 easily and efficiently, use our<\/em> <a href=\"https:\/\/advisera.com\/20000academy\/iso-20000-documentation-toolkit\/\" target=\"_blank\" rel=\"noopener\">ISO 20000 Documentation Toolkit<\/a> <em>that provides step-by-step guidance for full ISO 20000 compliance.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In my previous article, ITIL \u2013 Framing the value of services (part I),\u00a0using the Help Desk (or Service Desk) as a service example, we\u2019ve established that value is a byproduct of service outcomes, and not the service itself. With both tangible and intangible service outcomes, value comes mainly from utility (fit for purpose) and warranty &#8230;<\/p>\n","protected":false},"author":33,"featured_media":4464,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[404,357,344,204,433,434,435],"class_list":["post-4463","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-customer","tag-incident-management","tag-itil","tag-service","tag-utility","tag-value","tag-warranty"],"acf":[],"_links":{"self":[{"href":"https:\/\/advisera.com\/20000academy\/wp-json\/wp\/v2\/posts\/4463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisera.com\/20000academy\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisera.com\/20000academy\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisera.com\/20000academy\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/advisera.com\/20000academy\/wp-json\/wp\/v2\/comments?post=4463"}],"version-history":[{"count":2,"href":"https:\/\/advisera.com\/20000academy\/wp-json\/wp\/v2\/posts\/4463\/revisions"}],"predecessor-version":[{"id":18435,"href":"https:\/\/advisera.com\/20000academy\/wp-json\/wp\/v2\/posts\/4463\/revisions\/18435"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisera.com\/20000academy\/wp-json\/wp\/v2\/media\/4464"}],"wp:attachment":[{"href":"https:\/\/advisera.com\/20000academy\/wp-json\/wp\/v2\/media?parent=4463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisera.com\/20000academy\/wp-json\/wp\/v2\/categories?post=4463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisera.com\/20000academy\/wp-json\/wp\/v2\/tags?post=4463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}