Skip to main content


English: A business ideally is continually see...
English: A business ideally is continually seeking feedback from customers: are the products helpful? are their needs being met? Constructive criticism helps marketers adjust offerings to meet customer needs. Source of diagram: here (see public domain declaration at top). Questions: write me at my Wikipedia talk page (Photo credit: Wikipedia)
Once again like in most things, ITIL helps to explain the common sense.  In this case it is the definition of "value" - basically while their definition is somewhat wordy, it gets the point across that Value is defined by the consumer.  What you might consider to be valuable, actually might not be ... the person purchasing it from you will actually make that decision and will base it on whether or not the service meets their demands at the price they are willing to pay for it.

ITIL however does go on to define value a bit further instead of just leaving it up to the customers decision.  They have indicated that value consists of two basic elements:

  • Utility - what does the product or service do?  Does it meet the needs of the customer?
  • Warranty - does the product or service meet the agreed upon requirements, specifically in regards to availability, capacity, continuity and security.  Warranty reduces fluctuations in the service and can to some extent be considered in the light of SLA conversations.
Both elements – Utility and Warranty – are imperative and have to be taken into account and ensured to equal extent when designing and providing a service.  Remember:

Utility = what the service does

Warranty = how is that service delivered

By working with other parts of the organization to improve the utility of a service, businesses are able to improve the functionality of service and what it is able to do for a customer.  However it bears pointing out that improving the Utility of a service does not have an automatic improvement on its Warranty - in fact, care must be taken to ensure that slippages do not occur in this area to the detriment of the service overall!

Improving the warranty of a service however has a very powerful effect allowing you to do the same things (the Utility) but more reliably, faster, cheaper and with a decreased risk to the customer that they will suffer losses due to variations in service performance.

By increasing both Utility and Warranty, organizations are able to do more and do it better.
Post a Comment

Popular posts from this blog

The Difference Between Incident Managment and Problem Management

Incident Management and Problem Management are both key components of the ITIL service model and have been defined and created in an effort to provide a better and more streamlined service to consumers.
ITIL itself stands for the - Information Technology Infrastructure Library - and comprises of the following books:
ITIL Service Strategy ITIL Service Design ITIL Service Transition ITIL Service Operation ITIL Continual Service ImprovementIncident Management and Problem Management are both elements of the fourth volume - ITIL Service Operation, which tries to define the best practice for dealing with interruptions to a customers service. What is an Incident? An incident is a single - unique - issue impacting one specific customer and their service. While there can be many similar incidents impacting multiple customers, each of them are in their fashion unique and need to be logged and treated as such.
An example of an incident is you losing your home Internet connection. While the underly…

What is PRINCE2

PRINCE2 stands for PRojects IN Controlled Environments and is a very popular method for effective Project Management.  PROJECT MANAGEMENTWhile PRINCE2 is one way of managing Projects, it is worthwhile defining what exactly a project is and why it needs management in the first place! 

A project is specific task/role that needs to be completed to meet certain objectives. In a managed project, you would have a defined beginning and end and certain "check points" throughout the process itself to ensure that you were on target to meet your overall objectives.

These checkpoints are referred to as "gates" and at each gate, you would have certain deliverable and targets to check your progress against. By managing a project in this fashion, you are able to ensure that you stay on track and that any issues or concerns are identified and dealt with at an early stage of the process versus waiting till the end.

The defined "end" to a project is necessary as it creates …


Competition is extremely fierce in the world of business, only a handful survive, and some can barely keep up with the demands of the times. That's why it is necessary to have an idea of what it takes to be successful and an integrated strategy to help maintain excellent service results.

ITIL discusses at length the four “Ps” of strategy- perspective, position, plan and pattern, each of which represents a different way to approach your service strategy. Brief summaries are provided here: Perspective - This is basically the vision statement of an organization.  Why is it in business, why is it doing what it is doing?  What are the plans and ideas for the future and how does the organization interact with its customers?  A perspective cements a service provider’s distinctiveness in the minds of the employees and customersPositions - What is the competitive landscape and how will the organization compete with other similar providers?  What is the key distinction between them and oth…


In a similar fashion to interviewing and hiring people - the hardest and most expensive exercise is getting the right employee - getting people back into the door is exactly the same.  You want that repeat custom as that is what will save you money in your marketing and advertising.  One of the key components to this in addition to the quality of the product itself is the customer service that you provide to the customer in their purchasing and ordering decisions.  You can offer promotions and slash prices to bring in as many new customers as you want, but unless you can get some of those customers to come back, your business won't be profitable for long. Good customer service is all about bringing customers back. And about sending them away happy - happy enough to pass positive feedback about your business along to others, who may then try the product or service you offer for themselves and in their turn become repeat customers. 
Good customer service should be thought of as re…