Creating Value: This describes how to create a valuable IT service

A company’s main purpose is to create value for customers in a cost-effective and efficient manner. Customers are the main concern during the Service Strategy stage in the ITIL Lifecycle. Service Utility and Service Warranty are the two key inputs that will determine if an IT service is providing value to customers. These two factors must be in place to create value for your customer. Online ITIL training will give you a comprehensive understanding of creating value through Service Utility, Service Warranty and IT service provision. You can also test your knowledge by taking a sample ITIL certification exam. What is creating value? How can you achieve your creating value goal? This article will discuss how creating value works in the ITIL Service Strategy phase.

What is Service Utility and Service Warranty in the context of Creating value?
ITIL Training teaches that Service Utility describes the service’s purpose and Service Warranty describes its performance. Service Warranty and Service Utility can be combined to create value in services.
Service utility can create value
The functionality of an IT service from the customer’s point of view is called Service Utility. The utility is also the fitness for the purpose. Money withdrawal, for example, is a service. The utility of this service is the provision of money to customers through the bank’s ATM channels. To ensure that a service is fit for purpose or useful, either performance requirements must be met or restrictions must be removed. This will ensure that customers are satisfied with the service.
Service warranty: Creating value
A service warranty is the guarantee that the service will meet the agreed requirements. To ensure the warranty of a service, it must meet certain requirements such as availability, continuity, and security. Failure to meet any of these requirements will result in the service’s warranty being void. It is impossible to create value for the service.
A service warranty is an assurance that an IT service will meet specified requirements. These requirements could be a formal agreement, such as a Service Level Agreement, contract, or a marketing message or image. Consider the money withdrawal service once again. The warranty includes availability of ATMs, continuity of capacity, security, and the ability to withdraw money. If a transaction takes longer than five minutes, even if it is completed successfully, will you be happy? Most likely not. Customers also need to have a warranty on the service they receive.
The process of creating value to the customer
This diagram illustrates the process of creating value to the customer. Before you move on to the diagram, it’s best to explain each component. If you are familiar with electronics or computer science, then you should know about AND Gates and OR Gates. In this diagram, value is the result of these gates. Utility and warranty are the inputs. The requirements for creating value from the delivery of a service are met by the utility and warranty. Your goal of creating value directly will be affected if either warranty or utility is not met. To be able say that the services have enough utility to create value, only one of the inputs to utility must be true. All inputs must be present for warranty to be valid.

Value creation: It is crucial to perceive value
A service provider’s primary purpose is to create value for its customers through its services. The customer sees the value of a service in more than just financial terms. Let’s say you need a car. There are many brands, features, and options on the market. Opel is a brand, Mercedes is a brand, and Ferrari is a car.