Hello to our tech-savvy and not-so-techy readers! Let’s talk about the value of services. You know how when you buy a product, let’s say a shirt, you can touch it, see its color, and feel its fabric? But when it comes to services, it’s a tad different. Let’s delve into that a bit.

What’s the Real Value of a Service?

The real worth of a service isn’t in its bells and whistles or fancy packaging. It’s about whether it meets your expectations. Think of it this way: Imagine going to a spa. The value you get isn’t just the massage, but how relaxed and refreshed you feel afterward.However, unlike tangible products (like our shirt example), services have a more intangible value. Their true value emerges from what they enable you to do. For instance, a subscription to an online learning platform is valuable not just because it offers courses, but because it helps you gain knowledge and skills.

Utility and Warranty: The Dynamic Duo

The value of a service comes down to two main elements: Utility and Warranty.1. Utility – “What the service does”

  • Think of utility as the basic function or the main job of a service.
  • Example: Let’s say your business offers an online platform for book lovers. The utility of this service is to provide users access to a wide range of books, help them track their reading, and connect with fellow readers.

2. Warranty – “How the service is delivered”

  • This ensures that the service is reliable and meets certain standards.
  • Going back to our book platform example, warranty would involve ensuring the platform is always available, runs smoothly without glitches, and keeps user data safe.

The crux is, a great service must excel in both utility and warranty. It’s like having a delicious pizza (utility) delivered hot and on time (warranty).

The Balance of “Fit for Purpose” and “Fit for Use”

It’s essential that a service is not only functional (fit for purpose) but also reliable and easy to use (fit for use). Imagine having a state-of-the-art coffee machine (great utility) that’s so complicated you can’t figure out how to turn it on (poor warranty). Frustrating, right?In a nutshell, a top-notch service is one that does its job well (utility) and is delivered efficiently and reliably (warranty).

A Parting Thought

When crafting a service, it’s essential to consider what customers really value and then design the service to meet those needs, keeping both its utility and warranty in mind. Whether you’re an IT guru, a business owner, or just someone curious about how services work, always remember: A service’s real value lies in how it benefits the user. So, next time you’re evaluating a service, think about what it does and how it does it!


References: ITIL Service Operation, 2011 edition, ISBN 9780113313075