8. ITIL | value creation | service assets | resource and capability

Summary

The video discusses how service value is created through the use of resources and capabilities within an organization. Resources, such as financial capital and infrastructure, are transformed by management, people, and knowledge. Capabilities refer to skills in managing these resources. Service value is defined from the customer’s perspective, based on business outcomes, preferences, and perception. The customer compares the service to existing options, weighing perceived gains and losses. The economic value is the total benefit the customer perceives, influencing their decision to invest in the service.

Takeaways

• 😀 Resources are the tangible inputs for production, including financial capital, infrastructure, applications, and information.
• 😀 Capabilities refer to the intangible skills and knowledge that enable effective resource management and production.
• 😀 Resources and capabilities work together to create value in service delivery.
• 😀 The value of a service is defined by the customer based on business outcomes, preferences, and perceptions.
• 😀 The reference value is based on the customer's existing arrangements or a 'do-it-yourself' approach.
• 😀 A positive difference represents the added benefits the service provides compared to the reference value.
• 😀 A negative difference is the perceived loss the customer faces when investing in the service.
• 😀 The net difference is the customer's perception of how much better or worse the service is compared to the reference value.
• 😀 Service providers can influence the customer's perception by listening to their requirements and matching the service features accordingly.
• 😀 The economic value of a service is the total perceived value delivered to the customer, considering both positive and negative differences.

Q & A

What are service assets in the context of value creation?

Service assets refer to the resources and capabilities used to create value. Resources include tangible assets like financial capital, infrastructure, and applications, while capabilities involve the skills, knowledge, and processes needed to manage and deploy these resources.

What is the difference between resources and capabilities?

Resources are tangible inputs for production, such as financial capital, infrastructure, and applications. Capabilities, on the other hand, are intangible assets like skills, knowledge, and the ability to manage, coordinate, and deploy resources effectively.

What are some examples of resources in an organization?

Examples of resources in an organization include financial capital, infrastructure, applications, and information. These are tangible assets that aid in the production and delivery of IT services.

What are capabilities in an organization?

Capabilities refer to the skills, knowledge, and processes within an organization that enable the effective management and deployment of resources. They are intangible assets that help coordinate and control resources to deliver services.

How is value defined from a customer perspective?

Value is defined by the customer in terms of three areas: business outcomes, customer preferences, and customer perception. Customers assess the value of a service based on its benefits, the alignment with their needs, and how it compares to existing solutions.

What is the role of customer perception in determining service value?

Customer perception plays a crucial role in defining service value. It involves the customer’s judgment on how much better or worse the service is compared to their reference value, which is based on existing arrangements or alternatives.

What is the reference value for a customer when evaluating a service?

The reference value is the baseline the customer uses when evaluating a service. It is based on their existing arrangements or do-it-yourself solutions, and it helps them determine how much better or worse a new service might be.

How do positive and negative differences influence the customer’s decision?

A positive difference reflects the perceived benefits and gains a service offers, while a negative difference represents the perceived losses or drawbacks. Customers weigh these differences to decide whether the service is worth investing in.

What is the net difference in customer decision-making?

The net difference is the overall perception the customer has after considering both the positive and negative differences. It reflects how much better or worse the service is compared to the reference value, and this ultimately influences the decision to invest in the service.

What is meant by the economic value of a service?

The economic value refers to the total value a customer perceives a service to deliver. This includes all perceived benefits, reduced losses, and any other factors that influence the customer’s judgment of the service's worth.