Define Value, Utility and Warranty in ITIL terminology

Value is perceived by the customer by following two elements of a service

ü  Utility (Fitness for purpose)

ü  Warranty (Fitness for use)

 

Utility is derived from the attributes or functionality of the service that have a positive effect on the performance of objects, tasks, activities associated with desired outcomes. Elimination or removal or relaxation of constraints on performance is also perceived as a positive effect.

Warranty is derived from the positive effect being available when needed, in enough magnitude or capacity and dependably in terms of continuity security and support.

 Utility is what the customer gets, and warranty is how it is delivered.

Customers can’t benefit from something that is fit for purpose but not fit for use and vice versa. It is beneficial to separate the logic of utility from the logic of warranty for purpose of design, development and improvement.

Utility and warranty are the key aspects throughout the service life cycle from conceptualization to design, testing and validation, operations (monitoring and control) and continuous improvements.

Services – Value Creation