{"id":14360,"date":"2021-09-17T16:20:53","date_gmt":"2021-09-17T10:50:53","guid":{"rendered":"https:\/\/www.invensislearning.com\/blog\/?p=14360"},"modified":"2026-04-06T11:17:35","modified_gmt":"2026-04-06T05:47:35","slug":"value-creation-through-services","status":"publish","type":"post","link":"https:\/\/www.invensislearning.com\/blog\/value-creation-through-services\/","title":{"rendered":"Understanding Value Creation Through Services in ITIL"},"content":{"rendered":"<p class=\"mini-text\" style=\"text-align: justify;\">The value of a service comes from what it enables someone to do and what the service is made from. Thus we can say that the customer decides the value of a service and not the service provider. The position of the customer is unique, and they will understand what type of return they will be achieved by using the service. Whenever there is a clear relationship between the service and the business objectives the customer needs to achieve, they value the IT service. In this blog, we will look at the various aspects of value creation through services in ITIL.<\/p>\n<h2 class=\"margin-top-20\"><strong>Value Creation Through Services: Characteristics of Value<\/strong><\/h2>\n<p class=\"mini-text\" style=\"text-align: justify;\">The following terms can characterize the value of service:<\/p>\n<ul class=\"number-size\">\n<li style=\"text-align: justify;\">\n<h3 class=\" margin-top-20 color-000\"><strong>Value is Defined by the Customer<\/strong><\/h3>\n<p class=\"mini-text margin-top-20\">Even if the service provider suggests a particular value, the customer ultimately decides whether or not the service is valuable enough for them or not.<\/p>\n<\/li>\n<li style=\"text-align: justify;\">\n<h3 class=\"margin-top-20 color-000\"><strong>An Affordable Mix of Features<\/strong><\/h3>\n<p class=\"mini-text margin-top-20\">Depending on which service offering has the most effective set of features and at a reasonable price, customers make their choice.<\/p>\n<\/li>\n<li style=\"text-align: justify;\">\n<h3 class=\"margin-top-20 color-000\"><strong>Achievement of Objectives<\/strong><\/h3>\n<p class=\"mini-text margin-top-20\">Customers perceive maximum value from those particular services which can be associated with their business objectives, and this value may not always be financial in nature.<\/p>\n<\/li>\n<li>\n<h3 class=\"margin-top-20 color-000\" style=\"text-align: justify;\"><strong>Value Changes Over Time and Circumstance<\/strong><\/h3>\n<p class=\"mini-text margin-top-20\" style=\"text-align: justify;\">As time passes, the perception by a customer regarding what is valuable to them is likely to change as their business priorities change.<\/p>\n<\/li>\n<\/ul>\n<h2 class=\"margin-top-20\"><strong>Value Creation Through Services: Perceived Value<\/strong><\/h2>\n<p class=\"mini-text\" style=\"text-align: justify;\">Taking into account the characteristics above, the perceived value of an <span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.invensislearning.com\/blog\/itil-service-providers\/\">IT service provider<\/a><\/span> is influenced by the following 3 core questions:<\/p>\n<ol>\n<li class=\"mini-text margin-top-20\">What are IT services being provided to the customer?<\/li>\n<li class=\"mini-text margin-top-20\" style=\"text-align: justify;\">What is the customer achieving as a result of using the IT services?<\/li>\n<\/ol>\n<p><a href=\"https:\/\/www.invensislearning.com\/itil-4-foundation-certification-training\/\" target=\"_blank\" rel=\"noopener\"><img class=\"alignnone wp-image-10077 size-full\" src=\"https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2020\/11\/ITIL-4-Foundation-864x90-2.jpg\" alt=\"ITIL 4 Foundation - Invensis Learning\" width=\"864\" height=\"90\" srcset=\"https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2020\/11\/ITIL-4-Foundation-864x90-2.jpg 864w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2020\/11\/ITIL-4-Foundation-864x90-2-300x31.jpg 300w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2020\/11\/ITIL-4-Foundation-864x90-2-768x80.jpg 768w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2020\/11\/ITIL-4-Foundation-864x90-2-150x16.jpg 150w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2020\/11\/ITIL-4-Foundation-864x90-2-696x73.jpg 696w\" sizes=\"(max-width: 864px) 100vw, 864px\" \/><\/a><\/p>\n<h3 class=\"margin-top-20\"><strong>Creating Value<\/strong><\/h3>\n<ul class=\"blog-ul-list margin-top-20\">\n<li>\n<p class=\"mini-text margin-top-20\" style=\"text-align: justify;\">Quantifying the financial value of a service would be simple if it can directly relate to business outcomes that are measured in financial terms. It is tougher to evaluate the value of a service when the business outcomes are not linked directly to a monetary value.<\/p>\n<\/li>\n<li style=\"text-align: justify;\">\n<p class=\"mini-text margin-top-20\">Other than the ability of a service to help the customer achieve business outcomes, there are several other factors that influence the customer\u2019s perception of value. They are the customer\u2019s preferences and perceptions.<\/p>\n<\/li>\n<li>\n<p class=\"mini-text margin-top-20\" style=\"text-align: justify;\">We can see the relationship among business outcomes, perceptions, preferences, and the value of the services below.<\/p>\n<\/li>\n<\/ul>\n<p><img class=\"wp-image-14363 size-full aligncenter\" src=\"https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-creation.jpg\" alt=\"value creation through services - Invensis learning\" width=\"703\" height=\"491\" srcset=\"https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-creation.jpg 703w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-creation-300x210.jpg 300w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-creation-150x105.jpg 150w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-creation-696x486.jpg 696w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-creation-601x420.jpg 601w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-creation-100x70.jpg 100w\" sizes=\"(max-width: 703px) 100vw, 703px\" \/><\/p>\n<h3><strong>Value Creation Through Services: Perception of Value<\/strong><\/h3>\n<p class=\"mini-text\" style=\"text-align: justify;\">Service providers need to understand, articulate and measure the effectiveness of their services in enabling the customers to achieve desired outcomes. They also need to consider any potential differences between what the customer perceives as valuable and what the service providers believe they provide.<\/p>\n<p class=\"mini-text\" style=\"text-align: justify;\">The customer\u2019s perception of a service provider and the value of the services from that service provider are influenced by the following:<\/p>\n<ul>\n<li class=\"mini-text margin-top-0\">The attribute of the services delivered<\/li>\n<li class=\"mini-text margin-top-0\">The past and present experience of the customer; of similar attributes, the supplier and their competitors and peers.<\/li>\n<li class=\"mini-text margin-top-0\">The relative capability of the service provider\u2019s competitors.<\/li>\n<li class=\"mini-text margin-top-0\" style=\"text-align: justify;\">The self-image of the customer and position in the market.<\/li>\n<\/ul>\n<p><iframe title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/nRsVb1j9jyo\" width=\"615\" height=\"318\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><\/iframe><\/p>\n<h2 class=\"mini-text margin-top-0\"><strong>How Customers Tend to Perceive The Economic Value of Service?<\/strong><\/h2>\n<ul>\n<li class=\"mini-text margin-top-0\" style=\"text-align: justify;\">The customer\u2019s perception starts at their own reference value which is based on the value of doing the activities on their own. The reference value need not be based on hard facts.<\/li>\n<li class=\"mini-text margin-top-0\">The positive difference of the proposed service is based on the additional benefits that the customer perceives they will gain.<\/li>\n<li class=\"mini-text margin-top-0\">The negative difference is the customer\u2019s perception of what they may lose if they took the proposed service.<\/li>\n<li class=\"mini-text margin-top-0\">The net difference is the overall perception of the customer of how much better the value proposition is from the service proposal to the reference value.<\/li>\n<li class=\"mini-text margin-top-0\" style=\"text-align: justify;\">The economic value is the total value that the customer perceives the proposed service will deliver, including the reference value. It is the overall measure of the customer\u2019s perception of their ability to meet the desired outcomes when using the proposed service.<\/li>\n<\/ul>\n<p><strong><img class=\"wp-image-14362 size-full aligncenter\" src=\"https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-perception.jpg\" alt=\"perception of value - value creation through services - Invensis learning \" width=\"700\" height=\"681\" srcset=\"https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-perception.jpg 700w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-perception-300x292.jpg 300w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-perception-150x146.jpg 150w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-perception-696x677.jpg 696w, https:\/\/www.invensislearning.com\/blog\/wp-content\/uploads\/2021\/07\/value-perception-432x420.jpg 432w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/strong><\/p>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p style=\"text-align: justify;\">Value creation is an essential objective for any organization. An effective value created for the customers is unique. And, their requirements are driven by the value that they seek from the service provider. Therefore, an efficient value-driven strategy is what defines a good service in ITIL. Give yourself a chance to learn the great skills and best practices in service management with ITIL 4 Foundation certification\u00a0training and gain advanced professional expertise in service management.<\/p>\n<p style=\"text-align: justify;\"><i>Know more about Service Management best practices through Invensis Learning\u2019s IT Service Management certification training on\u00a0<span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.invensislearning.com\/itil-4-foundation-certification-training\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;ITIL Certification&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:15297,&quot;3&quot;:{&quot;1&quot;:0},&quot;9&quot;:0,&quot;10&quot;:2,&quot;11&quot;:0,&quot;12&quot;:0,&quot;14&quot;:{&quot;1&quot;:2,&quot;2&quot;:0},&quot;15&quot;:&quot;Calibri, sans-serif&quot;,&quot;16&quot;:11}\">ITIL Certification<\/span><\/a><\/span>,\u00a0<span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.invensislearning.com\/siam-foundation-certification-training\/\" target=\"_blank\" rel=\"noopener noreferrer\">SIAM\u00a0Foundation<\/a><\/span><\/i><i>,\u00a0<span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.invensislearning.com\/siam-professional-certification-training\/\" target=\"_blank\" rel=\"noopener noreferrer\">SIAM professional<\/a><\/span>,\u00a0<span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.invensislearning.com\/verism-foundation-certification-training\/\" target=\"_blank\" rel=\"noopener noreferrer\">VeriSM<\/a>,<\/span>\u00a0etc.\u00a0<\/i><\/p>\n<p><script type=\"application\/ld+json\">{\n  \"@context\": \"http:\/\/schema.org\",\n  \"@type\": \"VideoObject\",\n  \"name\": \"ITIL 4 Tutorial for Beginners | What is ITIL? | ITIL 4 Foundation Training | Invensis Learning\",\n  \"description\": \"This Invensis Learning video on ITIL tutorial for beginners explains what is ITIL, and its benefits. 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Thus we can say that the customer decides the value of a service and not the service provider. The position of the customer is unique, and they will understand what type of return they will [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":14465,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[7],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v16.7 (Yoast SEO v16.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Value Creation Through Services in ITIL Explained<\/title>\n<meta name=\"description\" content=\"Discover how value creation through services in ITIL enhances customer satisfaction and drives business success. Learn the key characteristics and factors.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.invensislearning.com\/blog\/value-creation-through-services\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Understanding Value Creation Through Services in ITIL\" \/>\n<meta property=\"og:description\" content=\"Discover how value creation through services in ITIL enhances customer satisfaction and drives business success. 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