Service: Game of Utility & Warranty

What is Service

A Service is a means of delivering value to customer by facilitating outcomes customers want to achieve without the ownership of specific Cost & Risk.

A customer may or may not be having expertise in a field where he needs some outcomes for example; A Software Company with huge Datacenter may need an insurance of its datacenter devices against any hazard. Cost of replacing all devices and setting up the Datacenter by itself is going to cost very high and the associated risk will also be very high (due to lack of experience) which the company may not want to own. Hence it will seek service from an insurance company.

Let us return to the definition of Service again. It talks about delivering value. Hey! What is that? I can deliver value to my Customer through my Services if Customer can get benefited from my Service. But how to ensure that? Wait…It’s simple…Only 2 things you need to take care-

• Is my service actually what customer needs? You cannot help your customer with a cup of tea if he is feeling thirsty and looking for cold drink. This criteria we call “FIT for PURPOSE”
•  Is my Service available when my customer needs? My Customer needs Cold Drink and I have it but not at the time he was feeling thirsty but hours after that. This simply meant that I had the required service in my kitty but still I could not help my customer. So…Service Must be “FIT for USE”.

Means.....Right Service at Right time in right form create Value for Customer

We call Fit for Purpose as Utility

&

Fit for Use as Warranty

Utility: 

This is what Customer gets. The attributes of Services that has positive effect on task associated with desired outcome.

Warranty: 

How it is delivered. Availability of Positive effect when it is needed.

As Utility is expected to improve the positive effect of a task, we can see that it actually improved the probability of getting better results i.e. Performance Average.

As Warranty ensures that desires performance will be available when needed, it actually reduces Variation in the performance.

Both Utility & Warranty togather results into better performance average with least deviation i.e. Value created for customer.

Cheers..!!!