CHAPTER 7: SERVICE STRATEGY
Concept: Value creation
Customers must understand service value.
- Value is defined by the customer – not the provider
- An affordable mix of features needs to be on offer for the customer to want a service
- Value might not be measured in financial terms alone – the customer might value a service because it fulfils an ethical or moral objective
- Value changes over time.
The customer must see service value as outweighing service cost. IT needs to articulate what:
- Services it provides
- The services achieve
- The services cost.
Figure 6 shows the components of value.

Figure 6: Components of value
Value is influenced by: