Value is created through two components:
• Utility: Value in the form of what the customer gets from the service. This will either be from providing new business lines or from the relaxation of existing constraints on the customer
’s ability to achieve their desired outcomes. Utility is about what the product or service does, determining whether it is ‘fit for purpose’.
• Warranty: Value in the form of how this ‘utility’ is delivered to the customer. This is seen as the positive effect of the service being available when and where it is required, in sufficient capacity to meet the business needs, and being
sufficiently reliable in terms of continuity and security for it to be depended on (i.e. it is ‘fit for use’).