Figure 1.5 shows how an IT service provider uses its service assets in the form of resources and capabilities to create each service that it provides.
The key difference between resource assets and capability assets is that, typically, resources can be purchased in the marketplace while distinctive capabilities can only be developed over time. Capabilities reflect the knowledge and experience of the organisation and are used to transform physical resources into services. The distinctive capabilities of a service provider, often quite intangible, set it apart from its competitors, and enable it to attract and retain customers by offering unique value propositions.
The business unit to which the service is provided will also have resources and capabilities that are harnessed to provide the end service to the customer.