The Value of IT Services

You may recall from basic ITIL training that the definition of a service is a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks.

Everyone understands what we mean by value, or do we?

This week I attended a Vistage presentation given by Mike Wilkinson of Axiavalue, an organisation dedicated to helping sales professionals, in particular, add value to their propositions. Mike says “We help businesses defend and grow their revenues and margins by understanding the things their customers truly value”.

Does that sound familiar? It should. It’s a key objective of Service Strategy.

Whether we are providing services internally or externally, we IT service providers must never lose sight of the fact that our customers always have a choice. We can only be sure of their continuing commitment to us by demonstrating the value of the services we deliver. So what do we mean by value?

The first thing we need to take on board is that our definition of value is irrelevant. It’s our customer’s definition that matters. They probably won’t be able to articulate it as a simple definition – and that’s why we need to bring our professional skills to bear, to identify and understand those things that our customers really value and then shaping our service offerings to offer those things. It’s called differentiation.

Value is all about the customer’s perception – which is why it’s important to communicate the value of our services to our customers. We need to continually remind our customers that our services are worth the money they pay for them.

We need to be aware that value, and the perception of value, changes over time.

IT services in the eighties and nineties tended to focus on delivering business functionality more efficiently. There was a fairly simple equation: does the business save more from these services than it has to pay for them (return on investment)? Nowadays, it’s more about competitive advantage. Can the business deliver value to its customers that its competitors can’t? It’s the job of IT services to support the business in achieving this objective. That’s value!

All we have to do now is deliver it!

Stuart Sawle   http://www.sysop.co.uk

One thought on “The Value of IT Services

  1. I agree. There has certainly been a shift in what the business wants from IT services. Up until 2007 there was a huge pressure cutting costs; how could IT help in reducing costs. Over the last few years in particular I can see a shift as more organisations attempt to take advantage of their E-commerce estate.
    Exciting times.

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