What is mean by Value with its components? Article 4

In my previous articles I have given idea about the ITIL Foundation certification. I have also given the detailed information about service and definition of service as well. In this article i would like to give you another important topic to pass the ITIL 4 foundation examination – Value with its components and examples.

What is Value with Its components?

Value definition

Example :  As a customer when you buy product on amazon.com you can see the benefit, usefulness and importance of something in when u use that service.

Components of Value :

Perception: These are nothing but perceptions about product or service.
Variable in nature.
Preference: This is also variable entity where user can decide the preference for service
Business Outcomes
Business Outcomes: The fixed entity where we can see the business value and outcomes

These are above components of Value with examples.

Value  is utility and warranty

Value= Utility + Warranty

Utility : Fit for purpose(Performance supported, Functionality offered)

Warranty: Fit For Use (Quality and Service level aligned with customer)

Which contains ‘ Availability,Security,Continuity,Capacity

Value Proposition with Example

Value Proposition

1.The value proposition depends on following factors : Cost, Risk and  outcome.

Scenario 1

Example : If you are using the Server infrastructure rather than cloud for one of the application. The cost will be high and risk is also moderate as we need to depend on server vendor for outcomes.

Scenario 2

Example : As a service provider you can propose cloudification for the specified application to reduce cost and risk and getting supported outcomes. This is called as value proposition.

Refer Youtube Video :

I hope you get clear idea about Value with examples. If you like this article or if you have any issues with the same kindly comment in comments section. This topic is very important topic for ITIL Foundation examination. We will get 3 to 4 questions on this topic in exam.