This lesson discusses the concepts of opportunity, demand, and value in the service value system.
- Opportunities, demand, and value. When we consider the Service Value System, it's going to take some inputs, which come from opportunities and demands, do a bunch of processes, activities, using the guiding principles, the governance, and continual improvement to eventually give us an output, which we hope is value that we can share with our consumers and our customers. Now when we look at those inputs, the first one we have is opportunities. Opportunities represent options or possibilities to add value for stakeholders or otherwise improve the organization. Now, some examples of this, is if we're going to find new markets or find new customers. We might create a new service or create a new product. There's lots of different ways for us to figure out what those opportunities are and then bring those to market so we can help add value. For example, when I first started teaching ITIL, I didn't have the ability, as a partner, to be able to sell vouchers to my students. And so my students, when they finished taking my course, would go to PeopleCert, or they would go to Pearson VUE, and they would order their voucher and pay for their exam directly there, and then take the exam. The problem with that, is that made them have to pay full retail price. Now, one of the things we've done is we've been able to partner with PeopleCert and partner with AXELOS so we can get those vouchers and buy them in bulk so we can buy a lot of them and pay a much lower price and pass the savings on to our students. So now our students can come to our website, buy those vouchers, and save about $50 off the retail price because they're buying it through us. It was a way that we were able to give our customers more value by offering a product. It wasn't necessarily a service because it's not something that we were doing. We're just buying them in bulk and then reselling them to you and passing those savings on to you, but it added value for our students because now they can buy their training and their certification exams through us at a much cheaper rate. That was an opportunity we sought, and we decided to take it, and so we built different processes in place, and practices to make that a reality so you can get your vouchers that way. Now, the other input we have is demand. And demand is when there is need or desire for products and services among your internal or external consumers. Now, what does this look like? Well, I get this on a daily basis in our company. I have students who finish an exam and they send me an email and say, hey, I passed this exam. Do you offer this new other certification? Or, I would love it if you offered this certification. And so they have a demand, an external consumer, who wants something from our company and they're telling us about it. Hey, I passed ITIL, and I want to take PRINCE2. Do you offer that? Well, because enough students asked us to, we went and did a PRINCE2 course and we offer that now. So we do take input from our students and that helps us shape what products and services we're going to do. One of the things students have asked a lot for is they want more hands on practice in our IT certification courses. So we're building labs where students can log in and do actual actions instead of just watching it on video. Those are the kind of things that demand has fed and now we have put that through our Service Value System and through our service value chain to create products and services that can come out the other side and give value to our students, which brings us to the outcome of the Service Value System, which is the value, that's the output, right? The output or the outcome. And when we look at that, the Service Value System is going to enable the creation of many different types of value for a wide group of stakeholders. So when I think about value, and I look at it from a service perspective, there is a value that we, as an organization, get. So for example, when we talked about the exam vouchers, well, there's a value that we get from doing that. By buying those all and doing all the processing, we do keep a little bit of money and we make a little bit of profit off of that. So there's value for my company in doing that. 'Cause again, we have to pay our employees and we have to make some overhead to do that. There's also value for our other stakeholders, our students. Instead of paying full retail price, you get $50 off. And so that saves you money and it gives you the thing you need, right? We're giving you value there. We might have value from other organizations. I actually have some deals with some colleges and when they go through and they teach their students ITIL 4, they want to be able to buy those vouchers as well. But they don't buy it in the same bulk we do, because we buy thousands and tens of thousands of these vouchers a year. And so we get a much lower price. And so we actually sell those vouchers, some of those, to these colleges for their students in groups of 20 or 50, and they get a little bit of a lower price than you as an individual student do, because they are buying so many of them, right? And so, again, we have value for a bunch of different stakeholders here with the same exact product or service. Because of the way that the Service Value System works, that can happen, right? Amazon built an entire server farm to house their website, and then they go, hmm, I bet we can sell this to other companies, too. And they do. It's called Amazon Web Services, right? And that means they can take that and give different value to different stakeholders. That's the idea. So we look at this Service Value System from left to right, we're looking at inputs of opportunities, what new markets, new customers, new services, and new products can you have, as well as demand, what things do these people want to buy, internally or externally. And then on the output side, we have value for those internal and those external consumers, for the business, for the organization, for all of your customers and all of your consumers. That's the idea of the Service Value System. Take something in, add value, and put it out the other side.
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- ITIL® and the fourth industrial revolution
- The four dimensions of service management
- The service value system
- ITIL® guiding principles
- Service value chain activities
- Continual improvement
- General management practices
- Service management practices
- Technical management practices