A means of enabling value co-creation by facilitating outcomes that customers want to achieve, without the customer having to manage specific costs and risks.
Value
The perceived benefits, usefulness, and importance of something.
Organization
A person or a group of people that has its own functions with responsibilities, authorities, and relationships to achieve its objectives.
Service Management
A set of specialized organizational capabilities for enabling value for customers in the form of services.
Value Co-Creation
Key Concept
ITIL 4 emphasizes that value is co-created through active collaboration between providers and consumers. The consumer is not a passive recipient but an active participant.
Service Provider
An organization that delivers services to service consumers. Can be internal (IT department) or external (cloud provider).
Service Consumer
An organization or person that receives services. Includes Customer (defines requirements), User (uses services), Sponsor (authorizes budget).
Utility
The functionality offered by a product or service to meet a need. "Fit for purpose" - what the service does.
Warranty
Assurance that a product or service will meet agreed requirements. "Fit for use" - how well the service performs.
Service Offerings
Goods - Physical items, ownership is transferred to the consumer
Access to Resources - Consumer is granted access but ownership stays with provider
Service Actions - Actions performed to address consumer needs
Outputs vs Outcomes
Concept
Definition
Example
Output
A tangible or intangible deliverable of an activity
A report, a new server, updated software
Outcome
A result for a stakeholder enabled by one or more outputs
