1. Service value
Value: the perceived benefits, usefulness, and importance of something
2. Realizing service value
Basic relationship | Collaborative relationship | Partnership |
Customer activities | If costs are low: no need to track If costs are high: basic value, outcome, cost, risk (VOCR) analysis based on assumptions and service provider reports |
Advanced VOCR analysis (e.g. side effects, risks, costs, benefits) based on agreement and promises |
Shared activities | Ad-hoc service reviews |
Joint service reviews comparingachievements to expectations Joint analysis for improvement Occasional joint experimentation |
Continual tracking and analysis of outcomes, costs, and risks seeking optimization Sharing data and research Continual experimentation |
Service provider activities | Report service outputs Provide access to analytics Internal provider: cost/risk control |
Sophisticated service level reports; analysis of customer outcomes; profitability/cost analysis; risk assessment; tracking and forecasting demand |
3. Tracking value realization
To assess and evaluate value realization, must track and measure service value indicators:
To track value realization:
4. Track performance, output, and outcome
Hard to identify direct outcome indicators:
Use the value driver framework model:
5. Measuring experience and satisfaction
5.1 Tracking experience and service usage
Methods to monitor customer experience:
Tracking service usage:
5.2 Tracking experience
Customer experience (CX): the sum of functional and emotional interactions with a service and service provider as perceived by a service consumer
Three questions:
Experience criteria | Experience characteristic | Metrics |
Functional experience: how does the service work ? | Uninterrupted completion of user actions | Number/frequency of user errors Frequency of using the back button Number/frequency of dropped service actions |
Emotional experience: how does the service feel ? | Clear and convenient interface Effortlessness and speed of service actions |
Number/percentage of transactions where users used the interface help Average transaction handling time Customer effort score measurement First response rate User rating of service interface |
Satisfaction: how well does the service fulfil needs and expectations ? | Functional and emotional experiences Loyalty to service provider |
Average and minimum rating that users give service Number/percentage of users that cancel subscription Customer churn rate Net promoter score |
6. Assess and report value realization
To assess and report on value realization, consolidate, correlate, interpret, present data from various data sources to enable decision-making (correlate experience, performance and output data with consumer outcomes, risks, costs, and impact to the customer objectives and purpose)
Assessing and reporting outputs | Assessing and reporting outcomes | |
Procedure | Relate data to agreed targets Combine data Report using agreed template/dashboard |
Consolidate data from many sources Link service outputs to objectives and purpose |
Metrics aggregation and consolidation techniques | IT component to scorecard hierarchy | Organizational improvement cascade of similar |
Assessment and reporting methods | SLA scorecard, service reviews Service level reports and dashboards SLM and Service financial management (cost data) |
ROI evaluation and/or cost benefit analysis Benchmarking; Post incident reviews, audits etc. Service financial management (cost data) |
7. Evaluating and improving the customer journey
Steps 6 and 7 of the continual improvement model are required for value realization evaluation and improvement to customer journeys:
8. Evaluation and verification of value realization
Simple environments, use service level targets, SLA scoreboards
Complex environments (much more difficult), use frequent service reviews, continual evaluation and negotiation of changes to the targets as well value measures may be required
Manage/challenge initial assumptions with these questions:
9. Continual improvement
Sources of improvement:
10. Track, assess, evaluate outcomes
Internal service provider (ISP):
External service provider (ESP):
11. Charging and billing
Charging policies define the cost recovery or profit:
Cost allocation models used to develop charging:
Define chargeable items (business view):
Measuring service usage:
Billing options:
Go back to ITIL 4 Managing Professional Certification Course: Drive Stakeholder Value (DSV) to finish this chapter or to the main page ITIL 4 Managing Professional Certification Course.
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