2.5.4 Utility and warranty
The evaluation of the ability of a service to provide the desired outcomes requires an assessment of the utility and warranty of the service. Both utility and warranty are essential to the creation of value.
Utility: The functionality offered by a product or service to meet a particular need.
Utility can be summarized as ‘what the service does’ and can be used to determine whether a service is ‘fit for purpose’. This requires that a service either supports the business activities of the consumer or removes constraints from the consumer - or both.
Warranty: The assurance that a product or service will meet agreed requirements.
Warranty relates to how the service performs: is it ‘fit for use’? Like for utility, this can be expressed in terms of service levels that should be agreed and aligned with the needs of consumers, including:
■ availability
■ capacity
■ security
■ continuity
A service may be said to provide acceptable assurance, or warranty, if all defined and agreed conditions are met.
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1 [Ref.: Service-dominant logic 2025]
2 [Ref.: Value Proposition Design]
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