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Chapter 2 ■ Generic Concepts<br />

2.1.3.3 Continuous Enough?<br />

You are in the midst of the telephone round of an interview for a <strong>com</strong>pany based<br />

overseas. The call drops every few minutes, distracting you from the ideas you want to<br />

state and thereby causing you to lose your train of thought. The service has coverage and<br />

sufficient capacity, but is it giving you the value you perceive? Heck no!<br />

2.1.3.4 Secure Enough?<br />

You are calling your human resources department to discuss the appraisal your manager<br />

has given you. How would you feel if the conversation you are having from the confines<br />

of your home, with the HR person on a different continent, is accessible over the cloud by<br />

your manager? Is the service giving you value? You know the answer.<br />

To sum up from these example, for the cell phone service warranty conditions to<br />

be met, the service must be available, have sufficient capacity, must be continuous, and<br />

must be secure. Without any one of these elements in place, the cell phone service is not<br />

fit for use and does not add value.<br />

2.2 Assets, Resources, and Capabilities<br />

Earlier I mentioned the functional aspects of a service that create value for customers.<br />

Now let’s look at the practicalities that support creating value from services. Figure 2-5<br />

illustrates the various resources and capabilities that typically contribute toward creating<br />

value from services.<br />

Capabilities<br />

Resources<br />

Management<br />

Financial capital<br />

Organization<br />

Infrastructure<br />

Processes<br />

Applications<br />

Knowledge<br />

Information<br />

People (experience, skills<br />

and relationships)<br />

People (number<br />

of employees)<br />

Figure 2-5. Resources and capabilities<br />

22

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