3 Differences Between Service and Products

3 Differences Between Service and Products


In this article, I want to focus on the differences between service and products. I will also talk about how the two concepts work together in an ITIL 4 environment. Follow me as we will be looking at the two together in this article. 



A Service can be seen as a means of enabling value co-creation. It helps to facilitate outcomes that customers want to achieve, without the customer having to manage the cost and the risks. 

The service is always based on one or more of its products and services. When you are rendering services, you are putting all your resources in place in order to ensure that customers get what they are looking for.


Products can be seen as a configuration of resources, created by an organization. They should be potentially viable for their customers. When organizations create products to offer to customers, they are putting some of their resources together at different levelsThis is done to generate income or goodwill. It is not left for potential or current customers to choose which of the products they will be able to afford.

Another fact that you need to know about products is that they are always complex in nature. Also, not all products that are available in an organization are visible to customers. The part that is visible is those that they have to offer to customers. It includes resources that they have put in place to support customers.


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It is left for the organization to decide which aspect of its products will to see and tailor those components in order to meet the need of customers.


Revealed: 3 Differences Between Service and Products


In my previous articles, I have tried to throw more light on some of the stakeholders that are involved in value co-creation in any organization. In this article, I want to look at three more stakeholders that are involved in the co-creation of values for customers. Follow me as we look at this together in this article.


#1 Shareholders

These are the category of people that have an investment in your company. They have invested their money and they want to reap the reward of their investment. When you are coming up with policies and programs that will affect your customers, you need to consider the interest of your shareholders. At times, you need to seek their opinion before major decisions are taken.

#2 Employees

One of the underrated stakeholders in the value chain is employees. Any organization that feels that the opinion of employees is not necessary is seriously digging its own grave. It is very clear that customer loyalty is employee loyalty. Apart from getting feedback from your customers, you also need to listen to what your employees have to say. Some of them are even closer to customers than management staff.

3 Other Stakeholders in ITIL 4 Value Chain

#3 Community

Another vital stakeholder that you need to consider is your community. When I mean your community, I am referring to your online community or what you will refer to as your followers. I said it jokingly one day that the best way to get a response from your service providers. Organizations need to pay attention to their online community. They are the best source of getting feedback on what customers are actually looking for. You need to carry them along in your product development effort. All efforts must be geared towards making your online followers unpaid advertisers of your products and services.


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 3 Identified Service Consumer Roles In ITIL 4

In my previous articles, I have talked about some of the ways that values can be co-created in any organization. In this particular article, I want to look at the different types of Service Customer Roles in any organization. Follow me as we look at this together in this article.


Revealed: 3 Identified Service Consumer Roles In ITIL 4


#1 Customer

The customer is the person who defines requirements for services and takes responsibility for outcomes from service consumption. He or she is responsible for defining what type of service he is expecting from the service provider. 


#2 User as part of the service consumer roles

He is the person that uses the service provided by the service provider. He might not necessarily be the one paying for the service. Take for example I have decided to purchase a CUG line for my staff. They are the user while I am the customer for that particular service.


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#3 Sponsor

This is the person that authorizes payment for a particular service. Without his or her signature or approval, payment will not be made for that particular service. As a good service provider, you have to know what the Sponsor is actually looking for in that particular service. Above all, you have to identify all the stakeholders in the value and make sure that their interest is well catered for.



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Adeniyi Salau

Adeniyi Salau Scrum Master Certified , CCNA R&S , BeingCert and Scrum Certified Digital Marketing Professional, CEP, MOS, MCP, CSCU (Project 2016), Microsoft Certified Security and Networking Associate is a Google and Beingcert Certified Digital Marketer, Project Manager and SEO Expert of repute with about a decade of Blogging and online marketing experience. He is always ready to share his experience with others.

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