Service Management Key Concepts

0:03One of the great things about you and I being alive in this day and age is all the amazing stuff that's available to us-- products and services. Some of it's IT-based, like internet service, or Wi-Fi, or computers. We have other products that are available to us, and services such as restaurants, or grocery stores. You go in, you buy what you want, you have what you want to eat. It's wonderful. You buy a car-- there's lots of things that we can buy and have. And those are all in the form of products or services that are available to us. And usually, we exchange what for that? Probably some type of money, or financial compensation for what they're delivering.

0:37But you know what? All of those products and services have something in common behind the scenes, and that is all of them that are still in business today, they are all IT, Information Technology, enabled. Think about it. For a restaurant, they're keeping track of inventory, and food, and sales, and everything else. They're keeping track of payroll, and who's scheduled to come in and when. For manufacturing-- let's say somebody's going to manufacture scissors. Well, you think most scissors aren't that high tech. Well, it's pretty amazing that scissors actually work like they do.

1:09So a company would have to design a new pair, if they wanted to do that work. They'd have to figure out how to manufacture it, how to market it, how to get it delivered, how to get the payment from customers. There's a long line of things that have to be done, a chain of events, in order for a manufacturer who has a product or a service to get it over to the customer. And IT is behind all of that. So what happens-- if we have this long stream of activities that need to happen so we can deliver a service or product to a customer, what happens if one of those pieces breaks, a piece in the chain breaks?

1:44Well, if we can't deliver the thing to the customer, or if the thing is delivered, but it doesn't work, and the customer doesn't see value in any of that, it's going to cost us a financial hit. Because we can no longer sell a product, if it doesn't work, or if we don't have a product to deliver. So a lot of companies are using IT, Information Technology, to manage a lot of their business, in fact, most of their business. And as far as making sure that everything's working correctly and the IT is working, there's also a thing called ITSM-- Information Technology Service Management-- just to make sure all those pieces are in place as well.

2:19And then on top of the IT, there's also other factors, like environmental factors. There's cost factors. There's human resource factors-- a whole world of challenges that could attack, or cause a problem for a provider of services or goods to be interrupted. And that also includes IT service management, but it could be extended to virtually anything. So the concepts and the techniques that you and I are going to enjoy together as we go through are going to help us in taking a better, or a bigger picture look, at our service management. So as we enjoy these videos together, I'm going to make them very concise, very fun.

2:52I look forward to seeing you in every single one of them. And before we leave this first one, I want to share with you the official definition regarding service management, and here it is. And so service management is a set of specialized organizational capabilities, things that a company or organization can do, which would also include a group of people, or if you're your own company, what you can do, to enable value for customers. Now, in the past, described that as providing value. However, it is a two-way street.

3:23If somebody makes a camera, and there's somebody else who has no use for a camera, there's really not a lot of value being provided by the provider of that camera, if the user has no need for it or doesn't want to use it. So it has to be a two-way street of enabling value, by having a consumer also interested, and able, and capable of taking that output from the provider and turning it into something useful and of value to that user. And then, it continues in the form of services. Now, those services could be generically applied to products, and/or services, and/or support, or anything that's being provided to the customers by the vendor, or by the provider.

4:01In the next video, we'll take a look at the concept of value and value co-creation, which is a critical role to make sure our customers are happy and that they keep coming back. So I'll see you in that next video. Meanwhile, I hope this has been informative for you, and I'd like to thank you for viewing.

0:00I've had the opportunity to work at many different companies in my career, and at one of those, maybe more than a decade ago, the CEO and owner at the time came in and said, Hey, everybody. What's your main purpose here at work? What's your main goal? And it was interesting. There's a lot of ideas that came up, and none of them were what he was looking for. So in this Nugget, I'd like to talk about what he said, and also what might be a better option as a good direction to go for every stakeholder and every member of a team in any organization.

0:31So in answer to that question a decade or so ago from that CEO, the answer that he was looking for was drive revenue. That was the number one overarching important thing to him at that time. However, as far as we're concerned in organizations that are healthy and vibrant, one of the strategies could be to provide value, or at least provide products or services that might enable value for those customers who take that output, that product or service that you have, and then use it to better themselves, or better their careers, or better their businesses.

1:07And that brings us to this concept, right here, of value. And this is one of those definitions that we would not only want to know, but also ponder just for a moment on the meaning of this. So as we look at value, it is the perceived benefits. Hence, beauty and value is in the eye of the beholder. And that's because not everything is of the same value to everyone else. And a good example of that is a car. If you look at the type of a car a person drives, and you ask them, what do you like about it? Why do you have that car?

1:38There's probably going to be a lot of different reasons why they see value. Some of it, I love this car. Oh, my gosh. It's the greatest car ever. Other people might say, well, I bought it for safety because it's the safest car-- the model they had. Or somebody else might say, Well, the reason I got the car I have is because of the affordability. It's the most economical of the cars. Or maybe another car is better on gas mileage or has other values or benefits. But the key here is that, regardless of the product or service, not everybody is going to see the same value from it. It's based on what the user or consumer of that product is perceiving as a benefit.

2:13Another big aspect of that is that if we have a product or service that's being delivered and it's not being used properly, or if the customer and the user don't have the correct tools or knowledge of how to use our product, the value from our output from our product of service is going to be diminished in their eyes because they don't know how to use it or they can't use it. So the key word here is the perceived. So the perceived benefits, or perceived usefulness, or perceived importance of something. So it could be any product or service. It's all about the recipient, the user who's receiving our product or service, and their opinion of what they think the value is for that service.

2:49And that is why, as an organization, we should be very focused on providing value for our stakeholders. Who exactly is a stakeholder? Is it an employee? Is it a customer? Is it the investors for the company? Et cetera. The answer is yes, all those entities are stakeholders and more. And we'll take a closer look at who is a stakeholder and why does that matter, and we'll cover that in the next video. Meanwhile, I hope this has been informative for you, and I'd like to thank you for viewing.

0:00One of the challenges that might come up, and does come up as we have companies and organizations that are providing value, is to consider who the person is that we're providing value to. Who is the stakeholder, the person has a vested interest or an interest in what we're offering or what we're providing? It could be an investment company that owns the company or has a stake in it. Or it could be the end user who's using our product for part of their business. They're a stakeholder. They want to see us succeed, and they want make sure they're getting value. And we want them to make sure that they think they're getting value for our products or service, so they'll keep buying it.

0:33We also have employees at the company who want to have a good job to come to. They want to have pride in their work. And so one of the concepts when we're thinking about providing value is to consider all the stakeholders and identify what the value is to that person or that entity that we're providing. And that way, we have a better opportunity and probability of delivering the perceived value to those stakeholders. So in this video, I'd like to chat for just a few moments about some of those stakeholders, and also some of the other parties involved, as we focus on delivering value as an organization.

1:06And speaking of organizations, let's start with that definition first. So here's the official definition of an organization, and that is a person or group of people that has its own functions with responsibilities, authorities, and relationships to achieve its objectives. That is about as generic as I've seen. So basically, any grouping, including down to one person, that has authority, and responsibility, and capability, to achieve its objectives. And hopefully, a big part of that is to enable value for the stakeholders.

1:40So if we have a company, like Acme Inc, and that company is involved in providing a product or a service, we would refer to Acme Inc. In that context as a service provider. Now, the concept of a service provider doesn't mean it's an external company. We might have an organization within Acme Inc. that's actually providing some other services to other organizations in Acme Inc. But in the moment that we're providing or provisioning services, we can we think of that entity, or that organization, or that group, as a service provider in that instance.

2:12But you know what happens? Is that nobody is just creating everything from scratch. I bet you Acme Inc. is also using the services from somebody else. So let's imagine another company, 3rd Party Services, Inc. And in the moment that Acme Inc is receiving some services from the service provider, 3rd Party Services Inc., in that moment, Acme Inc. would be acting as a service consumer. And when consuming services, there are three roles that we want to be aware of.

2:46And they are a customer, sponsor, and user. And these are all on the service consumer side of the fence. So the customer would be the person at the organization, in this case, Acme Inc., who's consuming the resources. The customer would be the person who defines the requirements for a service and also takes responsibility for the outcomes of service consumption. Maybe that's a CIO, chief information officer, who has identified the need for better password management and has said, we need to use a password manager on all of our computers.

3:17All of our employees need to use it. And the CIO would do the research and investigation on which one would be appropriate to meet the needs of security with password management. Now, it's also likely that the CIO, the customer in this case, who's identifying the requirement for what's needed, isn't going to pay for everybody's password managers out of his or her own pocket. More likely, there's going to be a form of payment from the company. And for that to be authorized and approved financially, that would be the sponsor's responsibility.

3:47A sponsor would be the person who authorizes the budget for the service consumption. So I'll put a dollar sign right here, so we remember that. So whenever you see sponsor, starting with an S, just think of dollar sign. And that'll help keep those three straight. Oh, yeah-- sponsor makes the approval based on the finances. So once the customer, the CIO, has identified what the need is and the details for it, and it's been approved by the sponsor-- maybe that's the chief financial officer or somebody else in charge of the budget-- then the product is delivered. And then, hopefully, there's some user training.

4:19And the users start to use that product, that service. And just before we close, let's also just touch on other possible stakeholders. So we have service providers. We have service consumers. We might also have service provider employees, which are also stakeholders, who are part of the team that's delivering the goods or services. Another big stakeholder is the society or community where the provider is. That can be making it different, impact-wise, on that whole economic region, based on the success of that business. So the community is also a stakeholder in the success of businesses in that community.

4:52Other stakeholders would certainly include shareholders, people who have a financial interest based on investments in that organization. They want to succeed. And another stakeholder could be any other benefactors. For example, many companies have charities that they work with to help develop and donate money and time to. And those are also stakeholders. So as we can see, there are a lot of stakeholders. There's a lot at risk, if we don't correctly manage our services end to end. And this can help us out by taking a step back, and taking a bigger picture look, and making sure that we're identifying how we're adding value, or how we're enabling value for our customers to identify who our stakeholders are, make sure that they're happy, and that we're providing value to them as well.

5:32So thanks, for joining me in this Nugget. And I'll see you in the very next one, which we'll take a closer look at products and services that can help deliver that value to our stakeholders. We'll see you in the next video. Meanwhile, I hope this has been informative for you, and I'd like to thank you for viewing.

0:00When an organization wants to provide value or enable value for a customer, they need to have at least something to offer, either a product, or a service. And in this Nugget, we're going to take a look at both with the concept of a service offering. And for our first example, let's talk about a company that manufactures antivirus or anti-malware software. So that company has a lot of resources. They've got people, and programmers, and marketing, and accounting, and everything else. But the product that they're delivering, that they can provide potentially to customers who want to buy it, would be an antivirus or anti-malware software.

0:34That would be their product. And as far as providing value, it would only provide value for somebody who actually got the software, and then used it, and then have that customer perceive a value by protecting their computer from viruses and malware. And then, the tricky part can be this. When we look at services, the anti-malware, antivirus software could be the service that we're delivering, that's providing the value. So if a customer or consumer was interested in protecting their computer against getting infected with viruses and malware, they have a few options.

1:06One is they could write the software on their own, but that would be very, very expensive. And so to save costs, so the actual customer doesn't have to create the entire software package by themselves, and also reduce risk by having the software available that's effective in protecting against malware, the customer can just pay a fee for that software as a service. And then it will be a lot less expensive than building it on their own. And at the same time, they're also reducing the risk of malware and viruses, because they're using the services of that software that they're licensing or they purchased from the provider.

1:38Another important aspect regarding paying for everything is that, if a company is creating a service, like antivirus or anti-malware software, or anything else, they want to be able to sell that and affect many, many people's lives, because those people, the customers and the users when they pay for the service, that keeps the company in business, which helps the stakeholders, all of them, be happy and satisfied regarding the financial progress of the company that's providing the service. So in that light, to maximize our output, what we could also have is service offerings, and we could cater them.

2:11Maybe we have an anti-malware, antivirus software lite version, which is free or nearly free for a limited use. And then we have a bigger enterprise version, which we charge more for. And when we talk about service offerings, the actual service could be including goods, or services, or both. And when our service offering includes goods as part of it, it's like a transfer of ownership. A good example would be a car that somebody is buying. If a person buys the car, the ownership is transferred from the dealership or from the seller to the person who is buying that car.

2:44So with goods, like paper for our printers, or other consumables, those goods are purchased. And then the ownership changes to the person who bought it. Another part of a service offering may be access. In the case of access to resources, the ownership is not being transferred. Let's use an example of satellite radio. If we want to purchase a subscription to a satellite radio, we get to use the service. We get access to that network, but it's not like we own the satellite network. We may own our radio. But as far as the subscription, and the service, and the stream coming in, we are simply paying for the benefit of using that service without the ownership of it.

3:20And one other component that might be included in a service offering is service actions. So if we go back to the car analogy-- somebody buys the car, they own it. If they want to purchase XM radio service, they can purchase that service and use that service. And maybe they bought an extended warranty. We make that part of the service offering. And if they bought an extended warranty, that warranty would cover repairs and things that came up, including user support, or replacing a piece of the car, or correcting a part of the car if it fails within that warranty period, based upon the agreement.

3:53So here in the definition for service offering, it reminds us that the offering may include goods where the ownership is transferred to the person who bought it, or access to resources where the person is licensing that service, or service actions, which could include user support or replacing a piece of equipment or something else under warranty, or under agreement with the service provider. In this Nugget, we've taken a look at service offerings, which could include tangible goods or services as part of an offering to enable value for our potential customers.

4:23I hope this has been informative for you, and I'd like to thank you for viewing.

0:00As you and I work in an organization where we want to enable value for our customers so they love our product, or our service, or our service offering, if we want that to happen, there's a couple of approaches to getting that done. One is to create our content and just hope they're happy. Or the other option, which is the good one for survival, is to have an interaction and relationship with the customer and with the consumer to make sure that they are happy, that they are perceiving a very high value from our product and from our outputs, so we can maintain that relationship and continue to grow it.

0:33In this video, I'd like to chat with you about some relationships between the provider and the consumer, and also introduce some places where we might not expect that relationship to show up. But it's critical that we identify it, so that we can make sure those relationships are strong too. And let's start our discussion with this diagram right here. We'll call this organization B and organization C. And my question for you is, with these two wonderful circles representing two different organizations, which one is the consumer, and which one is the provider?

1:07And that's a good question. We'd have to know more. We'd have to know things like, OK, who is providing services? Who's consuming services? And then we could probably easily identify it. And let's talk about car manufacturing. Let's imagine that organization C is a car manufacturer. There we go. It's car mfg. So organization C is manufacturing cars, but they get some of their parts from a supplier. And let's imagine that organization B makes-- let's pick something fun-- let's say they make a bumper.

1:41That's just fun to say. So they make bumpers specifically for the cars that organization C makes. So they're outsourcing the bumpers. In this case, the provider is organization B, and the consumer is organization C. Now, that's pretty straightforward. But some of the questions that we might want to address is, how many bumpers should we be getting on a weekly basis or a monthly basis? Or how many bumpers do we want to have queued up and prepared for installation on our cars? Because it's likely we're not going to want to get 1,000 bumpers, and then wait weeks, or months, or however long it takes to go through all those, and then get another 1,000.

2:19We probably want to have some IT in the background tracking inventory control, cooperation between the two. And we probably also want to have some kind of a relationship manager between them. So we actually have humans that are communicating periodically, like once a month, or once every two months, or something, so that we have a clear understanding of how things are going. And the reason that service relationship is so important is because, in organization C, if they aren't happy with the bumper situation-- too many bumpers, not enough bumpers, or the quality of the bumpers, or anything else-- if organization B doesn't know that, if they don't get the indicators and the information that their customer is not happy, their customer could just cut that off and go somewhere else.

2:59So relationship management between service organizations, between the provider and the consumer, are critical. And this relationship between org. B and org. C is creating value, because org. B is creating the bumpers. they're doing it as efficiently as they can, hopefully. And they're getting them to organization C, who's using those bumpers as part of the car. So they are partners in co-creation of value. Now, at the same time, let's talk about organization B. Where do they get the materials for the bumper, the steel, or the rubber, or whatever that bumper is made out of?

3:31Very likely, they are getting it from yet another organization. We'll call that organization A, over here. And they may be supplying the raw materials. So in this relationship between org. A and org. B, org. A is the provider of the-- we'll call this raw materials. And organization B is the consumer of those materials. And here's my question. Do you suppose some type of relationship management would be important here also, between org. A and org. B? And the answer is, yes.

4:01We absolutely, as a provider, we want to make sure our customers are happy and that they have a perceived value based on the outputs that we are creating and delivering to that customer. And we could add many, many more here. Let's call this dealership, who sells to humans. So a car dealership-- there's going to be a relationship between the manufacturer and the car dealership. And all these are bidirectional, or should be bidirectional as far as the communication path. So we can make sure that our consumers, who are receiving our products and services, are happy and satisfied.

4:36And if their needs are changing, we want to know about that way early as possible, so we can adapt and continue to enable value for our customers. And so together, as we wrap up, let's look at these four definitions to make sure we're clear on them. Service relationship, that's the cooperation between a service provider and a service consumer. Service provision are the activities that are performed by an organization to-- dah, dah, dah, dah-- provide a service. Service consumption are the activities performed by an organization to consume services.

5:07And the service relationship management are joint, that means mutual activities performed by a service provider and a service consumer to make sure that there's continual value co-creation based on the agreements and understandings between the provider and the consumer. In this video, we've taken a look at the relationship between a consumer and a provider and how critical it is. We can make sure our consumers are happy and that they're getting what they want. And we're co-creating value with them every step of the way. I hope this has been informative for you, and I'd like to thank you, for viewing.

0:00When customers are choosing a provider or they're changing from provider A to provider B, why is that? It's going to boil down probably to the functionality that they need and also the value that they see between two similar products. In this video, I'd like to chat with you about three core components that are integral into the customer's perception of what is the best value for their dollar. And I'm going to bring back one of our definitions that we've talked about in a previous Nugget. And that is services. So if you and I are part of the company that's providing some service-- maybe it's a ride share service.

0:34Maybe it's a home delivery service for food or for products. Or maybe it's internet service. If we're delivering a product or service, we want our customers to perceive our product or service as having value. We want to make sure that customer enjoys their product or service from us and that they stay with us as a customer. And if they're our customer, our goal is to enable value co-creation. Let's say it's a ride share service. You and I can provide an organization that does ride share services.

1:05But if the customer never uses it or if the customer doesn't have the ability to order a car or request a ride, we're not really providing a value for that customer if they can't use our service. So it takes two to tango-- the provider to provide a service and then the customer to go ahead and access or use that service to co-create value. So our product or service could be referred to as our output. But a better way of thinking about what the value is perceived by the customer is to focus on the outcome, the end result of what the customer is hoping to achieve or do with our product or service.

1:43And that, my friend, is the outcome. So if it's a ride share service and we have a customer that wants to get from point A to point B, their outcome is that they want to go from point A to point B. And then that can be part of a bigger picture. Maybe they're going to a conference. Or they're going to a business meeting. That's part of their objectives and their business. And it's important to them. So in a perfect world, our output, whatever it is, the product or service-- in this example, a ride share application or ride share service-- should play in and be a part of the customer's desired outcome, the actual results that they're looking for.

2:16And continuing to use the ride share example, there is more than just one company out there. And in some areas there's multiple ride share organizations. And why does a person use one over the other? And very likely they're going to see value. If there's multiple ride share services, the one that they see the most value in is very likely, if they're both available, the one they're going to use. And here are three significant components that are going to go into the equation for whether or not the customer sees value in it. Number one, is our product or service supporting the outcome, the end result that the customer is hoping for?

2:51If the customer is using a ride share and they need to get to their meeting or to their location in a half hour, and one company takes 45 minutes just to show up, that wouldn't be supporting the customer's outcome that they're interested in. They need to get from A to B. And a huge delay is not going to support the outcome that they're looking for. So we need to make sure that our product or service, our output, is going to feed in and support the outcome that the customer is looking for. The second element here is cost. The definition is the amount of money spent on a specific activity or resource.

3:24So as far as reducing the cost for our customer, if there are two or three ride share companies that are out there, probably each one of those is going to be less expensive cost-wise than the customer going out and renting their own vehicle and having to park and everything else. So having a lower cost for the same function is an enticement for the user to go ahead and see that as valuable because it's going to cost less overall for the user. Another element that's going to factor into does the customer perceive value from our product or service is risk.

3:57Ideally, we are going to, by providing our product or service, reduce some risk for that customer. If a customer wanted a website, for example, and they wanted to publish their own website and put it online, they might have to take on the full liability of risk regarding consent and informing regarding cookies and everything else on their website. Or if they hired that out and had somebody else just do it for them, the risk could be reduced because the company that is doing the service is taking on that risk of doing all those details to make sure they're compliant.

4:27And the definition of risk here is a possible event that could cause harm or loss or make it more difficult for the customer to achieve their objectives or get the outcomes that they are looking for. And with similar services, if there are multiple ride share companies, the question of value is going to come into play. If both companies can support the outcomes of getting a person from point A to point B in a timely manner and they're both about the same cost, which is both less than renting a rental car, it could be a situation where the customer is perceiving that one company does a better background check on their drivers than the other.

5:00And as a result, the customer might think, oh, this company, company ABC, does the background checks better. I feel safer. I feel like there's less risk. Hence, I'm going to see more value in that. And I'll take that company. I'll choose that company as a provider for the service because I have less risk or I feel like I have less risk overall. So these play into the original definition for services-- a means of enabling value co-creation, the provider and the consumer, the customer, both participating to get what they want out of the situation. The provider usually wants money. And the customer usually wants something that's going to help them achieve their outcomes that they're looking for.

5:35And at the same time, we can reduce the costs for our customers. They see it as a value cost-wise. And, also, hopefully, we're going to reduce the risks-- not introduce additional risk, but reduce the risks for our customer so they see value in our product or service. And as a result, they continue being our customer. And we don't lose them to somebody else who they see as a better value in the future. In this video, we've identified three things that go into the equation for value from the perception of the customer. Number one, does it support the customer's desired outcomes, what they want to achieve?

6:06Number two, is there less risk involved? And three, is it saving them money? Is there less cost for them? And those three factors are important to remember as we're delivering our products and services. I hope this has been informative for you. And I'd like to thank you for viewing.

0:00Regarding a product or service, if we want to stay in business for a long time. The products and services that we create will market those. We'll let our customers know what they are and what they're supposed to do. And then the second half of that, probably the biggest part, is to make sure that our product or service does what we say it's going to do. And also, be available for use. We have a couple of terms for those. I'd like to discuss those with you in this Nugget. And let's use something that we are all familiar with, and that is a mobile device, whether it's a cell phone or a tablet.

0:30Let's think to ourselves if there is a provider who is manufacturing and making these tablets and smartphones, what are some of the functions that we would expect to be able to do on these devices? Now as we think about that, it's very likely that we're going to be able to run some applications, and it's also very, very likely that all of these devices are going to support some type of Wi-Fi. So in the world of Wi-Fi, we have the A and the B and the G and the N, AC and AX and now they're calling the 802.11AX, they're calling that Wi-Fi 6, and they're calling 802.11AC, we're calling that Wi-Fi 5, and we're 802.11N, we're calling that Wi-Fi 4.

1:11So the numbering systems for Wi-Fi is going to be a lot simpler. So we'd expect to have these newer devices with the latest flavors of Wi-Fi. So let's imagine that that's what's been promised on all these devices, that we can run apps, whether from their respective stores, and they also support Wi-Fi. Now in the world of Itel, when we talk about the functionality of what a product or service can do, so what it does or its purpose, that's referred to as utility. And one way that's helped me to remember that, and I'll share it with you right now, is that when I think of utility and identifying what a product or service does or its purpose, I think of a protocol that I'm familiar with, which is UDP, User Datagram Protocol.

1:53So if you think of U with the utility and think UDP, that can help remind us, OK, utility is describing what the product does or its purpose. And the formal definition is right here, the functionality offered by a product or service to meet a particular need. So let's imagine that you and I are the customer. So we've identified that we need this device that has app support and Wi-Fi support and we go out and we purchase a thousand of them for our company and we start distributing them and we start onboarding those devices, and we discover that they don't work.

2:25Maybe the apps aren't available or the Wi-Fi isn't working correctly. And if that happened, that'd be pretty darn disappointing. So the aspect of the device that the customer is using that it actually will work and they can use it and it performs as expected, that's referred to as the concept of warranty. So with warranty, will it work and is it going to be available? Meaning the service. So if it's supposed to run apps, are the apps going to work? If the Wi-Fi is supposed to work and be functional, will it be available or will it be functional on the actual product or service that we're using?

3:02And for each of these, I've heard them described that as for utility, what it does or the purpose of the product or service. I've heard that described as fit for purpose. So again that P is right there from our UDP. What the device or product or service does, what is its purpose? Is it fit for a given purpose? And for warranty, it's will it work or can it be used? And I'll put this in red. So I've heard warranty referred to as fit for use, meaning now that we have this product or service, it's supposed to do this as far as utility, and when push comes to shove at this very moment, can it do it?

3:38Will it do it? Will it actually work? And both of these aspects, the utility, what the service or product is supposed to deliver and supposed to be able to do and on the back end, does it do it? So as a provider, they would want to identify what does the customer need? What do they want? What is the outcome they're looking for? Provide a product that has that utility. And then when the user goes to use it, we want to make sure the warranty is there as well as far as does it work? Can it be used? And is it supporting? In measurable terms, is it supporting the outcomes that the customer intended that to be used for?

4:10And if so, and we've lowered the cost for that customer, and we've reduced risk for that customer, and it's helping with their outcomes, it's likely we're going to keep that customer. And also with referrals, probably get more as a result of the overall good service that we're delivering to the customer by providing both utility and warranty with our products and services. In this Nugget, we've identified that utility, what the purposes for our goods or services that we're delivering, as well as the warranty, how well they actually perform in doing what we said they would do, are both important to making sure the customer is happy with our product and that they see value in our product or service.

4:46I hope this has been informative for you. And I'd like to thank you for viewing.