Why IT Struggles to Articulate Value in Services

Delivering Value Through IT Services

In the world of IT service management, delivering value is the cornerstone of success. Yet, despite this fundamental goal, many IT departments I've worked in often struggle to articulate the value they provide. Why does this happen, and how can it be resolved?

By understanding concepts such as vitality, observer defined value, co-creation, multidimensional value, and interaction, we can uncover how IT can better demonstrate its importance to business operations.

What Is Vitality, and Why Does It Matter?

Vitality refers to the degree to which a service improves the ability of the customer’s system to operate effectively and the vitality of a system reflects how well it can adapt, evolve, and meet its objectives.

For IT, this means ensuring that the services provided enhance the customer’s environment. Whether it’s improved system uptime, faster response times, or enhanced security, the aim is to make the customer’s operations more resilient and capable. Without vitality, even advanced IT solutions can fall flat, as they fail to contribute meaningful improvements.

Value Is Determined by the Observer

Of course as we are aware, value is subjective and it is determined by the observer, not the provider. In practical terms, this means the customer decides whether a service delivers value.

For example, a CRM system might be impressive on paper, but if the sales team finds it cumbersome, it will fail to deliver perceived value. IT must work closely with its customers to ensure the services meet real needs, solve pressing problems, and align with business goals.

Co-Creation Drives True Value

Value in IT services doesn’t arise in isolation. It is created through co-creation, where both the service provider and the customer actively contribute to achieving desired outcomes. This means involving stakeholders in every stage of service delivery, from planning and implementation to evaluation. By collaborating, IT teams can ensure that their services are not only fit for purpose but also adaptable to the evolving needs of the organisation.

Value Is Multidimensional

Value is rarely one dimensional as it spans multiple facets, including

• Economic Value. Does the service reduce costs or increase revenue?

• Operational Value. Does it improve efficiency or productivity?

• Strategic Value. Does it align with and support broader organisational goals?

• Experience Value. Does it improve the experience of the end-user?

IT must communicate these different dimensions clearly, showing stakeholders how services deliver value across these critical areas.

Value Arises in the Interaction

Perhaps the most overlooked aspect is the role of interaction in value creation. Value arises during the interaction between the service provider and the customer. This means every touch point from initial engagement to ongoing support contributes to the perceived value. For IT, this could involve proactive communication, fast issue resolution, or personalised support. The better the quality of these interactions, the higher the perceived value of the service.

Closing the Value Gap

To bridge the gap between IT services and their perceived value, you should adopt these strategies.

• Listen to your customers and understand their needs, challenges, and goals.

• Attempt to measure vitality and track how services improve the customer’s system.

• Communicate Results and use clear metrics to demonstrate value across multiple dimensions.

• Step up and foster collaboration and engage customers throughout the service lifecycle.

• Enhance interactions and invest in processes that improve customer touch points.

Final Thoughts

The struggle to articulate value is not insurmountable. By focusing on vitality, co-creation, multidimensional perspectives, and effective interaction, IT can demonstrate its significance more effectively. When IT services clearly contribute to the customer’s success, they transform from an operational necessity to a strategic asset.