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Utility

Quick Definition

The functionality offered by a product or service to meet a particular need — what the service does. Also known as 'fitness for purpose'.

Detailed Explanation

Utility addresses the question 'Does the service do what the customer needs?' A service has utility when it supports the performance of the consumer or removes constraints from the consumer. Utility is one of two components of service value — the other being warranty. A service must have both utility (it does the right thing) and warranty (it does it well enough) to create value. For example, an email service has utility because it enables communication. But utility alone isn't sufficient — if the email service is down 50% of the time, its warranty (fitness for use) undermines the value.

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