Service providers create value through using their assets in the form of resources and capabilities.
Resources is a generic term that can signify IT Infrastructure, People, Money or any other entity that can help deliver an IT Service. Resources are considered the assets of any organization.
The ability of an organization, person, process, application, configuration item or IT service to carry out an activity. Capabilities are intangible assets of an organization.
The key difference between resource assets and capability assets is that, typically, resources can be purchased in the marketplace while distinctive capabilities can only be developed over time. Capabilities reflect the knowledge and experience of the organization and are used to transform physical resources into services. The distinctive capabilities of a service provider, often quite intangible, set it apart from its competitors, and enable it to attract and retain customers by offering unique value propositions.
The business unit to which the service is provided will also have resources and capabilities that are harnessed to provide the end service to the customer. The integration between the service and the business unit’s own assets may be very tight, making it hard to distinguish between the two, or it may be much more clearly separated.
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