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What is Utility and Warranty?

It is important to assess a service with consideration to the impact of costs and risks on utility and warranty. This is important to gain a complete picture of the viability of a service.

So Let’s look at what is Utility and Warranty.


Utility is the functionality offered by a product or service to meet a particular need. 

Utility can also be described as ‘what the service does’ and can be used to determine whether a service is ‘fit for purpose’.

To have utility, a service must either support the performance of the consumer or remove constraints from the consumer.  Or do both.


Warranty is Assurance that a product or service will meet agreed requirements.

Warranty can be summarized as ‘how the service performs’ and can be used to determine whether a service is ‘fit for use’.

Warranty often relates to service levels in form of “formal agreement, or a marketing message or brand image” aligned with the needs of service consumers.

Warranty is typically referred to as availability of the service, its capacity, levels of security and continuity.

A service warranty is said to be fulfilled, if all defined and agreed conditions of service are met.

Both utility and warranty are essential for a service as it facilitates desired outcomes and therefore help create value.

As Utility and Warranty take into consideration Value. Let’s understand What is Value?


Value is that a person perceives as benefits or usefulness or importance of something.

Value is very subject as it is related to the perception of the stakeholders

Value can be subjective.

For each stakeholder the definition of value is different.

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