What do customer perceptions and business outcomes help to define?

ITIL defines value as the perceived benefits, usefulness, and importance of something, meaning it is inherently shaped by customer perceptions. Business outcomes - what the customer achieves as a result of the service - are the primary lens through which customers assess value. Together, perceptions and outcomes define whether a service is considered valuable, which is a foundational principle of the ITIL service value system.

Governance refers to the policies, controls, and accountability structures that guide an organization - it is not defined by customer perceptions or business outcomes.

Total cost of ownership (TCO) is a financial metric representing the full lifecycle cost of a service from the provider perspective, not a measure shaped by customer perceptions.

Key performance indicators (KPIs) are metrics selected to measure performance against specific objectives - they are defined by management to track targets, not by customer perceptions and outcomes.