Service Manager has discovered the use of an unsupported SQL collation. Using an unsupported collation (including the default, ...

Service Manager has discovered the use of an unsupported SQL collation. Using an unsupported collation (including the default, SQL_Latin1_General_CP1_CI_AS) might cause unpredictable behavior in multi-lingual environments.
 
If you continue to install Service Manager, and later decide to change the SQL collation, you will have to reinstall Service Manager which results in the loss of all accumulated data. For a list of approved SQL collations, consult the Microsoft System Center 2012 R2 Service Manager Planning Guide.