4. The Key Concepts Of Service Management Flashcards

1
Q

The amount of money spent on a specific activity

A

Cost

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2
Q

A person who defines the requirements for a service and takes responsibility for the outcomes of service consumption

A

Customer

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3
Q

A person or a group of people that has its own functions with responsibilities, authorities and relationships to achieve its objectives

A

Organization

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4
Q

A result for a stake holder enabled by one or more outputs

A

Outcome

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5
Q

A tangible or intangible deliverable of an activity

A

Output

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6
Q

A possible even that could cause harm or loss, or make it more difficult to achieve objectives; can also be defined as uncertain of outcome and can be used in the context of measuring the probability of positive/negative outcomes.

A

Risk

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7
Q

A means of enabling value co-creation by facilitating outcomes that customers want to achieve without the customer having to manage specific costs and risks

A

Service

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8
Q

A description of one or more services, designed to address the needs of a target consumer group; may include goods, access to resources, and service actions

A

Service Offering

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9
Q

Activities performed by an organization to consume services; includes the management of the consumer’s resources needed to use the service, service use actions performed by users, and may include the receiving (acquiring) of goods

A

Service consumption

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10
Q

A set of specialized organizational capabilities for enabling value for customers in the form of services.

A

Service Management

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11
Q

Activities performed by an organization to provide services; includes management of resources, configured to deliver the service, access to these resources for users, fulfillment of the agreed service actions, service performance management and continual improvement; may also include the supply of goods

A

Service Provision

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12
Q

Joint activities performed by a service provider and a service consumer to ensure continual value co-creation based on agreed and available service offerings

A

Service Relationship Management

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13
Q

A person or organization who authorizes budget for service consumption

A

Sponsor

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14
Q

A person who uses services

A

User

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15
Q

The perceived benefits, usefulness and importance of something

A

Value

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16
Q

A series of steps an organization undertakes to create and deliver products and services to consumers

A

Value stream

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17
Q

The functionality offered by a product or service to meet a particular need

A

Utility

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18
Q

Assurance that a product or service will meet agreed requirements

A

Warranty

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19
Q

To decide whether the service has “utility” and is therefore “fit for purpose” it must either.

A
  • Support the performance of the consumer
  • Remove constraints on the consumer’s actions
  • It may do both of these
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20
Q

To decide whether the service has “warranty” and is therefore “fit for user”, it must be delivered to meet the level of service the consumer need.

A
  • This may be captured in a service level agreement or contract
  • It may be a marketing message or brand image
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21
Q

Warranty typically is concerned with areas such as:

A
  • The availabity of the service and its capacity

- Level of security and continuity

22
Q

Could be technology, the people and their skills, the best practices they follow in addition to other capabilities.

  • Marketing
  • Logistics
  • Etc.
A

Organizational Capabilities

23
Q

Service Providers are those who provide services:

A
  • Internally, such as IT departments providing IT services to the staff of an organization
  • Externally, where the customers of the service are not part of the provider’s organization
24
Q

Organizations own, or have access to a variety of ______.

  • People
  • Information
  • Technology
  • Value streams
  • Processes
  • Suppliers
  • Partners
A

Resources

25
Q

A configuration of an organization’s resources designed to offer value for a consumer.

A

Products

26
Q

Each product is created with a number of target customer groups in mind.

A
  • Organizations use their resources to create products to offer to target customers that will satisfy a requirement that customer has
  • Different customers will have different requirements, so products will be tailored accordingly
  • The services that an organization provides are based on one or more of its products
27
Q

Creating Value with Services:

A
  • Value co-creation
  • Organizations
  • Service providers
  • Consumers
  • Stakeholders
  • Outcomes
  • Costs
  • Risks
28
Q

Purpose of any organization public or private sector is to create value for their stake holders.

A
  • Perception of stakeholders
  • Consumer or customer
  • Service provider
29
Q

Service providers used to “provide value” like a parcel:
- One one-way relation – provider to customer.
Value creation is more complex.
Value requires collaboration:
- Co-creation between providers and consumers
- Stakeholders take an active part in defining value

A

Value Co-Creation

30
Q

Service Providers provision services:

A

o Internal

o External

31
Q

Traditional ITSM:

A

o IT departments as internal service providers

o Oversimplified

32
Q

Providers sell:

A

o Open Market
o Individual consumers
o Collaboratively

33
Q

o Organization or individual in receipt

A

Service Consumer

34
Q

The role that authorizes budget for service consumption

A

Sponsor

35
Q

Difference of Outcomes and Outputs

A

Outcomes:
- Service providers need to understand the consumer outcome:
o Work with consumers for a collaborative definition of an outcome
o Provide standard services to support a defined outcome
o Create demand for an outcome through innovation (social media, smart networks in home)

36
Q

Two types of cost in the consumer’s perspective

A
  • Removed from the consumer by a service

- Imposed on the consumer by a service

37
Q

Both types of cost will be used to assess service value:

A
  • Service must be delivered within budget constraints

- Meet financial expectations of the organization

38
Q

Two types of risk perceived by service consumers:

A
  • Risks removed from a consumer by the service

- Risks imposed on a consumer by the service

39
Q

Service providers must manage the level of risk on behalf of the consumer:

A
  • A balance of what is important to the consumer and to the provider.
40
Q

The consumer contributes to the reduction of risk through:

A
  • Actively participating in the definition of the requirements of the service and the clarification of its required outcomes
  • Clearly communicating the critical success factors and constraints that apply to the service
  • Ensuring the provider has access to the necessary resources of the consumer throughout the service relationship
41
Q

Utility and warranty have a significant impact on service value:

A
  • Costs and risks

- Facilitation of consumer outcomes

42
Q

Key Concepts of Service Relationships:

A
  • Service offering
  • Service relationship management
  • Service provision
  • Service consumption
43
Q

A service offering may include:

A
  • Goods
  • Access to resources
  • Service Actions
44
Q
  • Goods
A

o The goods of products are supplied to the consumer, who then owns them
 The supplier offers a product at an advertised price
 The consumer wants the product, so pays the supplier for it
 The consumer then owns the product, and is responsible for it and its future use (other than any faults covered by the guarantee)
o Example: The purchase of a television from a store

45
Q
  • Access to resources
A

o The service offering is the granting of access to resources to a consumer under agreed terms and conditions
o The resource remain under the provider’s control and can be accessed by the consumer only during the agreed service consumption period
o Example: 12-Month membership of Netflix

46
Q
  • Service Actions
A

o Actions performed to address a consumer’s need (for example, user support)
o These actions are performed by the service provider according to the agreement with the consumer
o Example: The customer support offered by the satellite television supplier to deal with any technical issues the consumer experience during their contract

47
Q

In order to create value:

A
  • It is not enough to provide a service; organizations need to cooperate with the consumers in service relationships
    o Consumers views on desired features should be sough
    o Feedback should be analyzed and acted upon
48
Q

Service Provision includes:

A
  • The Configuration and management of the provider’s resources to deliver the service
  • Providing access to these resources for users
  • Carrying out the agreed service actions
  • Service level management and continual improvement

Service provision may also include the supplying of goods.

49
Q

Service Consumption includes:

A
  • The management of the consumer’s resources needed to use the service
  • Service use actions performed by users including:
    o Utilizing the provider’s resources
    o Requesting service actions to be fulfilled
  • Service consumption may also include the receiving (acquiring) of goods.
50
Q

Organizations are usually

A

both providers of some services and consumers of others.

51
Q

Consuming services improves an organization’s own resources

A
  • This enables organizations to provide new or improved services to their current and potential customers in their role as a service provider