Basics & Key Concepts

Question 1

Service Management

Answer 1

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

Question 2

What do we mean by Value?

Answer 2

Value is the perceived benefits, usefulness, and importance of something

Question 3

Service Value System

Answer 3

Describes how all the components and activities of an organization work together as a system to enable value creation

Question 4

How can we use the ITIL guiding principles?

Answer 4

Create the foundation for an organization’s culture and behavior from strategic decision-making to day-to-day operations

Question 5

Which are the Four Dimensions of Service Management?

Answer 5

1. Organization & people
2. Information & technology
3. Partners & suppliers
4. Value streams and processes

Question 6

Definition of Organization

Answer 6

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

Question 7

Definition of Customer

Answer 7

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

Question 8

Definition of User

Answer 8

A person who uses services.

Question 9

Definition of Sponsor

Answer 9

A person who authorizes budget for service consumption.

Question 10

Types of roles involved in service consumption

Answer 10

Customers, users, and sponsors.

Question 11

Types of Stakeholder

Answer 11

Service consumers, service providers, service provider employees, society and community, charity organizations, and shareholders.

Question 12

Definition of Service

Answer 12

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.

Question 13

Definition of Product

Answer 13

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

Question 14

Definition of Service Offering

Answer 14

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

Question 15

Components of Service Offering

Answer 15

Goods, Access to resources, Service actions

Question 16

Service Relationship

Answer 16

Activities performed by an organization to provide services.

Question 17

Service consumption

Answer 17

Activities performed by an organization to consume services.

Question 18

Service relationship management

Answer 18

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

Question 19

When a Service Relationships are perceived as valuable?

Answer 19

Only when they have more positive effects than negative.

Question 20

Definition of Output

Answer 20

A tangible or intangible deliverable of an activity

Question 21

Definition of Outcome

Answer 21

A result for a stakeholder enabled by one or more outputs

Question 22

Definition of Cost

Answer 22

The amount of money spent on a specific activity or resource

Question 23

Which are the two types of costs involved in a service relationship?

Answer 23

1. Cost removed from the consumer by the service (a part of the value proposition). Consumer does not need to provide them.
2. Costs imposed on the consumer by the service (the cost of a service consumption). Total cost of consuming, invest from the consumers to consume the service.

Question 24

Definition of Risk

Answer 24

A possible event that could cause harm or loss, or make it more difficult to achieve objectives. Risk can also be defined as the uncertainty of outcome and can be used in the context of measuring the probability of outcomes as well as negative outcomes.

Question 25

Which are the two types of risks that are of concern to service consumers?

Answer 25

1. Risks removed from a consumer by the service (part of the value proposition).
2. Risks imposed on a consumer by the service (risks of service consumption).

Question 26

How the consumer can contribute to the reduction of the risk?

Answer 26

1. Actively participating in the definition of the requirements of the service and the clarification of its required outcomes.
2. Clearly communicating the critical success factors and constraints that apply to the service.
3. Ensuring the provider has access to the necessary resources of the consumer throughout the service relationship.

Question 27

Services have a combination of _______ + _______

Answer 27

Utility + Warranty

Question 28

What’s the utility?

Answer 28

What does the product/service do?

The functionality offered by a product or service to meet a particular need. “Fit for purpose”

Question 29

What’s the warranty?

Answer 29

How well does it do it?

Assurance that a product or service will meet agreed requirements. “Fit for use”