Concepts Flashcards
Important concepts of
service management
The most important concepts of service management, include:
* the nature of value and value co-creation
* organizations, service providers, service consumers and other
stakeholders
* products and services
* service relationships
* value: outcomes, costs and risks
What is Service
Management?
Service Management is a set of specialized organizational capabilities for
enabling value for customers in the form of services
Value co-creation
Value is co-created through an active collaboration between providers and
consumers, as well as other organizations that are part of the relevant service
relationships.
What is an organization?
An organization is A person or a group of people that has its own functions with
responsibilities, authorities and relationships to achieve its objectives.
Roles of organizations
Organization provisions service then role is a service provider.
Organization receiving services then role is a service consume
Roles of service consumer
Customer – A person who defines the requirements for a service and takes
responsibility for the outcomes of service consumption.
Sponsor – A person who authorizes budget for service consumption.
User - A person who uses services
Other stakeholders
There are usually many other stakeholders that are important to value creation.
Examples of these include:
* individual employees of the provider organization
* partners and suppliers
* investors and shareholders
* government organizations such as regulators, social groups,
Central component of
service management
Service - 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
How products offer value
Products - A configuration of an organization’s resources designed to offer value
for a consumer.
Remember: A product is NOT exclusive to one consumer group, and can be used
to address the needs of several different groups. Products are typically complex
and are not fully visible to the consumer.
Different types of service
offerings
Service offering - 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
* SERVICE ACTIONS
What is the difference
between a product and a
service?
Organizations will have their own definitions for product and service terms. The
important thing is to adopt a language that will allow the members of the
organization to talk together effectively and deliver objectives. The full value chain must be considered, from the ideation and design of a resource
configuration, to cooperation with consumers and value realization
Service relationship
Service relationship - A co-operation between a service provider and service
consumer. Service relationships include service provision, service consumption
and service relationship management.
Outputs and outcomes
Acting as a service provider, an organization produces outputs that help its
consumers to achieve certain outcomes. It is important to be clear about the
difference between outputs and outcomes.
Two types of cost in service
relationship
Type #1 - Costs removed from the consumer by the service (a part of the value
proposition). This may include costs of staff, technology and other resources,
which the consumer does not need to provide.
Type #2 - Costs imposed on the consumer by the service (the costs of service
consumption). The total cost of consuming a service includes the price charged
by the service provider (if applicable), plus other costs such as staff training,
costs of network utilization, procurement, etc. Some consumers describe this as
what they have to ‘invest’ to consume the service
Two types of risk for a
service consumer
Type #1 - Risks removed from a consumer by the service (part of the value
proposition). These may include failure of the consumer’s server hardware or
lack of staff availability. In some cases, a service may only reduce a consumer’s
risks, but the consumer may determine that this reduction is sufficient to
support the value proposition.
Type #2 - Risks imposed on a consumer by the service (risks of service
consumption). An example of this would be a service provider ceasing trading or
experiencing a security breach.
