Key concepts

Question 1

Define ‘organization’.

Answer 1

A person or a group of people that has its own functions with responsibilities, authorities, and relationships to achieve its objectives.
The purpose of an organisation is to create value for stakeholders.

Question 2

What is Service management?

Answer 2

A set of specialised organisational capabilities for enabling value for customers in the form of services.

Question 3

Define ‘Service’.

Answer 3

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 4

Define ‘Service provider’.

Answer 4

When provisioning services, an organisation takes on the role of the services provider. The provider can be external to the consumer’s organisation, or they can both be part of the same organisation.

Question 5

Define ‘Service consumer’.

Answer 5

When receiving services, an organisation takes on the role of the service consumer.

Question 6

What is a product?

Answer 6

~ a configuration of an organisation’s resources designed to offer value for a consumer

Question 7

What is the definition of value?

Answer 7

~ the perceived benefits, usefulness, and importance of something.

Question 8

The purpose of an organisation is to create…

Answer 8

…value for stakeholders.

Question 9

What is a customer?

Answer 9

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

Question 10

What is a user?

Answer 10

~ a person who uses services.

Question 11

What is a sponsor?

Answer 11

~ a person who authorises budget for service consumption.

Question 12

Define Service offering.

Answer 12

~ 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 13

What is a Service relationship?

Answer 13

~ a co-operation between a service provider and service consumer. Service relationships include service provision, service consumption and service relationship management.

Question 14

What is Service relationship management?

Answer 14

~ 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 15

What is an output?

Answer 15

~ a tangible or intangible deliverable of an activity.

Question 16

What is an outcome?

Answer 16

~ a results for a stakeholder enabled by one or more outputs.

Question 17

Define cost.

Answer 17

~ the amount of money spent on a specific activity or resource.

Question 18

Define risk.

Answer 18

~ a possible event that could cause harm or loss, or make it more difficult to achieve objectives.

Question 19

What does utility mean?

Answer 19

~ the functionality offered by a product or service to meet a particular need.

Question 20

What is warranty?

Answer 20

~ the assurance that a product or service will meet agreed requirements.