Key Concepts of Service Management Flashcards
Service Management (Definition)
A set of specialized organizational capabilities for enabling value for customers in the form of services.
Specialized Organization
Value for customers
Services
Value (Definition)
The perceived benefits, usefulness, and importance of something.
- Can be subjective (stakeholders)
Organization (Definition)
A person, or group of people that has its own functions with responsibilities, authorities, and relationships to achieve its objectives
Org:
- vary in size and complexity
- creates value for stakeholders
- may hold different roles depending on perspective (e.g. service provider, service consumer)
Types of Stakeholders
Service provider
Service consumer
Other stakeholder
Service Provider
Can be an organization provisioning services
Can be external or internal to consumer’s organization
Service Consumer
Can be an organization receiving services
A generic role. More specifically: customers, users, and sponsors.
Can be external or internal to provider’s organization
Other stakeholders
individual employees partners and suppliers investors and shareholders government organizations (regulators) social groups
Customer (Definition)
A person who defines the requirements for a service and takes responsibility for the outcomes of service consumption.
User (Definition)
A person who uses services
Sponsor (Definition)
A person who authorizes budget for service consumption
Service consumer roles
Customer
User
Sponsor
- identify these roles to ensure effective stakeholder management
- roles may have conflicting definitions of value
Service (Definition)
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
- service can be based on one or more products
- service providers help their consumers achieve outcomes by taking on some of the associated risks and costs
Key:
Value co-creation
Outcomes for customers
Less cost/risk
Product (Definition)
A configuration of an organization’s resources designed to offer value for a consumer
- products are complex and not fully visible to the consumer
- orgs define which components their consumers see
Utility (Definition)
The functionality offered by a product or service to meet a particular need
- “What the service does”
- Determines service’s ‘fit for purpose’
- Service supports consumer performance, or
remove consumer constraints
Warranty (Definition)
Assurance that a product of service will meet agreed requirements
- How the service performs
- Determine service’s ‘fit for use’
- Service availability, capacity, security levels, continuity
Output (Definition)
A tangible or intangible deliverable on any activity
- Acting as a service provider, an org produces outputs that help its consumers achieve outcomes
Outcome (Definition)
A result for a stakeholder enabled by one or more outputs
- Acting as a service provider, an org produces outputs that help its consumers achieve outcomes
Cost (Definition)
The amount of money spent on a specific activity or resource
Cost: Service consumer perspective
costs saved by the service - cost of service = value of service
Cost: Service provider perspective
Services should be delivered within budget and meet financial expectations of the organization
Risk (Definition)
A possible event that could cause harm or loss, or make it more difficult to achieve objectives.
Risk: Service consumer perspective
risk removed (staff, hardware) - risk added (security breach, third party bankruptcy) = value of service
Risk: Service provider perspective
- Manages detailed level of risk on behalf of consumer
- Balances what matters to both the service consumer and provider
