Key Concepts Of Service Management Flashcards
What is the definition of ‘Value’?
Value is the perceived benefits, usefulness, and importance of something.
How is value created?
Value is co-created through an active collaboration between service providers and service
consumers, and other stakeholders. Value is subject to the perception of different stakeholders.
Define ‘Service Providers’
When provisioning services, an organization takes on the role of the service provider. The provider can be external to the consumer’s organization, or they can both be part of the same organization.
Define ‘service consumer’
When receiving services, an organization takes on the role of the service consumer.
What are the roles for service consumers?
Service consumer is a generic role; in practice, service consumption includes more specific roles: customer, user, and sponsor.
What is the role of the customer?
Customer is a role that defines the requirements for a service and takes responsibility for the outcomes of service consumption.
What is the role of a sponsor?
Sponsor is a role that authorizes budget for service consumption.
What is the role of the user?
User is the role who uses services.
What is a 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.
What is a product?
A configuration of an organization’s resources designed to offer value for a consumer.
What is a 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, and service actions.
What are service relationships?
Service relationships are mutually beneficial, interactive service relationships between service and service consumer. Service relationships include service relationship management, service provision, and service consumption.
What is service relationship management?
Service relationship management consists of “joint activities performed by a service provider and a service consumer to ensure continual value co-creation based on agreed and available service offerings.
What is service provision?
Service provision consists of “activities performed by a service provider to provide services.”
What is service consumption?
Service consumption consists of “activities performed by a service consumer to consume services.”
What is the relation between output and outcome?
A service provider produces outputs that help its consumers to achieve certain outcomes.
What is an output?
Output: “An output is a tangible or intangible deliverable of an activity.”
What is an outcome?
Outcome: “An outcome is a result for a stakeholder enabled by one or more outputs.”
What are costs?
Costs: “The amount of money spent on a specific activity or resource.”
What are the two types of costs involved in service relationship (customer’s perspective)?
1) Costs removed from the consumer by the service (part of value proposition)
2) Costs imposed on the consumer by the service (costs of service consumption)
What is a risk?
Risk: “A possible event that could cause harm or loss, or make it more difficult to achieve objectives.”
What are the two types of risks from a service customer’s perspective?
1) Risks removed from the consumer by the service (part of value proposition)
2) Risks imposed on the consumer by the service (risks of service consumption)
What is utility?
Utility is the functionality offered by a product or service to meet a particular need.
What are the three features of utility?
1) Represents what the service does
2) Determines whether a service is ‘fit for purpose’
3) Requires that a service must either support the performance of the consumer or
remove constraints from the consumer
