Key Concepts of Service Management Flashcards

1
Q

What is service management?

A

Organizational capabilities for enabling value in the form of services.

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2
Q

What is value?

A

The perceived benefits, usefulness and importance of something.

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3
Q

Who determines value?

A

The stakeholders.

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4
Q

Can value be subjective?

A

Yes.

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5
Q

How is value co-created?

A

Through an active collaboration between stakeholders, including service providers and service consumers.

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6
Q

What does an effective service value chain require?

A

Collaboration between providers and consumers.

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7
Q

What is becoming an increasing core element in the economy?

A

Service delivery, where supplied goods are packaged into a service offering.

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8
Q

What is a dominant differentiator for the success of organizations?

A

Support that comes with service delivery.

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9
Q

What is S-D Logic?

A

Service-Dominant logic. Service is the fundamental basis for all value-sharing. It focuses on value creation in the use of resources (value-in-use) where value is co-created by providers and consumers.

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10
Q

What is G-D Logic?

A

Goods-Dominant logic, predecessor to S-D logic. The transfer of goods plays a main role. Focuses on value in the transfer of goods (value-in-exchange).

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11
Q

What is an organization?

A

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

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12
Q

What is a service provider?

A

A role performed by an organization in a service relationship to provide services to consumers. Co-creates value with the consumer, by offering services.

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13
Q

What is an internal service provider?

A

A service provider who is internal to the consumers’ organization.

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14
Q

What is an external service provider?

A

Provide their services as a commercial offering to various consumers.

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15
Q

How can the consumer-provider model be applied?

A

It can be applied to create complex supply chains, service networks or service ecosystems.

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16
Q

What is a service consumer?

A

An organization that receives services. Collaborates with service providers to co-create value.

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17
Q

Which three types of service consumers are there?

A

Customer (defines requirements for a service and takes responsibility for outcomes of service consumption), user (uses services), sponsor (authorizes budget for service consumption).

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18
Q

What are some other types of stakeholders?

A

Shareholders (interested in the success of the organization, usually financially), employees (professional growth, financial compensation and sense of purpose) and the community (has relations with the services, such as charity, environmental factors, employment, social impact, etc.)

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19
Q

What is a service?

A

A means of enabling value co-creation by facilitating outcomes that customers want to achieve, without the customer having to manage costs and risks. Based on one or more products.

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20
Q

What is a product?

A

A configuration of an organization’s resources designed to offer value for a customer. (Resources include the four dimensions of service-management. Service provider enables access to these resources to be used by the consumer.) A product is not exclusive to a consumer group and are usually only partially visible to the consumer.

21
Q

What is a service offering?

A

A formal description of one or more services, designed to address the needs of a target consumer group.

22
Q

What does a service offering include?

A

Goods to be supplied to a consumer.
Access to resources, granted or licensed to a consumer under agreed terms and conditions.
Service actions to address consumer’s needs.

23
Q

What is a service catalogue?

A

A demonstration of the service offering to consumers.

24
Q

Are any and all organizations both service provider and service consumer?

A

Yes.

25
Q

What is service provision?

A

Activities performed by an organization to provide services.

26
Q

What does a service provider do?

A

Managing resources.
Providing access to resources for users.
Fulfilling service actions (support).
Supplying goods.
Manage service performance.
Continually improve services.

27
Q

What is service consumption?

A

Activities performed by an organization to consume services.

28
Q

What does a consumer do?

A

Manages own resources.
Performs service actions/utilizing provider’s resources.
Receives goods.

29
Q

What is a service relationship?

A

Cooperation between provider and consumer, including provision, consumption and relationship management.

30
Q

What is service relationship management?

A

Joint activities performed by provider and consumer to ensure value co-creation based on agreed and available service offerings. Examples: meetings, discussing options, preparing for future, making adjustments, surveys, marketing research.

31
Q

What is the service relationship model?

A

A chain of provider and consumer that is repeated over and over again, where a consumer becomes a provider when they provide value to the next position in the chain.

32
Q

How is value achieved?

A

Co-created between consumer and provider and other stakeholders.
Achieved when relationships have more positive effects than negative. Balance between desired outcomes and costs and risks.

33
Q

Who defines the potential benefits of a service and the financial costs?

A

The consumer.

34
Q

What are benefits?

A

Gains created and/or pains relieved.

35
Q

What is an output?

A

A tangible or intangible deliverable of an activity.

36
Q

What is an outcome?

A

A result for a stakeholder enabled by one or more outputs. Outcomes determine the value for the consumer and are determined by the consumer.

37
Q

What is a cost?

A

The amount of money spent on a specific activity or resource. If a cost is not directly financial, it can be expressed in terms of money.

38
Q

What is cost removed?

A

A service may remove costs from the consumer: reduced staff costs, technology, and other resources because the consumer doesn’t need to provide them anymore.

39
Q

What is cost imposed?

A

A service may cost something: a price charged by the provider, staff training, network utilization, procurement, etc.

40
Q

What is a risk?

A
  1. A possible event that could cause harm or loss, or make it more difficult to achieve.
  2. Uncertainty of outcome used in the context of measuring the probability of positive outcomes as well as negative ones.
41
Q

What are risks removed?

A

The service removes risks for the consumer: failure of infrastructure or lack of staff is avoided/mitigated.

42
Q

What are risks imposed?

A

An added risk for the consumer: the provider’s resources fail or experience security breaches.

43
Q

What are CSF?

A

Critical Success Factors, defined by the consumer in articulating service requirements and desired outcomes.

44
Q

What is utility?

A

The functionality offered by a product or service to meet a particular need, aka what a service does. Used to determine whether a service is ‘fit for purpose’.

45
Q

What is fit for service?

A

A service either supports business activities of the consumer or removes constraints or both.

46
Q

What is warranty?

A

The assurance that a product or service will meet agreed requirements. How does the service perform, is it ‘fit for use’?

47
Q

How is fit for use/warranty determined?

A

By service levels, namely:
- Availability
- Capacity
- Security
- Continuity

48
Q

What are utility and warranty useful for?

A

Evaluating the ability of a service to provide desired outcomes.