Key Concepts of Service management

Question 1

Service

Answer 1

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 2

Customer

Answer 2

A role that defines the requirements for a service and takes responsibility for the outcomes of service consumption.

Question 3

User

Answer 3

A role that uses services.

Question 4

Sponsor

Answer 4

A role that authorizes budget for service consumption.

Question 5

Utility

Answer 5

The functionality offered by a product or service to meet a particular need. Utility can be summarized as ‘what the service does’ and can be used to determine whether a service is ‘fit for purpose’. To have utility, a service must either support the performance of the customer or remove constraints from the customer. Many services do both.

Question 6

Warranty

Answer 6

Assurance that a product or service will meet agreed requirements. Warranty can be summarized as ‘how the service performs’ and can be used to determine whether a service is ‘fit for use.’ Warranty often relates to service levels aligned with the needs of service customers.
Warranty could be based on a formal agreement, or it may be a marketing message or brand image it typically addresses areas like the availability of the service, its capacity, levels of security and continuity. A service may be said to prove acceptable assurance, or ‘warranty’ if all defined and agreed conditions are met.

Question 7

Service Management

Answer 7

A set of specialized organizational capabilities for enabling value for customers in the form of services.