Key Concepts of Service Managment

Question 1

Value

Answer 1

Products and services need to add value to consumers to be successful. Value is “the perceived benefits, usefulness and importance of something.”

Question 2

Service management

Answer 2

Service management is “a set of specialized organizational capabilities for enabling value for customers in the form of services.”An organisation can only develop these specialised organisational capabilities when it understands:
•The nature of value
•The nature and scope of the stakeholders involved
•How value creation is enabled through services

Question 3

Organisation

Answer 3

Organisations facilitate value creation. “An organization is a person or a group of people that has its own functions with responsibilities, authorities, and relationships to achieve its objectives.”

Question 4

Co-creation

Answer 4

Co-creation focuses on customer experience and interactive relationships. It encourages active customer involvement. Organisations need to collaborate with their consumers as well as the suppliers that help them offer valuable services. Each product and service is part of a web of service relationships. Most organisations act as a customer and a service provider as part of service delivery: buying and selling or consuming and supplying services and service elements.