Terms & Definitions

Question 1

Value

Answer 1

The perceived benefits, usefulness, and importance of something.

Question 2

Service Management

Answer 2

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

Question 3

Organization

Answer 3

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

Can be a single person, a team, a legal entity (company, charity, etc), a government department, public sector body, etc.

Question 4

Co-creation

Answer 4

The idea that active customer involvement is necessary to offer valuable services. Co-creation focuses on customer experience and interactive relationships.

Question 5

Service Provider

Answer 5

The organization providing an IT service.

Can be internal to the same organization as the customer or an external organization.

Receive value by funding, loyalty from consumers, further business development, and enhanced reputation.

Question 6

Stakeholder

Answer 6

A person or organization that has an interest or involvement in an organization, product, service, practice, or other entity.

Question 7

Service Relationship

Answer 7

A cooperation between a service provider and a service consumer. Include service provision, service consumption, and service relationship management.

Question 8

Service Consumer

Answer 8

The person or organization that is receiving a service.

Receive value by receiving benefits and optimizing costs and risks.

Question 9

Customer

Answer 9

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

Question 10

User

Answer 10

The role that uses services

Question 11

Sponsor

Answer 11

The role that authorizes budget for service consumption. Can also be used to describe an organization or individual that provides financial or other support for an initiative.

Question 12

Service

Answer 12

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 13

Product

Answer 13

A configuration of an organization’s resources designed to offer value for a consumer.

Question 14

Output

Answer 14

A tangible or intangible deliverable of an activity

Question 15

Outcome

Answer 15

A result for a stakeholder enabled by one or more outputs.

Question 16

How is Value Created?

Answer 16

Value is created when a service has more positive than negative effects.

Negative effects include affected outcomes, costs introduced, and risks introduced.
Positive effects include supported outcomes, costs removed, and risks removed.

Question 17

Risk

Answer 17

A possible event that could cause harm or loss or make it difficult to achieve objectives. Uncertainty of outcome and can be used in the context of measuring the probability of positive outcomes as well as negative outcomes.

Question 18

Utility

Answer 18

Describes what a service does (fit for purpose).

The functionality offered by a product or service to meet a particular need.

Question 19

Warranty

Answer 19

Describes how a service performs (fit for use).

The assurance that a product or service will meet agreed requirements.

Question 20

What factors contribute to Service Viability?

Answer 20

Cost, Risk, Utility, & Warranty

Question 21

Service Offerings

Answer 21

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.

Question 22

Goods (as it pertains to service offerings)

Answer 22

Ownership is transferred to the consumer who assumes responsibility for future use of the goods

Question 23

Access to Resources (as it pertains to service offerings)

Answer 23

Ownership is not transferred to the consumer; access is granted or licensed under agreed terms and conditions.

Question 24

Service Actions (as it pertains to service offerings)

Answer 24

Performed by the provider to address a consumer need; performed IAW the agreement with the customer.

Question 25

Service Relationships

Answer 25

A cooperation between a service provider and a service consumer. Include service provision, service consumption, and service relationship management.

Question 26

Service Provision

Answer 26

Activities performed by an organization to provide services.

Includes management of resources configured to deliver the service, access to these resources for users, fulfillment of agreed service actions, service performance management, and continual improvement. It may also include the supply of goods.

Question 27

Service Consumption

Answer 27

Activities performed by an organization to consume services. This includes the management of the consumer’s resources needed to use the service, service use actions performed by users, and may include receiving (acquiring) goods.

Question 28

Service Relationship Management

Answer 28

Joint activities performed by a service provider and a service consumer to ensure continual value co-creation based on agreed and available service offerings.

Question 29

Guiding Principle

Answer 29

A recommendation that guides an organization in all circumstances

Question 30

Waterfall

Answer 30

A development approach that is linear and sequential with distinct objectives for each phase of development.

Question 31

Agile

Answer 31

An umbrella term for a collection of frameworks and techniques that, together, enable teams and individuals to work in a way that is typified by collaboration, prioritization, iterative, and incremental delivery and time boxing.

Methods (frameworks) that are classified as agile include: SCRUM, Lean, and Kanban.

Question 32

DevOps

Answer 32

An organizational culture that aims to improve the flor of value to customers. Focuses on culture, automation, lean, measurement, and sharing (CALMS).

Question 33

The Seven ITIL Guiding Principles

Answer 33

1. Focus on Value
2. Start Where You Are
3. Progress Iteratively with Feedback
4. Collaborate and Promote Visibility
5. Think and Work Holistically
6. Keep it Simple and Practical
7. Optimize and Automate

Question 34

Focus on Value (Guiding Principle)

Answer 34

Everything the organization does should link back, directly or indirectly, to value for itself, its customers, and other stakeholders.

Question 35

Start Where You Are (Guiding Principle)

Answer 35

Because “Revolution” is more disruptive and can have unforeseen negative consequences than “Evolution,” it is important to assess the current position and see if anything can be reused or built on.

Question 36

Progress Iteratively with Feedback (Guiding Principle)

Answer 36

Resist the temptation to do everything at once; even huge initiatives must be accomplished iteratively. Organize work into smaller, manageable, sections that can be executed and completed in a timely manner. The focus on each effort will be sharper and easier to maintain.

Question 37

Collaborate and Promote Visibiltiy (Guiding Principle)

Answer 37

Collaboration - working together toward a shared goal - can help remove silos within organizations, allowing everyone to work together more effectively.

Question 38

Think and Work Holistically (Guiding Principle)

Answer 38

No Service, practice, process, department, or supplier stands alone. The output that the organization delivers to itself, its customers, and other stakeholders will suffer unless it works in an integrated way to handle its activities as a whole, rather than separate parts. All the organization’s activities should be focused on the delivery of value.

Question 39

Keep it Simple and Practical (Guiding Principle)

Answer 39

Always use the minimum number of steps to accomplish an objective. Outcome-based thinking should be used to produce practical solutions that deliver valuable outcomes.

Question 40

Optimize and Automate (Guiding Principle)

Answer 40

Optimization is to make something as effective and useful as it needs to be. Before an activity can be effectively automated, it should be optimized to whatever degree is possible and reasonable.

Automation is the use of technology to perform a step or series of steps correctly and consistently with limited or no human intervention.

Question 41

The Four Dimensions of Service Management

Answer 41

1. Organizations & People
2. Information & Technology
3. Partners & Suppliers
4. Value Streams & Processes