Understand the key concepts of service management Flashcards
Define 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.
Define Utility
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 consumer or remove constraints from the consumer. Many services do both.
Define Warranty
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 consumers. This may be based on a formal agreement, or it may be a marketing message or brand image. Warranty typically addresses such areas as the availability of the service, its capacity, levels of security, and continuity. A service may be said to provide acceptable assurance, or ‘warranty’, if all defined and agreed conditions are met.
Define Customer
The role that defines the requirements for a service and takes responsibility for the outcomes of service consumption.
Define User
The role that uses services.
Define Service management
A set of specialized organizational capabilities for enabling value for customers in the form of services.
Define Sponsor
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.
Describe Cost as a concept of creating value with services
The amount of money spent on a specific activity or resource. Costs removed from the consumer by the service (a part of the value proposition). Costs imposed on the consumer by the service (the costs of service consumption). Providers need to ensure that services are delivered within budget constraints and meet the financial expectations of the organization.
Describe Value as a concept of creating value with services
The purpose of an organization is to create value for stakeholders. The perceived benefits, usefulness, and importance of something. Value can be subjective. Value co-creation.
Describe Organization as a concept of creating value with services
A person or a group of people that has its own functions with responsibilities, authorities, and relationships to achieve its objectives. Each organization depends on others in its operation and development. Organizations may hold different roles, depending on the perspective under discussion.
Describe Outcome as a concept of creating value with services
A result for a stakeholder enabled by one or more outputs. Depending on the relationship between the provider and the consumer, it can be difficult for the provider to fully understand the outcomes that the consumer wants to achieve. In some cases they will work together to define the desired outcomes. In other cases, the consumers articulate their expectations quite clearly, and the provider expects them to do so, such as when standardized services are offered to a wide consumer group. Finally, some service providers predict or even create demand for certain outcomes, forming a target group for their services.
Describe Output as a concept of creating value with services
A tangible or intangible deliverable of an activity.
Describe Risk as a concept of creating value with services
A possible event that could cause harm or loss, or make it more difficult to achieve objectives. Can also be defined as uncertainty of outcome, and can be used in the context of measuring the probability of positive outcomes as well as negative outcomes. Risks removed from a consumer by the service (part of the value proposition). Risks imposed on a consumer by the service (risks of service consumption). It is the duty of the provider to manage the detailed level of risk on behalf of the consumer. The consumer contributes to the reduction of risk through: actively participating in the definition of the requirements of the service and the clarification of its required outcomes. clearly communicating the critical success factors (CSFs) and constraints that apply to the service. ensuring the provider has access to the necessary resources of the consumer throughout the service relationship.
Describe Utility as a concept of creating value with services
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 consumer or remove constraints from the consumer. Many services do both.
Describe Warranty as a concept of creating value with services
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 consumers. This may be based on a formal agreement, or it may be a marketing message or brand image. Warranty typically addresses such areas as the availability of the service, its capacity, levels of security and continuity. A service may be said to provide acceptable assurance, or ‘warranty’, if all defined and agreed conditions are met.
