1 Key Concepts of Service Management

Question 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.

Answer 1

service

Question 2

Service - A means of enabling value co-creation by facilitating ______ that customers want to
achieve, without the customer having to manage specific costs and risks

Answer 2

outcomes

Question 3

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

Answer 3

service management

Question 4

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

Answer 4

customer

Question 5

The role that uses services

Answer 5

user

Question 6

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

Answer 6

sponsor

Question 7

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

Answer 7

utility

Question 8

Can be summarized as ‘what the service does’ and can be used to determine whether a service is ‘fit for
purpose’

Answer 8

utility

Question 9

To have _____, a service must either support the performance of the consumer or remove constraints from the consumer. Many services do both.

Answer 9

utility

Question 10

Assurance that a product or service will meet agreed requirements.

Answer 10

warranty

Question 11

_________ can be summarized as ‘how the service performs’ and can be used to determine whether a service is ‘fit for use’.

Answer 11

warranty

Question 12

________ 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 ‘_________’,
if all defined and agreed conditions are met.

Answer 12

warranty

Question 13

______ 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.

Answer 13

warranty

Question 14

What are the key concepts of services and service management?

Answer 14

service, service management, customer, user, sponsor, utility, warranty

Question 15

The perceived benefits, usefulness, and importance of something.

Answer 15

value

Question 16

A tangible or intangible deliverable of an activity

Answer 16

output

Question 17

A result for a stakeholder enabled by one or more outputs

Answer 17

outcome

Question 18

The amount of money spent on a specific activity or resource

Answer 18

cost

Question 19

A possible event that could cause harm or loss, or make it more difficult to achieve objectives

Answer 19

risk

Question 20

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

Answer 20

risk

Question 21

True or false:

Risks can not be imposed by taking no action

Answer 21

False - Risks do not just originate from taking action, but can also be imposed by taking no action.

Question 22

The 2 types of risks to service consumers:

Answer 22

-risks imposed on a consumer
-risks removed from a consumer

Question 23

The consumer contributes to the reduction of risk through:

Answer 23

-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

Question 24

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

Answer 24

organization

Question 25

True or false: Organizations vary in size and complexity, and in their relation to legal entities, from a single person or a team, to a complex network of legal entities united by common objectives, relationships, and authorities

Answer 25

True

Question 26

What are the key concepts of creating value with services?

Answer 26

value, output, outcome, cost, risk, organization

Question 27

A formal description of one or more services, designed to address the needs of a target consumer group. A ______ ________ may include goods, access to resources, and service actions.

Answer 27

service offering

Question 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.

Answer 28

service relationship management

Question 29

Activities performed by an organization to provide services. It includes management of the provider’s resources, configured to deliver the service; ensuring access to these resources for users; fulfillment of the agreed service actions; service level management; and continual improvement. It may also include the supply of goods.

Answer 29

service provision

Question 30

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

Answer 30

service consumption

Question 31

What are the key concepts of service relationships?

Answer 31

service offering, service relationship management, service provision, service consumption

Question 32

Developing the specialized organizational capabilities mentioned in service management requires an understand of:

Answer 32

-the nature of value -the nature and scope of the stakeholders involved -how value creation is enabled through services

Question 33

True or false: Value is subject to the perception of the stakeholders, whether they are the customers or consumers of a service, or part of the service provider organization(s).

Answer 33

true - value is subjective

Question 34

To create _____, an organization must do more than simply provide a service. It must also cooperate with the consumers in service relationships.

Answer 34

value

Question 35

________ __________ are established between two or more organizations to co-create value.

Answer 35

service relationships

Question 36

In a _____ ________, organizations will take on the roles of service providers or service consumers. The two roles are not mutually exclusive, and organizations can typically both provide and consume several services at any given time.

Answer 36

service relationship

Question 37

Organizations which deliver services are referred to as ______ ________.

Answer 37

service providers

Question 38

Those to whom services are delivered as referred to as _______ _________.

Answer 38

service consumers

Question 39

A _______ is a configuration of an organization's resources designed to offer value for a customer.

Answer 39

product

Question 40

Organizations own or have access to a variety of _______, including people, information technology, value streams and processes, suppliers, and partners.

Answer 40

resources

Question 41

True or false: Service providers help their consumers to achieve outcomes, and in doing so, undertake some of the associated risks and costs.

Answer 41

true

Question 42

Acting as a service provider, an organization produces ______ that help its consumers to achieve a certain outcome.

Answer 42

outputs

Question 43

Acting as a service provider, an organization produces outputs that help its consumers to achieve a certain ________.

Answer 43

outcome

Question 44

The 2 types of cost involved in service relationships:

Answer 44

-the costs removed from the consumer by the service -the costs imposed on the consumer by the service