1. Service Management Fundamentals

Question 1

Define the Following Term:

Service Management

Answer 1

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

Question 2

Define the Following Term:

Organizational Capability

Answer 2

Having both the capacity and ability to perform the functions required.

Question 3

Define the Following Term:

Value

Answer 3

The perceived benefits, usefulness and importance of something.

Question 4

Define the Following Term:

Organization

Answer 4

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

Question 5

Define the Following Term:

Service Provider

Answer 5

A role performed by an organization in a service relationship to provide services to consumers.

Question 6

Define the Following Term:

Consumer

Answer 6

Role performed by an organization in a relationship that uses (or consumes) those services.

Question 7

Define the Following Term:

How is Value Created?

Answer 7

Value is co-created through an active collaboration between providers and consumers, as well as other organizations that are part of the relevant service relationships.

(You can be both a supplier and consumer simultaneously)

Question 8

People can fill the roles of?

Answer 8

User, Customer, and Sponsor

(A Person can be one or more of these roles)

Question 9

Define the Following Term:

User

Answer 9

Someone who uses a service.

Question 10

Define the Following Term:

Customer

Answer 10

A person who defines the requirements for a service and takes responsibility for the outcomes of service consumption.

Question 11

Define the Following Term:

Sponsor

Answer 11

A person who authorizes the budget for service consumption.

Question 12

Define the Following Term:

Service

Answer 12

A means of enabling value co-creation by facilitating outcomes that customers want to achieve, without the customer having to manage the costs or risks.

Question 13

Define the Following Term:

Product

Answer 13

A configuration of resources created by the organization that will be potentially valuable for its customers.

Question 14

Define the Following Term:

Service Offering

Answer 14

Description of one or more services designed to address the needs of a target consumer group.

(Can include Goods, Access to Resources, and Service Actions)

Question 15

Define the Following Term:

Goods

Answer 15

Things that are transferred from the service provider to the consumer, and then the consumer is responsible for their future use.

Question 16

Define the Following Term:

Access to Resources

Answer 16

Something granted or licensed to a consumer under agreed terms and conditions.

Question 17

Define the Following Term:

Service Actions

Answer 17

Actions performed to address a consumer’s needs.

Question 18

Define the Following Term:

Service Relationship

Answer 18

A cooperation between a service provider and service consumer including Service Provision, Service Consumption, and Service Relationship Management.

(An organization may be both a service provider and service consumer)

Question 19

Define the Following Term:

Service Provisions

Answer 19

The activities performed by an organization to provide the services. This can also include providing goods.

Question 20

Service Consumption

Answer 20

The activities performed by an organization to consume the services.

Question 21

Service Relationship Management

Answer 21

The activities the service provider and service consumer do together to enable value co-creation to occur upon the service offerings.

Question 22

Define the Following Term:

Outcome

Answer 22

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

Question 23

Define the Following Term:

Output

Answer 23

Tangible or intangible deliverable of an activity.

Question 24

Define the Following Term:

Costs

Answer 24

The amount of money spent on a specific activity or resource.

(Costs may be measured in man-hours or FTEs)

Question 25

# Define the Following Term: Risk

Answer 25

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

Question 26

A Service Provider's goal should be to?

Answer 26

*Reduce risk* for the customer.

Question 27

The consumer should contriubte to risk reduction through?

Answer 27

1. Defining service requirements and clarifying required outcomes. 2. Clearly communicate any constraints and the critical success factors. 3. Consumers must ensure providers have access to the necessary resources.

Question 28

List the 4 Primary Approaches to Risk

Answer 28

1. Risk Avoidance 2. Risk Acceptance 3. Risk Transfer 4. Risk Mitigation

Question 29

# Define the Following Term: Risk Avoidance

Answer 29

Involves removing risks from the service. | (It is impossible to avoid 100% of risks)

Question 30

Risk Acceptance

Answer 30

Used when the risk or cost is considered low.

Question 31

Risk Transfer

Answer 31

Often used when you ensure against a risk.

Question 32

Risk Mitigation

Answer 32

Used when you implement technology or processes to reduce risk. | (Most commonly used)

Question 33

# Define the Following Term: Utility

Answer 33

The functionality offered by a product or service to meet a particular need. | (What the product or service does / Fit for Purpose)

Question 34

# Define the Following Term: Warranty

Answer 34

The assurance that a product or service will meet agreed requirements. | (How the product or service performs / Fit for Use)

Question 35

# True or False? A service should have both Utility and Warranty.

Answer 35

True

Question 36

Warranty addresses areas such as?

Answer 36

Availability, Capacity, Security Levels, and Continuity.