2. Basic concepts of service management

Question 1

What is service management ?

Answer 1

A set of specialised organisational capabilities to enable value to the customers through services

Question 2

services

Answer 2

The services are the main way that organisations create value for themselves and their customers

Question 3

governance

Answer 3

the means by which an organisation is directed and controlled

Question 4

Value

Answer 4

The perceived benefits , usefulness and importance of something

Question 5

Organisation

Answer 5

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

Question 6

Service consumption

Answer 6

Activities performed by an organisation to consume services. It includes the management of the customer ‘s resources needed to use the service , service actions performed by users and the receiving of goods

Question 7

Sponsor

Answer 7

The role that authorises budget for the service consumption. The organisation or the individual that provide financial support for the business

Question 8

Customer

Answer 8

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

Question 9

User

Answer 9

The role that uses services

Question 10

Sponsor

Answer 10

The role that authorises budget

Question 11

Services

Answer 11

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 12

Product

Answer 12

A configuration of an organisation’s resources designed to offer value for a customer

Question 13

Service offering

Answer 13

A formal 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 14

Key message on service relationships

Answer 14

Service Relationships are established between two or more organisations to co-create value. In a service relationship , organisations will.take on the roles of service providers or service consumers. The two roles are not mutually exclusive and organisations typically both provide and consume a number services at any given time

Question 15

Service Relationship

Answer 15

A cooperation between a service provider and service consumer. Service relationships include service provision , service consumption and service relationship management

Question 16

Service Provision

Answer 16

Activities performed by an organization to provide services. Service provision includes:

*management of the provider’s resources, configured to deliver the service

*ensuring access to these resources for users

*fulfilment of the agreed service actions

*service level management and continual improvement.

Question 17

Service consumption

Answer 17

Activities performed by an organization to consume services. Service consumption includes:

*management of the consumer’s resources needed to use the service

*service actions performed by users, including utilizing the provider’s resources, and requesting service actions to be fulfilled.

Service consumption may also include the receiving (acquiring) of goods.

Question 18

Service relationship management

Answer 18

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 19

Output

Answer 19

A tangible or intangible deliverable of an activity.

Question 20

Outcome

Answer 20

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

Question 21

Cost

Answer 21

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

Question 22

Risk

Answer 22

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

Question 23

Utility

Answer 23

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.

Question 24

Warranty

Answer 24

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.