Section 1: Key Concepts/Definitions Flashcards
(30 cards)
Service Management
A set of specialized organizational capabilities for enabling value to customers in the form of services.
Specialized organizational capabilities are all the features that make a company special. They distinguishes the organization on the market.
Value
The perceived benefits, usefulness and importance of something.
“Perceived” means that it doesn’t what you feel about the benefits, what matters is how your customers feel about them.
Customer
Defines requirements for services.
User
A person who uses the service.
Sponsor
Authorizes budgets for services.
Supplier
External partner who provides services to the organization.
Organization
A group of people that has its own functions, responsibilities and authorities to achieve specific objectives. These could be teams, departments, or entire companies.
Service
The means of enabling value co-creation by facilitating outcomes that customers want to achieve without the customer having to manage specific costs and risks.
Product
A configuration of resources, created by the organization, that will be potentially valuable to customers.
Ex. software or hardware products.
Service Offering
A specific mix of services and products sold to a specific customer.
=> Goods: ownership is transferred to customer.
=> Access to resources: customer is allowed to use it.
=> Service Actions: things the service provider does for the customer like handling tickets, and providing technical support.
Output
A tangible or intangible deliverable of an activity.
Ex. scoring many goals in a soccer game.
Outcome
A result for a stakeholder enabled by one or more outputs.
Ex. scoring many goals in a soccer game would lead to the team winning the match.
Cost
Can be removed from the customer (part of value proposition) and can be imposed on the customer (price for service consumption.
Risk
Uncertainty of outcome. Can be good (opportunity) or bad (hazard).
Utility
Fit for purpose. Service does what it’s meant to do. Utility refers to functionality aspect of the service.
Warranty
Fit for use. Service does this good enough according to the customer.
=> Availability, capacity, continuity, security good enough? All these things must be good enough on the right levels. Need to have what the customer needs.
=> Value = Utility + Warranty (+perception)
Value Co-Creation
A joint venture in the production process that actively involves customers in creation value-added work and on-demand products. Value-added work consists of adding a product function to make it more purchasable. The info gained through co-creation effectively drives sales and consumer engagement in marketing.
Co-creation allows consumers to take part in the research and development process. It also involves customers in product innovation and production, making them feel part of the band.
Whereas, companies implement the ideas borrowed from consumers. It enhances collaboration. Thus, co-creation of value considers collaboration between the consumer and a brand from the development of a product till its purchase.
VOIP
The internal factors that the service provider can influence. V is for value streams & processes, O is for organizations & people, I is for information & technology, and P is for partners & suppliers.
PESTLE
External factors, that can’t be influenced by the service provider but need to be considered. We can leverage these factors to our advantage.
=> Political
=> Economical
=> Social
=> Technological
=> Legal
=> Environment
Value Streams and Processes
One aspect of the 4 dimensions. All about the things the service provider needs to do to ensure value to our stakeholders. The activities that we execute to deliver actual value or co-create actual value.
- Activities the organization undertakes.
- Organization of these activities.
- Ensuring value to stakeholders.
- Exercise value stream mapping.
Organizations and People
One aspect of the 4 dimensions. All about how we organize our people and human resources within the company to get the most benefits out of them.
Focuses on:
* Organizational structures: how teams and units are set up.
* Decision making habits
* Staffing and skill requirements
* Culture and leadership styles
Information and Technology
One aspect of the 4 dimensions. All the info and tools we need to deliver co-create value to our customers. How the info is stored and managed. The tools and tech that are need to manage the info.
Focuses on:
* Information and tools needed
* Technologies and innovation
* Relationship between components
* Culture of knowledge management: are knowledge contained in certain individuals or shared freely among staff?
Partners and Suppliers
One aspect of the 4 dimensions.
Focuses on:
* Relationship with external vendors
* Factors that influence suppliers strategies
* Service integration management
* Vendor selection procedures
The Service Value System
Includes guiding principles, governance, service value chain (opportunity/demand, and value), practices, and continual improvement.
The system converts opportunity/demand by applying our service management processes into actual customer value.
