Show Home Subjects Expert solutions Create Log in Sign up Upgrade to remove ads Only SGD 41.99/year
Key Concepts of Service Management Terms in this set (50)Service Management Service management is a set of specialized organizational capabilities that enable value to Service Management - To develop specialized organizational capabilities, you must understand: ● The nature of value Value Value is defined as the perceived benefits, usefulness, and importance of something. ● The purpose of an organization is to create value for stakeholders. Value Co-Creation [Traditional view of value] Traditional view of value delivery by organizations = A delivery company delivering a package to its customers. ● The relationship between the service provider and the service consumer is viewed as mono directional and distant. Value Co-Creation [ Service Provider ] The service provider delivers the service and the consumer receives value. The consumer plays no role in the creation of value for themselves. ● This view fails to consider the highly complex and interdependent service relationships. Value Co-Creation [ Collaboration - Providers and Consumers ] Value is co-created through an active collaboration between providers and consumers. Stakeholders of Service Management ● Organizations Organizations A person or a group of people with its own functions and objectives. Service Providers A provider sells services in the open market to other businesses and individual consumers. Service consumers A generic role that simplifies the definition and description of the structure of service relationships. Other stakeholders Other stakeholders, apart from service providers and consumers, who are important for value creation. Service Consumer Roles ● Customer Customer The role that defines the requirements of a service and takes responsibility for the outcome of service User A role that uses services. Sponsor A role that authorizes budget for service consumption. Example 1: Roles of Service Consumer ● CUSTOMER: The Chief Information Officer (CIO) and key communication team members fill in the role of the customer when they analyze the mobile communication requirements of the company's employees, negotiate the contract with the wireless carrier, and monitor the carrier's performance against the contracted requirements. ● USER: The employees (including the CIO, CFO, and communications team members) fill the role of users when they order, receive, and use the mobile phone services as per the agreed contract. ● SPONSOR: The Chief Financial Officer (CFO) fills the role of the sponsor when they review the proposed service arrangement and approve the cost of the contract as negotiated. Example 2: Roles of Service Consumer An individual private consumer of the same wireless carrier simultaneously acts as a user, customer, and sponsor. ● It is important to identify these roles in service Other Stakeholder Roles ● Individual employees of the provider organization SERVICE CONSUMERS (examples) Achieved benefits and optimized costs and risks. SERVICE PROVIDER (examples) Funding from the consumer, business development, and SERVICE PROVIDER EMPLOYEES (examples) Financial and non-financial incentives, career and SOCIETY AND COMMUNITY (examples) Employment, taxes, and organizations' contribution to the development of the community. CHARITY ORGANIZATIONS (examples) Financial and non financial contributions from other SHAREHOLDERS (examples) Financial benefits such as dividends and a sense
of Products It is a configuration of an organization's resources designed to offer value to consumers. ● It is complex and not entirely visible to the consumer. Service It co-creates value by facilitating outcomes that customers want to achieve without having to manage specific costs and risks. ● It is the central component of service management. Service Offerings It is the description of one or more services designed to address the needs of a target consumer group. It includes goods, access to resources, and service actions. ● Service providers present their services to consumers in the form of service offerings. Components of Service Offerings - GOODS ● Supplied to the consumer. Examples: Components of Service Offerings - ACCESS TO RESOURCES ● Ownership is not
transferred to the consumer. Examples: Components of Service Offerings - SERVICE ACTIONS ● Performed by the service provider to address a Examples: Components of Service Offerings - SERVICES They are offered to target consumer groups. These groups may be either internal or external to the service provider organization. Different offerings can be created based on the same product. Thus, the same product can be used in multiple ways to address the needs of different consumer groups. Example: Service Relationships Service relationships are defined as the cooperation between service providers and service consumers.
Service Relationships - Co-create Value ● Service relationships are established between two or more organizations to co-create value. Service Provision These are the activities performed by an organization
to provide services. Service Consumption These are activities performed by an organization to consume services. Service Relationship Management These are joint activities performed by service providers and service consumers to ensure continual value co creation. The Service Relationship Model Service providers create new resources or modify existing resources for service consumers. Becoming a Service Provider The service consumer can use its new or modified resources to create its own products and Value: Outcomes, Costs, and Risks OUTCOMES-Require-->RESOURCES--Require->COSTS----Associated with--->RISKS SERVICE PROVIDERS / SERVICE RELATIONSHIPS ● Service providers: help their consumers to achieve outcomes and take on some of the associated risks and costs. VALUE: Outcomes Service relationships are perceived as valuable only when they have more positive
effects. VALUE: Outputs and Outcomes A service provider organization produces outputs that help its consumers to achieve certain outcomes. ● OUTPUT: A tangible or intangible deliverable of an activity ● OUTCOME: A result for a stakeholder enabled VALUE: Costs Cost is the amount of money spent on a specific activity or resource. It can be expressed in non-monetary terms, such as time spent, people allocated, and so on. Costs removed from the consumer by the service $ Costs imposed on the consumer by the service ----------------> It is important to understand both types of cost to ensure that the correct decisions are made regarding the service relationship. VALUE: Risks Risk is a possible event that could cause harm or loss, or make it more difficult to achieve objectives. VALUE: Types of Risks Risks removed from a consumer by
the service. Risks imposed on a consumer by the service. VALUE: Managing Risks A service provider should manage the detailed level of risk on behalf of the consumer. VALUE: Utility and Warranty [Purpose] To asses the overall utility and warranty of the service to evaluate whether a service or service offering will facilitate the outcomes desired by the consumers and therefore create value for them. ● Utility: It is the functionality offered by a product or service to meet a particular need. ● Warranty: Warranty is defined as an assurance that a product or service will meet the agreed requirements. VALUE: Utility and Warranty [Summarized terms] Utility: Warranty: VALUE: Utility and Warranty [Example 1] They are essential for a service to facilitate its desired outcomes and therefore help create value. Example 1: If a significant number of the rides are unavailable due to mechanical difficulties, the park is not fulfilling the warranty (it is not fit for use). Therefore, the consumers will not receive their expected value. VALUE: Utility and Warranty [Example 2] Example 2: The utility is not fulfilled, even though the warranty is sufficient. Consumers would not receive the expected value. Other sets by this creatorITIL 4 Foundation [ ITIL Management Practices ]49 terms mrdantheman ITIL 4 Foundation [ The Service Value Chain ]19 terms mrdantheman ITIL 4 Foundation [ The ITIL Service Value System]32 terms mrdantheman ITIL 4 Foundation [Four Dimensions of Service Mana…29 terms mrdantheman Recommended textbook solutions Service Management: Operations, Strategy, and Information Technology7th EditionJames Fitzsimmons, Mona Fitzsimmons 103 solutions
Human Resource Management15th EditionJohn David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine 249 solutions
Information Technology Project Management: Providing Measurable Organizational Value5th EditionJack T. Marchewka 346 solutions
Applied Calculus for the Managerial, Life, and Social Sciences8th EditionSoo Tan 6,275 solutions Who is the responsible for service relationship management?Service relationship management, which are the joint activities performed by a service provider and a service consumer to ensure continual value co-creation based on agreed and available service offerings.
Who is responsible for service relationship management 1 service provider 2 service consume?Explanation: The collaboration between a service provider and service customer is referred to as a service relationship. In order to jointly produce value, service partnerships are formed between two or more firms. Depending on the circumstance, a company can alternate between acting as a provider and a consumer.
Which of the following is the primary focus of service management?Service Management focuses on providing value to the customer and also on the customer relationship.
What is service provider in ITIL?ITIL Service Provider - Definition:
As defined by ITIL, an organization supplying Services to one or more Internal or External Customers is called as Service Provider. In ITIL V3, Service Provider is often referred to and mean as IT Service Provider.
|
