Chapter 2 - Key Concepts of Service Management

service provider

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

product

A configuration of an organization's resources designed to offer value for a consumer

service relationship

A cooperation between a service provider and service consumer. Includes service provision, service consumption, and service relationship management

outcome

A result for a stakeholder enabled by one or more outputs

risk

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

cost

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

service management

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

value

The perceived benefits, usefulness, and importance of something

user

A person who uses services

organization

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

customer

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

sponsor

A person who authorizes budget for service consumption.

performance

A measure of what is achieved or delivered by a system, person, team, practice, or service

service consumption

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).

supplier

A stakeholder responsible for providing services that are used by an organization

resource

A person, or other entity, that is required for the execution of an activity or the achievement of an objective. May be owned by the organization or used according to an agreement with the resource owner

configuration

An arrangement of configuration items (CIs) that work together to deliver a product or service. Can also be used to describe the parameter settings for one or more CIs

service

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.

service offering

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

goods

Tangible resources that are transferred or available for transfer from a service provider to a service consumer, together with ownership and associated rights and responsibilities

service action

Any action required to deliver a service output to a user. May be performed by a service provider resource, by service users, or jointly

service relationship

A cooperation between a service provider and service consumer. Includes service provision, service consumption, and service relationship management

service provision

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; fulfilment of the agreed service actions; service level management; and continual improvement. It may also include the supply of goods

service consumption

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).

service relationship management

Joint activities performed by a service provider and a service consumer to ensure continual value co-creation based on agreed and available service offerings

output

A tangible or intangible deliverable of an activity

business relationship manager

A role responsible for maintaining good relationships with one or more customers

critical success factor

A necessary precondition for the achievement of intended results

utility

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

warranty

Assurance that a product or service will meet agreed requirements

outsourcing

The process of having external suppliers provide products and services that were previously provided internally