Notes

Service management

Set of specialized organizational capabilities for enabling value for customers in the form of services.

Value

Perceived benefits, usefulness, and importance of something; depends on stakeholder perception.

Value co-creation

Value created through active collaboration between providers, consumers, and other stakeholders in service relationships.

Service

Means of enabling value co-creation by facilitating outcomes customers want to achieve, without the customer managing specific costs and risks.

Outcome

Result enabled by a service.

Output

Tangible deliverable produced by an activity or process.

Organization

Person or group with its own functions, responsibilities, authorities, and relationships to achieve objectives.

Service relationship

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 (provider role).

Service consumption

Activities performed by an organization to consume services (consumer role); includes consumer resources and service actions; may include receiving/acquiring goods.

Service relationship management

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

Service provider

The role of an organization providing services.

Service consumer

The role of an organization consuming services (includes customer, user, sponsor roles).

Customer

Defines requirements for a service and takes responsibility for outcomes of service consumption.

User (role)

Uses services.

Sponsor

Authorizes budget for service consumption.

Service offering

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

Service offering components

Goods; access to resources; service actions.

Goods

Ownership transferred to the consumer; consumer responsible for future use.

Access to resources

Ownership not transferred; access granted/licensed under agreed terms/conditions.

Service actions

Performed by provider to address a consumer need; performed according to agreement with consumer.

Don’t mix these

Goods/access/actions are service offering components; customer/user/sponsor are service consumer roles.

Four dimensions of service management

Organizations and people; Information and technology; Partners and suppliers; Value streams and processes.

Organizations and people

Focuses on roles, responsibilities, culture, organizational structure, skills, collaboration, leadership, breaking down silos.

Information and technology

Information/knowledge and technologies needed to manage services; includes protecting, archiving, disposing information.

Partners and suppliers

Relationships with other organizations involved in design, development, deployment, delivery, support, continual improvement; includes contracts/agreements.

Value streams and processes dimension

How work is organized to create/deliver value; defines activities, workflows, controls, procedures; processes transform inputs to outputs.

Utility

Fit for purpose.

Warranty

Fit for use (availability, capacity, continuity, security).

Cloud computing

On-demand network access to a shared pool of configurable computing resources with minimal management effort/provider interaction.

Cloud computing characteristics

On-demand self-service; Broad network access; Resource pooling; Rapid elasticity; Measured service.

Supplier strategy factors

Cost concerns; Subject matter expertise; External constraints; Demand patterns; Strategic focus; Corporate culture; Resource scarcity.

Value stream

Series of steps to create and deliver products/services to consumers; includes value-adding and waste.

Process

Set of interrelated/interacting activities with defined sequence/dependencies transforming inputs into outputs.

PESTLE

Political, Economic, Social, Technological, Legal, Environmental (external factors).

SVS inputs

Opportunity and demand.

Governance activities

Evaluate → Direct → Monitor.

Evaluate

Assess current state (strategy, portfolios, policies, relationships, etc.).

Direct

Establish or modify policies and strategies.

Monitor

Monitor performance and compliance.

Service Value Chain activities

Plan; Improve; Engage; Design & transition; Obtain/build; Deliver & support.

Plan

Ensures shared understanding of vision, current status, and improvement direction across four dimensions and all products/services.

Improve

Ensures continual improvement of products, services, and practices across all value chain activities and four dimensions.

Engage

Understand stakeholder needs, transparency, continual engagement, and good relationships.

Design & transition

Ensure products/services meet expectations for quality, cost, time to market.

Obtain/build

Ensure service components are available when/where needed and meet agreed specifications.

Deliver & support

Ensure services are delivered and supported according to agreed specifications and stakeholder expectations.