Please enable JavaScript.
Coggle requires JavaScript to display documents.
Service Management: Key Concepts - Coggle Diagram
Service Management: Key Concepts
Service Management
is defined as a set of specialized organizational capabilities for enabling value to customers in the form of services
requires an understanding of:
the nature and scope of the stakeholders involved
how value creation is enabled through services
the nature of value
Value and Value Co-creation
Organization
A person or a group of people that has its own functions with responsibilities, authorities and relationships to achieve its objectives
An organization can be a legal entity, a part of a legal entity, or a complex network of legal entities united by common objectives, relationships and authorities
An organization can act as a service provider or as a service consumer; in reality, an organization can play both roles at any given moment.
Purpose
is to create value for stakeholders
Value
is the perceived benefits, usefulness and importance of something
is not a fixed item; it is subject to the perception of the stakeholders, whether they are the customers or consumers of service or part of the service provider organizations.
Co-create of Value
service providers should not work in isolation to define the value for their customers and users
They should establish service relationships with consumers to co-create value
Service Providers
Service Consumers
Other Stakeholders
Service Providers
When provisioning services, an organization takes on the role of the service provider. The provider can be external to the consumer's organization, or they can both be part of the same organization
A service provider can sell services on the open market to individual consumers or other organizations, or they ca be part of a service alliance
Service alliance
is a collaboration between two or more organizations providing services to consumers
Service Consumers
When receiving services, an organization takes on the role of the service consumer
customer
is a person who defines the requirements for a service and takes responsibility for the outcomes of service consumption
sponsor
is a person who authorizes budget for service consumption
user
is a person who uses services
3. Value:Services, Products, and Resources
Products
(Products are the foundation for services)
A configuration of an organization's resources designed to offer value for a consumer
Service Offerings
Access to resources
Descriptiton
Access is granted or licensed to the consumer under agreed terms and conditions
Consumer can access the resources during the agreed consumption period and according agreed service terms
Ownership is not transferred to the consumer
Example
Internet network
License for operating system
Service actions
Description
Performed by the service provider to address a consumer need
Performed according to agreement with the consumer
Example
User support
Goods
Description
Supplied to the consumer
Ownership is transferred to the consumer
Consumer takes responsibility for future use
Example
Mobile
Laptop
A description of one or more services based on one or more products, designed to address the needs of a target consumer group.
Utility + Warranty
Service Relationship
The products are tailored to meet the requirements of the different consumer groups and to appeal to them
Products are usually complex an are not completely visible to the consumer.
The part of the product that is actually visible to the consumer does not always represent the complete components that are part of the product and that support its delivery
Resources
(Resources are used to configure the products)
such as people, information and technology, value steams, and processes, and suppliers and partners
Services
(Value is delivered through services)
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
Value: Outcomes, Costs, and Risks
Services Facilitate Outcomes
A service is 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
Outcomes, Costs, and Risks
Service relationships are perceived as valuable only when they have more positive effects than negative
Outputs and Outcomes
output
An output is a tangible or intangible deliverable of an activity
outcome
An outcome is a result for a stakeholder enabled by one or more outputs
A service provider produces outputs that help its consumers to achieve certain outcomes
Costs
The amount of money spent on a specific activity or resource
From the service consumer's perspective
:arrow_down: Costs removed from the consumer by the service
(part of the value proposition)
technology
other resources
service provider's staff
:arrow_up: Costs imposed on the consumer by the service (costs of service consumption) => "invest"
price charged by the service provider (if applicable)
cost of network untilization
cost of procurement
cost of training to service providers's employees
From the provider's perspective
a complete understanding of the cost of service provision is required
service providers need to ensure that services are delivered within budget constraints and meet the financial expectations of the organization
Risk
defined
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
From the service consumer's perspecitve
:arrow_down: Risks removed from the consumer by the service
(part of value proposition)
failure of the consumer's server or unavailability of workforce
:arrow_up: Risks imposed on the consumer by the service
(risks of service consumption)
security breach
The service consumer contributes to the reduction of risk through:
Actively participating in the definition of the requirements of the service and the clarification of its required outcomes
Clearly communicating the critical success factors and constraints that apply to the service
Ensuring the provider has access to the necessary resources of the consumer throughout the service relationship
Service Relationships
What are service relationships
Service relationships are established between two or more organizations to co-create value. In the service relationship, organizations will take on the roles of service providers or service consumers.
Service Relationship Management
Service relationship management consists of "joint activities performed by a service provider and a service consumer to ensure continual value co-creation based on agreed and available service offerings"
Service provision
consists of "activities performed by a service provider to provide services"
Access to these resources for users
Fulfillment of the agreed service actions
Management of the provider's resources, configured to deliver the service
Service level management and continual improvement
May also include the supplying of goods
Service consumption
consists of "activities performed by a service consumer to consume services"
Service use actions
Management of the consumer's resources needed to use the service
Utilization of the provider's resources
Request of service actions to fulfill
May also include the receiving (acquiring) of goods
Service Relationship Model
Utility an Warranty
Utility
(功能項目)
Utility is the functionality offered by a product or service to meet a particular need
Represents what the service doses
Determines whether a service is "fit for purpose" (合於目的)
Requires that a service must either support the performance of the consumer or remove constraints from the consumer
Warranty
(確保項目)
Warranty is the assurance that a product or service will meet agreed requirements
Requires that a service has defined and agreed conditions that are met
Determines whether a service is "fit for use"
(合於項目)
Ensures that appropriate level of availability, capacity, service levels, continuity and security
Represents how the service performs
The assessment of overall utility and warranty is important to evaluate whether or not a service or service offering will facilitate the desired outcomes for the consumers and create value for them
In an organization (generally)
Development team
focuses on creating new functionalities (utilities)
Operations team
focuses on availability and stability of service (warranty)
It's important that both teams should collaborate and communicate to a right level fro providing high quality services
