Which Of The Following Is A Service Mark?

At the heart of ITIL^® is Service Management. Whether you lot provide sports gear or pedicures, the reason your organizations exists is to deliver quality services that:

Enable the customer to achieve their goals
Provide value for money for the organization

Service direction is a set of specialized organizational capabilities for enabling value for customers in the form of services. These capabilities include tangible things like capital, people, and equipment, and can besides include intangible things similar knowledge, direction and skills. These capabilities can also include intangible things, like noesis, management, and skills.

The goal of IT service direction is to maximize the value delivered and obtained from technology-driven products and services. To succeed at service management, these concepts are crucial:

Value co-creation
Stakeholders in service direction
Service relationships
Products & services
Value: Outcomes, Costs & Risks
Utility & warranty

(This article is office of our ITIL four Guide. Use the correct-mitt menu to navigate.)

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Value Co-Creation

The purpose of an arrangement is to create value for stakeholders. Here, value is defined as:

Perceived benefits
Usefulness
Importance

Value is subject to the perception of the stakeholders, whether they be the customers or consumers or the arrangement itself. Think about a ride sharing service: for some people the value is convenience; for others it might exist cost or flexibility. Value can exist subjective, depending on the signal of view.

In the past, organizations viewed themselves every bit 'service providers', delivering value to their customers in a mono-directional manner: the provider delivering value to the customer, while the client plays no role in value creation. This model, still, has become outdated.

Organizations at present recognize that value is co-created through an active collaboration between providers and consumers. This co-creation is augmented by the work of other stakeholders which are role of the relevant service relationships.

Stakeholders in Service Management

This new perspective of value co-creation results in a disquisitional need to place all the players who are involved. This could include suppliers, consumers, financiers, regulators—even influencers. Let'due south identify some of the main stakeholders in service management:

Stakeholder	Definition	Case
Organization	A person or a group of people that has its own functions with responsibilities, authorities, and relationships to accomplish its objectives.	A company, an establishment, or an individual
Service Provider	An organization that takes up the role of creating and delivering services	An airline that provides air transportation services
Service Consumers	An organization that takes up the function of receiving services	A business concern that buys and uses internet services from an ISP

The term service consumer is generic by nature, so nosotros can further delineate roles such as:

Client: A person who defines the requirements for a service and takes responsibility for the outcomes of service consumption; e.g., the Information technology Managing director.
User: A person who uses services; due east.1000. the company employees.
Sponsor: A person who authorizes budget for service consumption; e.k., the Finance Managing director.

Note that these terms can be used by a unmarried individual who can act as the client, user, and sponsor of a service they take bought and consumed.

Across the consumer and provider roles, many other stakeholders are often important to value cosmos. Identifying these roles in service relationships ensures constructive communication and stakeholder management.

Service Relationships

A service relationship is defined as the cooperation between a service provider and service consumer. Service relationships are established between two or more organizations to co-create value. An arrangement can play the role of provider or consumer interchangeably, depending on the state of affairs.

Service relationships include:

Service provision
Service consumption
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 bachelor service offerings.

The service relationship model is used to showcase the always-changing interaction betwixt service providers and consumers. An organization tin can procure services and use them to deliver services to another consumer, thus shifting from consumer to provider. For example, a telephone call heart may purchase internet services from a supplier and then use those services to provide customer human relationship management services for its customers.

Products & Services

In ITIL, the service is the ultimate center of focus in every aspect of service direction. A service is defined equally a ways of enabling value co-creation past facilitating outcomes that customers want to achieve, without the client having to manage specific costs and risks. The services that an organisation provides are based on one or more than of its products.

A production is any configuration of an organization's resource designed to offer value for a consumer. Resources can include people, majuscule, equipment, software, etc.

Service providers usually nowadays their services to consumers in the form of service offerings, which describe 1 or more than services based on 1 or more than products. A service offer is a description of one or more services that are designed to accost the needs of a target consumer grouping. The iii main components of service offerings are:

Goods
Access to resource
Service actions

Here are some examples:

Component	Description	Examples
Goods	Supplied to the consumer Ownership is transferred to the consumer Consumer takes responsibility for hereafter use	Appliances Consumer goods
Access to Resources	Buying is non transferred to the consumer Access is granted or licensed to the consumer nether agreed terms and weather The consumer can only access the resource during the agreed consumption period and co-ordinate to other agreed service terms	Web hosting Cloud Storage Online gaming subscription
Service Actions	Performed by the service provider to address a consumer'south needs Performed according to an agreement with the consumer	Car maintenance It user support

Different offerings can be configured for different target consumer segments depending on:

Demand
Capacity to pay
Additional factors/bridge>

Value: Outcomes, Costs & Risks (VOCR)

Service providers assistance their consumers to achieve outcomes and, in doing so, have on some of the associated risks and costs. However, the service human relationship tin effect in negative outcomes or introduce new or previously unknown risks and costs.

Service relationships are perceived as valuable only when they have more positive effects than negative, particularly regarding touch on outcomes, costs, and risks.

Value as a function of outcomes, costs, and risks

Outcomes

When an organization acts every bit a service provider, information technology produces outputs that help its consumers to accomplish certain outcomes. An output is divers as a tangible or intangible deliverable of an activity; for example, transportation from one location to another.

An outcome, past contrast, is the result for a stakeholder that was enabled by 1 or more outputs. If the output is transportation between locations, the outcome might be that the stakeholder has an interview or md's date.

Depending on the relationship between the provider and the consumer, it can be hard for the provider to fully understand the outcomes that the consumer wants to achieve. In some cases, both parties volition work together to define the desired outcomes.

Costs

Costs are the amount of money spent on a specific activity or resource. From the service consumer'southward perspective, there are two types of price involved in service relationships:

Costs removed from the consumer by the service (a part of the value proposition). For example, for a machine sharing service, the client does not pay for the actual cost of purchasing the car.
Costs imposed on the consumer by the service (the costs of service consumption). In a car sharing service, the customer pays for cellular or net services to asking the service.

The two types of cost must be fully understood if a service provider is to obtain value for coin and ensure the right decisions are made nearly the service provision. Providers need to ensure that services are delivered inside budget constraints and meet the financial expectations of the system.

Risks

A risk is any upshot, including possible events, that could cause damage or loss or brand information technology more difficult to attain objectives. Adventure is considered an uncertain effect, one that that tin be positive or negative. Two types of risk are apropos to service consumers:

Risks removed from a consumer by the service (office of the value suggestion). For example, for an online streaming service, the failure of equipment involved in delivering the service.
Risks imposed on a consumer past the service (risks of service consumption). For an online streaming service, the threat of lawsuit for copyright infringement.

It is the duty of the provider to manage the detailed level of take a chance on behalf of the consumer. Withal, the consumer has a role to play in contributing to risk reduction as a function of value co-cosmos. The consumer contributes to reducing risk by:

Actively participating in defining the service requirements and clarifying its required outcomes, often on an ongoing basis.
Conspicuously communicating the disquisitional success factors (CSFs) and constraints that apply to the service.
Ensuring the provider has admission to the necessary consumer resources throughout the service relationship.

Utility & Warranty

How do we know that a service is delivering value for the consumer and meeting the service provider'south requirements? By evaluating, in totality, the utility and warranty of the service.

Utility is the functionality offered by a production or service to meet a detail demand. Utility perhaps answers 'what the service does' or whether a service is 'fit for purpose'. To accept utility, a service must either support the performance of the consumer and/or remove constraints from the consumer.
Warranty, on the other hand, is the assurance that a production or service will meet agreed requirements. Warranty answers 'how the service performs' or whether a service is 'fit for use'. Warranty often relates to service levels aligned with the needs of service consumers, such as availability, capacity, security, and continuity.

When assessing a service, you must consider the impact of costs and risks on utility and warranty—this generates a complete moving-picture show of the viability of a service. Both utility and warranty are essential for a service to facilitate its desired outcomes and, therefore, help create value. For example, if you are using a courier delivery service, the utility involves the commitment of your packages while warranty is almost the speed and handling of your packages.

ITIL^® is a registered trade mark of AXELOS Limited. IT Infrastructure Library^® is a registered trade marker of AXELOS Express.

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Nearly the writer

Jon Stevens-Hall

Jon Stevens-Hall is a Principal Product Director for BMC Helix ITSM. He was a contributing author on several of the ITIL 4 Managing Professional person books ("Create Deliver and Back up", and "High Velocity Information technology"). His work focuses on innovative new tooling for Service Management, and the development of ITSM in the DevOps era.

About the author

Joseph Mathenge

Joseph is a global best practice trainer and consultant with over 14 years corporate experience. His passion is partnering with organizations effectually the world through training, development, adaptation, streamlining and benchmarking their strategic and operational policies and processes in line with all-time practice frameworks and international standards. His specialties are IT Service Management, Business Process Reengineering, Cyber Resilience and Project Management.

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