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Key Concepts of Service Management

This document discusses key concepts of service management including services, value co-creation, organizations, products and services, service relationships, and value in terms of outcomes, costs, and risks. Specifically, it defines a service, service management, and IT service management. It discusses how value is co-created through collaboration between service providers and consumers. It also outlines different types of organizations involved in service management like service providers, consumers, and other stakeholders. Finally, it explains how value, costs, and risks are considered from the perspectives of both service providers and consumers.
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0% found this document useful (0 votes)
162 views36 pages

Key Concepts of Service Management

This document discusses key concepts of service management including services, value co-creation, organizations, products and services, service relationships, and value in terms of outcomes, costs, and risks. Specifically, it defines a service, service management, and IT service management. It discusses how value is co-created through collaboration between service providers and consumers. It also outlines different types of organizations involved in service management like service providers, consumers, and other stakeholders. Finally, it explains how value, costs, and risks are considered from the perspectives of both service providers and consumers.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ISI3I3 – Manajemen Layanan

Key Concepts of
Service Management

Team Teaching ISM

Program Studi Sistem Informasi


Fakultas Rekayasa Industri
Outline
1. Services and service management
2. Value and value co-creation
3. Organizations, service providers, service
consumers, and other stakeholders
4. Products and services
5. Service relationships
6. Value: outcomes, costs, and risks
SERVICES AND SERVICE
MANAGEMENT
ITIL: Definition of a Service

Sumber Referensi: https://www.youtube.com/watch?v=pxXD--HDtTM


Services
• Service: A means of delivering value to
customers by facilitating outcomes customers
want to achieve without the ownership of
specific costs and risks
• IT service: A service provided by an IT service
provider
– An IT service is made up of a combination of
information technology, people and processes
IT Service
Service Management
• Service management: A set of specialized
organizational capabilities for providing value
to customers in the form of services
• IT service management: The implementation
and management of quality IT services that
meet the needs of the business
VALUE AND VALUE CO-CREATION
Value
• Value: The perceived benefits, usefulness,
and importance of something
– Dependent on the perception of stakeholders
– Subjective
Relationship
Between Provider and Consumer
Old Way: Mono- Now (Value Co-Creation): Interactive
Directional and Distant and Collaborative
• The provider delivers • Providers should no longer attempt to
the service and the work in isolation to define what will
consumer receives be of value to their customers and
value; users, but actively seek to establish
• The consumer plays no mutually beneficial, interactive
role in the creation of relationships with their consumers,
value for themselves. empowering them to be creative
• This fails to take into collaborators in the service value
consideration the highly chain.
complex and • Stakeholders across the service value
interdependent service chain contribute to the definition of
relationships that exist requirements, the design of service
in reality. solutions and even to the service
creation and/or provisioning itself
Value Co-Creation
• Value Co-Creation: Service providers CO-
CREATE value through collaboration with the
customers and other stakeholders in a
SERVICE RELATIONSHIP
ORGANIZATIONS, SERVICE PROVIDERS,
SERVICE CONSUMERS, AND OTHER
STAKEHOLDERS
Organizations & Service Providers
• Organization: A person or a group of people that
has its own functions with responsibilities,
authorities, and relationships to achieve its
objectives.
• Service Provider: An organization supplying
services to one or more internal or external
customers
• IT service provider: A service provider that
provides IT services to internal or external
customers
Service Consumers
• Customer: A person who defines the
requirements for a service and takes
responsibility for the outcomes of service
consumption.
• User: A person who uses services.
• Sponsor: A person who authorizes budget for
service consumption.
Service Providers Example
Rumah Makan Padang

What are their services?


Do they have service providers? What
services provided by their suppliers?
Are their customers satisfied with their
services? What characteristics perceived as
a “good service” by customers?
How do they know whether their
customers are satisfied or not?
How do they handle the customer
complaints?
Service Providers Example
Bukalapak
What are their services?
Do they have service providers? What
services provided by their suppliers?
Are their customers satisfied with their
services? What characteristics perceived as
a “good service” by customers?
How do they know whether their
customers are satisfied or not?
How do they handle the customer
complaints?
How can customers differentiate their
services with Tokopedia Services?
Other Stakeholders
Stakeholder Example of value for stakeholder
Service consumers Benefits achieved; costs and risks optimized
Service provider Funding from the consumer; business development;
image improvement
Service provider employees Financial and non-financial incentives; career and
professional
development; sense of purpose
Society and community Employment; taxes; organizations’ contribution to the
development of the
community
Charity organizations Financial and non-financial contributions from other
organizations
Shareholders Financial benefits, such as dividends; sense of assurance
and stability
PRODUCTS AND SERVICES
Product, Service, Service Offerings
• Product: A configuration of an organization’s
resources designed to offer value for a consumer
• 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 description of one or more
services, designed to address the needs of a
target consumer group.
– A service offering may include goods, access to
resources, and service actions.
Product, Service, Service Offerings
Service Offerings
Service Offerings may include goods, access to resources, and service
actions.
• Goods
– Transferred to consumer (for example, a mobile phone)
• Access to Resources
– Access granted or licensed to consumer within terms and conditions of
agreement (for example, to the mobile network, or to the network
storage)
– Always under control of service provider and not transferred to
consumer
• Service Actions
– Provider actions to support the consumer (for example, user support)
– Performed as per agreement with consumer
SERVICE RELATIONSHIPS
Service Relationships Model
• Service Relationship: A cooperation between
a service provider and service consumer.
– Service relationships include service provision,
service consumption, and service relationship
management.
Service Relationships Model
• Service Provision: Activities performed by an
organization to provide services.
• Service Provision 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.
• Service Provision may also include the supplying
of goods.
Service Relationships Model
• Service Consumption: Activities performed by an
organization to consume services.
• Service Consumption includes:
– management of the consumer’s resources needed to
use the service
– service actions performed by users, including utilizing
the provider’s resources, and requesting service
actions to be fulfilled.
• Service Consumption may also include the
receiving (acquiring) of goods.
Service Relationships Model
• 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.
VALUE: OUTCOMES, COSTS, AND
RISKS
Achieving Value
Service Providers should
evaluate
• WHAT services should
do
• HOW services are
provided
to meet the needs of the
consumers
Outcomes
• Output: A tangible or intangible deliverable of
an activity.
• Outcome: A result for a stakeholder enabled
by one or more outputs.
Costs
• Cost: The amount of money spent on a
specific activity or resource
Costs
Service Consumer’s Perspective Service Provider’s
Two types of cost: Perspective
• Costs removed from the consumer by the • A full and correct
service (a part of the value proposition). understanding of
– This may include costs of staff, technology, the cost of service
and other resources, which the consumer provision is
does not need to provide essential.
• Costs imposed on the consumer by the • Providers need to
service (the costs of service consumption). ensure that
– The total cost of consuming a service includes services are
the price charged by the service provider (if delivered within
applicable), plus other costs such as staff budget constraints
training, costs of network utilization, and meet the
procurement, etc. financial
– Some consumers describe this as what they expectations of the
have to ‘invest’ to consume the service. organization
Risks
• 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.
Value: Utility and Warranty

Sumber Referensi: https://www.youtube.com/watch?v=_FOuECexcc0


Utility and warranty
The value of a service is created by combining two primary
elements:
• Utility
– Utility is the functionality offered by a product or service to
meet a particular need
– Can be summarized as ‘what the service does’, and can be used
to determine whether a service is ‘fit for purpose’.
– For example, a service that enables a business unit to process
orders should allow sales people to access customer details,
stock availability, shipping information etc.
• Any aspect of the service that improves the ability of sales people to
improve the performance of the task of processing sales orders would
be considered utility.
Utility and warranty
• Warranty
– Warranty is an assurance that a product or service will meet its
agreed requirements
– This may be a formal agreement such as a service level
agreement (SLA) or contract, or a marketing message or brand
image
– Refers to the ability of a service to be available when needed,
to provide the required capacity, and to provide the required
reliability in terms of continuity and security
– Can be summarized as ‘how the service is delivered’, and can
be used to determine whether a service is ‘fit for use’
– For example, any aspect of the service that increases the
availability or speed of the service would be considered
warranty

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