Basic definitions

Question 1

What is a service?

Answer 1

It’s the means of delivering value to customers by facilitating the outcome they want to achieve.

Question 2

What is an outcome?

Answer 2

The intended results or actual results. It’s the result of carrying out activities, processes, delivering a service.

Question 3

Difference between an IT service and a generic service

Answer 3

An IT service is delivered by an IT service provider, and it’s a combination of Information Technology, people, and processes.

Question 4

Difference between services and goods

Answer 4

Services are not subject to the risks and costs that are associated with manufacting, selling, owning goods.

Question 5

What are customer-facing services? What forms are there?

Answer 5

Customer-facing services imply dealing directly with the customers. There are three forms:

• Internal Customer-Facing: An IT service that directly supports a process managed by another internal business unit or more BUs.
• External Customer-Facing: An IT service that is directly provided to an external customer.
• Supporting: A supporting service is not used directly by the business, but is required by the service provider to deliver customer-facing services (ex. A backup service).

Question 6

Why do we differentiate between internal and external customer-facing services?

Answer 6

To distinguish between services that support an internal business activity (for example internal employees) and those external services that actually are oriented to achieve the overall strategic business goal of an organization.

Question 7

What are the three categories that all services can be categorized into?

Answer 7

• Core services that deliver the basic outcomes, what the customer wants ad what the customer is willing to pay money for.
• Enabling services are the services necessary to deliver a core service. They’re not offered to the customer directly, but in a way are still used by them.
• Enhancing services, an add-on to the core service that makes it more attractive. They enhance the customer’s experience.

Question 8

What is a service package?

Answer 8

Two or more services put together in a unified solution. A package can contain any number of the three forms of service, as well as other service packages.

Question 9

How is the value of a service determined?

Answer 9

By the level to which the service meets customer’s expectations, or if the customer is an organisation, the contribution that gives to their goals.
This means the value of a service can vary from customer to customer.

Question 10

When does a service generate value?

Answer 10

When its perceived value is higher than the cost of obtaining it. The benefits must outweight the costs.

Question 11

Which are the two factors that determines the service’s value?

Answer 11

• Utility, called also fitness for purpose which is what the customer gets from the service. What the service does. The functionality of the product or service in meeting a particular need.
• Warranty, called also fitness for use. How the service is delivered in terms of service’s availability, continuity, and security. The assurance that the service will be provided as agreed.

Question 12

What is a service asset?

Answer 12

All the resources or capabilities used by a service provider to deliver services to a customer.

Question 13

What is a resource?

Answer 13

A resource is an assets, it’s a generic term to identify anything that might help to deliver an IT service. It includes things like infrastructure, HR and financial resources.

Question 14

What is a capability?

Answer 14

A capability is an intangible asset. It is the ability to carry out activities. They are knowledge-intensive, experience-based, information-based and bounded in the organization’s people, processes, and technologies.

Question 15

Why is harder for organizations to duplicate capabilities?

Answer 15

Capabilities are developed over time, through the acquisition and use of resources.

Question 16

What are some examples of resources?

Answer 16

Infrastructure, HR and financial resources, applications.

Question 17

What are some examples of capabilities?

Answer 17

Management, organizational structure, processes and technology, people in terms of skills, know-how, experience and reletionships.

Question 18

What is a Service Design Package?

Answer 18

Just one document or a set of documents that describe all aspects and requirements of a service through its entire lifecycle.

Question 19

What is an Operational Level Agreement or OLA?

Answer 19

An operational-level agreement (OLA) is in support of a service-level agreement (SLA). The purpose of the OLA is to ensure that the activities performed by internal teams are aligned with the intended SLA.

Question 20

What are the main goals of service management?

Answer 20

• Understanding the services the organization is actually providing.
• Understanding the value that the customers give to the services.
• Understanding and managing the costs and risks associated to the services.
• Ensuring the IT services facilitate the outcomes the customers want.