Concepts of Service Management

Service Management: A set of specialized organizational capabilities for providing

value to customers in the form of services. This includes the design, creation, delivery,
and support of services.

Value and Value Co-creation

According to ITIL, value is defined as the perceived benefit by a customer for a given
cost.

Value co-creation is the process of providing a customer with value by collaborating

with them throughout the service lifecycle. This includes understanding the customer's
needs, being transparent about service offerings, and working together to achieve the
desired outcomes.

By focusing on value and value co-creation, ITIL aims to ensure that IT services are
aligned with the needs of the business and that they provide tangible benefits to
customers.

Organizations, Service Providers, Service Consumers, and other

stakeholders.

According to ITIL, the following terms are defined as:

• Organizations: A group of people or a single person that has its own functions
with responsibilities, authorities, and relationships to achieve its objectives.
• Service Provider: An organization that provides one or more services to
customers.
• Service Consumer: The entity that consumes services provided by a service
provider.
o Customer: a person who pays for the commodity or the delivery that they
are getting.
o User: a person who uses the service
o Sponsor: a person who authorizes budget for service consumption
• Stakeholders: Individuals or organizations that have an interest or concern in a
service provider, service, or its outcome.
o Partners, suppliers, investors, government organizations, individual
employees
•

Products and Services

Product
• Product: is a configuration of resources, created by the organization, that will
be potentially valuable for their customers.
• 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.
• 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.

• Service relationship: A cooperation between a service provider and service

consumer. Service relationships include service provision, service consumption
and service relationship management.
• Service provision: Activities performed by an organization to provide services.
Service provision includes:
o management of the provider's resources, configured to deliver the service
o ensuring access to these resources for users
o fulfilment of the agreed services action
o services level management and continual improvement
• Service consumption: Activities performed by an organization to consume
services. Service consumption includes:
o management of the consumer's resources needed to use the service
o service actions performed by users, including utilizing the provider's
resources, and requesting service actions to be fulfilled
• Service Relationship Management: Join activities performed by a service
provier and a service consumer to ensure continual value co-creation based on
agreed and available service offerings.