Service Management - Basic Concepts

A Service is a means of delivering value to the customer by facilitating outcomes that customer want to achieve without the ownership of specific costs and risks.

The outcome that a customer needs is the reason why they spent money for buying a 

service and  the value of the  service is directly dependent on how well these outcomes 

are facilitated.

Service management is a set of specialized organizational capabilities for providing value to customers in the form of services

These specialized  organizational  capabilities  include the processes,  activities,  functions  and roles that  service  providers  use to enable them to deliver  services  to their customers.  They also include the ability to organize  and manage knowledge, and understand how to facilitate outcomes that create value.

Service Management  is what enables service providers to:

• Understand the services they provide
• Ensure that the services facilitate the outcomes their customers want to achieve
• Understand the value of the services to their customers
• Understand and manage all the costs and risks associated with those services. 

IT Service  Management is the implementation  and management  of quality IT services that meet the needs of the business.

Stakeholders in service management

Stakeholders  have an interest  in an organization,  project  or services  and  may be 

interested  in the activities, targets, resources or deliverables from service management.