Service management is a set of specialized organizational
capabilities for providing value to customers in the form o
services. The capabilities take the form of functions and
processes for managing services over a lifecycle, with
specializations in strategy, design, transition, operation and
continual improvement. The capabilities represent a
service organization’s capacity, competency and
confidence for action. The act of transforming resources
into valuable services is at the core of service
management. Without these capabilities, a service
organization is merely a bundle of resources that by itself
has relatively low intrinsic value for customers.
Organizational capabilities are shaped by the challenges
they are expected to overcome.
1
Service management
capabilities are similarly influenced by the following
challenges that distinguish services from other systems of
value-creation such as manufacturing, mining and
agriculture:
■ Intangible nature of the output and intermediate
products of service processes – difficult to measure,
control and validate (or prove).
■ Demand is tightly coupled with customer’s assets –
users and other customer assets such as processes,
applications, documents and transactions arrive with
demand and stimulate service production.
■ High level of contact for producers and consumers of
services – little or no buffer between the customer,
the front office and back office.
■ The perishable nature of service output and service
capacity – there is value for the customer from
assurance on continued the supply of consistent
quality. Providers need to secure a steady supply of
demand from customers.
Definition of service management
Service management is a set of specialized
organizational capabilities for providing value to
customers in the form of services.
Service management, however, is more than just a set of
capabilities. It is also a professional practice supported by
an extensive body of knowledge, experience and skills. A
global community of individuals and organizations in the
public and private sectors fosters its growth and maturity.
Formal schemes exist for the education, training and
certification of practising organizations, and individuals
influence its quality. Industry best practices, academic
research and formal standards contribute to its intellectual
capital and draw from it.
The origins of service management are in traditional
service businesses such as airlines, banks, hotels and
phone companies. Its practice has grown with the
adoption by IT organizations of a service-oriented
approach to managing IT applications, infrastructure and
processes. Solutions to business problems and support for
business models, strategies and operations are increasingly
in the form of services. The popularity of shared services
and outsourcing has contributed to the increase in the
number of organizations who are service providers,
including internal organizational units. This in turn has
strengthened the practice of service management and at
the same time imposing greater challenges upon it.
capabilities for providing value to customers in the form o
services. The capabilities take the form of functions and
processes for managing services over a lifecycle, with
specializations in strategy, design, transition, operation and
continual improvement. The capabilities represent a
service organization’s capacity, competency and
confidence for action. The act of transforming resources
into valuable services is at the core of service
management. Without these capabilities, a service
organization is merely a bundle of resources that by itself
has relatively low intrinsic value for customers.
Organizational capabilities are shaped by the challenges
they are expected to overcome.
1
Service management
capabilities are similarly influenced by the following
challenges that distinguish services from other systems of
value-creation such as manufacturing, mining and
agriculture:
■ Intangible nature of the output and intermediate
products of service processes – difficult to measure,
control and validate (or prove).
■ Demand is tightly coupled with customer’s assets –
users and other customer assets such as processes,
applications, documents and transactions arrive with
demand and stimulate service production.
■ High level of contact for producers and consumers of
services – little or no buffer between the customer,
the front office and back office.
■ The perishable nature of service output and service
capacity – there is value for the customer from
assurance on continued the supply of consistent
quality. Providers need to secure a steady supply of
demand from customers.
Definition of service management
Service management is a set of specialized
organizational capabilities for providing value to
customers in the form of services.
Service management, however, is more than just a set of
capabilities. It is also a professional practice supported by
an extensive body of knowledge, experience and skills. A
global community of individuals and organizations in the
public and private sectors fosters its growth and maturity.
Formal schemes exist for the education, training and
certification of practising organizations, and individuals
influence its quality. Industry best practices, academic
research and formal standards contribute to its intellectual
capital and draw from it.
The origins of service management are in traditional
service businesses such as airlines, banks, hotels and
phone companies. Its practice has grown with the
adoption by IT organizations of a service-oriented
approach to managing IT applications, infrastructure and
processes. Solutions to business problems and support for
business models, strategies and operations are increasingly
in the form of services. The popularity of shared services
and outsourcing has contributed to the increase in the
number of organizations who are service providers,
including internal organizational units. This in turn has
strengthened the practice of service management and at
the same time imposing greater challenges upon it.
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