ITIL: Service Management - Key Concepts

- In the context of service management, an organization can act as a service provider or as a service consumer; in reality, an organization can play both roles at any given moment.
- The purpose of an organization is to create value for stakeholders. Value is subject to the perception of different stakeholders, whether they are the service consumer or part of the service provider organization(s).
- The products are tailored to meet the requirements of the different consumer groups and to appeal to them.
- Different service offerings can be created based on the same product, which allows the product to be used in multiple ways to address the needs of different consumer groups.
- Service relationships are established between two or more organizations to co-create value. In a service relationship, organizations will take on the roles of service providers or service consumers.
- Services facilitate one or more outcomes for a customer. Achieving desired outcomes requires resources (and therefore costs) and are often related to risks.
- Both utility and warranty are important for a service to facilitate its desired outcomes and enable value creation. Utility determines whether a service is ‘fit for purpose’; Warranty determines whether a service is ‘fit for use.