1.1. Service Management Definitions
1.1.a) Service Means of enabling value co-creation by facilitating outcomes that customers want to
achieve, without the customer having to manage specific costs and risks.
1.1.b) Utility Functionality offered by a product or service to meet a particular need. Utility can be
summarized as ‘what the service does’ and can be used to determine whether a service is
‘fit for purpose’. To have utility, a service must either support the performance of the
consumer or remove constraints from the consumer. Many services do both.
1.1.c) Warranty The assurance that a product or service will meet agreed requirements. How well it does.
(Fit for Use).
1.1.d) Customer Person who defines the requirements for a service and takes responsibility for the
outcomes of service consumption.
1.1.e) User Person who uses services.
1.1.f) Service Management Set of specialized organizational capabilities for enabling value for customers in the form
of services.
1.1.g) Sponsor Person who authorizes budget for service consumption.
1.2. Key Concepts of creating value with services
1.2.a) Cost Amount of money spent on a specific activity or resource.
1.2.b) Value The perceived benefits, usefulness and importance of something.
1. Understand the Key 1.2.c) Organization A person or a group of people that has its own functions with responsibilities, authorities
Concepts of Service and relationships to achieve its objectives.
Management 1.2.d) Outcome What the customer/user actually wants to achieve; a result enabled by one or more
(5 Points) outputs.
1.2.e) Output Tangible or intangible deliverable of an activity.
1.2.f) Risk A possible event causing difficulties, alternatively uncertainty of outcome.
1.2.g) Utility The functionality offered by a product or service to meet a particular need. What the
service does. (Fit for Purpose).
1.2.h) Warranty The assurance that a product or service will meet agreed requirements. How well it does.
(Fit for Use).
1.3. Key CONCEPTS of service relationships
1.3.a) Service Offerings May include goods, resources, actions
1.3.b) Service Relationship Management Activities performed by a service provider and a service consumer to ensure continual
value co-creation based on agreed and available service offerings.
1.3.c) Service Provision
Activities performed by a service provider to deliver a service to a consumer. It involves
managing the provider's resources, ensuring access to those resources, fulfilling agreed-
upon service actions, and continuously improving the service. It is what the Provider does.
1.3.d) Service Consumption Activities performed by a service consumer to utilize the services provided. It includes
managing the consumer's resources needed to use the service, performing service actions,
and potentially acquiring goods. It is what the Consumer does.
, 2.1. Nature, Use and Interaction of the guiding principles
2.2. The 7 Guiding Principles
2.2.a) Focus on Value Everything that the organization does needs to map, directly or indirectly, to value for the
2. Understand how the ITIL stakeholders. Customer experience is an important element of value.
guiding principles can help 2.2.b) Start Where you are Accurate data to allow decisions.
an organization adopt and 2.2.c) Progress Iteratively with feedback Smaller outputs completed sooner.
adapt service management 2.2.d) Collaborate and Promote Visibility Make work visible.
(6 Points) 2.2.e) Think and Work Holistically See the big picture. i.e. value.
2.2.f) Keep it simple and practical Eliminate waste.
2.2.g) Optimize and Automate Maximize the value of the work carried out by the human and technical resources within
an organization.
3.1 The Four Dimensions of Service Management
3.1.a) Organizations and People Culture, structure, governance.
3.1.b) Information and Technology The primary means of delivering value.
3. Understand the Four 3.1.c) Partners and Suppliers Differing levels of integration and formality across different sets of partners and suppliers.
Dimensions of Service Focuses on the organization's relationships with other organizations that are involved in
Management the design, development, deployment, delivery, support, and/or continual improvement of
(2 Points) services. This also incorporates contracts and other agreements between the organization
and its partners or suppliers.
3.1.d) Value Streams and Processes Value Streams - steps to create and deliver products and services to consumers.
Processes - activities that transform inputs into outputs.
4.1 The ITIL Service Value System.
The purpose of the service value system is to ensure that the organization continually co-creates value with all stakeholders through the use
and management of products and services.
4. Understand the purpose
and components of the ITIL
service value system
(1 Point)