tional capabilities for enabling calue to customers
* Service Management is a set of specialized organizational capabilities for enabling value to
customers in the form of services
Dion Training has outsourced the development of a mobile application to support their stu-
dents' learning while on the go. Instead of paying a fixed-fee for the development though,
Dion Training has negotiated with the developers to instead pay them a royalty fee for each
student who logs into the service through their smartphone app. To control costs, Dion
Training has decided to only allow students on their higher membership levels to be given
access to the application. Which of the following terms best describes the activities per-
formed by Dion Training in this example? - ANSWER Service consumption
* Service consumption refer to the activities performed by an organization to consume ser-
vices, which includes the management of the consumer's resources needed to use the ser-
vice, service use actions performed by users, and may include the receiving (acquiring) of
goods.
What term best describes a service that is 'fit for purpose'? - ANSWER Utility
* Utility is defined as the functionality offered by a product or service to meet a particular
need. When a service has utility, it is referred to as 'fit for purpose'
Which value chain activity ensures that service components are available when and where
they are needed and meet agreed specifications? - ANSWER Obtain / build
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