Welcome back to ITIL4 Exam Prep. This is key concepts, module 2. The learning objectives we will cover in this module include, recalling ITIL4 service management terms, summarizing key concepts of creating value with services. And summarizing key concepts of service relationships. We'll cover a series of terms and concepts in this module. Don't be intimidated by the number of terms that you see on the screen. We will cover all of them in depth, some of them you're probably familiar with. But they're all about common sense. Some of the terms will be new and some of the terms you've used in the past. You may not have used them in the mode of ITIL4, but we will definitely get you prepared in order to recall the terms for the certification exam. The next few terms will cover what it takes to manage IT services. Specifically within a service management organization, you will have services such as email, network services, print services, scanning services, cloud services. Well, they all need to be managed. So what is a service? A service is a means of enabling value to customers by providing results that customers want without the customer having to own it or manage all of the risk. So who owns a service and who manages risk around services? Well, that's your job, the IT department, you're also referred to as a service provider. Your job is to make sure that services that are used by customers on a daily basis are up and running and available. You never want a service to be slow or down or to have a bottleneck. So that's why it's necessary to do something that ITIL refers to as service management. Service management is like project management for IT. It's what your organization does specifically to keep your IT services up and running. ITIL calls it a set of capabilities that enables value for customers in the form of services. Services are like your IT deliverables. Continuing on with service management terms specifically, we're going to talk about utility and warranty. Both of these terms are needed to provide value to services that you plan to provision to your users and customers. The first thing you want to make sure that a service can provide is functionality. What is the goal, what is the purpose? Why is the service needed? ITIL refers to it as fit for purpose. Basically what is the objective or what is the purpose of the service? The warranty side of a service is an assurance that the service will continue to work regardless of condition. We call that fit for use or the usefulness of a service. So let's pretend that you're using a cell phone and mobile phones have two things going on. You have the service provider that's providing the capability or the access to make a phone call. And then you have the physical product, which is the phone itself. Well, the functionality of the phone is what we call the purpose, the utility. But the conditions around when the service will work is what we refer to as warranty. Whether there will be conditions to make the service slow or any bottlenecks or if you're on a train or if you're driving through trees, your mobile cellular service can be affected by the conditions around it. So both of these terms make up value in a service. You need both the purpose, the functionality, the utility, and the warranty, the assurance that the service will work regardless of condition. Both of those need to be built and develop in every single service that you plan to provision. The next three terms you may already be familiar with, but let's just talk about them in general. The customer is the most important stakeholder in a service management organization. This is a person who defines the requirements of a service. They tell the service provider what they need the service to do for them. They also take responsibility for the outcomes or the results when they use the service because they have to accept that they agree to receiving the service a certain way. Sometimes, you'll have conversations between the customer and the service provider on how the service should perform. A user is actually a person who uses the service, but they don't have the same voice that the customer does. So the customer has negotiation power and what their needs are. They may be paying for a service. A user basically just consumes the service, but they don't have the same voice as a customer does. Yet a sponsor is a person within the organization that authorizes the budget for the service to be sold, and consumed, and built. We call that stakeholder a sponsor. So what has to happen when you are actually providing services to users that they may use on a daily basis? Well, you have to remember four terms, V-O-C-R, value, outcomes, costs, and risks. What customers want out of a service is outcomes or results. And they want those outcomes to be achieved with the lowest cost possible. Costs is a resource of a service just like people are, documents, managers, buildings, software, hardware, they're all considered resources. And sometimes you need to negotiate with a customer what those resources are going to entail for the customer to receive those services. Well, your job as a service provider is to reduce costs and risk associated with delivering value in the form of services. You see consumers want to achieve their goals and their outcomes as least costly as possible with the least amount of risk. So as the service provider or the IT department in provisioning IT services, your job is to manage costs, risk, and value, and outcomes all for the sake of your customers.
