the customer plays no role in value creation. This model, however, has become outdated.
Organizations now recognize that value is co-created through an active collaboration between providers and consumers. This co-creation is augmented by the work of other stakeholders which are part of the relevant service relationships.
Stakeholders in Service Management
This new perspective of value co-creation results in a critical need to identify all the players who are involved. This could include suppliers, consumers, financiers, regulators—even influencers. Let’s identify some of the main stakeholders in service management:
The term service consumer is generic by nature, so we can further delineate roles
- Customer: A person who defines the
requirements for a service and takes responsibility for the outcomes of service consumption; e.g., the IT Manager.
- User: A person who uses services; e.g. the company employees.
- Sponsor: A person who authorizes budget for service consumption; e.g., the Finance Manager.
Note that these terms can be used by a single individual who can act as the customer, user, and sponsor of a service they have bought and consumed.
Beyond the consumer and provider roles, many other stakeholders are often important to value creation. Identifying these roles in service relationships ensures effective communication and stakeholder management.
Service Relationships
A service relationship is defined as the cooperation between a service provider and service consumer. Service relationships are established between two or more organizations to co-create value. An organization can play the role of provider or consumer interchangeably, depending on the situation.
Service relationships include service provision, service consumption, and service relationship management.