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The main drivers for a company to establish or optimize its service management practices are varied: High service costs can be reduced, i.e. by integrating the service and products supply chain. Inventory levels of service parts can be reduced and therefore reduce total inventory costs.
In addition to intangibility, there are two approaches about quality that are unique to service operations management. Service recovery. For manufactured products, quality problems are handled through warranties, returns and repair after the product is delivered.
Service integration and management. Service Integration and Management (SIAM) is an approach to managing multiple suppliers of services (business services as well as information technology services) and integrating them to provide a single business-facing IT organization.
Business administration. Managed services is the practice of outsourcing the responsibility for maintaining, and anticipating need for, a range of processes and functions, ostensibly for the purpose of improved operations and reduced budgetary expenditures through the reduction of directly-employed staff.
Business process management (BPM) is a disciplined approach to identify, design, execute, document, measure, monitor, and control both automated and non-automated business processes to achieve consistent, targeted results aligned with an organization's strategic goals.
Corporate services or business services are activities which combine or consolidate certain enterprise-wide needed support services, provided based on specialized knowledge, best practices, and technology to serve internal (and sometimes external) customers and business partners.