Service Models are the primary input mechanism when designing the functional and process requirements necessary to deliver value.
A service model will define the touch points and interaction of customer assets and service assets in a way that creates value. It should be noted that the service model itself is defined only after a market space has been identified and a contract has been reached between the supplier and the customer. The contract defines what the service provider brings to the partnership and what the customer brings.
At this point the service model can be used to manage both parties inputs; to ensure that the flow of information, resources and the associated activities and their interactions are optimized.