Yuan Ze University - Service Design Basics, 12/6/2012

transcript

Dr. Stephen K. KwanProfessor, Service Science

Management Information SystemsCollege of Business AdministrationSan José State University, CA, USA

http://www.sjsu.edu/ssme

Contact: stephen.kwan@sjsu.edu

Presented at Yuan Ze UniversityDecember 6th, 2012, Taiwan

Download these slides at: http://www.slideshare.net/StephenKwan

Service Design Basics –from System to Business Modeling

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Do you know the way to San José?

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Silicon Valley & Its Environs

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Abstract

This presentation looks at service design from a modeling perspective that incorporates service thinking, system thinking, design thinking, and business thinking. This approach provides an avenue of integration across different disciplines and roles in the service design process. A desirable outcome of this integration would be more effective information and knowledge management from design to engineering of service systems.

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Some Definitions

Service Science is short for Service Science, Management, Engineering and Design (SSMED1).

Service Science is concerned with the study of Service Systems.cf. Computer Science is concerned with the study of Computer Systems.

Service Systems are man-made complex systems designed to improve the quality of life by co-creating value through value propositions among the stake-holders.

1 Spohrer, J., Kwan, S.K. “Service Science, Management, Engineering, and Design (SSMED): An Emerging Discipline – Outline and References”, International Journal of Information Systems in the Service Sector, 1(3), 2009.

ServiceExperience

ServiceProvider

Customer

A Service System and Its Entities

1Kwan, S. K. & Min, J. H. (2008) “An Evolutionary Framework of Service Systems”. Presented at the International Conference on Service Science, Beijing, China, April 17-18.

Service System Worldview1

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ServiceSystem A

ServiceSystem B

ServiceSystem C

ServiceSystem D

ServiceSystem E

ServiceSystem F

Service Interactions

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A Service System Network

ServiceExperience

ServiceProvider

Customer

Society

Community

Competition

Partners

Service System

Employees &Stockholders

Service System Worldview

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ServiceExperience

ServiceProvider

Customer

Society

Community

Competition

Partners

Service System

Governance

Value Co-Creation Through Value Propositions

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InformationTechnology

Platform

Service Provider’s Back Stage Support

BackStage

Processes

FrontStage

ProcessesFront Stage

Service Computing(e.g., SOA)

Service Systems, Computing, and IT Services1

1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008.

ITSM – Management of the Processesand Infrastructure of IT Services

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Service System Design (1)

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CustomerServiceSystemDesign Service

SystemEngineering

Service System Design (2)

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CustomerServiceSystemDesign Service

SystemEngineering

SystemThinking

DesignThinking

BusinessThinking

A Multi-disciplinary Approach

Knowledge Management –maintaining integrity of information and

knowledge throughout the lifecycle

ServiceThinking

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What is Design (1)

A conscious effort to create something that is artistic, purposeful, and better.

Not casual, you have to work at it

Creativity is needed here

ObjectProductService

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What is Design (2)

Pure Art

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What is Design (3)

Utilitarian,Commodity

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What is Design (4)

Form Function

Not easilymeasurable

Can apply metricsand measurements

Connection toengineering

Desirable State

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Design and Innovation

Design

CREATINGSOMETHING

혁신創新

创新革新

InnovationUnique

DesirableValuable…

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Service System Design aspart of the Service System Life Cycle

Design is an important component inthe study of Service Systems

e.g., SSMED – D is for Design

Conception

Design

EngineeringDevelopment

Operation

Discovery

Incorporating Multiple Perspectives in Modeling

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Conception

Design

Operation

Discovery

External or Internal Forces create impetus for Change

CompetitionStrategy

CustomersRegulations

ObsolescenceTechnologyInnovation

Servitization ..

J. Bradford Jensen

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Conception

Design

Operation

Discovery

Service Thinkingfor example:

ServitizationPlatformtization

Open Service Innovation

(S-D) Logic -Service Dominant Logic

Vargo & Lusch

and many more!

Foundational Premises of Service Dominant Logic

MicroeconomicConsiderations

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Conception

Design

Operation

Discovery

System Thinkingfor example:

C. West Churchman Russell L. Ackoff

and many more!

Kwan, S. K. & Min, J. H. (2008) “An Evolutionary Framework of Service Systems”. Presented at the International Conference on Service Science, Beijing, China, April 17-18.

Herbert Simon’s

The Sciencesof the Artificial

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Conception

Design

Operation

Discovery

Design Thinking

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Design Thinking – some resources

Technology(Feasibility)

Business(Viability)

People(Desirability)

ProcessInnovationFunctional

Innovation

EmotionalInnovation

ExperienceInnovation

DesignThinking

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Stickhorn & Schneider

Peter G. Rowe

Thomas Lockwood

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DivergentThinking

Convergent

Thinking

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Conception

Design

Operation

Discovery

Business Thinking

ServiceExperience

ServiceProvider

Customer

Society

Community

Competition

Partners

Service System

Business Thinking - Service System Worldview1

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1Kwan, S. K. & Min, J. H. (2008) “An Evolutionary Framework of Service Systems”. Presented at the International Conference on Service Science, Beijing, China, April 17-18.Duplicate

ServiceExperience

ServiceProvider

Customer

Society

Community

Competition

Partners

Service System

Governance

Business Thinking -Value Co-Creation Through Value Propositions

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DuplicateSlide

Customer

ServiceExperience

ServiceProvider

Stage 1: Value Chain

FocalRelationship

Value Proposition

Stages in Customer Empowermentin Value Co-Creation

5 Kwan, S. K. & Yuan, S. T. ”Customer-Driven Value Co-Creation in Service Networks”, to appear in Demirkan, H., Spohrer, J.C. and Krishna, V. ed., The Science of Service Systems, volume in Service Science: Research and Innovation (SSRI) in the Service Economy series, Springer, 2010.

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Stage 2: Traditional Service Value Network

Customer

ServiceExperience

ServiceProvider

Value Proposition

Provider PartnerNetwork

FocalRelationship

Value Proposition

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cf. ICT-enabled service networks,mobile applications, etc.

Stage 3 – Improved Value Chain

Customer’sSocial

Network

Customer

ServiceExperience

ServiceProvider

Value Proposition

FocalRelationship

Value Proposition

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Stage 4: Customer Driven Service Value Network

Customer’sSocial

Network

Customer

ServiceExperience

ServiceProvider

Value Proposition

FocalRelationship

Value Proposition

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cf. “Resource Integrators” in Service Dominant Logic literature

Service Provider

Society

Community

Employees

Stockholders

Partners

Customers

Value Dimensions

Maslow’sHierarchyOf Needs

HedonicSpiritualCulturalCorporal

EmotionalIntellectualFamilial….

A point in this 3-D space is a potential Value Proposition e.g. Service

Provider / Society / Environmental

Intrinsic

Social

Societal

Political

Functional

Environm

Econom

Stakeholders

Variety of Value Propositions

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Maslow’s Hierarchy of Needs

Disposable Income &Desire forServices

Needsvs.

Customer’s Value System

Provider’s Value System

Opportunities forValue Co-Creation

His Customer’s Value System

★★★★★

Value Systems and Value Dimensions

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Kwan, S.K., Hottom, P., Kieliszewski, C. “Moving from B2X to B2X2Y Value Propositions in Service System Networks”, 1st International Conference on Human Side of Service Engineering, HSSE 2012, San Francisco, 24 July, 2012.

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ServiceExperience

Benefits

Probabilityof Success

Quality

Schema for DataExchange

StakeholderRoles

PerformanceMetrics

** Expected ** VPj = [SE,B,C,P,Q,Sc,R,M]j

will do

will do for

will not do

Constructing a Value Proposition

The Customer have a lot of VP’s

to choose from

Kwan, S.K., Muller-Gorchs, M. (2011). "Constructing Effective Value Propositions for Stakeholders in Service System Networks," Proceedings > Proceedings of SIGSVC Workshop . Sprouts: Working Papers on Information Systems, 11(160). http://sprouts.aisnet.org/11-160

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Business Thinking – some resources

Osterwalder & Pigneur

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Foresight and Innovation Method

Service System Framework& Service System Networks

Business Model, Value Propositions& Service Patterns

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Foresight and Innovation Method

UML – Use Cases

Story Boards

UI Prototyping

Service Blueprint

WorkSystem

ProcessChain

NetworkDiagram

Looking for the right tools to

connect to the next stage

From Design to Engineering

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Conception

Design

Operation

Discovery

Engineering Discipline

& MethodologyService Design Engineer?

InformationTechnology

Platform

Service Provider’s Back Stage Support

BackStage

Processes

FrontStage

ProcessesFront Stage

Service Computing(e.g., SOA)

Some aspects of Service System Engineering

1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008.

ITSM – Management of the Processesand Infrastructure of IT Services

Kwan 2012

DuplicateSlide

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Conception

Design

Operation

Discovery

DevelopmentDiscipline

& Methodology

and RAD, Agile, Extreme Programming, etc.

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Conception

Design

Operation

Discovery

OperationsManagement

ServiceExperience

ServiceProvider

Customer

Society

Community

Competition

Partners

MarketSegmentation

ServiceConceptRealized

CustomerFlow &ServiceDelivery

OperatingStrategy

FacilityLocation& Design

Capacity& Manpower

Planning,Training

CompetitiveStrategy

SocialNetworking

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Service ManagementFitzsimmons & Fitzsimmons

Service System Operational Worldview (1)

DuplicateSlide

Customer’sSocial

Network

Customer

ServiceExperience

ServiceProvider

Value Proposition

FocalRelationship

Value Proposition

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Service System Operational Worldview (2)

Information &Knowledge ManagementDuplicate

Information & Knowledge Management

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2008 Olympic GamesBoth US teams dropped the baton

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Poor (Communication and) Information & Knowledge Management

Information & Knowledge Management

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2012 Olympic GamesUS men’s won silver

US women’s won gold

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Information &Knowledge Management

How can we effectively define, capture, share and maintain the information and knowledge

from the different stages of the Service System Life Cycle?

From: To:

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Information & Knowledge Management- Sharing the Canvas

Designer

ManagerEngineer

Customer

DeveloperOperator

• Service Thinking• System Thinking• Design Thinking• Business Thinking• Engineering Discipline• Development Discipline• Operations Management

Who are these artists?

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In-depth knowledge of a specific discipline

Complex Communications Across FieldsAcross industriesAcross cultures

Across functionsAcross disciplines

=More experienced

More adaptiveMore collaborative

BroadenWith

GlobalEducational

program

“We need to hire more T-shaped people!”Industry says:

“We need to hire more T–shaped faculty!”Academia says:

DevelopNew

KnowledgeWith

ResearchBased on slides byJean Paul Jacob

of IBM

T-shaped People (1)

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Paul Harris, “Help Wanted: ‘T-Shaped’ Skills to meet 21st Century Needs”, T&D, September 2009

T-shaped People (2)

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We need T-shaped PeopleWho can work together as a Team

Using Design Thinking as the basis of Project-based Team Building

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Design Thinking for Managers

Some Business Schools are teaching Design Thinking:

TorontoNorthwestern

MaastrichtBerkeleyVirginia

St. Gallen ……….

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T-shaped People (3)

Dr. Stephen K. KwanProfessor, Service Science

Management Information SystemsCollege of Business AdministrationSan José State University, CA, USA

http://www.sjsu.edu/ssme

Contact: stephen.kwan@sjsu.edu

Download these slides at: http://www.slideshare.net/StephenKwan

Service Design Basics –from System to Business Modeling

FinPresented at Yuan Ze University

December 6th, 2012, Taiwan

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ServiceExperience

ServiceProvider

Customer

Value Proposition Model (VPM)Starting with the Service System

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ServiceExperience

ServiceProvider

Customer

ServiceExperience

Customer

ServiceExperience

Customer

Value Proposition

VPM – a common example

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ServiceExperience

ServiceProviderCustomer

ServiceExperience

Customer

ServiceExperience

Customer

A SharedExperience

Community/Social

Network

Value Proposition

VPM – individuals and community

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ServiceExperience

Customer

ServiceExperience

Customer

A SharedExperience

Community/Social

Network

Value Proposition

VPM – individuals and Facebook community

Over 1 Billion !!

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ServiceExperience

Customer

Value Proposition

ServiceExperience

Vendor

ValueProposition

ServiceExperience

VPM – service provider partners

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ServiceExperience

Customer

ServiceExperience

Vendor

ServiceExperience

VPM – partner’s acquistion of customer

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ServiceExperience

Customer

ServiceExperience

Vendor

ServiceExperience

Example 1 of 4

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ServiceExperience

Customer

ServiceExperience

Vendor

ServiceExperience

VendorService

Experience

Example 2 of 4

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ServiceExperience

Customer

ServiceExperience

Vendor

ServiceExperience

VendorService

Experience

Example 3 of 4

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ServiceExperience

Customer

ServiceExperience

Vendor

ServiceExperience

Example 4 of 4

Amazon.comBookcloseout_us

nengland4

theBookGrinder

Customer

Example: E-Commerce

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Customer

Amazon.comSP0

Bookcloseout_usSP1

theBookGrinderSP2

negland4SP3

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Customer

SE0 = Service Experience provided by SP0

SP0 = Service Provider of the Focal Relationship (the basis of the Value Proposition from Kwan & Yuan 2011)VP0 = Value Proposition offered by SP0 to Customer for SE0

FocalRelationship

Instantiationof the Service

Experience at aparticular point

In time

Service Pattern 1 – Single Service Episode

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Customer

Pattern 2 – Continuous Service over a Period of Time

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Customer

SP1SP0Instantiation of the Service

Experience at a particular point In time

Service Pattern 3 – Service in Parallel

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Customer

Se1 Se2

Pattern 3 – Continuous Service with Occasional Service Episodes

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Customer

SE1 SE2

SP1 SP2

Pattern 4 – Service provided by more than one Partner Service Providers

Yuan Ze University - Service Design Basics, 12/6/2012

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