Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation
Introduction to Services Sciences, Management, and Engineering (SSME)
Kelly Lyons, PhDIBM Toronto Lab Centre for Advanced StudiesAdjunct Professor, York University [email protected]
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation2
Introduction to Services Science, Management, and Engineering
Motivation: Why is this an important topic?
Definition: What are Services
What is “SSME”?
Debate: Is there a Science of Services?
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation3
Motivation: Here are the facts…
All national economies are shifting to services– major industrialized nations are >75% services, developing nations are close behind
To better study, manage, and engineer service systems, new skills are needed – combination of business, organization, technology skills – soft skills enhance hard skills
Educational system is slowly shifting toward services– service management, operations, marketing, and engineering courses and programs exist
At national level, governments can draw investment toward service innovation by– bootstrapping investment in research and education through targeted programs– focusing attention on intellectual property protection for service innovation
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation4
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Motivation: Rise of the Service Economy
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Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation5
Motivation: Unprecedented Shift“Services account for more than 80 percent of the U.S. gross
domestic product, employ a large and growing share of the science and engineering workforce, and are the primary users of information technology. […] Nevertheless, the academic research enterprise has not focused on or been organized to meet the needs of service businesses.”– National Academy of Engineering (2003). "The Impact of Academic Research
on Industrial Performance"
“The opportunity to innovate in services, to realize business andsocietal value from knowledge about service, to research, develop, and deliver new information services and business services, has never been greater.”
J. Spohrer, D. Riecken, Guest Editors, CACM, July 2006.
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation6
Motivation: SSME Skills
“Classic” Engineering
Services Sciences (SSME)
Technology
Products
Applications
Business
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation7
Introduction to Services Science, Management, and Engineering
Motivation: Why is this an important topic?
Definition: What are Services
What is “SSME”?
Debate: Is there a Science of Services?
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation8
Definition: So what are Services?
In economics and marketing, a service is the non-material equivalent of a good. Service provision has been defined as an economic activity that does not result in ownership, and this is what differentiates it from providing physical goods. It is claimed to be a process that creates benefits by facilitating either a change in customers, a change in their physical possessions, or a change in their intangible assets.
By supplying some level of skill, ingenuity, and experience, providers of a service participate in an economy without the restrictions of carrying stock(inventory) or the need to concern themselves with bulky raw materials. On the other hand, their investment in expertise does require marketing and upgrading in the face of competition which has equally few physical restrictions.
- from Wikipedia, see http://en.wikipedia.org/wiki/Services
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation9
Definition: What really defines Services?
Deed, act, or performance
– Berry (1980)
An activity or series of activities… provided as solution to customer problems
– Gronroos (1990)
All economic activity whose output is not physical product or construction
– Brian et al (1987)
A time-perishable, intangible experience performed for a customer acting as co-producer
– Fitzsimmons & Fitzsimmons (2001)
A change in condition or state of an economic entity (or thing) caused by another
– Hill (1977)
Deeds, processes, performances
– Zeithaml & Bitner (1996)
Application of specialized competences through deeds, processes, and performances to benefit another
– Vargo & Lusch (2004)
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation10
Another Definition of Services: As systems of relationships
A. Service Provider
- Individual- Organization- Technology
owned by A
C. Service Target: The reality to be transformed or operated on by A, for the sake of B
-People, dimensions of-Business, dimensions of-Products, technology artifacts & env.-Information, codified knowledge
B. Service Client
- Individual- Organization- Public or Private
Forms ofService Relationship
Forms ofOwnership Relationship
(B on C)
(A & B co-create value)
Forms ofResponsibility Relationship
(A on C)
Forms ofService Interventions
(A on C, B on C)
- based on Gadrey (2002)- based on Gadrey (2002)
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation11
Introduction to Services Science, Management, and Engineering
Motivation: Why is this an important topic?
Definition: What are Services
What is “SSME”?
Debate: Is there a Science of Services?
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation12
What is Service Science, Management and Engineering (SSME)?
The application of scientific, management, and engineering disciplines to tasks that one organization beneficially performsfor and with another (‘services’) – Services are anything of [economic] value that cannot be dropped
on your foot.
– The key to service value is in actions, performed now or promised for the future. Services often create mutual interdependencies.
– Especially complex organization to organization services – business to business, nation to nation, organization to population
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation13
Service Science, Management, and Engineering (SSME)
Requires innovation that combinespeople, technology, value and clients
Business Models &
Processes
Science &
Technology
People&
Culture
SSMESSME
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation14
http://www.ibm.com/university/ssmehttp://www.ibm.com/university/ssme
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation15
IBM and SSME: What is SSME, really?
An urgent “call to action”– To become more systematic about innovation in services– Complements product and process innovation methods– To develop “a science of services”
A proposed academic discipline– Draws on many existing disciplines– Aims to integrate them into a new specialty
A proposed research area– Service systems are designed (computer systems)– Service systems evolve (linguistic and social systems)– Service systems have scale-emergent properties (economic systems)
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation16
SSME: Communications of the ACM, July 2006
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation17
Service Research and Innovation Initiative
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation18
Introduction to Services Science, Management, and Engineering
Motivation: Why is this an important topic?
Definition: What are Services
What is “SSME”?
Debate: Is there a Science of Services?
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation19
Debate: Can there really be a science of services?
“Wherever there are phenomena, there can be a science to describe and explain those phenomena. Thus, the simplest (and correct) answer to “What is botany?” is, “Botany is the study of plants.” And zoology is the study of animals, astronomy the study of stars, and so on. Phenomena breed sciences.”
- Newell, A., Perlis, A. & Simon, H. A. (1967). Computer Science, Science, 157, 1373-1374.
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation20
Possible Objections… to Computer Science
Only natural phenomena breed sciences
The term “computer” is not well defined
Computer Science is the study of algorithms, not computers
Computers are instruments, not phenomena
Computer Science is a branch of another science
Computers belong to engineering, not science
- Newell, Perlis, & Simon (1967)
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation21
Possible Objections… to Service Science
Only natural phenomena breed sciences
The term “service” is not well defined
Service Science is the study of work, not services
Services are performances, not phenomena
Service Science is a branch of another science
Services belong to engineering (or management), not science
- with apologies to Newell, Perlis, & Simon (1967)
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation22
Some Thoughts:
Services depend critically on people, technology, and co-creation of value
People work together and with technology to provide value for clients
So a service system is a complex socio-techno-economic system
Growth requires innovation that combines people, technology, value, clients
Science & Engineering
Business &Management
Social & CognitiveSciences
Economics & Markets
BusinessInnovation
TechnologyInnovation
SocialInnovation
DemandInnovation
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation23
Where do you Study SSME?
“Classic” Engineering
Services Sciences (SSME)
Technology
Products
Applications
Business
Toronto Lab Centre for Advanced Studies
© 2007 IBM Corporation24
Questions?