10/26/11 1 Prepared for SJSU International & Extended Studies IT group, Russian Federation October 26 th , 2011 2 Kwan 2011 A Framework for Service Science and Some Research Challenges Service Science is short for Service Science, Management, Engineering and Design (SSMED 1 ). 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.
Transcript
10/26/11
1
Prepared for SJSU International & Extended Studies
IT group, Russian Federation October 26th, 2011
2 Kwan 2011
A Framework for Service Science and Some Research Challenges
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.
10/26/11
2
3
A Service System is Complex
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.
4 Kwan 2011
10/26/11
3
5
Service System A
Service System B
Service System C
Service System D
Service System E
Service System F
Kwan 2011
6
Service System A
Service System B
Service System C
Service System D
Service System E
Service System F
Kwan 2011
10/26/11
4
Society
Community
Competition
Partners
Service System
Employees & Stockholders
7 Kwan 2011
Society
Community
Competition
Partners
Employees & Stockholders
8
Market Segmentation
Service Concept Realized
Customer Flow & Service Delivery
Operating Strategy
Facility Location & Design
Capacity & Manpower
Planning, Training
Competitive Strategy
Social Networking
Kwan 2011
Service Management Fitzsimmons & Fitzsimmons
10/26/11
5
Society
Community
Competition
Partners
Service System
Employees & Stockholders
9 Kwan 2011
10
Information Technology
Platform
Service Provider’s Back Stage Support
Back Stage
Processes
Front Stage
Processes Front Stage
Service Computing (e.g., SOA)
1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008.
ITSM – Management of the Processes and Infrastructure of IT Services
Kwan 2011
10/26/11
6
11
Stage 1: Value Chain
Focal Relationship
Value Proposition
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.
Kwan 2011
12
Value Proposition
Focal Relationship
Value Proposition
Kwan 2011
cf. ICT-enabled service networks, mobile applications, etc.
10/26/11
7
13 Kwan 2011
Service System/Network 1. People 2. Technology 3. Shared Information 4. Organizations
connected by value propositions from Jim Spohrer
Value Proposition
Focal Relationship
Value Proposition
Kwan 2011
10/26/11
8
15
Product Placements
Ad’s and “Buy Me”
TV Programs
Their Friends
Target Audience
Illustration from: Vascellaro, J. A. “Video’s New Friends”, The Wall Street Journal, February 28, 2008.
Kwan 2011
Value Proposition
Focal Relationship
Value Proposition
Value Proposition
Kwan 2011
10/26/11
9
17
Customer’s Value System
Provider’s Value System
Opportunities for Value Co-Creation
His Customer’s Value System
★
★
★ ★ ★★★
★
Kwan 2011
Stages of Customer Empowerment
1 2
3 4
Sta
keho
lder
s
Service Provider
Society
Community
Employees
Stockholders
Partners
Customers
A point in this 3-D space is a Potential Value
Proposition
Value Dimensions
Economic
Environmental
Societal Social
Political
Intrinsic
Maslow’s Hierarchy Of Needs
18
Hedonic Spiritual Cultural Corporal
Emotional Intellectual Familial….
Kwan 2011
10/26/11
10
19 Kwan 2011
Disposable Income & Desire for Services
Needs vs.
Wants
350 1000 4400
8500
20000
0
5000
10000
15000
20000
25000
1990 2000 2010 2020 2030
Estimated China Per Capita National Income
20
Metrics
Rules
Schema
Quality
Probability of Success
Costs
Benefits
Service Experience
The Customer have a lot of VP’s
to choose from
Service Level Agreement?
Kwan 2011
10/26/11
11
21
Service Provider
Society
Community
Employees
Stockholders
Partners
Customers
Ser
vice
Pro
vide
r
Soc
iety
Com
mun
ity
Em
ploy
ees
Sto
ckho
lder
s
Par
tner
s
Cus
tom
ers
?
Kwan 2011
Partners
Service Provider
Customers
22 Kwan 2011
10/26/11
12
23 Kwan 2011
Value Proposition
24 Kwan 2011
A Shared Experience
Community/ Social
Network
Value Proposition
10/26/11
13
25 Kwan 2011
A Shared Experience
Community/ Social
Network
Value Proposition
26 Kwan 2011
Value Proposition
Value Proposition
10/26/11
14
27 Kwan 2011
28 Kwan 2011
10/26/11
15
29 Kwan 2011
30 Kwan 2011
10/26/11
16
31 Kwan 2011
Kwan 2011 32
“There are no such things as service industries. There are only industries whose service components are greater or lesser than those of other industries.
Everybody is in service.”
Theodore Levitt, “Production-line Approach to Service”, Harvard Business Review, Sept/Oct 1972.
10/26/11
17
Kwan 2011 33
James Teboul, Service is Front Stage, Palgrave MacMillan, 2006.
Kwan 2011 34
James Teboul, Service is Front Stage, Palgrave MacMillan, 2006.
10/26/11
18
Kwan 2011 35
Product Service
“Servitization”
“Productization”
Kwan 2011 36
www.servtrans.com Services Transformation and Innovation Group LLC
10/26/11
19
37
CREATING SOMETHING
NEW
혁신 創新�创新�革新
Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value.
National Innovation Initiative
Innovation can happen anywhere on the Value Chain!
