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Towards an ontological foundation of service dominant logic

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yfallos Fragidis and Konstantinos Tarabanis

yfallos Fragidis and Konstantinos Tarabanis

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  • 1. Towards an Ontological Foundation of Service Dominant Logic Garyfallos FragidisTechnological Education Institute of Serres, Greece Konstantinos Tarabanis University of Macedonia, Greece
  • 2. ► Service systems and value co-creation are recognized as the two most fundamental concepts of service science ●  “value co-creation is the primary object of study in service systems” ●  “service science is the study of value co-creation phenomena” Spohrer, J., Maglio, 2010; Maglio, Kieliszewski, and Spohrer, 2010► Service-Dominant (S-D) logic is recognized as “one of the corner stones of service science” and “the philosophical foundation of service science” Spohrer, J., Maglio, 2010► Service science was acknowledged to be inconsistent in applying the principles of S-D logic Maglio, Kieliszewski, and Spohrer, 2010 Vargo and Akaka, 2009; Vargo, Lusch and Akaka, 2010
  • 3. ► The slow development of service science► The concepts of value, value creation and value co- creation, remain still unclear and vague. ●  “Value co-creation is the basic action that take place in the interaction between service systems”. ●  Value co-creation provides a balanced approach and an integrated perspective on the creation of value for the business firm an the customer alike.► A lack of alignment between business and IT approaches in service science ●  Service science and S-D logic function at different levels of analysis and for different purposes
  • 4. Purpose► Support the deeper understanding of S-D logic and its key concepts (e.g. service, value co-creation, etc.) ●  Provide a common framework of concepts and relations ●  Move beyond a lexicon ●  Contribute in the resolution of inconsistencies and misunderstandings► Contribute in the establishment of S-D logic as the foundational theory of service science ●  Contribute in the assimilation of the concepts of S-D logic► Contribute in the improved communication of experts from different areas in the multidisciplinary field of service science.
  • 5. Literature Review►  Approaches that set conceptual foundations of service systems ●  Ferrario, R., Guarino, N.: Towards an Ontological Foundation for Services Science. ●  Alter, S.: Service system fundamentals: Work system, value chain, and life cycle. ●  Stanicek, Z., Winkler, M.: Service Systems through the Prism of Conceptual Modeling. ●  OSullivan, J.: Towards a Precise Understanding of Service Properties.►  Approaches that aim at the business modeling of service systems ●  Poels, G.: A Conceptual Model of Service Exchange in Service-Dominant Logic. ●  Weigand, et al.: Value-Based Service Modeling and Design: Toward a Unified View of Services. ●  Andersson et al.: Towards a Reference Ontology for Business Models. ●  Baida, Z.: Serviguration ●  De Kinderen, S., Gordijn, J.: E3service. ●  Scheithauer: Business Service Description Methodology for Service Ecosystems. ●  Sorathia, V., et. al: Towards a Unifying Process Framework for Services Knowledge Management.
  • 6. Literature Review►  Relationship to service science/ S-D logic ●  Most of them refer to service science (as a research trend) ●  Only two refer to S-D logic ●  Only three are based on input from service science and/ or S-D logic►  The origin of the concept of service ●  Input from the business management or the economics literature ●  a) service as an event, b) service as a process, c) service as a resource►  Customer- orientation►  Co-production and/or value co-creation ●  Included only in two
  • 7. Methodology► We stay with the concepts of S-D logic ●  10 FP ●  Lexicon ●  The whole literature of S-D logic (by Vargo and/ or Lusch)► Development of an ontological representation of S-D logic ●  as a class diagram ●  at a generic level
  • 8. Key concepts►  Actor: a generalization of Customer and Provider►  Service: a generalization of Direct Service and Indirect Service►  Value Co-creation: a generalization of Co-production Integration and Customisation►  Value: a generalization of Knowledge and Experience►  Resource: a generalization of Operant Resource and Operand Resource►  Context: a generalization of Situational Context and Idiosyncratic Context.
  • 9. An ontological representation of S-D logic: the basic concepts
  • 10. An ontological representation of S-D logic: the complete model
  • 11. Actor►  It is a general term used to address to the entities that participate in the value co-creation process►  Other options (suboptimal): ●  FP9: “all economic and social actors are resource integrators”. ●  In service science the basic entities are the service systems►  Customer and Provider are the two key roles played by Actors in value co-creation processes. ●  Provider: provides Service ●  Customer: the beneficiary Actor that receives the Service provided. ●  The Customer may receive and integrate Service from many Providers and supplements them with proprietary resources. ●  The customer inherits all the attributes of an Actor
  • 12. Service & Resource►  Resource: any kind of input used by Actors in value co-creation processes ●  Operant Resource & Operand Resource.►  Service: the application of specialized competences (knowledge and skills) for the benefit of another entity or the entity itself. ●  A process of applying Resources. ●  “Recourcing”: the activity of rendering resources into a specific benefit (the way that value creation occurs) ●  Direct Service & Indirect Service ●  Self-service
  • 13. Value Co-creation►  Value Co-creation: the service-based collaboration of at least one Provider, who provides Service, and at least one Customer, who integrates and complements it with proprietary Service, for the co-creation of value. ●  network relationships ●  service ecosystem► Value Co-creation is ageneral concept that canbe actualized in manydifferent ways. ●  Co-production ●  Customization ●  Integration
  • 14. Value►  Value: the output of the Value Co- creation process. ●  Value is related to the customer (“value is always uniquely and phenomenologically determined by the beneficiary”- FP10); ●  “Value-in-use” & “value-in-context” ●  Value is determined “contextually and idiosyncratically” by the customer. ●  Value affects also the Provider (“service is the fundamental basis of exchange” – FP1), namely that “service is exchanged for service”. feedback (direct and indirect).►  Knowledge: learning opportunities for the improvement of Resources.►  Experience: a basic way that the Customer perceives Value.►  Context: the general conditions that exist for the co-creation of value ●  Situational Context: spatial, temporal, social and relational dimensions. ●  Idiosyncratic Context: personal needs and traits of the Customer
  • 15. Benefits from the ontological representation of S-D logic► The logical analysis of S-D logic: ●  provides insights ●  clarifies concepts ●  singles out inconsistencies► Interpretation & improvement of S-D logic► A basis for transdisciplinary communication► A vocabulary and modeling constructs for the development of “service-based” information systems (or “value-cocreation” information systems)
  • 16. Service and Value Co-creation
  • 17. Service and Value Co-creation►  Value Co-creation becomes the result of the direct application of Resources from the Actors ●  It is compliant with S-D logic ●  It is compliant with Service Science
  • 18. Concepts not included► Exchange (FP1 & FP2)► Competitive advantage (FP4)► Value proposition (FP7)► Solution, dialogue, reciprocity/ interactivity, value-in- use, value-creation network and service ecosystem (possible entries to the S-D logic lexicon).
  • 19. Concepts not included - exchange► Exchange is a competing concept to Value Co- creation ●  Exchange is included in the Value Co-creation process, with the meaning of contribution of service and resources► Alternative modeling options ●  Replace Value Co-creation with Exchange ●  Add Exchange in the model
  • 20. Concepts not included► Exchange (FP1 & FP2)► Competitive advantage (FP4)► Value proposition (FP7)► Solution, dialogue, reciprocity/ interactivity, value-in- use, value-creation network and service ecosystem (possible entries to the S-D logic lexicon).
  • 21. Problems & limitations► The interpretation of S-D logic ●  Subjective interpretation, especially when the concepts are vague and the meaning/ implications unclear. •  E.g. “service is exchanged for service” •  “Value is always uniquely and phenomenologically determined by the beneficiary” ●  Stay with the general concepts, rather than emphasize on the specific words► The ontological form (why an ontology?) ●  Informal vs. formal ontology ●  Generic vs. specific ontologies
  • 22. Future research►  The elaboration of the foundational ontology of S-D logic with additional concepts, relationships and rules (for example with regard to the types and respective processes of value co- creation, the types of value for the customer and the provider, the contextual parameters, etc.)►  The elaboration of the foundational ontology of S-D logic with partial aspects aspects (e.g. business aspect, customer aspects, etc.).►  Merging concepts between S-D logic and service science. Perhaps the development of a common/ integrated ontology.►  The development of specific ontologies for some business domains or business models.►  The formalization of the ontology.►  The building of consensus.
  • 23. Questions & comments Thank you!Gary FragidisTechnological Education Institute of Serres62124 Serres, GreeceE-mail: garyf@teiser.grtel.: +30 23 21049310

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