Kwan SJSU IES Russian Group 10/26/2011

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Service Systems, Value Propositions and Service Innovation

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Kwan SJSU IES Russian Group 10/26/2011

  1. 1. 10/26/11 Prepared for SJSU International & Extended Studies IT group, Russian Federation October 26th, 2011 A Framework for Service Science and Some Research ChallengesService 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 toimprove the quality of life by co-creating value through valuepropositions 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. Kwan  2011   2   1
  2. 2. 10/26/11 A Service System is Complex 3   A Service System and Its Entities1Kwan, 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. Kwan  2011   4   2
  3. 3. 10/26/11 Service System A Service System B Service ServiceSystem E System C Service System D Service System F Kwan  2011   5   Service System A Service System B Service ServiceSystem E System C Service System D Service System F Kwan  2011   6   3
  4. 4. 10/26/11 Employees & Stockholders Community Partners Service System CompetitionSociety Kwan  2011   7   Service Management Fitzsimmons & Fitzsimmons Employees & Capacity Stockholders & Manpower Planning, Community Training Facility Location & Design Partners SocialNetworking Competition Competitive Customer Service Strategy Market Segmentation Flow & Concept OperatingSociety Service Realized Strategy Delivery Kwan  2011   8   4
  5. 5. 10/26/11 Employees & Stockholders Community Partners Service System Competition Society Kwan  2011   9   Service Provider’s Back Stage Support Back Stage Processes Information Technology Platform Front StageFront Stage Processes ITSM – Management of the Processes Service Computing and Infrastructure of IT Services (e.g., SOA) 1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008. Kwan  2011   10   5
  6. 6. 10/26/11 Stage 1: Value Chain Value Proposition Focal Relationship5 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   11   Value Proposition Focal Relationship Value Proposition cf. ICT-enabled service networks, mobile applications, etc. Kwan  2011   12   6
  7. 7. 10/26/11 Service System/Network 1. People 2. Technology 3. Shared Information from Jim Spohrer 4. Organizations connected by value propositions Kwan  2011   13   Value Proposition Focal Relationship ValueProposition Kwan  2011   7
  8. 8. 10/26/11 Their Friends TV Programs Ad’s and “Buy Me” Target Audience Illustration from: Vascellaro, J. A. “Video’s Product Placements New Friends”, The Wall Street Journal, February 28, 2008. Kwan  2011   15   Value Proposition Focal Relationship Value Value PropositionProposition Kwan  2011   8
  9. 9. 10/26/11 Provider’s Value System             Opportunities for   Value Co-Creation  Customer’s ★ Value System ★ ★ ★ ★ ★ ★ ★ His Customer’s Value System Kwan  2011   17   s Maslow’s ns ion Hierarchy ime Of Needs Service Provider u eD Val Intr Society Hedonic iStakeholders nsi So En Spiritual So ci c Cultural vi Community Po al ci Corporal ron eta litic Emotional Employees Eco me l Intellectual a Familial…. l nta n Stockholders A point in this 3-D space is om l ic Partners a Potential Value Customers Proposition 1 Stage 2 s of Cu stome 3 4 r Emp ow ermen t Kwan  2011   18   9
  10. 10. 10/26/11 Estimated China Per Capita National Income 25000   20000   20000   15000   10000   8500   5000   4400   0   350   1000   1990   2000   2010   2020   2030   Disposable Income & Desire for Services Needs vs. Wants Kwan  2011   19   Me es The Customer Ru m Sc ty ty o Qu oba trichave a lot of VP’s Pr sts its xpe l he ali bili Co nef e E s to choose from Be rvic a Se fS uc ce rie ss nc e Service Level Agreement? Kwan  2011   20   10
  11. 11. 10/26/11Customers Service Provider Stockholders Partners Community Employees Customers Partners Service Provider Society Service Provider Society ? Community Employees Stockholders Partners Customers Kwan  2011   21   Kwan  2011   22   11
  12. 12. 10/26/11 Value Proposition Kwan  2011   23   Value PropositionCommunity/ Social Network A Shared Experience Kwan  2011   24   12
  13. 13. 10/26/11 Value PropositionCommunity/ Social Network A Shared Experience Kwan  2011   25   Value Proposition Value Proposition Kwan  2011   26   13
  14. 14. 10/26/11Kwan  2011   27  Kwan  2011   28   14
  15. 15. 10/26/11Kwan  2011   29  Kwan  2011   30   15
  16. 16. 10/26/11 Kwan  2011   31  “There are no such things as serviceindustries. There are only industrieswhose service components are greater orlesser than those of other industries.Everybody is in service.” Theodore Levitt, “Production-line Approach to Service”, Harvard Business Review, Sept/Oct 1972. Kwan    2011   32   16
  17. 17. 10/26/11James Teboul, Service is Front Stage, Palgrave MacMillan, 2006. Kwan    2011   33  James Teboul, Service is Front Stage, Palgrave MacMillan, 2006. 34   Kwan    2011   17
  18. 18. 10/26/11 Product Service “Servitization” “Productization” Kwan    2011   35  Services Transformation and Innovation Group LLC www.servtrans.com 36   Kwan    2011   18
  19. 19. 10/26/11혁신 Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value. National Innovation Initiative CREATING Innovation can happenSOMETHING anywhere on the Value Chain! (business model, organization, NEW environment, process, technology, etc.) Kwan  2011   37   “Creativity can be taught. Innovation can be learned.” David Blakeley, Director “Incremental Innovation vs. Radical Innovation” Judy Estrin “Closing the Innovation Gap” Kwan  2011   38   19
  20. 20. 10/26/11 Radical Innovations  Major Innovation: new service that customers did not know they needed.  Start-up Business: new service for underserved market.  New Services for the Market Presently Served: new services to customers of an organization. Incremental Innovations  Service Line Extensions: augmentation of existing service line.  Service Improvements: changes in service delivery process.  Style Changes: modest visible changes in appearances. Kwan  2011   39   © Cockayne and Carleton Kwan  2011   40   20
  21. 21. 10/26/11Kwan  2011   41  Kwan  2011   42   21
  22. 22. 10/26/11Service System Framework& Service System Networks Foresight and Innovation Method Value Propositions & Service Patterns © Cockayne and Carleton Kwan  &  Müller-­‐Gorchs  2011   43  Service System Framework& Service System Networks Foresight and Innovation Method © Cockayne and Carleton Process Chain Network Diagram UI Prototyping UML – Use Value Propositions Cases & Service Patterns BPMN Work System MANGA Story Service Blueprint Boards Kwan  &  Müller-­‐Gorchs  2011   44   22
  23. 23. 10/26/11 Prepared forSJSU International & Extended Studies IT group, Russian Federation October 26th, 2011 23

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