SIGSVC 2011

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Presented at the SIGSVC Workshop in Shanghai, China, Dec. 3rd, 2011

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  • Value DimensionsQualitySocial CurrencySocial CRMEmotional – Not Logical?Ethical?
  • SIGSVC 2011

    1. 1. Constructing Effective Value Propositions for Stakeholders in Service System Networks Dr. Stephen K. Kwan Professor, Service Science MercèMüller-Gorchs Management Information Systems Karlsruhe Service Research Institute College of Business Administration Karlsruhe Institute of Technology San José State University, CA, USA Karlsruhe, Germany http://www.sjsu.edu/ssme Contact: stephen.kwan@sjsu.edu Presented at the AIS SIGSVC Workshop December 3rd 2011, Shanghai, China Download these slides at: http://www.slideshare.net/StephenKwan
    2. 2. Service System Worldview1 Service Customer Provider Service Experience 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 2
    3. 3. A Service System Network Service Service Interactions System A Service System B Service ServiceSystem E System C Service System D Service System F Kwan 2011 3
    4. 4. A Service Supply Chain Service Service Interactions System A Service System B Service ServiceSystem E System C Service System D Service System F Kwan 2011 4
    5. 5. Service System Worldview Employees & Stockholders Community Service Customer Provider Service Partners Experience Service System CompetitionSociety Kwan 2011 5
    6. 6. Value Co-Creation Through Value Propositions Employees & Value Stockholders Community Value Service Value Customer Provider Value Service Partners Experience Service System Competition Society Kwan 2011 6
    7. 7. Stages in Customer Empowerment in Value Co-Creation Stage 1: Value Chain Value Proposition Focal Service Customer Relationship Provider Service Experience5 Kwan,S. K. & Yuan, S. T. ”Customer-Driven Value Co-Creation in Service Networks”, to appear inDemirkan, H., Spohrer, J.C. and Krishna, V. ed., The Science of Service Systems, volume in Service Science: Researchand Innovation (SSRI) in the Service Economy series, Springer, 2010. Kwan 2011 7
    8. 8. Stage 2: Traditional Service Value Network Value Proposition Focal Service Customer Relationship Provider Provider Service Partner Experience Network Value Proposition cf. ICT-enabled service networks, mobile applications, etc. Kwan 2011 8
    9. 9. Stage 3 – Improved Value Chain Value Proposition Focal Service Customer Relationship Provider ValueProposition Service Customer’s Experience Social Network Kwan 2011
    10. 10. Stage 4: Customer Driven Service Value Network Value Proposition Focal Service Customer Relationship Provider Value Value PropositionProposition Provider Service Partner Customer’s Experience Social Network Network cf. “Resource Integrators” in Service Dominant Logic literature Kwan 2011
    11. 11. Variety of Value Propositions Maslow’s Hierarchy Of Needs Service Provider SocietyStakeholders Hedonic Spiritual Community Corporal Emotional Employees Intellectual Stockholders A point in this 3-D space is Partners a Potential Value Customers Proposition Kwan 2011 11
    12. 12. Disposable Income & Desire for Services Needs vs. WantsKwan 2011 12
    13. 13. Value Propositions can also be bi-directionalCustomers Service Provider Stockholders Partners Community Employees Customers Partners Service Provider Society Service Provider Society ? Community Employees Stockholders Partners Customers Kwan 2011 13
    14. 14. Value Proposition Model (VPM) Starting with the Service System Service Customer Provider Service Experience Kwan 2011 14
    15. 15. VPM – a common example Service Customer Value Proposition Provider Customer Service Experience ServiceCustomer Experience Service Experience Kwan 2011 15
    16. 16. VPM – individuals and community Service Customer Value Proposition Provider Community/ SocialCustomer Network A Shared Experience Service Experience Service ExperienceCustomer Service Experience Kwan 2011 16
    17. 17. VPM – individuals and Facebook community Service Customer Value Proposition Provider Community/ SocialCustomer Network A Shared Experience Service Experience Service ExperienceCustomer Service Experience Kwan 2011 17
    18. 18. VPM – service provider partners Service Customer Provider Value PropositionCustomer Service Service Experience Experience Service Experience Service Experience Value Proposition Vendor Kwan 2011 18
    19. 19. VPM – partner’s acquistion of customer Service Customer Provider Customer Service Service Experience Experience Service Experience Service Experience Service VendorExperience Kwan 2011 19
    20. 20. Example 1 of 4 Service Customer ProviderCustomer Service Service Experience Experience Service Experience Service Experience Vendor Kwan 2011 20
    21. 21. Example 2 of 4 Service Customer Provider Customer Service Service Experience Experience Service Service Experience ServiceExperience Experience Service Vendor Vendor Experience Kwan 2011 21
    22. 22. Example 3 of 4 Service Customer Provider Customer Service Service Experience Experience Service Service Experience ServiceExperience Experience Service Vendor Vendor Experience Kwan 2011 22
    23. 23. Example 4 of 4 Service Customer Provider Customer Service Service Experience Experience Service Experience Service Experience Service VendorExperience Kwan 2011 23
    24. 24. Foundational Premises of Service Dominant Logic Kwan & Müller-Gorchs 2011 24
    25. 25. Value Systems and Value Dimensions Provider’s Value System             Opportunities for   Value Co-Creation  Customer’s ★ Value System ★ ★ ★ ★ ★ ★ ★His Customer’s Value System FP8 Kwan & Müller-Gorchs 2011 25
    26. 26. Variety of Value Propositions Maslow’s Hierarchy Of Needs Service Provider Society HedonicStakeholders Spiritual Cultural Community Corporal Emotional Employees Intellectual Familial…. Stockholders A point in this 3-D space is Partners a Potential Value Customers Proposition FP10 Kwan & Müller-Gorchs 2011 26
    27. 27. Constructing a Value Proposition The Customerhave a lot of VP’s to choose from Service Level Agreement? FP7 Kwan & Müller-Gorchs 2011 27
    28. 28. A Customer’s Choice of ServiceA Service Provider’s Promised Value: Based on the Customer’s ownA Customer’ Choice Function: expectations Kwan & Müller-Gorchs 2011 28
    29. 29. A Customer’s Realization of ValueA Customer’s Realized Value: Co-Production Service Process Co-Creation of Value FP6 An Example Service Provider and Customer’s His Partners’ Contributions Contributions FP9 Kwan & Müller-Gorchs 2011 29
    30. 30. Constructing Value Propositions: Customers and Service Providers Sc,R,M too Connecting Components of a ValueProposition to a Service Provider’s KPI’s through Feedback Kwan & Müller-Gorchs 2011 30
    31. 31. Example: E-CommerceCustomer Amazon.com Bookcloseout_us theBookGrinder nengland4 Kwan & Müller-Gorchs 2011 31
    32. 32. VP0 Se0 SE Amazon.com S0 SP0 Se1 Bookcloseout_us S1 SP1 S4 SP4Customer Se2 theBookGrinder S2 SP2 S5 Se3 negland4 S3 SP3 S6 Kwan & Müller-Gorchs 2011 32
    33. 33. Service Pattern 1 – Single Service Episode Customer Instantiation of the Service Experience at a particular point VP0 In time SE0 Focal Relationship Time SP0 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 Kwan & Müller-Gorchs 2011 33
    34. 34. Pattern 2 – Continuous Service over a Period of Time Customer VP0 SE0 Time SP0 Kwan & Müller-Gorchs 2011 34
    35. 35. Service Pattern 3 – Service in Parallel Customer VP0 Se0 Se1 Se2 Time Instantiation of the ServiceSP0 SP1 SP2 Experience at a particular point In time Kwan & Müller-Gorchs 2011 35
    36. 36. Pattern 3 – Continuous Service with Occasional Service EpisodesCustomer VP0 Se1 Se2 Se0 Time SP0 Kwan & Müller-Gorchs 2011 36
    37. 37. Pattern 4 – Service provided by more than one Partner Service ProvidersCustomer VP0 SE1 SE2 SE3 SE0 Time SP0 SP1 SP2 SP3 VP1 VP3 SE4 SE6 VP2 SE5 Kwan & Müller-Gorchs 2011 37
    38. 38. Future Directions• More on development of Value Dimensions and Measurement• More on connecting VPM with Service Provider’s KPI• More on Quality Dimensions and Measurement• Integrate VPM with Service System Design and Prototyping Integrate with Foresight and Innovation Method Knowledge Managementfor Service System Design & Engineering © Cockayne and Carleton Kwan & Müller-Gorchs 2011 38
    39. 39. Service System Framework& Service System Networks Foresight and Innovation Method Value Propositions & Service Patterns © Cockayne and Carleton Kwan & Müller-Gorchs 2011 &Müller-Gorchs 39
    40. 40. 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 &Müller-Gorchs 40
    41. 41. Constructing Effective Value Propositions for Stakeholders in Service System Networks Dr. Stephen K. Kwan Professor, Service Science MercèMüller-Gorchs Management Information Systems Karlsruhe Service Research Institute College of Business Administration Karlsruhe Institute of Technology San José State University, CA, USA Karlsruhe, Germany http://www.sjsu.edu/ssme Contact: stephen.kwan@sjsu.edu Fin Presented at the AIS SIGSVC Workshop December 3rd 2011, Shanghai, China Download these slides at: http://www.slideshare.net/StephenKwan
    42. 42. Example of Value Proposition A Class Syllabus (1) Kwan 2011 42
    43. 43. Example of Value Proposition A Class Syllabus (2) One of many MIS Electives offered in Fall 2011 Course Description Course - Learning Objectives 3 Credit Hours Kwan 2011 $$ 43
    44. 44. Example of Value Proposition A Class Syllabus (3) Reputation & Accreditation “PoweringSiliconValley” Prerequisites & Required Texts Kwan 2011 44
    45. 45. Example of Value Proposition A Class Syllabus (4) Required Texts, Rules & Policies Class Procedure Kwan 2011 45
    46. 46. Example of Value Proposition A Class Syllabus (5) Grading Criteria Student Evaluations (Faculty KPI) Kwan 2011 46
    47. 47. Example of Value Proposition A Class Syllabus (6)Guest Lecture (Partner) Service Episodes Service Components Kwan 2011 47

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