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Some Thoughts on Value Propositions and Service Patterns
 

Some Thoughts on Value Propositions and Service Patterns

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For Visitors from Korea to IBM Almaden Lab October 19th, 2011

For Visitors from Korea to IBM Almaden Lab October 19th, 2011

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    Some Thoughts on Value Propositions and Service Patterns Some Thoughts on Value Propositions and Service Patterns Presentation Transcript

    • Some Thoughts on Value Propositions
      and Service Patterns
      Dr. Stephen K. Kwan
      Professor, Service Science
      Management Information Systems
      College of Business Administration
      San José State University, CA, USA
      http://www.sjsu.edu/ssme
      Contact: stephen.kwan@sjsu.edu
      MercèMüller-Gorchs
      Karlsruhe Service Research Institute
      Karlsruhe Institute of Technology
      Karlsruhe, Germany
      For Discussion with Visitors from Korea at IBM Almaden
      October 19, 2011
      Download these slides at: http://www.slideshare.net/StephenKwan
    • Service System Worldview1
      Service
      Provider
      Customer
      Service
      Experience
      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.
      Kwan & Müller-Gorchs 2011
      2
    • Service System Worldview
      Employees &
      Stockholders
      Community
      Service
      Provider
      Customer
      Service
      Experience
      Partners
      Competition
      Service System
      Society
      Kwan & Müller-Gorchs 2011
      3
    • 4
      Kwan & Müller-Gorchs 2011
      Service System Worldview
      Service Management
      Fitzsimmons & Fitzsimmons
      Employees &
      Stockholders
      Capacity
      & Manpower
      Planning,
      Training
      Community
      Service
      Provider
      Customer
      Facility
      Location
      & Design
      Service
      Experience
      Partners
      Social
      Networking
      Competition
      Competitive
      Strategy
      Service
      Concept
      Realized
      Customer
      Flow &
      Service
      Delivery
      Market
      Segmentation
      Operating
      Strategy
      Society
      4
    • Value Co-Creation Through Value Propositions
      Value
      Employees &
      Stockholders
      Community
      Service
      Provider
      Customer
      Value
      Value
      Value
      Service
      Experience
      Partners
      Competition
      Service System
      Governance
      Society
      Kwan & Müller-Gorchs 2011
      5
    • Stages in Customer Empowerment
      in Value Co-Creation
      Stage 1: Value Chain
      Value Proposition*
      Customer
      Service
      Provider
      Focal
      Relationship
      Service
      Experience
      * Should be accompanied by a “Schema & Rules ” – behavior expectations
      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 & Müller-Gorchs 2011
      6
    • Customer Driven Service Value Network
      Value Proposition
      Service
      Provider
      Customer
      Focal
      Relationship
      Value Proposition
      Value Proposition
      Provider Partner
      Network
      Customer’s
      Social
      Network
      Service
      Experience
      Kwan & Müller-Gorchs 2011
      7
    • 8
      Kwan & Müller-Gorchs 2011
      Foundational Premises of Service Dominant Logic
      Microeconomic
      Considerations
    • 9
      Kwan & Müller-Gorchs 2011
      Value Systems and Value Dimensions
      Provider’s Value System











      Opportunities for
      Value Co-Creation




      Customer’s
      Value System








      FP8
      His Customer’s Value System
    • Variety of Value Propositions
      Maslow’s
      Hierarchy
      Of Needs
      Value Dimensions
      Service Provider
      Society
      Community
      Employees
      Stockholders
      Partners
      Customers
      Intrinsic
      Hedonic
      Spiritual
      Cultural
      Corporal
      Emotional
      Intellectual
      Familial….
      Social
      Societal
      Environmental
      Political
      Stakeholders
      Economic
      A point in this 3-D space is a Potential Value Proposition
      1
      2
      4
      3
      Stages of Customer Empowerment
      FP10
      Kwan & Müller-Gorchs 2011
      10
    • 11
      Kwan & Müller-Gorchs 2011
      Constructing a Value Proposition
      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?
      FP7
    • 12
      Kwan & Müller-Gorchs 2011
      A Customer’s Choice of Service
      A Service Provider’s Promised Value:
      Based on the Customer’s own expectations
      A Customer’ Choice Function:
    • 13
      Kwan & Müller-Gorchs 2011
      A Customer’s Realization of Value
      A Customer’s Realized Value:
      Co-Production Service Process
      Co-Creation of Value
      An Example
      FP6
      Service Provider and
      His Partners’ Contributions
      Customer’s Contributions
      FP9
    • 14
      Kwan & Müller-Gorchs 2011
      Constructing Value Propositions:
      Customers and Service Providers
      Sc,R,M
      too
      Connecting Components of a Value Proposition to a Service Provider’s KPI’s through Feedback
    • Kwan & Müller-Gorchs 2011
      Example: Social Network
      Service
      Provider
      Customer
      Customer
      Service
      Experience
      Service
      Experience
      Service
      Experience
      Service
      Experience
      Service
      Experience
      Vendor
      Vendor
      Service
      Experience
      15
    • 16
      Kwan & Müller-Gorchs 2011
      Example: E-Commerce
      Customer
      Amazon.com
      Bookcloseout_us
      theBookGrinder
      nengland4
    • VP0
      SE
      Se0
      Amazon.com
      SP0
      S0
      Se1
      Bookcloseout_us
      SP1
      SP4
      S1
      S4
      Customer
      Se2
      theBookGrinder
      SP2
      S2
      S5
      Se3
      negland4
      SP3
      S3
      S6
      17
      Kwan & Müller-Gorchs 2011
    • 18
      Kwan & Müller-Gorchs 2011
      Service Pattern 1 – Single Service Episode
      Customer
      Instantiation
      of the Service
      Experience at a
      particular point
      In time
      VP0
      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
    • 19
      Kwan & Müller-Gorchs 2011
      Pattern 2 – Continuous Service over a Period of Time
      Customer
      VP0
      SE0
      Time
      SP0
    • 20
      Kwan & Müller-Gorchs 2011
      Service Pattern 3 – Service in Parallel
      Customer
      VP0
      Se0
      Se1
      Se2
      Time
      SP2
      SP1
      SP0
      Instantiation of the Service
      Experience at a particular point
      In time
    • 21
      Kwan & Müller-Gorchs 2011
      Pattern 3 – Continuous Service with Occasional Service Episodes
      Customer
      VP0
      Se2
      Se1
      Se0
      Time
      SP0
    • 22
      Kwan & Müller-Gorchs 2011
      Pattern 4 – Service provided by more than one Partner Service Providers
      Customer
      VP0
      SE2
      SE1
      SE3
      SE0
      Time
      SP3
      SP1
      SP2
      SP0
      VP1
      SE4
      VP3
      SE6
      VP2
      SE5
    • 23
      Kwan & Müller-Gorchs 2011
      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
      © Cockayne and Carleton
      23
      Kwan & Müller-Gorchs 2011
    • Kwan & Müller-Gorchs 2011
      Service System Framework
      & Service System Networks
      Foresight and Innovation Method
      Value Propositions
      & Service Patterns
      © Cockayne and Carleton
      Kwan & Müller-Gorchs 2011
      24
    • 25
      Kwan & Müller-Gorchs 2011
      Service System Framework
      & Service System Networks
      Foresight and Innovation Method
      © Cockayne and Carleton
      Process
      Chain
      Network
      Diagram
      UI Prototyping
      UML – Use Cases
      Value Propositions
      & Service Patterns
      BPMN
      Work
      System
      MANGA
      Service Blueprint
      Story Boards
      25
      Kwan & Müller-Gorchs 2011
    • Some Thoughts on Value Propositions
      and Service Patterns
      Dr. Stephen K. Kwan
      Professor, Service Science
      Management Information Systems
      College of Business Administration
      San José State University, CA, USA
      http://www.sjsu.edu/ssme
      Contact: stephen.kwan@sjsu.edu
      MercèMüller-Gorchs
      Karlsruhe Service Research Institute
      Karlsruhe Institute of Technology
      Karlsruhe, Germany
      For Discussion with Visitors from Korea at IBM Almaden
      October 19, 2011
      Download these slides at: http://www.slideshare.net/StephenKwan