Yuan Ze University - Service Design Basics, 12/6/2012
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Yuan Ze University - Service Design Basics, 12/6/2012

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Yuan Ze University - Service Design Basics, 12/6/2012 Yuan Ze University - Service Design Basics, 12/6/2012 Presentation Transcript

  • Service Design Basics –from System to Business Modeling 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 Presented at Yuan Ze University December 6th, 2012, Taiwan Download these slides at: http://www.slideshare.net/StephenKwan Kwan 2012 1
  • Do you know the way to San José? Kwan 2012 2
  • Silicon Valley &Its Environs Kwan 2012 3
  • Kwan 2012 4
  • Kwan 2012 5
  • AbstractThis presentation looks at service design from amodeling perspective that incorporates servicethinking, system thinking, design thinking, andbusiness thinking. This approach provides an avenue ofintegration across different disciplines and roles in theservice design process. A desirable outcome of thisintegration would be more effective information andknowledge management from design to engineering ofservice systems. Kwan 2012 6
  • Some DefinitionsService 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 2012 7
  • 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 2012 8
  • A Service System Network Service Service Interactions System A Service System B Service ServiceSystem E System C Service System D Service System F Kwan 2012 9
  • Service System Worldview Employees & Stockholders Community Service Customer Provider Service Partners Experience Service System CompetitionSociety Kwan 2012 10
  • Value Co-Creation Through Value Propositions Employees & Value Stockholders Community Value Service Value Customer Provider Value Service Partners Experience Service System Competition Society Kwan 2012 11
  • Service Systems, Computing, and IT Services1 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 2012 12
  • Service System Design (1)From: To: Service Customer System Design Service System Engineering Kwan 2012 13
  • Service System Design (2) Service System Design Business Thinking Thinking Thinking Thinking A Multi-disciplinary Approach ServiceCustomer System Design Service System Engineering Knowledge Management – maintaining integrity of information and knowledge throughout the lifecycle Kwan 2012 14
  • What is Design (1) A conscious effort to create something that is artistic, purposeful, and better.Not casual, you have to work at it Creativity is needed here Object Product Service Kwan 2012 15
  • What is Design (2)A conscious effort to create something thatis artistic, purposeful, and better. Pure Art Kwan 2012 16
  • What is Design (3)A conscious effort to create something thatis artistic, purposeful, and better. Utilitarian, Commodity Kwan 2012 17
  • What is Design (4)A conscious effort to create something thatis artistic, purposeful, and better. Form Function Desirable State Not easily Can apply metrics measurable and measurements Connection to engineering Kwan 2012 18
  • Design and Innovation Design NewA conscious effort to create something that isartistic, purposeful, and better. ^ Unique Innovation Desirable 혁신 创新 Valuable… CREATING SOMETHING 創新 革新 NEW Kwan 2012 19
  • Service System Design aspart of the Service System Life Cycle Design is an important component in the study of Service Systems e.g., SSMED – D is for DesignDiscovery Conception Operation Design Development Engineering Kwan 2012 20
  • Incorporating Multiple Perspectives in Modeling CompetitionExternal or Internal Forces Strategy Customerscreate impetus for Change Regulations Discovery Conception Obsolescence Technology Design Innovation Operation Servitization .. Development Engineering J. Bradford Jensen Kwan 2012 21
  • Incorporating Multiple Perspectives in Modeling for example: Service Thinking Servitization PlatformtizationDiscovery Conception Open Service Innovation Operation Design Development Engineering (S-D) Logic - Service Dominant Logic Vargo & Lusch Kwan 2012 and many more! 22
  • Foundational Premises of Service Dominant Logic Kwan 2012 23
  • Incorporating Multiple Perspectives in Modeling for example: System Thinking Discovery Conception Operation Design C. West Churchman Russell L. Ackoff Development Engineering and many more! Herbert Simon’s The Sciences of the ArtificialKwan, 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 2012 24
  • Incorporating Multiple Perspectives in ModelingDiscovery Conception Operation Design Design Thinking Development Engineering Kwan 2012 25
  • Design Thinking – some resources Emotional Innovation Business (Viability) Experience Innovation Design PeopleThinking (Desirability) Process Functional Innovation Technology Innovation (Feasibility) Kwan 2012 26
  • Design Thinking – some resources Peter G. RoweStickhorn &Schneider Thomas Lockwood Kwan 2012 27
  • Design Thinking – some resourcesDivergent ConvergeThinking nt Thinking © Cockayne and Carleton Kwan 2012 28
  • Incorporating Multiple Perspectives in ModelingDiscovery Conception Operation Design Business Thinking Development Engineering Kwan 2012 29
  • Business Thinking - Service System Worldview1 Employees & Stockholders Community Service Customer Provider Service Partners Experience Service System Competition Society 1Kwan, S. K. & Min, J. H. (2008) “An Evolutionary Framework of Service Systems”.Duplicate Presented at the International Conference on Service Science, Beijing, China, April 17-18. Slide Kwan 2012 30
  • Business Thinking -Value Co-Creation Through Value Propositions Employees & Value Stockholders Community Value Service Value Customer Provider Value Service Partners Experience Service System Competition SocietyDuplicate Slide Kwan 2012 31
  • 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 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 2012 32
  • 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 2012 33
  • Stage 3 – Improved Value Chain Value Proposition Focal Service Customer Relationship Provider ValueProposition Service Customer’s Experience Social Network Kwan 2012 34
  • 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 2012 35
  • Variety of Value Propositions Maslow’s Hierarchy Of NeedsService Provider Society Hedonic Stakeholders Spiritual Community Cultural Corporal Employees Emotional Intellectual Stockholders Familial…. Partners A point in this 3-D space is a potential Customers Value Proposition e.g. Service Provider / Society / Environmental Kwan 2012 36
  • Disposable Income & Desire for Services Needs vs. WantsKwan 2012 37
  • Value Systems and Value Dimensions Provider’s Value System             Opportunities for   Value Co-Creation  Customer’s ★ Value System ★ ★ ★ ★ ★ ★ ★ Kwan, S.K., Hottom, P., Kieliszewski, C. “Moving from B2X to B2X2Y Value Propositions in Service System Networks”, 1st International Conference on Human Side of ServiceHis Customer’s Value System Engineering, HSSE 2012, San Francisco, 24 July, 2012. Kwan 2012 38
  • Constructing a Value Proposition ** Expected ** VPj = [SE,B,C,P,Q,Sc,R,M]j Service Performance Experience Metrics Benefits Stakeholder Roles Costs Quality The Customer will will will Probability Schema for Datahave a lot of VP’s do not do of Success to choose from for +$ do Exchange Kwan, S.K., Muller-Gorchs, M. (2011). "Constructing Effective Value Propositions for Stakeholders in Service System Networks," Proceedings > Proceedings of SIGSVC Workshop . Sprouts: Working Papers on Information Systems, 11(160). http://sprouts.aisnet.org/11-160 Kwan 2012 39
  • Business Thinking – some resourcesOsterwalder & Pigneur Kwan 2012 40
  • Service System Framework & Service System Networks Foresight and Innovation MethodBusiness Model, Value Propositions & Service Patterns © Cockayne and Carleton Kwan 2012 41
  • Foresight and Innovation Method © Cockayne and Carleton Process Chain Network Diagram UI Prototyping UML – Use Cases BPMN Work System Looking for the MANGA right tools to connect to the Story Service Blueprint next stage Boards Kwan & Müller-Gorchs 2011 Kwan 2012 42
  • From Design to EngineeringDiscovery Conception Operation Design Development Engineering Engineering Discipline & Methodology Service Design Engineer? Kwan 2012 43
  • Some aspects of Service System Engineering Service Provider’s Back Stage Support Back Stage Processes Information Technology Platform Front Stage Front Stage Processes ITSM – Management of the Processes Service Computing and Infrastructure of IT Services (e.g., SOA)Duplicate 1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008. Slide Kwan 2012 44
  • Incorporating Multiple Perspectives in Modeling Discovery Conception Development Operation Design Discipline& Methodology Development Engineering and RAD, Agile, Extreme Programming, etc. Kwan 2012 45
  • Incorporating Multiple Perspectives in Modeling Discovery ConceptionOperations Design OperationManagement Development Engineering Kwan 2012 46
  • Service System Operational Worldview (1) Service Management Fitzsimmons & Fitzsimmons Employees & Capacity Stockholders & Manpower Planning, Community Training Service Customer Facility Location Provider & Design Service Partners Experience Social Networking Competition Competitive Market Customer Service Strategy Society Segmentation Flow & Concept Operating Service Realized Strategy DeliveryDuplicate Slide Kwan 2012 47
  • Service System Operational Worldview (2) Value Proposition Focal Service Customer Relationship Provider Value Value Proposition Proposition Provider Service Partner Customer’s Experience Social Network Network Information &Duplicate Knowledge Management Slide Kwan 2012 48
  • Information & Knowledge Management 2008 Olympic GamesBoth US teams dropped the baton Kwan 2012 49
  • Poor (Communication and) Information & Knowledge Management Kwan 2012 50
  • Information & Knowledge Management2012 Olympic GamesUS men‟s won silverUS women‟s won gold Kwan 2012 51
  • Information & Knowledge Management How can we effectively define, capture, share and maintain the information and knowledge from the different stages of the Service System Life Cycle?From: To: Kwan 2012 52
  • Information & Knowledge Management - Sharing the Canvas Customer Designer • Service Thinking • System Thinking • Design Thinking • Business Thinking Manager • Engineering Discipline Engineer • Development Discipline • Operations Management Operator Developer Who are these artists? Kwan 2012 53
  • T-shaped People (1) Industry says: “We need to hire more T-shaped people!” Across industries Complex Communications Across Fields Across cultures Across functions Across disciplines = More experienced Develop More adaptive New More collaborative Knowledge Broaden In-depth With With knowledge ResearchBased on slides by Global Jean Paul Jacob of IBM of a specific Educational discipline program Academia says: “We need to hire more T–shaped faculty!” Kwan 2012 54
  • T-shaped People (2)Paul Harris, “Help Wanted: „T-Shaped‟ Skills to meet 21st Century Needs”, T&D, September 2009 Kwan 2012 55
  • We need T-shaped People Who can work together as a TeamUsing Design Thinking as the basis of Project-based Team Building 56 Kwan 2012 56 Kwan 2012
  • Design Thinking for Managers Some Business Schools are teaching Design Thinking: Toronto Northwestern Maastricht Berkeley Virginia St. Gallen ………. Kwan 2012 57
  • T-shaped People (3) Kwan 2012 58
  • Service Design Basics –from System to Business Modeling 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 Fin Presented at Yuan Ze University December 6th, 2012, Taiwan Download these slides at: http://www.slideshare.net/StephenKwan Kwan 2012 59
  • Value Proposition Model (VPM) Starting with the Service System Service Customer Provider Service Experience Kwan 2012 60
  • VPM – a common example Service Customer Value Proposition Provider Customer Service Experience ServiceCustomer Experience Service Experience Kwan 2012 61
  • VPM – individuals and community Service Customer Value Proposition Provider Community/ SocialCustomer Network A Shared Experience Service Experience Service ExperienceCustomer Service Experience Kwan 2012 62
  • VPM – individuals and Facebook community Service Customer Value Proposition Provider Community/ Social Customer Network A Shared Experience ServiceOver 1 Billion !! Experience Service Experience Customer Service Experience Kwan 2012 63
  • VPM – service provider partners Service Customer Provider Value PropositionCustomer Service Service Experience Experience Service Experience Service Experience Value Proposition Vendor Kwan 2012 64
  • VPM – partner‟s acquistion of customer Service Customer Provider Customer Service Service Experience Experience Service Experience Service Experience Service VendorExperience Kwan 2012 65
  • Example 1 of 4 Service Customer ProviderCustomer Service Service Experience Experience Service Experience Service Experience Vendor Kwan 2012 66
  • Example 2 of 4 Service Customer Provider Customer Service Service Experience Experience Service Service Experience ServiceExperience Experience Service Vendor Vendor Experience Kwan 2012 67
  • Example 3 of 4 Service Customer Provider Customer Service Service Experience Experience Service Service Experience ServiceExperience Experience Service Vendor Vendor Experience Kwan 2012 68
  • Example 4 of 4 Service Customer Provider Customer Service Service Experience Experience Service Experience Service Experience Service VendorExperience Kwan 2012 69
  • Example: E-CommerceCustomer Amazon.com Bookcloseout_us theBookGrinder nengland4 Kwan 2012 70
  • VP0 Se0 SE0 Amazon.com S0 SP0 Se1 Bookcloseout_us S1 SP1 S4 SP4Customer Se2 theBookGrinder S2 SP2 S5 Se3 negland4 S3 SP3 S6 Kwan 2012 71
  • 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 2012 72
  • Pattern 2 – Continuous Service over a Period of Time Customer VP0 SE0 Time SP0 Kwan 2012 73
  • Service Pattern 3 – Service in Parallel Customer VP0 SE0 Se0 Se1 Se2 Time Instantiation of the ServiceSP0 SP1 SP2 Experience at a particular point In time Kwan 2012 74
  • Pattern 3 – Continuous Service with Occasional Service Episodes Customer VP0SE0 Se1 Se2 Se0 Time SP0 Kwan 2012 75
  • 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 2012 76