The document discusses service science and its importance for building a smarter planet. It outlines how the world's economies and jobs have shifted towards services. Service science aims to study complex service systems and improve customer-provider interactions. The document discusses key concepts in service science like service systems, value co-creation, and a systems-disciplines matrix. It emphasizes the need for a skilled multi-disciplinary workforce and highlights opportunities in areas that improve quality of life.

1. Service Science Progress & Directions Working Together to Build a Smarter Planet Dr. James (“Jim”) C. Spohrer [email_address] Director, IBM University Programs World Wide ICSOC (Service-Oriented Computing) 2010 San Francisco, December 8, 2010

2. ICSOC 2010

3. Outline Stimulus: Service Growth The World IBM Response: Service Science Priorities Cambridge University Report Arizona State University Report World View: Networks of Entities Interacting Service Dominant Logic (Vargo & Lusch) Service Science (Spohrer & Maglio) Service Network Theory (Gummesson) Evolution: Service Science for a Smarter Planet What is Smarter Planet? What improves Quality-of-Life? What is a Service System? Service Science? How to visualize Service Science? What’s the Skills Goal? Where are the Opportunities? Where is the “Real Science” in Service Science? What are Holistic Service Systems? Why are they so important for accelerating innovation?

4. 42% 64 33 3 1.4 Germany 37% 26 11 63 2.1 Bangladesh 19% 20 10 70 1.6 Nigeria 45% 67 28 5 2.2 Japan 64% 69 21 10 2.4 Russia 61% 66 14 20 3.0 Brazil 34% 39 16 45 3.5 Indonesia 23% 76 23 1 5.1 U.S. 35% 23 17 60 14.4 India 142% 29 22 49 25.7 China 40yr Service Growth S % G % A % Labor % WW Nation World’s Large Labor Forces A = Agriculture, G = Goods, S = Service 2010 2010 CIA Handbook, International Labor Organization Note: Pakistan, Vietnam, and Mexico now larger LF than Germany US shift to service jobs (A) Agriculture: Value from harvesting nature (G) Goods: Value from making products (S) Service: Value from IT augmented workers in smarter systems that create benefits for customers and sustainably improve quality of life. Service Growth: The World

5. Service Growth: IBM B2B Service Projects: IT (data center, call centers) & business process outsourcing/reengineering, systems integration, organizational change, etc. What do IBM Service Professionals Do? Run things on behalf of customers, help Transform customers to adopt best practices, and Innovate with customers. Revenue Growth by Segment

6. Stakeholder Priorities Education Research Business Government Service Systems Customer-provider interactions that enable value cocreation Dynamic configurations of resources: people, technologies, organisations and information Increasing scale, complexity and connectedness of service systems B2B, B2C, C2C, B2G, G2C, G2G service networks Service Science To discover the underlying principles of complex service systems Systematically create, scale and improve systems Foundations laid by existing disciplines Progress in academic studies and practical tools Gaps in knowledge and skills Develop programmes & qualifications Service Innovation Growth in service GDP and jobs Service quality & productivity Environmental friendly & sustainable Urbanisation & aging population Globalisation & technology drivers Opportunities for businesses, governments and individuals Skills & Mindset Knowledge & Tools Employment & Collaboration Policies & Investment Develop and improve service innovation roadmaps, leading to a doubling of investment in service education and research by 2015 Encourage an interdisciplinary approach The white paper offers a starting point to - Priorities: Succeeding through Service Innovation - A Framework for Progress ( http://www.ifm.eng.cam.ac.uk/ssme/ ) Source: Workshop and Global Survey of Service Research Leaders (IfM & IBM 2008) Glossary of definitions, history and outlook of service research, global trends, and ongoing debate 1. Emerging demand 2. Define the domain 3. Vision and gaps 4. Bridge the gaps 5. Call for actions

7. Priorities: Research Framework for the Science of Service Source: Global Survey of Service Research Leaders (Ostrom et al 2010) Pervasive Force: Leveraging Technology to Advance Service Strategy Priorities Execution Priorities Fostering Service Infusion and Growth Improving Well-Being through Transformative Service Creating and Maintaining a Service Culture Stimulating Service Innovation Enhancing Service Design Optimizing Service Networks and Value Chains Effectively Branding and Selling Services Enhancing the Service Experience through Cocreation Measuring and Optimizing the Value of Service Development Priorities

8. Service-Dominant Logic (Vargo & Lusch) Service is the application of competences for the benefit of another entity Service is exchanged for service Value is always co-created Goods are appliances for delivery All economies are service economies All businesses are service businesses Resource Integrator/Beneficiary (“Firm”) Resource Integrator/Beneficiary (“Customer”) Value Co-creation Value Configuration Density

9. Service Science (Spohrer & Maglio) Service system entities dynamically configure (transform) four types of resources Service system entities calculate value from multiple stakeholder perspectives Service system entities reconfigure access rights to resources by mutually agreed to value propositions Nation State/Province City/Region Educational Institution Healthcare Institution Other Enterprises (job roles) Family (household ) Person (professional )

10. Service Network Theory (Gummesson) F B Service System Entity Product-Service-System B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F SSE B F F F B B Service Business Product Business Front-Stage Marketing/Customer Focus Back-Stage Operations/Provider Focus Based on Levitt, T (1972) Production-line approach to service. HBR. e.g., IBM e.g., Citibank “ Everybody is in service... Something is wrong… The industrial world has changed faster than our taxonomies.”.

11. Evolution: Service Science for a Smarter Planet What is Smarter Planet? Harmonized smarter systems. INSTRUMENTED We now have the ability to measure, sense and see the exact condition of practically everything. INTERCONNECTED People, systems and objects can communicate and interact with each other in entirely new ways. INTELLIGENT We can respond to changes quickly and accurately, and get better results by predicting and optimizing for future events. IT WORKFORCE MANUFACTURING SUPPLY CHAIN CUSTOMERS TRANSPORTATION FACILITIES

12. Our planet is a complex, dynamic, highly interconnected $54 Trillion system-of-systems (OECD-based analysis) Communication $ 3.96 Tn Transportation $ 6.95 Tn Leisure / Recreation / Clothing $ 7.80 Tn Healthcare $ 4.27 Tn Food $ 4.89 Tn Infrastructure $ 12.54 Tn Govt. & Safety $ 5.21 Tn Finance $ 4.58 Tn Electricity $ 2.94 Tn Education $ 1.36 Tn Water $ 0.13 Tn Global system-of-systems $54 Trillion (100% of WW 2008 GDP) Same Industry Business Support IT Systems Energy Resources Machinery Materials Trade Legend for system inputs Note: 1. Size of bubbles represents systems’ economic values 2. Arrows represent the strength of systems’ interaction Source: IBV analysis based on OECD This chart shows ‘systems‘ (not ‘industries‘)  Our planet is a complex system-of-systems 1 Tn

13. Economists estimate, that all systems carry inefficiencies of up to $15 Tn, of which $4 Tn could be eliminated How to read the chart: For example, the Healthcare system‘s value is $4,270B. It carries an estimated inefficiency of 42%. From that level of 42% inefficiency, economists estimate that ~34% can be eliminated (= 34% x 42%).  We now have the capabilities to manage a system-of-systems planet Source: IBM economists survey 2009; n= 480 Global economic value of $4 Trillion 7% of WW 2008 GDP Improvement potential $15 Trillion 28% of WW 2008 GDP Inefficiencies $54 Trillion 100% of WW 2008 GDP System-of-systems System inefficiency as % of total economic value Improvement potential as % of system inefficiency Education 1,360 Building & Transport Infrastructure 12,540 Healthcare 4,270 Government & Safety 5,210 Electricity 2,940 Financial 4,580 Food & Water 4,890 Transportation (Goods & Passenger) 6,950 Leisure / Recreation / Clothing 7,800 Communication 3,960 Analysis of inefficiencies in the planet‘s system-of-systems Note: Size of the bubble indicate absolute value of the system in USD Billions 42% 34% This chart shows ‘systems‘ (not ‘industries‘)

14. What improves Quality-of-Life? Service System Innovations A. Systems that focus on flow of things that humans need (~15%*) 1. Transportation & supply chain 2. Water & waste recycling/Climate & Environment 3. Food & products manufacturing 4. Energy & electricity grid/Clean Tech 5. Information and Communication Technologies (ICT access) B. Systems that focus on human activity and development (~70%*) 6. Buildings & construction (smart spaces) (5%*) 7. Retail & hospitality/Media & entertainment/Tourism & sports (23%*) 8. Banking & finance/Business & consulting (wealthy) (21%*) 9. Healthcare & family life (healthy) (10%*) 10. Education & work life/Professions & entrepreneurship (wise) (9%*) C. Systems that focus on human governance - security and opportunity (~15%*) 11. Cities & security for families and professionals (property tax) 12. States /regions & commercial development opportunities/investments (sales tax) 13. Nations /NGOs & citizens rights/rules/incentives/policies/laws (income tax) 20/10/10 0/19/0 2/7/4 2/1/1 7/6/1 1/1/0 5/17/27 1/0/2 24/24/1 2/20/24 7/10/3 5/2/2 3/3/1 0/0/0 1/2/2 Quality of Life = Quality of Service + Quality of Jobs + Quality of Investment-Opportunities * = US Labor % in 2009. “ 61 Service Design 2010 (Japan) / 75 Service Marketing 2010 (Portugal)/78 Service-Oriented Computing 2010 (US)”

15. NAE’s Engineering Grand Challenges A. Systems that focus on flow of things humans need 1. Transportation & Supply Chain Restore and enhance urban infrastructure 2. Water & Waste/Climate & Green tech Provide access to clear water 3. Food & Products Manager nitrogen cycle 4. Energy & Electricity Make solar energy economical Provide energy from fusion Develop carbon sequestration methods 5. Information & Communication Technology Enhance virtual reality Secure cyberspace Reverse engineer the brain B. Systems that focus on human activity & development 6. Buildings & Construction (smart spaces) Restore and enhance urban infrastructure 7. Retail & Hospitality/Media & Entertainment (tourism) Enhance virtual reality 8. Banking & Finance/Business & Consulting 9. Healthcare & Family Life Advance health informatics Engineer better medicines Reverse engineer the brain 10. Education & Work Life/Jobs & Entrepreneurship Advance personalized learning Engineer the tools of scientific discovery C. Systems that focus on human governance 11. City & Security Restore and improve urban infrastructure Secure cyberspace Prevent nuclear terror 12. State /Region & Development 13. Nation & Rights

16. What is a Service System? What is Service Science? …customers just name <your favorite provider> …researchers just name <your favorite discipline> Economics & Law Design/ Cognitive Science Systems Engineering Operations Computer Science/ Artificial Intelligence Marketing “ a service system is a human-made system to improve customer-provider interactions, or value-cocreation between stakeholders” “ service science is the interdisciplinary study of service systems & value-cocreation”

17. How to visualize service science? The Systems-Disciplines Matrix disciplines systems Systems that focus on flows of things Systems that govern Systems that support people’s activities transportation & supply chain water & waste food & products energy & electricity building & construction healthcare & family retail & hospitality banking & finance ICT & cloud education &work city secure state scale nation laws social sciences behavioral sciences management sciences political sciences learning sciences cognitive sciences system sciences information sciences organization sciences decision sciences run professions transform professions innovate professions e.g., econ & law e.g., marketing e.g., operations e.g., public policy e.g., game theory and strategy e.g., psychology e.g., industrial eng. e.g., computer sci e.g., knowledge mgmt e.g., stats & design e.g., knowledge worker e.g., consultant e.g., entrepreneur stakeholders Customer Provider Authority Competitors resources People Technology Information Organizations change History (Data Analytics) Future (Roadmap) value Run Transform (Copy) Innovate (Invent) Starting Point 1: The Stackholders (As-Is) Starting Point 2: Their Resources (As-Is) Change Potential: Thinking (Has-Been & Might-Become) Value Realization: Doing (To-Be)

18. What is the skills goal? T-Shaped professionals, ready for T-eamwork! SSME+D = Service Science, Management, Engineering + Design Many disciplines (understanding & communications) Many systems (understanding & communications) Deep in one discipline (analytic thinking & problem solving) Deep in one system (analytic thinking & problem solving) Many team-oriented service projects completed (resume: outcomes, accomplishments & awards)

19. Where are the opportunities? Everywhere!

20. Time ECOLOGY 14B Big Bang (Natural World) 10K Cities (Human-Made World) Sun writing (symbols and scribes) Earth written laws bacteria (uni-cell life) sponges (multi-cell life) money (coins) universities clams (neurons) tribolites (brains) printing press (books) steam engine Where is the “Real Science” in Service Science? In the sciences of the natural and human-made worlds… Evolving hierarchical-complexity of populations of things 200M bees (social division-of-labor) 60 transistor

21. Service System Ecology: Conceptual Framework Resources: People, Technology, Information, Organizations Stakeholders: Customers, Providers, Authorities, Competitors Measures: Quality, Productivity, Compliance, Sustainable Innovation Access Rights: Own, Lease, Shared, Privileged Ecology (Populations & Diversity) Entities (Service Systems) Interactions (Service Networks) Outcomes (Value Changes) Value Proposition (Offers/Risks/Incentives) Governance Mechanism (Rules/Constraints/Penalties) Access Rights (Relationships) Measures (Rankings of Entities) Resources (Roles in Processes) Stakeholders (Valuation Perspectives) win-win lose-lose win-lose lose-win Identity (Aspirations/Lifecycle) Reputation (Opportunities/Variety)

22. Holistic Service Systems Examples: Nations, States, Cities, Universities, Luxury Hotels, Cruise Ships, Households Subsystems: Transportation, Water, Food, Energy, Communications, Buildings, Retail, Finance, Health, Education, Governance, etc. Definition: A service system that can support its primary populations, independent of all external service systems, for some period of time, longer than a month if necessary, and in some cases, indefinitely Balance independence with interdependence, without becoming overly dependent Nation State/Province City/Region University Hospital Luxury Resort Hotels Family (household ) Person (professional )

23. A. Flow of things 1. Transportation : Traffic congestion; accidents and injury 2. Water : Access to clean water; waste disposal costs 3. Food : Safety of food supply; toxins in toys, products, etc. 4. Energy : Energy shortage, pollution 5. Information : Equitable access to info and comm resources B. Human activity & development 6. Buildings : Inefficient buildings, environmental stress (noise, etc.) 7. Retail : Access to recreational resources 8. Banking : Boom and bust business cycles, investment bubbles 9. Healthcare : Pandemic threats; cost of healthcare 10. Education : High school drop out rate; cost of education C. Governing 11. Cities : Security and tax burden 12. States : Infrastructure maintenance and tax burden 13. Nations : Justice system overburdened and tax burden Cities as Holistic Service Systems: All the systems Example: Singapore Population Challenges Careers Opportunities

24. Universities as Holistic Service Systems: All the systems A. Flow of things 1. Transportation : Traffic congestion; parking shortages. 2. Water : Access costs; reduce waste 3. Food : Safety; reduce waste. 4. Energy : Access costs; reduce waste 5. Information : Cost of keeping up best practices. B. Human activity & development 6. Buildings : Housing shortages; Inefficient buildings 7. Retail : Access and boundaries. Marketing. 8. Banking : Endowment growth; Cost controls 9. Healthcare : Pandemic threat. Operations. 10. Education : Cost of keeping up best practices.. C. Governing 11. Cities : Town & gown relationship. 12. States : Development partnerships.. 13. Nations : Compliance and alignment.

25. Luxury Hotels as Holistic Service Systems: All the systems http://www.youtube.com/watch?v=Hm7MeZlS5fo

26. Why Universities Matter: % GDP and % Top 500 Strong Correlation (2009 Data): National GDP and University Rankings http://www.upload-it.fr/files/1513639149/graph.html

27. Accelerating Innovation: Create Ideal or Reference Models UNIVERSITIES: Research Centers & Real-World Systems CITIES/METRO REGIONS: Universities Key to Long-Term Economic Development

28. Edu-Impact.Com “ When we combined the impact of Harvard’s direct spending on payroll, purchasing and construction – the indirect impact of University spending – and the direct and indirect impact of off-campus spending by Harvard students – we can estimate that Harvard directly and indirectly accounted for nearly $4.8 billion in economic activity in the Boston area in fiscal year 2008, and more than 44,000 jobs.”

29. Urban-Age.Net Currently, the world’s top 30 cities generate 80% of the world’s wealth. The Urban Age For the first time in history more than 50% the earth’s population live in cities - by 2050 it will be 75% The Endless City

30. Population growth per hour in major cities

31. World Population & Service System Scaling

32. Thank-You! Questions? Dr. James (“Jim”) C. Spohrer Director, IBM University Programs (IBM UP) WW spohrer@us.ibm.com “ Instrumented, Interconnected, Intelligent – Let’s build a Smarter Planet.” – IBM “ If we are going to build a smarter planet, let’s start by building smarter cities” – CityForward.org “ Universities are major employers in cities and key to urban sustainability.” – Coalition of USU “ Cities learning from cities learning from cities.” – Fundacion Metropoli “ The future is already here… It is just not evenly distributed.” – Gibson “ The best way to predict the future is to create it/invent it.” – Moliere/Kay “ Real-world problems may not/refuse to respect discipline boundaries.” – Popper/Spohrer “ Today’s problems may come from yesterday’s solutions.” – Senge “ History is a race between education and catastrophe.” – H.G. Wells “ The future is born in universities.” – Kurilov “ Think global, act local.” – Geddes

33. Vision for the Educational Continuum The Educational Continuum http://www-935.ibm.com/services/us/gbs/bus/html/education-for-a-smarter-planet.html Any Device Learning TECHNOLOGY IMMERSION PERSONAL LEARNING PATHS Student-Centered Processes KNOWLEDGE SKILLS Learning Communities GLOBAL INTEGRATION Services Specialization ECONOMIC ALIGNMENT Systemic View of Education Intelligent Aligned Data Outcomes Insight Instrumented Student-centric Integrated Assessment Interconnected Shared Services Interoperable Processes Continuing Education Higher Education Secondary School Primary School Workforce Skills Individual Learning Continuum Education System Continuum Economic Sustainability

34. Fun: Learn CityInvesting with CityOne Game Serious Game to teach problem solving for real issues in key industries, helping companies to learn how to work smarter. Energy, Water, Banking, Retail http://www.ibm.com/cityone

35. Priority 1: Urban Sustainability & Service Innovation Centers A. Research: Holistic Modeling & Analytics of Service Systems Modeling and simulating cities will push state-of-the-art capabilities for planning interventions in complex system of service systems Includes maturity models of cities, their analytics capabilities, and city-university interactions Provides an interdisciplinary integration point for many other university research centers that study one specialized type of system Real-world data and advanced analytic tools are increasingly available B. Education: STEM (Science Tech Engineering Math) Pipeline & LLL City simulation and intervention planning tools can engage high school students and build STEM skills of the human-made world (service systems) Role-playing games can prepare students for real-world projects LLL = Life Long Learning C. Entrepreneurship: Job Creation City modeling and intervention planning tools can engage university students and build entrepreneurial skills Grand challenge competitions can lead to new enterprises

36. Teaching SSME+D Fitzsimmons & Fitzsimmons Graduate Students Schools of Engineering & Businesses Teboul Undergraduates Schools of Business & Social Sciences Busy execs (4 hour read) Ricketts Practitioners Manufacturers In Transition And 200 other books… Zeithaml, Bitner, Gremler; Gronross, Chase, Jacobs, Aquilano; Davis, Heineke; Heskett, Sasser, Schlesingher; Sampson; Lovelock, Wirtz, Chew; Alter; Baldwin, Clark; Beinhocker; Berry; Bryson, Daniels, Warf; Checkland, Holwell; Cooper,Edgett; Hopp, Spearman; Womack, Jones; Johnston; Heizer, Render; Milgrom, Roberts; Norman; Pine, Gilmore; Sterman; Weinberg; Woods, Degramo; Wooldridge; Wright; etc. URL: http://www.cob.sjsu.edu/ssme/refmenu.asp Reaching the Goal: How Managers Improve a Services Business Using Goldratt’s Theory of Constraints By John Ricketts, IBM Service Management: Operations, Strategy, and Information Technology By Fitzsimmons and Fitzsimmons, UTexas Service Is Front Stage: Positioning services for value advantage By James Teboul, INSEAD

37. Service-dominant logic Service is the application of competences for the benefit of another entity Service is exchanged for service Value is always co-created Goods are appliances for delivery All economies are service economies All businesses are service businesses Vargo, S. L. & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68 , 1 – 17. Resource Integrator/Beneficiary (“Firm”) Resource Integrator/Beneficiary (“Customer”) Value Co-creation Value Configuration Density

38. What is value ? Value depends on the capabilities a system has to survive and create beneficial change in its environment. Taking advantage of the service another system offers means incorporating improved capabilities. Value can be defined as system improvement in an environment. All ways that systems work together to improve or enhance one another’s capabilities can be seen as being value creating. Vargo, S. L., Maglio, P. P., and Akaka, M. A. (2008). On value and value co-creation: A service systems and service logic perspective. European Management Journal , 26 (3), 145-152.

39. What is a service system? Service involves at least two entities applying competences and making use of individual and shared resources for mutual benefit. We call such interacting entities service systems . Spohrer, J., Maglio, P. P., Bailey, J. & Gruhl, D. (2007). Steps toward a science of service systems. Computer, 40 , 71-77. A. Service Provider Individual Organization Public or Private C. Service Target: The reality to be transformed or operated on by A, for the sake of B People, dimensions of Business, dimensions of Products, goods and material systems Information, codified knowledge B. Service Client Individual Organization Public or Private Forms of Ownership Relationship (B on C) Forms of Service Relationship (A & B co-create value) Forms of Responsibility Relationship (A on C) Forms of Service Interventions (A on C, B on C) Gadrey, J. (2002). The misuse of productivity concepts in services: Lessons from a comparison between France and the United States. In J. Gadrey & F. Gallouj (Eds). Productivity, Innovation, and Knowledge in Services: New Economic and Socio-economic Approaches. Cheltenham UK: Edward Elgar, pp. 26 – 53.

40. Resources are the building blocks of service systems Formal service systems can contract Informal service systems can promise/commit Trends & Countertrends (Evolve and Balance): Informal <> Formal Social <> Economic Political <> Legal Routine Cognitive Labor <> Computation Routine Physical Labor <> Technology Transportation (Atoms) <> Communication (Bits) Qualitative (Tacit) <> Quantitative (Explicit) First foundational premise of service science Service system entities dynamically configure four types of resources The named resource is Physical or Not-Physical (physicists resolve disputes) The named resource has Rights or No-Rights (judges resolve disputes within their jurisdictions) Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . Physical Not-Physical Rights No-Rights 2. Technology 4.. Shared Information 1. People 3. Organizations

41. Value propositions are the building blocks of service system networks Second foundational premise of service science Service system entities calculate value from multiple stakeholder perspectives A value propositions can be viewed as a request from one service system to another to run an algorithm (the value proposition) from the perspectives of multiple stakeholders according to culturally determined value principles. The four primary stakeholder perspectives are: customer, provider, authority, and competitor Value propositions coordinate & motivate resource access Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . Model of competitor: Does it put us ahead? Can we stay ahead? Does it differentiate us from the competition? Will we? (invest to make it so) Strategic Sustainable Innovation (Market share) 4.Competitor (Substitute) Model of authority: Is it legal? Does it compromise our integrity in any way? Does it create a moral hazard? May we? (offer and deliver it) Regulated Compliance (Taxes and Fines) 3.Authority Model of self: Does it play to our strengths? Can we deliver it profitably to customers? Can we continue to improve? Can we? (deliver it) Cost Plus Productivity (Profit) 2.Provider Model of customer: Do customers want it? Is there a market? How large? Growth rate? Should we? (offer it) Value Based Quality (Revenue) 1.Customer Value Proposition Reasoning Basic Questions Pricing Decision Measure Impacted Stakeholder Perspective (the players)

42. Access rights are the building blocks of service system ecology Third foundational premise of service science Service system entities reconfigure access rights to resources by mutually agreed to value propositions Access rights Access to resources that are owned outright (i.e., property) Access to resource that are leased/contracted for (i.e., rental car, home ownership via mortgage, insurance policies, etc.) Shared access (i.e., roads, web information, air, etc.) Privileged access (i.e., personal thoughts, inalienable kinship relationships, etc.) Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . service = value-cocreation B2B B2C B2G G2C G2B G2G C2C C2B C2G *** provider resources Owned Outright Leased/Contract Shared Access Privileged Access customer resources Owned Outright Leased/Contract Shared Access Privileged Access OO SA PA LC OO LC SA PA S A P C Competitor Provider Customer Authority value-proposition change-experience dynamic-configurations (substitute) time

43. Premises of service science: What service systems do Service system entities dynamically configure (transform) four types of resources Service system entities calculate value from multiple stakeholder perspectives Service system entities reconfigure access rights to resources by mutually agreed to value propositions Spohrer, J & Maglio, P. P. (2009) Service Science: Toward a Smarter Planet. In Introduction to Service Engineering. Editors Karwowski & Salvendy. Wiley. Hoboken, NJ. . S A P C Physical Not-Physical Rights No-Rights 2. Technology 4.. Shared Information 1. People 3. Organizations Model of competitor: Does it put us ahead? Will we? Strategic Sustainable Innovation 4.Competitor Model of authority: Is it legal? May we? Regulated Compliance 3.Authority Model of self: Does it play to our strengths? Can we? Cost Plus Productivity 2.Provider Model of customer: Do customers want it? Should we? Value Based Quality 1.Customer Reasoning Questions Pricing Measure Impacted Stakeholder Perspective