Slides spohrer piciocchi bassano def 14 june 2011 v2.

Three frameworks for service research: exploring multilevel governance in nested, networked systems The 2011 Naples Forum on Service - Service Dominant logic, Network & System Theory and Service Science: integrating three perspectives for a new service agenda Capri, June 14-17, 2010 James Spohrer, Paolo Piciocchi and Clara Bassano spohrer@almaden.ibm.com, p.piciocchi@unisa.it, clara.bassano@uniparthenope.it

Why and How Multilevel Governance?
Policy-makers, business consultants, and service researchers try
to envision better systems of rules (Ostrom, 2005; Williamson, 1996)
to solve political and business problems
(Sterman, 2000; Friedman, 2008)
Better frameworks for crossing disciplines, systems and cultures are needed, as real world problems rarely respect discipline boundaries (IfM and IBM, 2008)
Purpose
Integration of the three frameworks to expand awareness in the service research community of multilevel governance or a shared system of rules in complex social systems*
* nations, states, cities, universities, hospitals, hotels, homes, or nested, network Holistic Service Systems (HSS)

Are some entity architectures (Є N ) better than others? Complex social system frameworks (FN) provide professionals with ways to delineate innovative entity architectures (ЄN) Are some frameworks (F N ) better than others?

Frameworks (FN) and Entity Architectures (ЄN) SSME + D (Spohrer & Maglio)
All refer to integrated multi-disciplinary perspectives
all emphasize the importance of governance mechanisms, government, and rules
all illustrate how value is co-created through governance interaction
VSA (Golinelli & Barile) IAD (Ostrom) Holistic Service System & Whole Service Viable System Polycentric System

The SSME+D framework Service Systems exist for value co-creation  Holistic Service Systems

Holistic Services Systems (HSS) integrated within a Whole Service (WS) perspective
Both can be represented in terms of multilevel governance and component interaction
Overall value co-creation depends on the capability of governance to produce shared competence for the development of Whole Service
Whole Service (WS) integrates the value propositions of Holistic Service Systems (HSS) through multilevel governance mechanisms
Multilevel Governance Entity architectures include a shared system of rules Regional Components Based on shared socio-economic and cultural planning Overall Value Co-Creation Governance of related capability to produce shared competences for the development of Whole Service

The VSA conceptual framework Golinelli & Barile VSA is a model for observing and interpreting the viability of complex business and social phenomena through general interpretative patterns New levels of complexity require new types of decision making based not on stochastic methods but on the VSA Informative Variety Model (Barile, 2009) Value Categories Interpretative Patterns Value Categories Interpretative Patterns Consonance between Value Categories Consonance between Interpretative patterns Informative Units Informative Units Variety of Viable System (a) Variety of Viable System (b)

The viability of a system depends on its capability for compacting and compressing (synthesizing) the pressures deriving from the structural and functional variety of its synergic components (consonance) The viability of complex social systems Governance for consonance has to interpret , mediate and synthesize to guarantee the efficiency, adequacy and equi-finality of related systems

The Institutional Analysis and Development (IAD) framework
attributes of the physical world
attributes of a given community
rules that create incentives and constraints
Interactions with individuals
Cited in the 2009 Nobel Prize award in the area of economics (Ostrom, 2005) Analyzes:

The core concepts of this framework focus on the rules and the mutual influence of polycentric systems underpinning governance as a whole
In Ostrom’s view, the governance of polycentric systems depends on the capacity for structural change on the part of institutions
Service Science view , the systems capacity to run-transform-innovate (Spohrer et al. , 2009); March’s terminology , exploitation and exploration (March, 1991); Viable Systems Approach language , adaptation-transformation- restructuring (Golinelli, 2010) Capacity to ensure conditions of elasticity and flexibility within the collective system (Piciocchi & Bassano, 2009) . The Institutional Analysis and Development (IAD) core concepts

Findings: Entity Architectures (ЄN) Frameworks (FN) Entity architectures (Є N ) broadly speaking are nested, network systems which can be envisaged as holistic service systems (HSS) (SSME +D) (VSA) (IAD) e.g. nations, states, cities, universities, remote research outposts, hospitals, luxury hotels, cruise ships, family homes, and even space craft and space stations are complex social system frameworks (FN) for analyzing the provision of Whole Service (WS) by Holistic Service Systems (HSS) at multiple levels

Value is co-created through multilevel governance interaction If value derives from shared aims (consonance), then improving consonance means maximizing value co-creation (resonance) of integrated HSS Findings: By merging SSME+D, VSA and IAD Frameworks The capability to co-create service value depends on the capability of multilevel governance (government and/or top decision makers and/or policy makers) to interpret, mediate and synthesize contexts in a “ Whole Service” (WS) perspective Multilevel governance can be conceived as a directional evolving process which facilitates value co-creation for new knowledge and innovation (Spohrer, Piciocchi & Bassano, 2012, forthcoming)

Service researchers can benefit from innovative frameworks to advance the understanding of complex social systems that:
integrate disciplines, systems and cultures
improve multilevel shared governance
move beyond dyads to nested, networked systems
Practical implications

The Smarter Planet Є N : FN( PRW )-> {R Є } Smarter Planet
Our project commenced with:
the analysis of entity architectures and frameworks
we merged Є N and : FN( PRW )
in an attempt to
- improve multilevel governance recommendations - {R Є }
Our outcome being a
“ Smarter Planet ” (i.e.
more environmentally and economically sustainable) shared governance approach - Є N : FN( PRW ) -> {R Є }
Thanks for your attention
Innovated entity architectures (Є N ) for holistic service systems (HSS) to provision “whole service ” Improved frameworks (F N ) for professionals to analyze real-world problems (P RW ) Improved multilevel governance recommendations { R Є }

NETWORKS AND SYSTEMS IN MARKETING & SERVICE Thanks to Evert Gummesson for suggesting we study Ostrom's work

Slides spohrer piciocchi bassano def 14 june 2011 v2.

by James Clinton Spohrer

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