Arts&science2011

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Presentation prepared for the Doctoral Consortium at the Art and Science of Service conference, June 8th, 2011.

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Arts&science2011

  1. 1. Service Systems, Service Networks,<br /> and Value Co-Creation<br />Dr. Stephen K. Kwan<br />Professor, Service Science<br />Management Information Systems<br />College of Business Administration<br />San José State University, CA, USA<br />http://www.sjsu.edu/kwan_s<br />Contact:stephen.kwan@sjsu.edu<br />Prepared for <br />Doctoral Consortium<br />Art and Science of Service Conference<br />June 8th, 2011<br />
  2. 2. 2<br />Kwan 2011<br />A Framework for Service Science and Some Research Challenges<br />Some Definitions<br />Service Science is short for Service Science, Management, Engineering and Design (SSMED1).<br />Service Science is concerned with the study of Service Systems.<br />cf. Computer Science is concerned with the study of Computer Systems.<br />Service Systems are man-made complex systems designed to improve the quality of life by co-creating value through value propositions among the stake-holders.<br />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.<br />
  3. 3. Service Science is a Big Tent<br />(for every variety of disciplines)<br />Service<br />Operations<br />Marketing<br />Management<br />Quality<br />Supply Chain<br />Human Factors<br />Design<br />Innovation<br />Engineering<br />Systems<br />Computing<br />Economics<br />Arts<br />Science<br />“Service Science is just ___<name your discipline>____”<br />General<br />Systems<br />Theory<br />A Service<br />System is <br />Complex<br />OR/IE<br />MS<br />Information<br />Science<br />(i-schools)<br />MIS<br />Economics & Law<br />Game Theory<br />Anthropology<br />& Psychology<br />Organization<br />Theory<br />CS/AI<br />Multiagent Systems<br />3<br />
  4. 4. Service System Worldview1<br />Service<br />Provider<br />Customer<br />Service<br />Experience<br />A Service System and Its Entities<br />1Kwan, S. K. & Min, J. H. (2008) “An Evolutionary Framework of Service Systems”. <br />Presented at the International Conference on Service Science, Beijing, China, April 17-18.<br />4<br />Kwan 2011<br />
  5. 5. 5<br />A Service System Network<br />Service<br />System A<br />Service Interactions<br />Service<br />System B<br />Service<br />System E<br />Service<br />System C<br />Service<br />System D<br />Service<br />System F<br />Kwan 2011<br />5<br />
  6. 6. 6<br />A Service Supply Chain<br />Service<br />System A<br />Service Interactions<br />Service<br />System B<br />Service<br />System E<br />Service<br />System C<br />Service<br />System D<br />Service<br />System F<br />Kwan 2011<br />6<br />
  7. 7. 7<br />Example: Purchases from Amazon.com<br />Kwan 2011<br />
  8. 8. Example: Purchases from Amazon.com<br />Service Supply Network<br />Customer<br />Amazon.com<br />Bookcloseout_us<br />theBookGrinder<br />USPS<br />nengland4<br />USPS<br />USPS<br />“transparent”<br />service provider<br />Not being evaluated<br />USPS<br />Kwan 2011<br />8<br />
  9. 9. 9<br />Kwan 2010<br />Example: Quality of Service Supply Chain<br />Example from Dan Pritchett<br />
  10. 10. Service System Worldview<br />Employees &<br />Stockholders<br />Community<br />Service<br />Provider<br />Customer<br />Service<br />Experience<br />Partners<br />Competition<br />Service System<br />Society<br />10<br />Kwan 2011<br />
  11. 11. Service System Worldview<br />Service Management<br />Fitzsimmons & Fitzsimmons<br />Employees &<br />Stockholders<br />Capacity<br />& Manpower<br />Planning,<br />Training <br />Community<br />Service<br />Provider<br />Customer<br />Facility<br />Location<br />& Design<br />Service<br />Experience<br />Partners<br />11<br />Social<br />Networking<br />Competition<br />Competitive<br />Strategy<br />Service<br />Concept<br />Realized<br />Customer<br />Flow &<br />Service<br />Delivery<br />Market<br />Segmentation<br />Operating<br />Strategy<br />Society<br />Kwan 2011<br />
  12. 12. Value Co-Creation Through Value Propositions<br /> Value<br />Employees &<br />Stockholders<br />Community<br />Service<br />Provider<br />Customer<br />Value<br />Value<br />Value<br />Service<br />Experience<br />Partners<br />Competition<br />Service System<br />Governance<br />Society<br />12<br />Kwan 2011<br />
  13. 13. 13<br />Service Systems, Computing, and IT Services1<br />Service Provider’s Back Stage Support<br />Information<br />Technology<br />Platform<br />Back<br />Stage<br />Processes<br />Front<br />Stage<br />Processes<br />Front Stage<br />ITSM – Management of the Processes<br />and Infrastructure of IT Services<br />Service Computing<br />(e.g., SOA)<br />1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008.<br />Kwan 2011<br />
  14. 14. 14<br />Kwan 2011<br />Formulation of Value = Benefit / Cost<br />Better Off<br />From:<br />Customer Value = (Results + Process Quality ) / (Price + Customer Access Costs)<br />Heskett et all 1997<br />To:<br />Harvey 2005<br />To:<br />
  15. 15. 15<br />Stages in Customer Empowerment<br />in Value Co-Creation<br />Stage 1: Value Chain<br />Value Proposition<br />Customer<br />Service<br />Provider<br />Focal<br />Relationship<br />Service<br />Experience<br />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.<br />Kwan 2011<br />
  16. 16. 16<br />Stage 2: Traditional Service Value Network<br />Value Proposition<br />Customer<br />Service<br />Provider<br />Focal<br />Relationship<br />Provider Partner<br />Network<br />Service<br />Experience<br />Value Proposition<br />cf. ICT-enabled service networks,<br />mobile applications, etc.<br />Kwan 2011<br />
  17. 17. 17<br />Kwan 2011<br />Example of Service Value Network<br />Service System/Network<br />1. People <br />2. Technology<br />3. Shared Information<br />4. Organizationsconnected by value propositions<br />from Jim Spohrer<br />
  18. 18. Stage 3 – Improved Value Chain<br />Value Proposition<br />Customer<br />Service<br />Provider<br />Focal<br />Relationship<br />Value Proposition<br />Customer’s<br />Social<br />Network<br />Service<br />Experience<br />Kwan 2011<br />
  19. 19. 19<br />Example of Customer Driven<br />Service Value Network<br />Their Friends<br />TV Programs<br />Ad’s and “Buy Me”<br />Target Audience<br />Illustration from: Vascellaro, J. A. “Video’s New Friends”, The Wall Street Journal, February 28, 2008.<br />Product Placements<br />Kwan 2011<br />
  20. 20. 20<br />Taking Advantage of Social Networks<br />Kwan 2011<br />
  21. 21. Stage 4: Customer Driven Service Value Network<br />Value Proposition<br />Service<br />Provider<br />Customer<br />Focal<br />Relationship<br />Value Proposition<br />Value Proposition<br />Provider Partner<br />Network<br />Customer’s<br />Social<br />Network<br />Service<br />Experience<br />cf. “Resource Integrators” in Service Dominant Logic literature<br />Kwan 2011<br />
  22. 22. 22<br />Variety of Value Propositions<br />Maslow’s<br />Hierarchy<br />Of Needs<br />Value Dimensions<br />Service Provider<br />Society<br />Community<br />Employees<br />Stockholders<br />Partners<br />Customers<br />Intrinsic<br />Hedonic<br />Spiritual<br />Corporal<br />Emotional<br />Intellectual<br />Social<br />Societal<br />Environmental<br />Political<br />Stakeholders<br />Economic<br />A point in this 3-D space is a Potential Value Proposition<br />1<br />2<br />4<br />3<br />Stages of Customer Empowerment<br />Kwan 2011<br />
  23. 23. 23<br />Kwan 2011<br />Maslow’s Hierarchy of Needs<br />Disposable <br />Income &<br />Desire for<br />Services<br />Needs<br />vs.<br />Wants<br />
  24. 24. 24<br />Service Provider<br />Society<br />Community<br />Employees<br />Stockholders<br />Partners<br />Customers<br />Value Propositions can also be bi-directional<br />Customers<br />Partners<br />Service Provider<br />Service Provider<br />Society<br />Community<br />Employees<br />Stockholders<br />Partners<br />Customers<br />?<br />Kwan 2011<br />
  25. 25. 25<br />Example: Andrea Cocchi,<br />“Innovation by Intermediation”<br />
  26. 26. 26<br />Example: JinluanRen<br />“Innovation in … CMMB”<br />CBBM for Subscription Fees,<br />Value-added Service<br />Customer<br />CBC<br />Provider Partner<br />Network<br />CBBM Service<br />Experience<br />License<br />and Fees<br />Ericsson<br />Advertisers, Elec. Comm.<br />China Mobile TeleComm. Companies<br />Kwan & Yuan 2010<br />
  27. 27. 27<br />* energy usage * Carbon dioxide/methane emissions * other emissions * water pollution * waste to landfill * hazardous substances * natural resources * water * biodiversity * local environment<br />Example: Mark Stein<br />“Sustainable Procurement in the UK Public Sector”<br />Strategic Directions<br />Service Provider<br />Society<br />Community<br />Employees<br />Stockholders<br />Partners<br />Customers<br />Stakeholders<br />Environmental<br />Political<br />Economic<br />Societal<br />Social<br />* energy usage * Carbon dioxide/methane emissions * other emissions * water pollution * waste to landfill * hazardous substances * natural resources * water * biodiversity * local environment<br />1<br />2<br />4<br />3<br />Stages of Customer Empowerment<br />* employment, diversity, education * health * community * developing world supply chains<br />Kwan & Yuan 2010<br />
  28. 28. 28<br />* energy usage * Carbon dioxide/methane emissions * other emissions * water pollution * waste to landfill * hazardous substances * natural resources * water * biodiversity * local environment<br />Example: Peter Ward<br />“SMS for Life, ……”<br />Strategic Directions<br />Service Provider<br />Society<br />Community<br />Employees<br />Stockholders<br />Partners<br />Customers<br />Stakeholders<br />Environmental<br />Political<br />Economic<br />Societal<br />Social<br />Roll Back Malaria<br />1<br />2<br />4<br />3<br />Stages of Customer Empowerment<br />Kwan & Yuan 2010<br />
  29. 29. 29<br />Kwan 2011<br />Simple Service System<br />Service<br />Provider<br />Customer<br />Service<br />Experience<br />
  30. 30. 30<br />Kwan 2011<br />Serving Multiple Customers<br />Service<br />Provider<br />Customer<br />Value Proposition<br />Customer<br />Service<br />Experience<br />Service<br />Experience<br />Customer<br />Service<br />Experience<br />
  31. 31. 31<br />Kwan 2011<br />A Shared Experience for <br />a Community/Social Network<br />Service<br />Provider<br />Customer<br />Value Proposition<br />Community/<br />Social<br />Network<br />Customer<br />A Shared<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Customer<br />Service<br />Experience<br />
  32. 32. 32<br />Kwan 2011<br />An Example of a Community/Social Network<br />Service<br />Provider<br />Customer<br />Value Proposition<br />Community/<br />Social<br />Network<br />Customer<br />A Shared<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Customer<br />Service<br />Experience<br />
  33. 33. 33<br />Kwan 2011<br />Creating a Service Network with a Partner<br />Service<br />Provider<br />Customer<br />Value<br />Proposition<br />Customer<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Vendor<br />Value Proposition<br />
  34. 34. 34<br />Kwan 2011<br />Partner Providing Service<br />Service<br />Provider<br />Customer<br />Customer<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Vendor<br />Service<br />Experience<br />
  35. 35. 35<br />Kwan 2011<br />Example of a Service Network<br />Service<br />Provider<br />Customer<br />Customer<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Vendor<br />
  36. 36. 36<br />Kwan 2011<br />Example of a Service Network<br />Service<br />Provider<br />Customer<br />Customer<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Vendor<br />Vendor<br />Service<br />Experience<br />
  37. 37. 37<br />Kwan 2011<br />Example of a Service Network with <br />Multiple Stakeholders<br />Service<br />Provider<br />Customer<br />Customer<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Vendor<br />Vendor<br />Service<br />Experience<br />
  38. 38. 38<br />Kwan 2011<br />Another Example of a Service Network with <br />Multiple Stakeholders<br />Service<br />Provider<br />Customer<br />Customer<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Service<br />Experience<br />Vendor<br />Service<br />Experience<br />
  39. 39. 39<br />Kwan 2011<br />Service Dominant Logic (SDL)<br />
  40. 40. 40<br />Kwan 2011<br />Stakeholder’s Value System<br />Provider’s Value System<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Opportunities for<br />Value Co-Creation<br /><br /><br /><br /><br />Customer’s <br />Value System<br />★<br />★<br />★<br />★<br />★<br />★<br />★<br />★<br />His Customer’s Value System<br />
  41. 41. Kwan 2011<br />41<br />Work in Progress<br />
  42. 42. Kwan 2011<br />42<br />Work in Progress<br />
  43. 43. Kwan 2011<br />43<br />Work in Progress<br />
  44. 44. Kwan 2011<br />44<br />Work in Progress<br />
  45. 45. Kwan 2011<br />45<br />Work in Progress<br />More to come – what about decomposing quality assessment? <br />
  46. 46. Service Systems, Service Networks,<br /> and Value Co-Creation<br />Dr. Stephen K. Kwan<br />Professor, Service Science<br />Management Information Systems<br />College of Business Administration<br />San José State University, CA, USA<br />http://www.sjsu.edu/kwan_s<br />Contact:stephen.kwan@sjsu.edu<br />Prepared for <br />Doctoral Consortium<br />Art and Science of Service Conference<br />June 8th, 2011<br />

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