Peter Ylen

1. Multidisciplinary modelling of complex
service networks, CASE: service
networks in healthcare
Peter Ylén
VTT Technical Research Centre of Finland

2. 226/11/2013
What is VTT?

3. 326/11/2013
Basic research
Applied research
Development
UNIVERSITIES
INDUSTRY
VTT
VTT Group
Turnover 316 M€ (2012)
Personnel 3,206 (31.12.2012)
• VTT
• VTT Expert Services Ltd
• VTT Ventures Ltd
• VTT International Ltd
VTT Memsfab Ltd
http://www.vtt.fi/?lang=en

4. 426/11/2013
VTT’s turnover by type of revenue
Basic
government
funding
33%
Revenue,
domestic public
sector
29%
Revenue,
domestic
private sector
20%
Revenue from
abroad
18%
Turnover
in 2012

5. 526/11/2013
Back to contents
Knowledge intensive
products and services
Smart industry and
energy systems
Solutions for biomass and
environment
VTT’s competence and technology focus areas
• Microelectronic systems
• Intelligent sensor systems
• Printed and hybrid
functionalities
• Communication systems
• Digital systems and services
• Biosystems and diagnostics
Total ~ 800 person years
• Life time management
• Nuclear safety
• Smart energy and system
integration
• Systems engineering
• Structures and functionality
• Materials and
manufacturing
Total ~ 800 person years
• Industrial biotechnology
• Biofuels and bioenergy
• Process chemistry and
environmental engineering
• Biomass and food processing
• Fibres and biomaterials
Total ~ 750 person years
Business ecosystems, value chains, foresight
Total ~ 150 person years

6. 626/11/2013
Multidisciplinary approach

7. 726/11/2013
Road to real multidisciplinary methods
Transition from umbrella type integration of different modular
approaches towards collaborative fusion of different methods
Carriers and Barriers:
Change resistance from researchers (outside of comfort zone)
Customer needs
Academic excellence and interesting research
Tools
Internal (VTT) and external (TEKES, EU) funding
Knowledge sharing between different disciplines:
Internal: Service Research Network SSB at VTT
External: Finnish Service Alliance
Publications: VTT, TEKES, etc.

8. 826/11/2013
SSB Network meeting in October, 2013
08:30 – 09:00 Breakfast
09:00 – 09:15 Welcome, Matti Kokkala
09:15 – 09:45 “Service and social innovations – policy needs and potential impacts”, Prof. Marja Toivonen
09:45 – 10:45 “On the relationship between service innovation and social innovation”, Prof. Luis Rubalcaba
10:45 – 11:00 Short break
11:00 – 11:45 Discussion on the basis of the presentation
11:45 – 13:00 Lunch
13:00 – 14:15 Workshop on social, systems and service innovation
14:15 – 14:30 Coffee
14:30 – 15:30 Workshop continues
15:30 – 16:00 Concluding discussion and closing of the day
The workshop focuses on three topics in three groups:
Societal embedding as a means to scale-up social innovations – introduction and coaching: Sirkku
Kivisaari
Services and the challenges of socio-technical transition – introduction and coaching: Johanna Kohl
Modelling the relationship between service innovation and social innovation: Luis Rubalcaba

9. 926/11/2013http://www.servicealliance.fi/tervetuloa/?lang=en

10. 1026/11/2013
Finnish Service Alliance - Activities
Knowledge sharing Thematic or regional seminars and events aim at sharing information on
current research projects and findings, and future challenges in the service landscape. These
events bring academics and practitioners together to tackle the scientific, economic, and
societal challenges in services through collaboration.
Main event and media The annual Service Day event brings service researchers and
practitioners together to discuss current topics in services. The program features inspirational
keynote presentations from leading service scholars and multi-disciplinary insights to service
phenomena in practice.
International visibility Solid connections to foreign universities and service-related institutions
enable increasing international visibility of Finnish service research and foster collegial learning
on an international scale.
Sparring and mentoring — linking people from industry and science. In this program, we bring
strangers together, in order to learn from each other and inspire each other. Whether you are
looking for answers, or you think you have found an answer to something and would like it to be
applied to a business or public sector organization, we can help you get in touch with the right
people.
Special Interest Groups (SIGs) Long-term work groups on a specific topic may, for example,
pursue collaborative academic writing and develop new multi-disciplinary research and/or
development initiatives.

11. 1126/11/2013
Publications
http://www.vtt.fi/inf/pdf/researchhighlights/2013/R6.pdf

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Case Example:
Public health care system: Case cardio-vascular disease

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Public health care system: Case cardio-vascular disease
The total service concept is produced by numerous stakeholders (e.g.,
patients & their relatives, doctors, society, surgeons, rehabilitation units, IT
tool vendors, health office, social security, etc.) with conflicting interests.
Fragmented groups (e.g., patients consist of elderly pensioners, busy IT
savvy professionals, challenging multi-problem patients with destructive life
choices, etc.).
Different pressures for change from niche, landscape and regime levels,
e.g. new legislation in 2014.
Many of the service processes are constructed to benefit only one or two
stakeholders. Tailored services for different fragmented groups are scarce.
How to create the new customer centric service which also creates value
for many stakeholders?

14. 1426/11/2013
Qualitative to quantitative methods
Interviews, workshops, SWOT-analysis, road mapping (vision), stakeholder
analysis, …
Market research methods, starting from qualitative (moderated innovation
groups and discussion groups) to quantitative (questionnaires, factor
analysis, clustering, conjoint, …)
GMB, Group Model Building (Structured qualitative stage)
Systems thinking, structural analysis
Quantitative simulation model (system dynamics)

15. 1526/11/2013
Multidisciplinary approach
Engineering
Computer science, Simulation, Control engineering, Data
mining
Operations research
Systems research
Market research
Social Sciences, Organizational psychology
Innovation research, Foresight
Business research
Value networks, Business ecosystems
Service science
Healthcare systems

16. 1626/11/2013
Mid-term future
Landscape
Regime
Niche
Stakeholders and the Geels structure integrated with
time scales
Short-term future
?Stakeholders
Barriers and carriers
Transition dynamics in
time scale
Long-term future
Modified from Geels & Schot 2007, 401

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1. Sleeping
has power, but does not use it,
no legitimacy, no common
vision
2. Discretionary
has legitimacy, but no power,
no common vision
3. Demanding
common vision, but no power,
nor legitimacy
4. Dominating
has power and legitimacy, and
uses it, but does not have
common vision
5. Contender
has power and common vision,
but no legitimacy.
Power Legitimacy
Vision
6. Dependent
has legitimacy and common
vision, but no power
7. Definitive
has power , legitimacy and
common vision and uses it
8. Outsiders
no power, no legitimacy, no
common vision – disappeared,
edged out, new actor?
Different stakeholders

18. 1826/11/2013
Examples of stakeholder transitions
Power Legitimacy
Vision
Power Legitimacy
Vision
Outsider gaining
legitimacy and agreeing
to common vision
Dependent
disagreeing with
common vision
A
A
B B
C
C
Definitive
maintaining
power,
legitimacy and
vision
time

19. 1926/11/2013

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What is System Dynamics
Identifying complex cause
and effect relationships
Understanding the long- and short-
term consequences of actions
Finding leverage – seeing where actions
and change can lead to significant and
enduring improvements
Foreseeing unintended consequences
Tool to help construct and
communicate mental models
Simulating policies under different
assumptions and uncertainties

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Variable [unit]
Time [unit]
Time TimeTime
Variable’s Different Behavior Modes Over Time
Upper Limit
Lower Limit
Behavior Mode
Desirability of
Behavior (-/0/+)*
Causes of Behavior Cures for Causes
If you had to make a decision right now,
what would be your action plan:
* - = undesirable 0 = makes no difference + = desirable
What will be done:
When will it/they be done:
Marks the current time Marks any set goals in behavior
Variable
1st Level Cause
2nd Level Cause
1st Level Cause
2nd Level Cause
3rd Level Cause
Behavior Mode Analysis

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Pressure for Change

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Health care
services
- the model
dependencies

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Model was further
augmented with
different
stakeholders

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Causality Mapping
unit of measurement
Millä tavoilla muuttuja
näkyy arjessa:
Ympyröi näistä tekijä, joka
kuvaa mielestäsi parhaiten
muuttujaa.
Miten mittaisit muuttujaa
(millä mitta-asteikolla):
variable consists of
Haluttu
muutos
Toteutunut
muutos
Mitattu
muutos
Muutos
-paine
Muutostyö
Halu pitäytyä
vanhassaKoettu muutok-
sen suuruus
Mittarien
puolueellisuus
Johtaminen
-
+
-
+
+
-
+
+
+
Kohti haluttua
muutosta
-
Muutos-
johtaminen
Muutos-
vastarinta
+
Määrärahat
Muutoksen
tuomat säästöt
+
+
-
Rahavaje
pakottaa muutokseen
Kurkuttaminen
+
How an entity in the
model is measured?

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Causality Mapping
Haluttu
muutos
Toteutunut
muutos
Mitattu
muutos
Muutos
-paine
Muutostyö
Halu pitäytyä
vanhassaKoettu muutok-
sen suuruus
Mittarien
puolueellisuus
Johtaminen
-
+
-
+
+
-
+
+
+
Kohti haluttua
muutosta
-
Muutos-
johtaminen
additional — even more significant — factor
stakeholder that has power to influence and how
Muutos-
vastarinta
Yliviivaa mielestäsi epäoleelliset tai
olemattomat vaikutus nuolet. Kirjoita
mahdolliset kommentit tehtyjen
muutosten viereen.
Onko tekijää, joka vaikuttaa vielä
enemmän muuttujaan, jos on niin
mikä:
Millä sidosryhmällä on suurin
vaikutusvalta – niin hyvässä kuin
huonossakin mielessä – muuttujaan ja
miten:
+
Määrärahat
Muutoksen
tuomat säästöt
+
+
-
Rahavaje
pakottaa muutokseen
Kurkuttaminen
+
Which stakeholder can
hinder or boost (and
why & how) a particular
dynamic structure?

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Dynamic value
accumulation model
The model is based on the
concept of service dominant logic
(Vargo & Lusch) and value
dimension model (Smith &
Colgate).

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Value proposition &
experience
Both the value proposition and the
value experience can be
augmented with different
dimensions.

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Second stage: Quantitative simulation model
The Value Accumulation model was applied to the health care system
The parameters for the model were collected:
from actual health care actions (such as, costs)
from expert interviews (the effects of different actions)
from stakeholders (consumer and market research)
The model results were validated
using actual data on partial models
using expert opinions on workshops

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Simulation model
Accomplished change when only patients and rehab
providers participate and the external pressure is lifted.

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Conclusions
The stakeholders were very happy even with the bare qualitative
systems thinking model and group model building process.
Comments ”I never realized that there were so many
stakeholders and cross connections”, ” Now I understand why
we have failed so many times before…”
The Value Accumulation Model was used for understanding
different dimensions of value on different stakeholders and
customer segments
Comment ”We could get these guys committed, if we’ll design
a tool which will create this kind of value for them which will be
grater than the negative cost value (work, money and time
spent) …”

32. 3226/11/2013
Conclusions
The quantitative simulation model was additional tool for showing
numeric benefits (such as money, time, resources, quality-of-life) of
different service concepts over a long time horizon.
Comment ”When the minister will visit us I will show the
benefits of this service as well as the mechanisms how we can
successfully implement it…”
Next steps:
Numerical tuning of the model parameters continues
Different service concepts are created and tested with conjoint
analysis, which in turn gives parametric values for value
dimension model (trade offs and preferences of different
service attributes)

33. 3326/11/2013
Thank You!
Peter Ylen peter.ylen@vtt.fi