This document provides an introduction to service science, management, engineering, and design (SSMED). It defines key concepts such as service science, service systems, and value co-creation. It also discusses the growth of the global service sector and gives examples of industries engaging in SSMED. Finally, it outlines a proposed spring 2013 elective course on service systems management.

1. Introduction to Service Science,
Management, Engineering,
and Design (SSMED)
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
119A Fall 2012
November, 2012

2. A Framework for Service Science and Some Research Challenges
Some Definitions
Service 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 to
improve the quality of life by co-creating value through value
propositions 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 3

3. Service Science is a Big Tent Service
(for every variety of disciplines) Operations
“
Marketing
Service Science is just ___<name your discipline>____” Management
Quality
Supply Chain
General Human Factors
Systems A Service Design
Theory System is Innovation
Complex Engineering
Systems
Computing
OR/IE Economics
MS Arts
Science
Information
Science
(i-schools)
CS/AI Economics & Law MIS Anthropology Organization
Multiagent Systems Game Theory Kwan 2012 & Psychology Theory 4

4. 1. Information Sci & Sys 1990-2004 14. Computer &
1900-1960
2. Service Ops & Mgmt Technology Information Sciences
3. Service Engineering 15. Human Capital
Management (HCM)
4. Service Marketing
16. Organization Theory
5. Social Complexity 14 17. Operations Research
6. Agent-based comput-
18. Systems Engineering
ational economics 28
7. Computational
21 18 19. Management Science
Organization Theory 10
20. Game Theory
3 11
8. Management of 5 21. Industrial Engineering
Innovation & Tech (MoT) 13 2
7 1 8 17 22. Marketing
9. Experimental 6
Economics 12 4 23. Managerial
15 Psychology
10. AI & Games
16 27 9 25 22 24. Business
11. Management of 24 Administration (MBA)
Information Systems
23 19 Business 25. Economics
12. Computer Supported 20
Collab. Work (CSCW) 26. Law
Social- 26
13. Performance Support 27. Sociology
Systems In Business & Organizational
Before 1900 28. Education
Organization
1960-1990
5

5. Quick Facts about US Service Sector
World’s Large Labor Forces US shift to service jobs
A = Agriculture, G = Goods, S = Service 2010
2010
Nation Labor A G S 40yr Service (A) Agriculture:
% % % % Growth Value from
harvesting nature
China 25.7 49 22 29 142%
India 14.4 60 17 23 35% (G) Goods:
U.S. 5.1 1 23 76 23% Value from
making products
Indonesia 3.5 45 16 39 34%
(S) Service:
Brazil 2011:1.6 14 66 81.1
3.0 20 17.3 61% Value from enhancing the
capabilities of people and their ability
Russia 2.4 10 21 69 64% to interconnect and co-create value
Japan 2.2 5 28 67 45%
Nigeria 1.6 70 10 20 19%
Bangladesh 2.1 63 11 26 37%
Germany 1.4 3 33 64 42% Employment Change
CIA Handbook, International Labor Organization
Note: Pakistan, Vietnam, and Mexico now larger LF than Germany Numeric change in wage-salary employment by industry sector,
projected 2004-14
The largest labor force migration in human (Thousands)
history is underway, driven by global
communications, business and technology Professional and business service4566
growth, urbanization and
Healthcare and social assistance4303
regional variations in labor and infrastructure
costs and capabilities. Kwan 2012

6. Service Worlds: Economics and Social Science
Information Service – recent growth engine
The Origin Estimated world (pre-1800) and then
of Wealth U.S. Labor Percentages by Sector
by Eric D.
Beinhocker
2M years as hunting clans/bands
10K years as farm families
200 years as factory workers
60 years (so far) as knowledge
workers in organizations
and now digital networks
The Pursuit of
Organizational
Intelligence,
By James G. Estimations based on Porat, M. (1977) Info
March Economy: Definitions and Measurement

7. IBM and Services
8

8. IBM and SSME
http://www-03.ibm.com/press/us/en/attachment/25091.wss?fileId=ATTACH_FILE1&fileName=Podcast%20interview%20with%20SFSU.mp3
9

9. http://www.usnews.com/usnews/edu/grad/articles/brief/gbeng_brief_2.php
10

10. Over 500 Universities world-wide
are engaged
11

11. Service System Worldview1
Service
Customer
Provider
Service
Experience
A Service System and Its Entities
1Kwan, 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 12

12. Service System Worldview
Employees &
Stockholders
Community
Service
Customer
Provider
Service
Partners
Experience
Service System Competition
Society
Kwan 2012 13

13. Service System Worldview
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
Delivery
Kwan 2012 14

14. 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 15

15. Service Systems, Computing, and IT Services1
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)
1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008.
Kwan 2012 16

16. Product / Service Spectrum
Product Service
“Servitization”
“Productization”
Kwan 2012 17

17. What do these have in common?
Services Transformation and Innovation Group LLC www.servtrans.com
18
Kwan 2012

18. Spring 2013 - Elective
118S – Service Systems Management
Text
Books
Service Management, Operattions,
Strategy, Information Technology Henry Chesbrough
Fitzsimmons & Fitzsimmons Open Services Innovation
Kwan 2012 19