Japan Institute for Design Promotion, December 21st, 2011, Tokyo, Japan.
1. Service Design Basics –
from System to Business Modeling
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
Presented at the Japan Institute of Design Promotion (JIDP)
December 21st, 2011, Tokyo, Japan
Download these slides at: http://www.slideshare.net/StephenKwan
2. Abstract
This presentation looks at service design from a
modeling perspective that incorporates system
thinking, design thinking, and business thinking. This
approach provides an avenue of integration across
different disciplines and roles in the service design
process. A desirable outcome of this integration would
be more effective information and knowledge
management from design to engineering of service
systems.
2
3. 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 2011 3
4. 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 2011 4
5. A Service System Network
Service Service Interactions
System A
Service
System B
Service Service
System E System C
Service
System D
Service
System F
Kwan 2011 5
6. Service System Worldview
Employees &
Stockholders
Community
Service
Customer
Provider
Service
Partners
Experience
Service System Competition
Society
Kwan 2011 6
7. Value Co-Creation Through Value Propositions
Employees & Value
Stockholders
Community
Value Service
Value Customer
Provider
Value
Service
Partners
Experience
Service System Competition
Society
Kwan 2011 7
8. 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 2011 8
9. 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 2011 9
10. Service System Design (1)
From:
To:
Service
Customer System
Design Service
System
Engineering
Kwan 2011 10
11. Service System Design (2)
System Design Business
Thinking Thinking Thinking
A Multi-disciplinary Approach
Service
Customer System
Design Service
System
Engineering
Knowledge Management –
maintaining integrity of information and
knowledge throughout the lifecycle
Kwan 2011 11
14. Stages in Customer Empowerment
in Value Co-Creation
Stage 1: Value Chain
Value Proposition
Focal Service
Customer Relationship Provider
Service
Experience
5Kwan, 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.
Kwan 2011 14
15. Stage 2: Traditional Service Value Network
Value Proposition
Focal Service
Customer Relationship Provider
Provider
Service Partner
Experience Network
Value Proposition
Kwan 2011 15
16. Stage 3 – Improved Value Chain
Value Proposition
Focal Service
Customer Relationship Provider
Value
Proposition
Service
Customer’s Experience
Social
Network
Kwan 2011
17. Stage 4: Customer Driven Service Value
Network
Value Proposition
Focal Service
Customer Relationship Provider
Value
Value
Proposition
Proposition
Provider
Service Partner
Customer’s Experience
Social Network
Network
Kwan 2011
18. Variety of Value Propositions
Maslow’s
Hierarchy
Of Needs
Service Provider
Society Hedonic
Stakeholders
Spiritual
Cultural
Community Corporal
Emotional
Employees Intellectual
Familial….
Stockholders A point in this 3-D space is
Partners a Potential Value
Customers Proposition
Kwan 2011 18
19. Disposable
Income &
Desire for
Services
Needs
vs.
Wants
Kwan 2011 19
20. Value Propositions can also be bi-directional
Customers
Service Provider
Stockholders
Partners
Community
Employees
Customers
Partners
Service Provider
Society
Service Provider
Society ?
Community
Employees
Stockholders
Partners
Customers
Kwan 2011 20
21. Value Proposition Model (VPM)
Starting with the Service System
Service
Customer
Provider
Service
Experience
Kwan, S.K., Müller-Gorchs, M. (2011). "Constructing Effective Value Propositions for Stakeholders
in Service System Networks," Proceedings > Proceedings of SIGSVC Workshop . Sprouts:
Working Papers on Information Systems, 11(160). http://sprouts.aisnet.org/11-160
Kwan &Müller-Gorchs 2011 21
22. VPM – a common example
Service
Customer Value Proposition
Provider
Customer
Service
Experience
Service
Customer
Experience
Service
Experience
Kwan &Müller-Gorchs 2011 22
23. VPM – individuals and community
Service
Customer Value Proposition Provider
Community/
Social
Customer Network A Shared
Experience
Service
Experience
Service
Experience
Customer
Service
Experience
Kwan &Müller-Gorchs 2011 23
24. VPM – individuals and Facebook community
Service
Customer Value Proposition Provider
Community/
Social
Customer Network A Shared
Experience
Service
Experience
Service
Experience
Customer
Service
Experience
Kwan &Müller-Gorchs 2011 24
25. VPM – service provider partners
Service
Customer Provider
Value
Proposition
Customer
Service
Service
Experience
Experience
Service
Experience
Service
Experience
Value Proposition Vendor
Kwan &Müller-Gorchs 2011 25
26. VPM – partner’s acquistion of customer
Service
Customer Provider
Customer
Service
Service
Experience
Experience
Service
Experience
Service
Experience
Service Vendor
Experience
Kwan &Müller-Gorchs 2011 26
27. Example 1 of 4
Service
Customer Provider
Customer
Service
Service
Experience
Experience
Service
Experience
Service
Experience
Vendor
Kwan &Müller-Gorchs 2011 27
28. Example 2 of 4
Service
Customer Provider
Customer
Service
Service
Experience
Experience
Service
Service Experience
Service
Experience Experience
Service Vendor
Vendor
Experience
Kwan &Müller-Gorchs 2011 28
29. Example 3 of 4
Service
Customer Provider
Customer
Service
Service
Experience
Experience
Service
Service Experience
Service
Experience Experience
Service Vendor
Vendor
Experience
Kwan &Müller-Gorchs 2011 29
30. Example 4 of 4
Service
Customer Provider
Customer
Service
Service
Experience
Experience
Service
Experience
Service
Experience
Service Vendor
Experience
Kwan &Müller-Gorchs 2011 30
32. Value Systems and Value Dimensions
Provider’s Value System
Opportunities for
Value Co-Creation
Customer’s
★ Value System
★ ★ ★
★ ★
★ ★
His Customer’s Value System FP8
Kwan &Müller-Gorchs 2011 32
33. Variety of Value Propositions
Maslow’s
Hierarchy
Of Needs
Service Provider
Society Hedonic
Stakeholders
Spiritual
Cultural
Community Corporal
Emotional
Employees Intellectual
Familial….
Stockholders A point in this 3-D space is
Partners a Potential Value
Customers Proposition
FP10
Kwan &Müller-Gorchs 2011 33
34. Constructing a Value Proposition
The Customer
have a lot of VP’s
to choose from
VP Service Level Agreement? FP7
Kwan &Müller-Gorchs 2011 34
35. A Customer’s Choice of Service
A Service Provider’s Promised Value:
Based on the
Customer’s own
A Customer’ Choice Function: expectations
Kwan &Müller-Gorchs 2011 35
36. A Customer’s Realization of Value
A Customer’s Realized Value:
Co-Production Service Process
Co-Creation of Value
FP6
An
Example Service Provider and
Customer’s His Partners’
Contributions Contributions
FP9 Kwan &Müller-Gorchs 2011 36
37. Constructing Value Propositions:
Customers and Service Providers
Sc,R,M
too
Connecting Components of a Value
Proposition to a Service Provider’s KPI’s
through Feedback
Kwan &Müller-Gorchs 2011 37
40. Service Pattern 1 – Single Service Episode
Customer Instantiation
of the Service
Experience at a
particular point
VP0
In time
SE0
Focal
Relationship
Time
SP0
SE0 = Service Experience provided by SP0
SP0 = Service Provider of the Focal Relationship
(the basis of the Value Proposition from Kwan & Yuan 2011)
VP0 = Value Proposition offered by SP0 to Customer for SE0
Kwan &Müller-Gorchs 2011 40
41. Pattern 2 – Continuous Service over a Period of Time
Customer
VP0
SE0
Time
SP0
Kwan &Müller-Gorchs 2011 41
42. Service Pattern 3 – Service in Parallel
Customer
VP0
SE0
Se0
Se1
Se2
Time
Instantiation of the Service
SP0 SP1 SP2 Experience at a particular point
In time
Kwan &Müller-Gorchs 2011 42
43. Pattern 3 – Continuous Service with
Occasional Service Episodes
Customer
VP0
SE0 Se1 Se2
Se0
Time
SP0
Kwan &Müller-Gorchs 2011 43
44. Pattern 4 – Service provided by more than
one Partner Service Providers
Customer
VP0
SE1 SE2 SE3
SE0
Time
SP0 SP1 SP2 SP3
VP1
VP3
SE4
SE6
VP2
SE5
Kwan &Müller-Gorchs 2011 44
48. Service Design Basics –
from System to Business Modeling
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 Fin
Presented at the Japan Institute of Design Promotion (JIDP)
December 21st, 2011, Tokyo, Japan
Download these slides at: http://www.slideshare.net/StephenKwan