1. The document discusses service dominant architecture (SDA) as a core component of digital transformation. SDA arranges and integrates various resources and processes to enable customer-centric, service-dominated solutions. 2. SDA is presented as shifting from a goods-dominant logic where value is determined by producers, to a service-dominant logic where value is determined by customers through value in use and customers are partners in the process. 3. SDA is described as combining service systems like systems of engagement for interaction, systems of participation for resource integration, systems of operant resources for data exchange, and systems of record for transactions, to arrive at solutions that meet customer expectations shaped by top service

1. Prof. Dr. Markus Warg
Service Dominant Architecture – SDA –
a Core Component of Digital Transformation
July, 2016

2. Prof. Dr. Markus Warg
Agenda
2
1. Top Service Experiences shape customers' service
expectations
2. Service Dominant Logic to meet these expectations
3. Service Dominant Architecture as a core component of
Digital Transformation
4. Conclusion

3. Prof. Dr. Markus Warg
Customers' basic needs do not change – behavior does
3
1. Top Service Experiences shape customers' service
expectations
General needs – Customers require…. Behavior – Customers will….
Customer behaviour changes along the
customer journey verändert sich
Risk sharingCapital growthProtection
Convenience
General needs remain unchanged by
digitization
Networking/
sharing
Co-Creation
(prosumer)
Personalized/
individualized
Use of all channels – anytime, anywhere

4. Prof. Dr. Markus Warg
„
“
1. Top service experiences shape customers' service
expectations
4
Customers' TOP service experiences today
shape their future expectations towards
SIGNAL IDUNA!

5. Prof. Dr. Markus Warg
„
“ 5
video

6. Prof. Dr. Markus Warg
simple
Service-dominant business models
quick
consistent
transparent
competent
interactive
cross-linked
empowering
smart home
6
Characteristics of TOP Service experiences
2. Service-dominant logic to meet these expectations
Value in useService-dominant

7. Prof. Dr. Markus Warg
7
Paradigm shift from 'Goods-dominance' to 'Service-dominance'
Goods-dominant logic Service-dominant logic
Unit of exchange Goods Competencies and services
Value Product (exchange-value) Value creation (value in use)
Determination of
value
By producer
(production costs)
By consumer
(value in use),
Role of customer Consumer
Partner
interactive, participative co-
creators/co-producer
2. Service-dominant logic to meet these expectations
cf. Vargo, S. L.; Lusch, R.F., (2004)

8. Prof. Dr. Markus Warg
8
Service Dominant Architecture (SDA)
Service Dominant Architecture arranges
and integrates various resources and
processes to enable customer-centric,
service-dominated solutions.
4. Service Dominant Architecture as a key component
of digital transformation

9. Prof. Dr. Markus Warg
Customers Partner
Operant
Resources
Parti-
cipation
Inter-
action
Data
Solutions
Application development
Infrastructure
Combination of service systems to arrive at solutions
4. Service Dominant Architecture as a key component
of digital transformation
5
3
2
4
1
7
Solutions
• Customer interaction
• Co-creation
System of Interaction
• Integration of ext. resources
• Linking to ext. platforms
System of Participation
• Resource integration
• Resource orchestration
System of Operant Resources
• Data exchange with core
systems
Data Lake
Systems of Engagement
• Fast
• Open
• Interaction orientiert
• Agile
Systems of Record
• Slow
• Closed
• Transaction oriented
• Stable
1
2 3
4
5

10. Prof. Dr. Markus Warg
*) SI-Websites teilweise nach
Themen/Produkten indexiert
Customer journey: to convince with competency (ex.: household insurance)
User on
SI-portal
Internal
Data-alignment
Einbindung exter-
nen Services
Orchestrierung
Ergebnisse an
Vertrieb etc.
• User surfs
SI-website
• Transfer of
login-data
• Analysis of user
behavior
( Infosearch
Hausratvers.
HRV)
• Update user-
profile
• Interest house-
hold insurance
• Inquiry of cus-
tomer data
• Check existing
cover  If no,
next step
• Retrieval of
federal statis-
tics of crimina-
lity for custo-
mer's place of
residency
• Orchestration of
data
• Processing of
info and en-
hancement of
data
• Transfer of
individually
prepared and
info and results
to recipients
1
Solutions
2
System of
Interaction 4
Syst. of Operant
Resources and
Data Lake
3
System of
Participation 4
Syst. of Operant
Resources
5
4. Service Dominant Architecture as a key component
of digital transformation

11. Prof. Dr. Markus Warg
From the company perspective, the following goals appear particularly important:
To reach these goals, the SDA constantly arranges and integrates various resources, processes,
and internal and external components needed for the generation of solutions.
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4. Conclusion
The SDA enables a company to create service-dominant solutions, thereby generating
valuable customer experiences.
High performance at the
customer interface
Interactivity and co-creation
ability
Deeper understanding of the
customer with the help of data
Flexible integration of third
parties
1 2
3 4
Jim Spohrer, 30.05.2016