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[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],SSME IT .. Bridging Knowledge Operations Management Marketing Human Resource Management Engineering Information Technology Arts etc ENG OM HR MKT
[object Object],[object Object],[object Object],[object Object],SSME ,[object Object],[object Object],[object Object],Jim Spohrer, Ontolog Forum | http://ontolog.cim3.net | December 8th, 2005
SSME ,[object Object],[object Object],[object Object],[object Object],[object Object],Nederland | 73,5% GDP: Service industry  Jim Spohrer, Ontolog Forum | http://ontolog.cim3.net | December 8th, 2005
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],SSME Note:  There is intriguing overlap in the research represented by the three disciplinary streams Topics explored in the past 20 years Since 2004, IBM has been working with many pioneers in these streams to call for a systematic approach to service research and education. The initiative was clearly driven by IBM’s own substantial growth in services and its recognition of a potential future shortage of knowledge and skills required for service innovation Zeithaml,  Parasuraman, Berry Fitzsimmons, Fitzsimmons Heskett, Sasser, Schlesinger Examples
Accounting Consulting Design Advertising I.T. Maintenance Etc. Construction Food Textiles Metal Machinery Chemical Etc, Self-service Business-To-business service Transformative services Services Between firms Service inside The firm Marketed Services Finance, banking, insurance, legal, real estate, etc Business services Personal Services Domestic Hotel Entertainment Repairs, Etc Distributive services Wholesale, storage, retail, transportation, communication Nonmarketed services Education, heath, social welfare, public administration, police, legal, fire, defense, etc Consumer service The Browning-Singlemann classification Services proximity to the final customer The distinction between industry and service sectors is, in fact, largely irrelevant. Clearly, these two sectors are evolving in symbiosis: services cannot prosper without a powerful industrial sector, and industry is dependent on services. Products can be seen as the physical embodiment of the service provided: cars provide comfortable transport, and television sets deliver entertainment.  This inevitably means that in today’s world, the distinction between industry and services becomes artificial and meaningless. ◄  Usefull classification ?  Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006
Product excellence  and scale Industrial- ization Experience Commodities Relatively pure goods Service intensive goods and consumer durables Goods and information intensive services Relatively pure services industry services Service aspect Product  aspect   ◄  Backstage activities Transformation Labor & Capital Raw materials Finished products Pure Product Experience   Labor & Capital Pure Service Probably the best way to understand the difference between services and manufacturing is to contrast the two activities using a blackbox approach to represent each — and asking the simple questions “What goes into the black box?” and “What comes out?” Frontstage activities  ► Services is frontstage Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006 Customer Customer
Service experience Customer - Service System - ◄  front stage back stage ► Service provider Service system ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],◄  front stage back stage ► ,[object Object],[object Object],1) Service system and its entities Every organization, whether in business, government, health care or education consists of front stage and back stage activities.  Services deal with the  front stage interactions ; manufacturing and production with the  back stage operations . Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006
Service provider Service experience Customer Partners Competition - Service System -  Society Community Employees & Stakeholders Service experience Customer - Service System - 1) Service system  and its entities 4) Stakeholders in service system worldview ◄  front stage back stage ► Service provider Service system Service System  A Service System  B Service System  C Service System  E Service System  F Service Interactions 3) Service Supply Network Service System  D 2) Service Systems Network 2) Service system network  | 3) Service supply network An Evolutionary Framework of Service Systems,  Kwan, Min , 2008
Teboul Service Intensity Matrix Intensity of Interaction (process | people) ◄  customization standardization ► ▲ high level of interaction low level of Interaction ▼ Expected correlation Outcome (product) Service experience front stage Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006
Sofitel Novotel Ibis Etap Formule 1 $130 $80 $50 $32 $25 Rich and customized service Limited standardized service High intensity Low intensity 1,5 employees/ room Varity Customization Limited Standard 0,8 employees/ room 0,6 employees/ room 0,4 employees/ room 0,3 employees/ room 0,16 employees/ room Intensity Of Interaction hotels The intensity of interaction can also be measured in the number of employees per room, as shown for Marriott hotels. hotels Service experience The Service Intensity Matrix is very useful for positioning services in the same industry Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006 Ritz Carlton Marriott hotels Marriott Hotels suite Residence Inn CourtYard Fairefield
Variety customization Standard product High intensity Low intensity Job shop Production line Gourmet restaurant Flexible Functional organization Fast food Rigid sequence of operations Back stage Product-process matrix ▼ Front-stage and back-stage matrices for the restaurant business The back stage and the front stage are clearly two different worlds. Lessons drawn from manufacturing do not necessarily apply to services, and vice versa. An insurance company can invest considerable amounts in its backstage activities to achieve economies of scale, but this effort may lose much of its effectiveness if the company neglects its interface with customers.  However, understanding the difference between front stage and back stage does not mean that they must be separated. Our distinction, which is intentionally exaggerated, should not lead us to deform the reality.  These two components are closely interwoven. They are both part of the same system, and backstage activities exist to support the front stage." Service provider Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006 ▲ Front stage Service-intensity matrix
Variety, customization, Richness of interaction Standard transaction Face-to-face interaction Online processing Intensity of interaction Reduce reach for greater richness of interaction sacrifice richness for greater reach Traditional trade-off add richness at low cost with participation Positioning in E-service front stage Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006
Supplier Production process Customer Inputs Outputs Supplier Production process Customer Inputs Outputs With service processes, the  customer  provides significant inputs into the production process. With manufacturing processes, groups of  customers  may contribute ideas to the design of the product, but individual customers' only participation is to select and/or consume the output.  All managerial concerns unique to service operations are founded  in this  customer-input distinction . 1) Non-Service I/O Model (e.g., make-to-stock manufacturing) 2) Service I/O Model Clarifying services operations management with a unified services theory, Froehle &  Sampson, POMS  CHRONICLE VOLUME13 NUMBER 1  Unified Services Theory  (UST)
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Advances in Services Innovations, Kani, Karner, 2007 Customer involvement
customer inputs outputs capital labor knowledge facilities producer critical audience customer inputs outputs critical audience material inputs capital labor knowledge facilities service provider on-demand manufacturing processes user input intensity low high “ With services, the primary inventory costs are costs to the  customer , including psychological costs of being inventoried in a queue and good will costs of being unable to receive appropriate service.” Customer as  inventory Services as Customer-Intensive Systems Managing quality is difficult in service processes for a variety of reasons, many of which stem from customer inputs. “ Customer  inputs can be  incomplete  (e.g., tax documents), unprepared (e.g., students), or have  unrealistic expectations  (e.g., cancer patient). This lack of consistency in the quality of customer-supplied inputs represents a challenge for the service provider to deliver on promises when inputs are questionable.” Services as customer intensive systems, Pinhanez, 2007
The Seven Service Design Contexts :  Seven Contexts for Service System Design, Robert J. Glushko , 2009, http://people.ischool.berkeley.edu/~glushko/glushko_files/SevenContexts.pdf Provider Customer Provider Customer Technology Provider Customer Technology Provider Customer Technology Customer Technology Provider Customer Technology Provider Customer  2 Customer  3 Customer  n Customer Provider Technology Customer Device independent Service Technology 2 Customer  Technology 1 Technology 3 Technology n Customer  Customer  Customer  Computational service Computational service Provider Customer Computational service Computational service 1 Computational service 2 Computational service 3 2. Tech-enhanced p2p 3. Self-service 4. Multi-channel 5. Multiple devices 6. Computational service 7. Location-based & context-aware service 1. Person-to-person Context Diagrams Assisted Facilitated Customer improvised Legend Information exchange No direct exchange Service transformation Label Subcategory Channel binding C2C “Crowdsourcing” Derivational and Compositional Relationships
2. Tech-enhanced p2p 3. Self-service 4. Multi-channel 5. Multiple devices 6. Computational service 7. Location-based & context-aware service 1. Person-to-person Context Personalization Ergonomics, usability Complementarity, reciprocity, integration Consistency, scaleability Information and process standards, choreography Sensor technology Empowerment, touch points, line of visibility Concepts and concerns Customer modeling and segmentation, CRM Iterative prototyping, heuristic evaluation, customer analytics Process modeling Capability modeling, model-based interfaces, graceful degradation Use cases, data and document modeling, service oriented architecture, design patterns  Managing identify and privacy Ethnography, blueprinting, personas Methods The Seven Service Design Contexts :  Seven Contexts for Service System Design, Robert J. Glushko , 2009, http://people.ischool.berkeley.edu/~glushko/glushko_files/SevenContexts.pdf
Service System Design ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Overall customer experience Value constellation Overall service experience Multi-interface Service system service interaction experience service experience Blueprint The different levels of Service  system design
Customer value constellation Multi-channel Service System Service interaction The different levels  of Service  system design ,[object Object]
Car information services Personal recommendations Registration office Insurance company Car manufacturer Car dealer Buying a car Bank Customer value constellation for buying a car Positioning the Service system in the customer value constellation The firm must position its service offering within the value-creating system, by positioning the service system in the constellation of service offerings. The core of a bank’s services is financial services, but many banks have made partnerships with other companies to enhance their ability to add value to the overall customer experience for a given activity, such as buying a house. ,[object Object]
Service  system architecture for bank loans Service system architecture The  Service System Architecture defines,  for the different tasks along the service experience, which channels and support processes are responsible for the overall  service offering. This architecture therefore depicts the structure of the service system, providing an integrated view of the multi-channel service  offering ,[object Object]
Service  system navigation for loans  partial view ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Service  experience blueprint ,[object Object]

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SSME Service Science Management and Engineering

  • 1.
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  • 6. Accounting Consulting Design Advertising I.T. Maintenance Etc. Construction Food Textiles Metal Machinery Chemical Etc, Self-service Business-To-business service Transformative services Services Between firms Service inside The firm Marketed Services Finance, banking, insurance, legal, real estate, etc Business services Personal Services Domestic Hotel Entertainment Repairs, Etc Distributive services Wholesale, storage, retail, transportation, communication Nonmarketed services Education, heath, social welfare, public administration, police, legal, fire, defense, etc Consumer service The Browning-Singlemann classification Services proximity to the final customer The distinction between industry and service sectors is, in fact, largely irrelevant. Clearly, these two sectors are evolving in symbiosis: services cannot prosper without a powerful industrial sector, and industry is dependent on services. Products can be seen as the physical embodiment of the service provided: cars provide comfortable transport, and television sets deliver entertainment. This inevitably means that in today’s world, the distinction between industry and services becomes artificial and meaningless. ◄ Usefull classification ? Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006
  • 7. Product excellence and scale Industrial- ization Experience Commodities Relatively pure goods Service intensive goods and consumer durables Goods and information intensive services Relatively pure services industry services Service aspect Product aspect ◄ Backstage activities Transformation Labor & Capital Raw materials Finished products Pure Product Experience Labor & Capital Pure Service Probably the best way to understand the difference between services and manufacturing is to contrast the two activities using a blackbox approach to represent each — and asking the simple questions “What goes into the black box?” and “What comes out?” Frontstage activities ► Services is frontstage Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006 Customer Customer
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  • 9. Service provider Service experience Customer Partners Competition - Service System - Society Community Employees & Stakeholders Service experience Customer - Service System - 1) Service system and its entities 4) Stakeholders in service system worldview ◄ front stage back stage ► Service provider Service system Service System A Service System B Service System C Service System E Service System F Service Interactions 3) Service Supply Network Service System D 2) Service Systems Network 2) Service system network | 3) Service supply network An Evolutionary Framework of Service Systems, Kwan, Min , 2008
  • 10. Teboul Service Intensity Matrix Intensity of Interaction (process | people) ◄ customization standardization ► ▲ high level of interaction low level of Interaction ▼ Expected correlation Outcome (product) Service experience front stage Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006
  • 11. Sofitel Novotel Ibis Etap Formule 1 $130 $80 $50 $32 $25 Rich and customized service Limited standardized service High intensity Low intensity 1,5 employees/ room Varity Customization Limited Standard 0,8 employees/ room 0,6 employees/ room 0,4 employees/ room 0,3 employees/ room 0,16 employees/ room Intensity Of Interaction hotels The intensity of interaction can also be measured in the number of employees per room, as shown for Marriott hotels. hotels Service experience The Service Intensity Matrix is very useful for positioning services in the same industry Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006 Ritz Carlton Marriott hotels Marriott Hotels suite Residence Inn CourtYard Fairefield
  • 12. Variety customization Standard product High intensity Low intensity Job shop Production line Gourmet restaurant Flexible Functional organization Fast food Rigid sequence of operations Back stage Product-process matrix ▼ Front-stage and back-stage matrices for the restaurant business The back stage and the front stage are clearly two different worlds. Lessons drawn from manufacturing do not necessarily apply to services, and vice versa. An insurance company can invest considerable amounts in its backstage activities to achieve economies of scale, but this effort may lose much of its effectiveness if the company neglects its interface with customers. However, understanding the difference between front stage and back stage does not mean that they must be separated. Our distinction, which is intentionally exaggerated, should not lead us to deform the reality. These two components are closely interwoven. They are both part of the same system, and backstage activities exist to support the front stage." Service provider Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006 ▲ Front stage Service-intensity matrix
  • 13. Variety, customization, Richness of interaction Standard transaction Face-to-face interaction Online processing Intensity of interaction Reduce reach for greater richness of interaction sacrifice richness for greater reach Traditional trade-off add richness at low cost with participation Positioning in E-service front stage Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006
  • 14. Supplier Production process Customer Inputs Outputs Supplier Production process Customer Inputs Outputs With service processes, the customer provides significant inputs into the production process. With manufacturing processes, groups of customers may contribute ideas to the design of the product, but individual customers' only participation is to select and/or consume the output. All managerial concerns unique to service operations are founded in this customer-input distinction . 1) Non-Service I/O Model (e.g., make-to-stock manufacturing) 2) Service I/O Model Clarifying services operations management with a unified services theory, Froehle & Sampson, POMS CHRONICLE VOLUME13 NUMBER 1 Unified Services Theory (UST)
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  • 16. customer inputs outputs capital labor knowledge facilities producer critical audience customer inputs outputs critical audience material inputs capital labor knowledge facilities service provider on-demand manufacturing processes user input intensity low high “ With services, the primary inventory costs are costs to the customer , including psychological costs of being inventoried in a queue and good will costs of being unable to receive appropriate service.” Customer as inventory Services as Customer-Intensive Systems Managing quality is difficult in service processes for a variety of reasons, many of which stem from customer inputs. “ Customer inputs can be incomplete (e.g., tax documents), unprepared (e.g., students), or have unrealistic expectations (e.g., cancer patient). This lack of consistency in the quality of customer-supplied inputs represents a challenge for the service provider to deliver on promises when inputs are questionable.” Services as customer intensive systems, Pinhanez, 2007
  • 17. The Seven Service Design Contexts : Seven Contexts for Service System Design, Robert J. Glushko , 2009, http://people.ischool.berkeley.edu/~glushko/glushko_files/SevenContexts.pdf Provider Customer Provider Customer Technology Provider Customer Technology Provider Customer Technology Customer Technology Provider Customer Technology Provider Customer 2 Customer 3 Customer n Customer Provider Technology Customer Device independent Service Technology 2 Customer Technology 1 Technology 3 Technology n Customer Customer Customer Computational service Computational service Provider Customer Computational service Computational service 1 Computational service 2 Computational service 3 2. Tech-enhanced p2p 3. Self-service 4. Multi-channel 5. Multiple devices 6. Computational service 7. Location-based & context-aware service 1. Person-to-person Context Diagrams Assisted Facilitated Customer improvised Legend Information exchange No direct exchange Service transformation Label Subcategory Channel binding C2C “Crowdsourcing” Derivational and Compositional Relationships
  • 18. 2. Tech-enhanced p2p 3. Self-service 4. Multi-channel 5. Multiple devices 6. Computational service 7. Location-based & context-aware service 1. Person-to-person Context Personalization Ergonomics, usability Complementarity, reciprocity, integration Consistency, scaleability Information and process standards, choreography Sensor technology Empowerment, touch points, line of visibility Concepts and concerns Customer modeling and segmentation, CRM Iterative prototyping, heuristic evaluation, customer analytics Process modeling Capability modeling, model-based interfaces, graceful degradation Use cases, data and document modeling, service oriented architecture, design patterns Managing identify and privacy Ethnography, blueprinting, personas Methods The Seven Service Design Contexts : Seven Contexts for Service System Design, Robert J. Glushko , 2009, http://people.ischool.berkeley.edu/~glushko/glushko_files/SevenContexts.pdf
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