Lecture in the iMinds-SMIT VUB Service Science Lecture Series
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Transcript of Lecture in the iMinds-SMIT VUB Service Science Lecture Series
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management May 13, 2014
Understanding Service Science through Conceptual Modeling
Geert PoelsProfessor of Management Information Systems
Academic member of the Center for Service Intelligence
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 2
Contents
The context Purpose and principles of Service Science
The problem How to conceptualize service to facilitate inter-disciplinary
research? How to achieve a shared understanding of service
concepts? The solution approach
Conceptual modeling of service concepts based on descriptive theories of service system
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 3
Context: Service Science
Why is it needed?What is it (and what is it not)?How is it different from other service research
disciplines?
Let’s start with creating a common understanding of the topic of interest..
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 4
Growing importance of service sector
Agriculture -> Manufacturing -> Services Shift in % of GDP Shift in % of employment Both developed and developing countries (though
generally slower for the latter) + many services in disguise in industry/construction
(= ‘servitization’) E.g., from producing/selling jet engines to
operating/maintaining the engines and charging airlines for propulsion usage (= ‘propulsion as a service’ )
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 5
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 6
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 7
Need for service (system) innovation
Increasing scale, complexity, and connectedness of service systems Globalisation and technology drivers Urbanisation and aging population Environmental awareness and sustainability Increasing demand for service quality/productivity
Rising demand for service innovation How to invest in service systems to sustainably improve
key performance indicators? How to develop new service offerings, together with
creative value propositions and improved service systems?
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 8
Knowledge to inform service innovation
Better understanding of service systems is required What are the architectures of service systems? How can service systems be understood in terms of a small number
of building blocks that get combined to reflect the observed variety?
How might architectures and building blocks help us understand the origins, lifecycles and sustainability of service systems?
How can service systems be optimised to interact and co-create value?
Why do interactions within and between service systems lead to particular outcomes?
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 9
Need for service research
Service research (& development) is lagging behind Until early 80ties research dominated by product-centric
concepts and theories Despite service sector accounts for > 2/3 GDP and jobs,
investment in services < 1/3 R&D spending Service research is strongly fragmented
Service marketing Service operations Service management Service HRM Service sourcing Service pricing
Service economics Service engineering Service design Service computing Service innovation Service business models
Healthcare services Nursing services Hospitality services Human services Transformative services …
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 10
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 11
Product over service
Illustration: Business Eng. studies @UGent Product(ion)-related courses
• Production Technology, Operations Management, Materials Science, Advanced Production Management, Supply Chain Management, Total Quality Management, …
Service-related courses• Managing Service Organizations
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 12
Need for a systemic view
Without a clear understanding of the domain and how it relates to existing theories, knowledge will continue to be fragmented Specialisation remains important, but one shortcoming is
that each discipline tends to focus on particular configurations of resources
The key to understanding service systems is not just to examine one aspect of service but rather to consider service as a system of interacting parts
The hard work of creating an integrated theory that spans many disciplines has not been done.
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 13
Distinctive object of study
Structur
e
• Service System
Behaviour
• Value Co-Creation
“The service system is the basic abstraction of Service Science.”
“Service Science is the study of value co-creation phenomena.”
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 14
Landmarks in history of Service Science
2004 IBM calls for systematic approach to service research and education Driven by its own transformation from a hardware
manufacturer to a service business (offering ‘solutions’ instead of technology)
Driven by expected future shortage of adaptive innovators, i.e., professionals with knowledge and skills required for service innovation (= ‘T-shaped professional’)
2007 launch of SSME at Cambridge symposium 2012
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 15
Need for knowledge integration
Service Science, Management, and Engineering (SSME) is an integrative service research discipline Distinct field looking for a deeper level of knowledge
integration We have pieces of knowledge today, but they are not
integrated into a unified whole. Service Science provides motivation, methods and skills for integration.
Holism instead of reductionism in the approach to study service => Service Science as a specialisation of Systems Science
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 16
Looking for a foundational theory
Creating a truly integrated theory of service systems Developing a normative view on how service systems can
be described and their behaviour explained Discovering underlying principles of complex service
systems and the value propositions that interconnect them Address grand research challenges that span multiple
disciplines Providing structure and rigour for building a widely
accepted and coherent body of knowledge to support innovation in service systems
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 17
Fundamental and applied research
Nature of Service Science theory? Descriptive Explanatory (and predictive) Prescriptive (and applicable)
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 18
Not just a fancy name for..
Given its foundational principles, Service Science is not Service-Oriented Computing (SOC), Service-Oriented
Architecture (SOA), Service-Oriented Software Engineering (SOSE)
Service-Oriented Business Architecture (SOBA), Service-Oriented Enterprise Engineering (SOEE)
• i.e., the application of SOC, SOA and SOSE to business and organisational design (similar to the design of IT infrastructures and software applications)
Multidisciplinary research in service management
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 19
“As a distinct interdisciplinary field, Service Science needs an idiosyncratic and unifying paradigm to provide identity and discriminate it from its many contributing but separate service research disciplines”
“Chief among the challenges that lay ahead is the challenge of developing a shared vocabulary that can be used across disciplines to describe the great variety of service systems”
The problem: common understanding
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 20
Underlying worldview
Service-Dominant
Logic
Systems thinking
Study of value co-creation
phenomena in service systems
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 21
Common understanding?
Service System
Worldview
Service Dominant
Logic
Service Quality
Gap Model
Unified Services Theory
ServiceSystem
Framework
Work System Theory
GeneralServiceModel
DEFINITION OF
CONCEPTS?
RELEVANCE OF
CONCEPTS?
COMPLETENESS OF CONCEPTS?
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 22
But what is service?
“An act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything.”
“A provider-client interaction that creates and captures value.”
“Value-creating support to another party’s practices.”
“The application of specialized competences (knowledge and skills) through deeds, processes and performances for the benefit of another entity or the entity itself.”
“Acts performed for the benefit of others.”
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 23
“A change in the condition of a person, or a good belonging to some economic entity, brought about as a result of some other entity, with the approval of the first person or economic entity.”
“A time-perishable, intangible experience performed for a customer acting in the role of a co-producer.”
“A simultaneous or near-simultaneous exchange of production and consumption transformation in the experience and value that customers receive from engagement with providers, and intangibility in that goods are not exchanged.”
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 24
“A service is an economic resource as it is viewed as valuable by some agent and can be transferred between agents”
“Service is a complex temporal entity consisting of a service commitment and a service process”
“A service is generally implemented as a course-grained, discoverable software entity that exists as a single instance and interacts with applications and other services through a loosely coupled (often asynchronous), message-based communication model.”
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 25
Other confusion
Service system Services are exchanged between service systems Services are exchanged within service systems
Value co-creation Co-production based on individual customer inputs Overlap in time/space of provider and customer activities Provider facilitates value creation by customer
Service exchange Benefits for one party, reciprocity in the exchange Benefits for both parties within same service
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 26
A solution approach: conceptual modeling
Conceptual model Model of the concepts and their relations pertaining to
some domain of interest As a representation of the domain a conceptual model
serves the purposes of abstraction and visualisation It helps in understanding and analysing the domain (and
can act as a design for socially constructed domains)
Our thesis: conceptual modelling helps clarifying definitions of Service Science concepts and show how they are interrelated
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 27
Towards a conceptual framework
Clarify concepts using descriptive theories that offer a comprehensive view of service
Build a conceptual model (for the moment just as a concept map) that includes and combines concepts from the different theories, and identifies cross-theoretical relations between concepts, but without integrating the theories themselves“Instead of assuming that particular definitions are right or wrong, it is more useful to assume each definition makes sense from a particular viewpoint or in a particular context”
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 28
Nature of theory (Gregor, MISQ 2006)
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 29
Theories of service
Service-Dominant Logic Marketing / philosophical basis of Service Science Focus on customer benefits creation
Unified Services Theory Operations Management Analyzing efficiency and quality of service production
process
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 30
Work system metamodel (Work System Theory) Information Systems (but transdisciplinary) Systemic view of service within organisational context Operational model for analyzing form, function and
environment (from systems engineering perspective) Resource-Service-System model (based on REA
ontology) Accounting (Information Systems) Focus on economic exchange of service Analyzing various business aspects of service systems
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 31
Service-Dominant Logic
IHIP characterization of services, providing basis for separate service research disciplines, is deficient
Service-Dominant Logic = counter-movement All economic exchange is exchange of service for service Service is application of competences for benefit of
someone else Both goods and services (in traditional sense) can be used
in this act Benefits are determined by the service beneficiary in
terms of value-in-use and value-in-context
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 32
Foundational premises of Service-Dominant LogicFP1: Service is the fundamental basis of exchange.
FP2: Indirect exchange masks the fundamental basis of exchange.
FP3: Goods are a distribution mechanism for service provision.
FP4: Operant resources are the fundamental source of competitive advantage.
FP5: All economies are service economies.
FP6: The customer is always a co-creator of value.
FP7: The enterprise cannot deliver value, but only offer value propositions.
FP8: A service-centered view is inherently customer oriented and relational.
FP9: All social and economic actors are resource integrators.
FP10: Value is always uniquely and phenomenologically determined by the beneficiary.
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 33
Concept map
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 34
Unified Services Theory
Focus on service production process Distinguishes service and non-service production
processes (>< Service-Dominant Logic) Service process is a production process in which each
individual consumer provides significant inputs Operational implications address challenges unique
to service processes (due to presence of consumer inputs)
Value extraction is performed by consumers in consumption process
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 35
Concept map
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 36
Integrated concept map
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 37
Work system metamodel
Work system A system in which human participants and/or machines
perform work (processes and activities) using information, technology, and other resources to produce specific products/services for specific internal and/or external customers
Service An act performed to produce outcomes for the benefit of
others Most work systems are service systems
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 38
Concept map
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 39
Integrated concept map
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 40
Resource-Service-System model
Service-Dominant Logic interpretation of the Resource-Event-Agent (REA) model of economic exchange Economic exchange results from the economic reciprocal
actions (called economic events) of independent entities (called economic agents) that provide each other the resources that they control (called economic resources)
Economic resources = operant/operand resources Economic event = service Economic agent = service system entity Reciprocity relation = service exchange
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 41
Concept map
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 42
Integrated concept map
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 43
Conceptual clarification?
Service Service as process (SDL, WSM, RSS)
• Application of competences for benefit of others (SDL, RSS)• Operant resources acting upon operand resources
(SDL, RSS)• Acts to produce outcomes for benefit of others (WSM)
Service production process• Individual consumer inputs required (UST)
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 44
Value co-creation Overlap in time/space of provider and consumer
activities (WSM) – optional for service Integration of provided resources (SDL, RSS)
• Required for service• But, does not imply overlapping activities
Co-production in service process / service system activities Customer participant - optional (WSM) Consumer input to process required, but must not be
consumer himself (UST)
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 45
Service system Everything needed to perform service (WSM) Contains service process (UST) consisting of activities
(WSM, RSS) Employed by service system entity, which can be a
resource controlled by a service supra-system (RSS) Service Exchange
In scope (SDL, RSS) versus out scope (WSM, UST) Intention of mutually beneficial value co-creation (RSS)
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management May 13, 2014
Back-up slides
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UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 48
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 49
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 50
T-shaped professional
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 51
Principle of interdisciplinary research
SSME accepts disciplinary barriers between academic fields and service research disciplines, but aims at building bridges between them
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 52
Not by multidisciplinary research aimed at embracing all relevant service research disciplines
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 53
Not by multidisciplinary research focused on a selected set of core elements of existing service research disciplines
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 54
But by interdisciplinary research attempting to create new knowledge to bridge existing service research disciplines, based on transdisciplinary and crossdisciplinary collaboration.
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 55
concept definition
multidisciplinary Creation of new knowledge that adds to multiple existing disciplines, where the knowledge of individual disciplines is seen as separate and additive to each other
interdisciplinary Creation of new knowledge that bridges, connects, or integrates individual disciplines
transdisciplinary Transcending or extending beyond the knowledge of existing disciplines
crossdisciplinary Knowledge of one discipline is used as a lens through which another discipline is studied
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 56
The Service System worldview
• Service System Entity• Resource
• Focal resource• Access Right• Service System Ecology• Interaction
• Value proposition based• Governance mechanism based
• Outcome• Measure• Stakeholder
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 57
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 58
Useful for framing research challenges
How to represent work in service systems and measurequality, productivity, compliance and innovation?
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 59
How does an ecology of service system entities evolveto remain efficient, effective and viable?What are the dynamics and laws that governnetworks of service system entities?
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 60
Which interaction episodes result in the favourableoutcome of mutual value co-creation?How to design service processes in order to minimizethe chance of unfavourable outcomes?
UGentMIS research group (http://www.mis.ugent.be)Department of Business Informatics and Operations Management 61
How to design profitable and sustainable service business models?How to strategically source the right resources for such business models?How to develop the right service culture and mindset for successful service business?