1 An Evolutionary Framework of Service Systems Stephen K. Kwan, Ph.D. San José State University San José, CA, USA [email protected] Jae H. Min, Ph.D.

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An Evolutionary Framework of An Evolutionary Framework of Service SystemsService Systems

Stephen K. Kwan, Ph.D.Stephen K. Kwan, Ph.D.

San José State UniversitySan José State UniversitySan José, CA, USASan José, CA, USA

[email protected][email protected]

Jae H. Min, Ph.D.Jae H. Min, Ph.D.

Sogang UniversitySogang UniversitySeoul, KoreaSeoul, Korea

[email protected]@sogang.ac.kr

20082008

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Motivations for this ResearchMotivations for this Research

OR/IEOR/IEMSMS

CS/AICS/AIMultiagentMultiagentSystemsSystems

Economics & LawEconomics & LawGame TheoryGame Theory

MISMIS

AnthropologyAnthropology& Psychology& Psychology

OrganizationOrganizationTheoryTheory

GeneralGeneralSystemsSystemsTheoryTheory

ServiceServiceOperationsOperationsMarketingMarketing

ManagementManagementQualityQuality

Supply ChainSupply ChainHuman FactorsHuman Factors

DesignDesignInnovationInnovation

EngineeringEngineeringSystemsSystems

ComputingComputingEconomicsEconomics

ArtsArtsScienceScience

InformationInformationScienceScience

(i-schools)(i-schools)

A ServiceSystem is Complex

1. There is still much debate as to what is 1. There is still much debate as to what is Service ScienceService Science and what is a and what is a Service SystemService System. .

””Service Science is just Service Science is just ___<name your discipline>____”___<name your discipline>____”

””Service Science is just Service Science is just ___<name your discipline>____”___<name your discipline>____”

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Motivations for this ResearchMotivations for this Research

http://www.cob.sjsu.edu/ssme/refmenu.asp

Jim Spohrer and Stephen K. Kwan, "Service Science, Management, Engineering, and Design (SSMED): Outline & References".

2.2. Service ScienceService Science – The Study of – The Study of Service SystemsService Systems is still a nascent multidisciplinary area of study.is still a nascent multidisciplinary area of study.

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Motivations for this ResearchMotivations for this Research3. 3. Need a simpler Framework for Teaching about Need a simpler Framework for Teaching about

Service Systems Service Systems and extensible for Future Research.and extensible for Future Research.http://www.cob.sjsu.edu/kwan_s/297D/

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CustomerCustomer

ServiceServiceExperienceExperience

ServiceServiceProviderProvider

A Service System and its EntitiesA Service System and its Entities

A Service is aA Service is atime-perishable,time-perishable,

intangible experienceintangible experience performed for a customerperformed for a customer

acting in the roleacting in the role of a co-producer.of a co-producer.

James Fitzsimmons

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ServiceSystem A

ServiceSystem B

ServiceSystem C

ServiceSystem D

ServiceSystem E

ServiceSystem F

Service InteractionsService Interactions

A Service Systems NetworkA Service Systems Network

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ServiceSystem A

ServiceSystem B

ServiceSystem C

ServiceSystem D

ServiceSystem E

ServiceSystem F

A Service Supply NetworkA Service Supply Network

[Amazon.com Example]

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ServiceServiceExperienceExperience

ServiceServiceProviderProviderCustomerCustomer

Society

Community

Competition

Partners

Service System

Employees &Stockholders

Stakeholders in Service System WorldviewStakeholders in Service System Worldview

[Review Strategic Service Vision]

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ServiceServiceExperienceExperience

ServiceServiceProviderProviderCustomerCustomer

Society

Community

Competition

Partners

Service System

Value

Value

Value

Governance

Employees &Stockholders

Value Propositions and GovernanceValue Propositions and Governance

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Offer ofOffer ofServiceService

Intent toIntent toTransactTransact

ServiceServiceConsumptionConsumption

SettlementSettlement

FeedbackFeedback

CC

RR

MM

MarketingMarketing

Reservation/Reservation/PrepaymentPrepayment

ServiceServiceDeliveryDelivery

PaymentPayment

AssessmentAssessment

BrowserBrowser

InterestedInterested

BuyerBuyer

PayerPayer

ConcernedConcerned

AbandonmentAbandonment

AbandonmentAbandonment

BackBack

StageStage

Employees, Equipment,Employees, Equipment,Technology, other Customers, etc.Technology, other Customers, etc.

Employees, Equipment,Employees, Equipment,Technology, Suppliers, etc.Technology, Suppliers, etc.

Customer RoleCustomer Role Sub-SystemsSub-Systems

CustomerCustomerServiceService

ExperienceExperienceServiceServiceProviderProvider

Entities:Entities:

DisputeDisputeResolutionResolution

AcceptanceAcceptance

AdvertisingAdvertisingAwarenessAwareness

Service System Details (1)Service System Details (1)

Front Front

StageStage

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BrowserBrowser

InterestedInterested

BuyerBuyer

PayerPayer

ConcernedConcerned

Offer ofService

Intent toTransact

ServiceConsumption

Settlement

Feedback

CC

RR

MM

Marketing

Reservation

ServiceDelivery

Payment

Assessment

Abandonment

Abandonment

Employees, Equipment,Technology, other Customers, etc.

Employees, Equipment,Technology, Suppliers, etc.

Customer RoleCustomer Role Sub-Systems

CustomerCustomer ServiceExperience

ServiceProvider

Conversion

NewNew RepeatRepeat

IINNFFOORRMMAATTIIOONN

?

DisputeResolution

Acceptance

AdvertisingAwareness

Service System Details (2)Service System Details (2)

Back

StageFront

Stage

OtherResearch

Areas

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Service SystemsService Systems are Complex and Dynamic are Complex and DynamicChanges vs. SustainabilityChanges vs. Sustainability

TimeTime

ContinuousContinuousImprovementImprovement

You

Competition

NaturalDecay

CompetitiveAdvantage

(seekingCompetitive

Parity or“leapfrogging”)

(if noContinuous

Improvement)Adapted from James Teboul’sService is Front Stage

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Factors Affecting Factors Affecting The Evolution of Service SystemsThe Evolution of Service Systems

UncontrollableUncontrollable

Long-termLong-term

Macro-levelMacro-level

DisruptiveDisruptive

ControllableControllable

Short-termShort-term

Micro-levelMicro-level

ConstantConstant

Technology,Technology,

Economy,Economy,

Culture,Culture,

Globalization,Globalization,

Environment, …Environment, …

Community,Community,

Customer,Customer,

Stockholders,Stockholders,

Employees,Employees,

Partners,Partners,

Competitors,Competitors,

Government, …Government, …

ExternalExternal InternInternalal

Adaptor Perish

ContinuousImprovement

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SummarySummary1.1. A Service Systems Framework – Customers, Service A Service Systems Framework – Customers, Service

Providers, Service Experience, Service Supply NetworkProviders, Service Experience, Service Supply Network2.2. Service System Worldview – Service System, Service System Worldview – Service System,

Community, Stakeholders, Partners, Competitors, Community, Stakeholders, Partners, Competitors, GovernmentGovernment

3.3. Service System Details – Front Stage, Back Stage, Role Service System Details – Front Stage, Back Stage, Role of Customers, Technology, Employees, Systems, of Customers, Technology, Employees, Systems, Resources, …Resources, …

4.4. Changes and Sustainability of Service SystemsChanges and Sustainability of Service Systems5.5. Factors affecting the Evolution of Service Systems – Factors affecting the Evolution of Service Systems –

External vs. Internal FactorsExternal vs. Internal Factors6.6. Role of service providers Role of service providers –– Adapt to environmental Adapt to environmental

changes and accept internal pressures as constructive changes and accept internal pressures as constructive motivesmotives