Minder Chen, Ph.D. Associate Professor of MIS Martin V. Smith School of Business and Economics CSU Channel Islands [email protected][email protected]http://faculty.csuci.edu/minder.chen Slides: http://faculty.csuci.edu/minder.chen/event Service Sciences and Management
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Minder Chen, Ph.D. Associate Professor of MIS Martin V. Smith School of Business and Economics CSU Channel Islands [email protected][email protected].
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Minder Chen, Ph.D. Associate Professor of MIS
Martin V. Smith School of Business and EconomicsCSU Channel Islands
References• James Teboul, Service Is Front Stage: Positioning Services for Value
Advantage, Palgrave McMillan, 2006.
• Christopher H. Lovelock and Jochen Wirtz, Services Marketing, 6/E, Prentice Hall, 2007.
• James A. Fitzsimmons,Mona J. Fitzsimmons, Service Management: Operations, Strategy, and Information Technology, Irwin Professional Publication, 2008.
• Leonard Berry and Kent Seltman, Management Lessons from Mayo Clinic: Inside One of the Worlds Most Admired Service Organizations, McGraw Hill, 2008.
• Bill Hefley and Wendy Murphy (Editors), Service Science, Management and Engineering: Education for the 21st Century (Service Science: Research and Innovations in the Service Economy), Springer, February 1, 2008.
• Michael D. Johnson and Anders Gustafsson, Competing in a Service Economy: How to Create a Competitive Advantage Through Service Development and Innovation, Jossey-Bass, May 23, 2003.
• Robert F. Lusch & Stephen L. Vargo, The Service-Dominant Logic of Marketing: Dialog, Debate, And Directions, M.E. Sharpe, February 28, 2006.
References• Putting the Service-Profit Chain to Work, Heskett, James L.; Jones,
Thomas O.; Loveman, Gary W.; Sasser, Jr., W. Earl; Schlesinger, Leonard A.. Harvard Business Review, Jul-Aug 2008, Vol. 86 Issue 7/8, p118-129.
• How to Sell Services MORE Profitably, Reinartz, Werner; Ulaga, Wolfgang. Harvard Business Review, May 2008, Vol. 86 Issue 5, p90-96.
• The Four Things a Service Business Must Get Right, Frei, Frances X.. Harvard Business Review, April 2008, Vol. 86 Issue 4, p70-80.
• BREAKING THE TRADE-OFF Between Efficiency and Service, Frei, Frances X., Harvard Business Review, Nov. 2006, Vol. 84 Issue 11, p92-101.
• Vargo, Stephen L. and Lusch, Robert F. (2004a) ‘Evolving to a New Dominant Logic for Marketing’, Journal of Marketing 68(1): 1–17.
• Vargo, Stephen L. and Lusch, Robert F. (2004b) ‘The Four Services Marketing Myths: Remnants from a Manufacturing Model’, Journal of Service Research 6(4): 324–35.
• Succeeding through Service Innovation: A Service Perspective for Education, Research, Business and Government, by: IfM and IBM, 2008
Inseparability Services are created and consumed at the same time Services cannot be inventoried Demand fluctuations cannot be solved by inventory processes Quality control cannot be achieved before consumptionConsideration: Does the ability to tailor and customize goods to the customers’
demands and preferences mean that these goods also have an inseparability characteristic?
Heterogeneity From the client’s perspective, there is typically a wide variation in service
offerings Personalization of services increases their heterogeneous nature Perceived quality-of-service varies from one client to the nextConsideration: Can a homogeneous perception of quality due to customer
preference idiosyncrasies (or due to customization) also benefit the goods manufacturer?
Intangibility Services are ideas and concepts that are part of a process The client typically relies on the service providers’ reputation and the trust they
have with them to help predict quality-of-service and make service choices Regulations and governance are means to assuring some acceptable level of
quality-of-serviceConsideration: Do most services processes involve some goods?
Perishability (No inventory) Any service capacity that goes unused is perished Services cannot be stored so that when not used to maximum capacity the
service provider is losing opportunities Service capability estimation and planning are key aspects for service
managementConsideration: Do clients who participate in some service process acquire
knowledge which represents part of the stored service’s value? What might the impact be?
• Service systems are value-creation networks composed of people, technology, and organizations.
• Interventions taken to transform state and coproduce value constitute services.
• Example in IT outsourcing– A service provider operates the computing infrastructure for a
service client.
– The provider augments the client’s capabilities, taking on responsibility for monthly service-level agreements and year-over-year productivity improvements.
• Service system complexity is a function of the number and variety of people, technologies, and organizations linked in the value creation networks, ranging in scale from professional reputation systems of a single kind of knowledge worker or profession, to work systems composed of multiple type of knowledge workers, to enterprise systems, to industrial systems, etc.