1 Service Grid for the Development of Islamic Finance Karim Ullah Assistant Professor, Institute of Management Sciences Gohar Saleem Perviz Assistant Professor, Institute of Management Sciences Farhan Ahmed Lecturer, NED University of Engineering and Technology Abstract This paper develops and evaluates a new service design tool called Service Grid for designing Islamic financial services, using design science methodology. The development of the Service Grid is motivated by the current need for enhancing the visual capacity of service design tools to capture the concepts of agent-to-agent service, particularly within the Islamic financial services contexts. The proposed Service Grid separates and codes various service roles and episodes through rows and columns respectively, within a service process. The crossing points of roles and episodes create identifiable service encounters for better designing and development of Islamic financial services. The Service Grid is applied to a narrative of a Musharikah and Ijarah based service process, to demonstrate its implementation. The Service Grid is found visualising the in-depth detail of service and can, therefore, improve the design, development, and management of service two areas; that are, i) roles design and integration, ii) episodes design. Keywords: Service Grid, Islamic Financial Service, Episodes, Roles, Service.
12
Embed
Service Grid for the Development of Islamic Financeajss.abasyn.edu.pk/admineditor/specialissue/papers/CP 07.pdfIslamic financial packages as services. For example, Diminishing Musharaka,
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
Service Grid for the Development of Islamic
Finance
Karim Ullah
Assistant Professor, Institute of Management Sciences
Gohar Saleem Perviz
Assistant Professor, Institute of Management Sciences
Farhan Ahmed
Lecturer, NED University of Engineering and Technology
Abstract
This paper develops and evaluates a new service design tool called Service Grid for designing
Islamic financial services, using design science methodology. The development of the Service
Grid is motivated by the current need for enhancing the visual capacity of service design tools to
capture the concepts of agent-to-agent service, particularly within the Islamic financial services
contexts. The proposed Service Grid separates and codes various service roles and episodes
through rows and columns respectively, within a service process. The crossing points of roles
and episodes create identifiable service encounters for better designing and development of
Islamic financial services. The Service Grid is applied to a narrative of a Musharikah and Ijarah
based service process, to demonstrate its implementation. The Service Grid is found visualising
the in-depth detail of service and can, therefore, improve the design, development, and
management of service two areas; that are, i) roles design and integration, ii) episodes design.
Keywords: Service Grid, Islamic Financial Service, Episodes, Roles, Service.
2
Introduction The adoption of Islamic financial system in multiple regions implies for the need to develop new
financial products and services to play an embryonic role in the sector development (Ullah &
Patel, 2011; Ahmed, 2011). To date, the development in the Islamic finance discipline is more
focused upon the development of Islamic contracts and how the economic benefits of such
contracts could be achieved (Obaidullah, 1999). In this regard, most of the existing literature
highlights the Islamic scholars’ research work on various conventional as well as Shariah-based
contracts and their differences (e.g. see Hassan & Lewis, 2007; Metwally, 1997). However, there
seems to be a paucity of literature into a broader phenomenon of Islamic financial service
creation mechanism, that is, how such services are created and applied in practice (Ullah & Al-
Karaghouli, 2017). Therefore, there seems to be a need for the development of new tools in
relation to the development and designing of Islamic financial services, which would enable the
industry to accelerate its growth and materialised the Maqasid Al-Shariah in substance.
As the Islamic finance service is more focused on value co-creation and co-consumption by
transforming the structures into pragmatic practice (Ullah, Al-Karaghouli & Jan 2017), therefore,
it bases upon the proposition of service as being conceptualised as an agent-to-agent relationship
rather than producer-to-customer (see Lusch, Vargo & Wessels, 2011). The agent-to-agent way
of conceptualisation perceives service provider and consumer as service co-creators, who are
both involved in service creation, hence stimulates new thoughts for the design of service and for
the Islamic financial services, as analogy.
Numerous publications have recently claimed that product development and design techniques
are two important new research dimensions which requires attention while developing service
design (Ullah & Al-Karaghouli, 2017; Siddiqui, 2018). Therefore, this research attempts to
develop and evaluate a new service design tool, called Service Grid which focuses on separation
and coding of the roles of each agent within and across multiple episodes in a service process.
Thus, this research paper gives rise to the developing a new service design tool called Service
Grid as a research objective.
Service Design and Agent-to-Agent Services
The discipline of services design involves the knowledge of both the design and service. Hooker
(2004) stated that the design theory provides the style, level of designing, and the knowledge
about the objects which are to be designed will come from the subject area, such as Islamic
finance, politics, and any other. Literally, design is “a plan or drawing produced to show the look
and function of something before it is built or made” (Oxford Dictionary, 2011, p. 388), like
design of a building before it comes into the existence. The service design, is therefore, can be
interpreted as the plan for enacting unique service experiences. Mahdjoubi (2003) stated the
design as a plan is a is a different thinking process that precedes the service actions, which are
more likely the behaviours which emerge as output of the thinking process. In service design, the
designer visualises and then prescribe the solution for the service problems (Segelström, 2010).
Thus, the designers have to rely upon their prior experiences and visions with the objectives to
design and develop (new) services (Boland & Collopy, 2004). Furthermore, the designers and
developers conceptualise and visualise the service constructs and its functionalities considering
3
the micro and macro contexts. For example, in a car lease service design, the designer must have
to specify who will do what and when in creating different encounters of a service process
considering the organisation and regulatory structures, as contexts of application.
The service design is claimed to have its roots in service science and design science (Han, 2010).
The service science is the study of service systems having an aim to create a basis for systematic