Service Systems, Value Propositions and Service Innovation Presented at National Tsing-hua University December 7 th , 2012, Taiwan Download these slides at: http://www.slideshare.net/StephenKwan Dr. Stephen K. Kwan Professor, Service Science Management Information Systems College of Business Administration San José State University, CA, USA http://www.sjsu.edu/ssme Contact: [email protected]
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Service Systems, Value Propositions,and Service Innovation
Presented at National Tsing-hua UniversityDecember 7th, 2012, Taiwan
Download these slides at: http://www.slideshare.net/StephenKwan
Dr. Stephen K. KwanProfessor, Service Science
Management Information SystemsCollege of Business AdministrationSan José State University, CA, USA
http://www.sjsu.edu/ssme
Contact: [email protected]
2Kwan 2012
Some Definitions
Service Science is short for Service Science, Management, Engineering and Design (SSMED1).
Service Science is concerned with the study of Service Systems.cf. Computer Science is concerned with the study of Computer Systems.
Service Systems are man-made complex systems designed to improve the quality of life by co-creating value through value propositions among the stake-holders.
1 Spohrer, J., Kwan, S.K. “Service Science, Management, Engineering, and Design (SSMED): An Emerging Discipline – Outline and References”, International Journal of Information Systems in the Service Sector, 1(3), 2009.
ServiceExperience
ServiceProvider
Customer
A Service System and Its Entities
1Kwan, S. K. & Min, J. H. (2008) “An Evolutionary Framework of Service Systems”. Presented at the International Conference on Service Science, Beijing, China, April 17-18.
Service System Worldview1
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ServiceSystem A
ServiceSystem B
ServiceSystem C
ServiceSystem D
ServiceSystem E
ServiceSystem F
Service Interactions
4
Kwan 2012
A Service System Network
ServiceExperience
ServiceProvider
Customer
Society
Community
Competition
Partners
Service System
Employees &Stockholders
Service System Worldview
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ServiceExperience
ServiceProvider
Customer
Society
Community
Competition
Partners
Service System
Employees &Stockholders
Value
Value
Governance
Value
6
Value
Value Co-Creation Through Value Propositions
Kwan 2012
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InformationTechnology
Platform
Service Provider’s Back Stage Support
BackStage
Processes
FrontStage
ProcessesFront Stage
Service Computing(e.g., SOA)
Service Systems, Computing, and IT Services1
1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008.
ITSM – Management of the Processesand Infrastructure of IT Services
Kwan 2012
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Customer
ServiceExperience
ServiceProvider
Stage 1: Value Chain
FocalRelationship
Value Proposition
Stages in Customer Empowermentin Value Co-Creation
5 Kwan, S. K. & Yuan, S. T. ”Customer-Driven Value Co-Creation in Service Networks”, to appear in Demirkan, H., Spohrer, J.C. and Krishna, V. ed., The Science of Service Systems, volume in Service Science: Research and Innovation (SSRI) in the Service Economy series, Springer, 2010.
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Stage 2: Traditional Service Value Network
Customer
ServiceExperience
ServiceProvider
Value Proposition
Provider PartnerNetwork
FocalRelationship
Value Proposition
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cf. ICT-enabled service networks,mobile applications, etc.
Stage 3 – Improved Value Chain
Customer’sSocial
Network
Customer
ServiceExperience
ServiceProvider
Value Proposition
FocalRelationship
Value Proposition
Kwan 2012 10
Stage 4: Customer Driven Service Value Network
Customer’sSocial
Network
Customer
ServiceExperience
ServiceProvider
Value Proposition
FocalRelationship
Value Proposition
Provider PartnerNetwork
Value Proposition
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cf. “Resource Integrators” in Service Dominant Logic literature
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Sta
keh
old
ers
Service Provider
Society
Community
Employees
Stockholders
Partners
Customers
Value Dimensions
Maslow’sHierarchyOf Needs
HedonicSpiritualCulturalCorporal
EmotionalIntellectualFamilial….
A point in this 3-D space is a potential Value Proposition e.g. Service
Provider / Society / Environmental
Intrinsic
Social
Societal
Political
Functional
Environm
ental
Econom
ic
Ser
vice
Pro
vide
r
Soc
iety
C
omm
unity
Em
ploy
ees
Sto
ckho
lder
s
P
artn
ers
C
usto
mer
s
Stakeholders
Variety of Value Propositions
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Maslow’s Hierarchy of Needs
Disposable Income &Desire forServices
Needsvs.
Wants
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Customer’s Value System
Provider’s Value System
Opportunities forValue Co-Creation
His Customer’s Value System
★
★
★★★★★
★
Value Systems and Value Dimensions
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Kwan, S.K., Hottom, P., Kieliszewski, C. “Moving from B2X to B2X2Y Value Propositions in Service System Networks”, 1st International Conference on Human Side of Service Engineering, HSSE 2012, San Francisco, 24 July, 2012.
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ServiceExperience
Benefits
Costs
Probabilityof Success
Quality
Schema for DataExchange
StakeholderRoles
PerformanceMetrics
** Expected ** VPj = [SE,B,C,P,Q,Sc,R,M]j
will do
will do for
+$
will not do
Constructing a Value Proposition
The Customer have a lot of VP’s
to choose from
Kwan, S.K., Muller-Gorchs, M. (2011). "Constructing Effective Value Propositions for Stakeholders in Service System Networks," Proceedings > Proceedings of SIGSVC Workshop . Sprouts: Working Papers on Information Systems, 11(160). http://sprouts.aisnet.org/11-160
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Innovation
CREATINGSOMETHING
NEW
혁신創新创新革新
Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value.
National Innovation Initiative
Innovation can happen anywhere on the Value Chain!
(business model, organization, environment, process, technology, etc.)
Kwan 2010
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How the Framework could complement the Foresight Method applied to Services
© Cockayne and Carleton
Kwan 2010
DivergentThinking
Convergent
Thinking
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How the Framework could complement the Foresight Method applied to Services
© Cockayne and Carleton
Service SystemThinking
Business Models &Value Propositions
Kwan 2010
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Example of how the Framework could complement an Innovation Method applied to Services
UML – Use Cases
Service Blueprint
Story Boards
UI Prototyping
BPMN
etc.
MANGA textbooks
Kwan 2010
Kwan 2010 20
Teaching MBA Class at Sogang University
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Using the Foresight Method
Kwan 2010
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Sample Project from SJSU MBA Students
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Teaching the method for “Service Made in ?country?” Taiwan?
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Fall 2012 SJSU MBA Class
Semester Team Projects:
Innovative Service Systems of the Future
• 3-D printing as a Service
• Enhancing a Dining Experience
• Concierge Services for Two-Income Families
• Improving Grain Distribution in India
Kwan 2012
Service Systems, Value Propositions,and Service Innovation
Presented at National Tsing-hua UniversityDecember 7th, 2012, Taiwan
Download these slides at: http://www.slideshare.net/StephenKwan
Dr. Stephen K. KwanProfessor, Service Science
Management Information SystemsCollege of Business AdministrationSan José State University, CA, USA
http://www.sjsu.edu/ssme
Contact: [email protected] Fin
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