2. 2 Kwan 2010 Changing nature of work - away from farms and factories⊠Worldâs Large Labor Forces A = Agriculture, G = Goods, S = Service US shift to service jobs 2010 2010 (A) Agriculture: Value from harvesting nature 40yr Service Growth S % G % A % Labor % Nation 142% 29 22 49 25.7 China 35% 23 17 60 14.4 India (G) Goods: Value from making products 23% 76 23 1 5.1 U.S. 34% 39 16 45 3.5 Indonesia (S) Service: Value from enhancing the capabilities of people and their ability to interconnect and co-create value 61% 66 14 20 3.0 Brazil 64% 69 21 10 2.4 Russia 45% 67 28 5 2.2 Japan 19% 20 10 70 1.6 Nigeria 37% 26 11 63 2.1 Bangladesh 42% 64 33 3 1.4 Germany Employment Change CIA Handbook, International Labor Organization Note: Pakistan, Vietnam, and Mexico now larger LF than Germany Numeric change in wage-salary employment by industry sector, projected 2004-14 (Thousands) Professional and business service4566 Healthcare and social assistance4303 The largest labor force migration in human history is underway, driven by global communications, business and technology growth, urbanization and regional variations in labor and infrastructure costs and capabilities. 2 Kwan 2010
3. Innovation in Modern Services ç°ä»ŁæćĄçćæ° In its 11th Five-Year Plan, China had targeted an increase of the service sectorâs output to 43.3% of GDP by 2010, up from 40.3% in 2005 In its 12th Five-Year Plan, China had targeted an increase of the service sectorâs value-added output to 47.3% of GDP by 2015, up 4%.
4. 4 Kwan 2010 Skills for the 21st Century http://www-03.ibm.com/press/us/en/attachment/25091.wss?fileId=ATTACH_FILE1&fileName=Podcast%20interview%20with%20SFSU.mp3
5. 5 Kwan 2011 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. âService Science, Management, Engineering, and Design (SSMED): An Emerging Discipline â Outline and Referencesâ, International Journal of Information Systems in the Service Sector, 1(3), 2009.
6. Service Science is a Big Tent (for every variety of disciplines) Service Operations Marketing Management Quality Supply Chain Human Factors Design Innovation Engineering Systems Computing Economics Arts Science âService Science is just ___<name your discipline>____â General Systems Theory A Service System is Complex OR/IE MS Information Science (i-schools) MIS Economics & Law Game Theory Anthropology & Psychology Organization Theory CS/AI Multiagent Systems 6
7. Service System Worldview1 Service Provider Customer Service Experience A Service System and Its Entities 1Kwan, S. K. & Min, J. H. (2008) âAn Evolutionary Framework of Service Systemsâ. Presented at the International Conference on Service Science, Beijing, China, April 17-18. 7 Kwan 2011
8. 8 A Service System Network Service System A Service Interactions Service System B Service System E Service System C Service System D Service System F Kwan 2011 8
9. 9 A Service Supply Chain Service System A Service Interactions Service System B Service System E Service System C Service System D Service System F Kwan 2011 9
11. Example: Purchases from Amazon.com Customer Amazon.com Bookcloseout_us theBookGrinder USPS nengland4 USPS USPS âtransparentâ service provider Not being evaluated? USPS Kwan 2011
12. 12 Kwan 2010 Example: Quality of Service Supply Chain Example from Dan Pritchett
13. Service System Worldview Employees & Stockholders Community Service Provider Customer Service Experience Partners Competition Service System Society 13 Kwan 2011
14. Service System Worldview Service Management Fitzsimmons & Fitzsimmons Employees & Stockholders Capacity & Manpower Planning, Training Community Service Provider Customer Facility Location & Design Service Experience Partners 14 Social Networking Competition Competitive Strategy Service Concept Realized Customer Flow & Service Delivery Market Segmentation Operating Strategy Society Kwan 2011
15. Value Co-Creation Through Value Propositions Value Employees & Stockholders Community Service Provider Customer Value Value Value Service Experience Partners Competition Service System Governance Society 15 Kwan 2011
16. 16 Service Systems, Computing, and IT Services1 Service Providerâs Back Stage Support Information Technology Platform Back Stage Processes Front Stage Processes Front Stage ITSM â Management of the Processes and Infrastructure of IT Services Service Computing (e.g., SOA) 1 Kwan, S. K. & Hefley, B., âService Systemsâ, 2008. Kwan 2011
17. 17 Kwan 2011 Formulation of Value = Benefit / Cost Better Off From: Customer Value = (Results + Process Quality ) / (Price + Customer Access Costs) Heskett et all 1997 To: Harvey 2005 To:
18. 18 Stages in Customer Empowerment in Value Co-Creation Stage 1: Value Chain Value Proposition Customer Service Provider Focal Relationship Service Experience 5 Kwan, S. K. & Yuan, S. T. âCustomer-Driven Value Co-Creation in Service Networksâ, 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. Kwan 2011
19. 19 Stage 2: Traditional Service Value Network Value Proposition Customer Service Provider Focal Relationship Provider Partner Network Service Experience Value Proposition cf. ICT-enabled service networks, mobile applications, etc. Kwan 2011
20. 20 Kwan 2011 Example of Service Value Network Service System/Network 1. People 2. Technology 3. Shared Information 4. Organizationsconnected by value propositions from Jim Spohrer
21. Stage 3 â Improved Value Chain Value Proposition Customer Service Provider Focal Relationship Value Proposition Customerâs Social Network Service Experience Kwan 2011
22. 22 Example of Customer Driven Service Value Network Their Friends TV Programs Adâs and âBuy Meâ Target Audience Illustration from: Vascellaro, J. A. âVideoâs New Friendsâ, The Wall Street Journal, February 28, 2008. Product Placements Kwan 2011
24. Stage 4: Customer Driven Service Value Network Value Proposition Service Provider Customer Focal Relationship Value Proposition Value Proposition Provider Partner Network Customerâs Social Network Service Experience cf. âResource Integratorsâ in Service Dominant Logic literature Kwan 2011
25. 25 Variety of Value Propositions Maslowâs Hierarchy Of Needs Value Dimensions Service Provider Society Community Employees Stockholders Partners Customers Intrinsic Hedonic Social Societal Environmental Political Stakeholders Economic A point in this 3-D space is a Potential Value Proposition 1 2 4 3 Stages of Customer Empowerment Kwan 2011
26. 26 Kwan 2011 Maslowâs Hierarchy of Needs Disposable Income & Desire for Services Needs vs. Wants
27. 27 Service Provider Society Community Employees Stockholders Partners Customers Value Propositions can also be bi-directional Customers Partners Service Provider Service Provider Society Community Employees Stockholders Partners Customers ? Kwan 2011
28. 28 Kwan 2011 Value Proposition Model (VPM) Starting with the Service System Service Provider Customer Service Experience
29. 29 Kwan 2011 VPM â a common example Service Provider Customer Value Proposition Customer Service Experience Service Experience Customer Service Experience
30. 30 Kwan 2011 VPM â individuals and community Service Provider Customer Value Proposition Community/ Social Network Customer A Shared Experience Service Experience Service Experience Customer Service Experience
31. 31 Kwan 2011 VPM â individuals and Facebook community Service Provider Customer Value Proposition Community/ Social Network Customer A Shared Experience Service Experience Service Experience Customer Service Experience
32. 32 Kwan 2011 VPM â service provider partners Service Provider Customer Value Proposition Customer Service Experience Service Experience Service Experience Service Experience Vendor Value Proposition
33. 33 Kwan 2011 VPM â partnerâs acquistion of customer Service Provider Customer Customer Service Experience Service Experience Service Experience Service Experience Vendor Service Experience
34. 34 Kwan 2011 Example 1 of 4 Service Provider Customer Customer Service Experience Service Experience Service Experience Service Experience Vendor
35. 35 Kwan 2011 Example 2 of 4 Service Provider Customer Customer Service Experience Service Experience Service Experience Service Experience Service Experience Vendor Vendor Service Experience
36. 36 Kwan 2011 Example 3 of 4 Service Provider Customer Customer Service Experience Service Experience Service Experience Service Experience Service Experience Vendor Vendor Service Experience
37. 37 Kwan 2011 Example 4 of 4 Service Provider Customer Customer Service Experience Service Experience Service Experience Service Experience Vendor Service Experience
39. 39 Kwan 2011 Some Thoughts on Innovation âCreativity can be taught. Innovation can be learned.â David Blakeley, Director âIncremental Innovation vs. Radical Innovationâ Judy Estrin âClosing the Innovation Gapâ Innovation in Modern Services ç°ä»ŁæćĄçćæ°
47. 44 Example of how the Service System Framework could complement an Innovation Method applied to Services BPMN UML â Use Cases Service Blueprint Story Boards UI Prototyping MANGA textbooks etc. Kwan 2011