This document discusses service systems and digital platforms. It defines key terms like service system, service, and service science. Service systems are configurations of people, communities, technologies and knowledge that create value. Service science studies these service systems. Digital platforms allow organizations to mass customize services, matching millions of producers to billions of users. Application programming interfaces (APIs) enable value co-creation within digital communities on a service platform. Open innovation, dynamic capabilities, people-centered design are important aspects of digital transformation through service innovation.

1. 1
Service Systems for Digital Communities
Yassi Moghaddam
Executive Director, ISSIP
yassi@issip.org
www.issip.org
July 13, 2019
ISSIP (C) 2019

2. A Few Definitions
• Service System is a configuration of people,
communities, technologies, knowledge that
creates value. (Maglio & Spohrer, 2008). An
enterprise is a service system.
• Service is the application of competences for
the benefit of another (adopted fromVargo &
Lusch 2004
• Service Science is the study of service systems.
It is a study of systems theory for value co-
creation. (Maglio & Spohrer, 2008)

3. What do they have in common?
ISSIP (C) 2017 3
All Service Platform Enterprises (SPEs)
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4. Source:Accenture, 2016 ISSIP 2016 4
Value of Service Platforms

5. Over the last two decades many practitioners and
researchers have been asking how can we create services,
systematically, rapidly, efficiently, and globally? And this inquiry
led to the birth of Service Science.
2000 20101990’s
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6. • Membership based non-profit
professional association promoting
service innovation globally, and helping
members with digital transformation
through service innovation.
• Fostering thought leadership of our
members through industry-academia
joint research projects, conferences,
workshops, and publications.
• Promoting service innovators through
awards & sponsorships globally.
Join us: www.issip.org
Members: 1400+
Ø ~200 universities
Ø 50+
companies
Ø 42+
countries

7. Service
Platform
Digital
Platform
(Tech+Data)
Dynamic
Capabilities
People-
Centered
Design Service
Platform
Enterprise Value Co-
creation
(API)
Open
Innovation
ISSIP 2016 7
An ISSIP framework for digital
transformation through service innovation
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8. ISSIP (C) 2017 8
Digital Platform
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What factories are to an industrial enterprise, digital platforms are
to a SPE. One enables mass production of goods, the other mass
customization of services.
Source: IDC
• The “3rd platform” –
Mobile, Social, Cloud,
Data Analytic
• Tech Accelerators: AI,
IoT, 3D printing, Robotics,
& more

9. Millions of
Producers
Billions of
Users
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Service Platforms employ digital platforms to algorithmically match
millions of producers to billions of users creating a value co-creating
ecosystem of digital communities that can deliver personalized
services to each user.
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10. APIs Enabling & ScalingValue Co-creation
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q APIs allow others to innovate on
top of digital assets (internally and
externally), and create an
ecosystem for value co-creation.
⏤ Simplifying the back end and
busting silos
⏤ Personalize services
⏤ Create ecosystems of
innovation and engagement
q However, according to McKinsey
(2018), a small number of firms
have mature API programs and are
missing significant opportunities for
digital transformation.

11. Open Innovation
Outside-in -
company makes
greater use of
external ideas and
technologies in its
own business
Inside-out - a
company allows
some of its own
ideas, technologies
or processes be
used by other
businesses.
ISSIP 2016 11ISSIP (C) 2019

12. Dynamic Capabilities
Employees 132,000
iOS developers > 2M
Revenue $266 B
Rev/employee > $2M
Employees 1 million
Revenue $70B
($169 B 2018)
Rev/employee ~ $0.17M
2018 1984
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13. People-Centered Design
• Experience is paramount to the
success of a service platforms
• Empathy is critical to creating
superior experience
• According to Accenture, 85% of
senior execs interviewed in 2015
see DesignThinking skills critical
to achieve digital transformation.
• 42 design firms were acquired
between 2004-2016. Most
acquirers:Accenture, Deloitte, IBM,
and Facebook. (Source:Venture
Beat, & KPCB, 2016)
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14. Further Reading

15. Thank You!
Yassi Moghaddam
Executive Director, ISSIP
yassi@issip.org
www.issip.org
July 13, 2019
ISSIP (C) 2019