Logo Is It Possible To Teach Service Science? © Leonard Walletzký PA181 – Service Systems, Modeling and Execution Logo Organization * The lessons are voluntary * Final project at the end of the semester to present knowledge * Related or similar to the presented case studies * The goal is to present own service Is It Possible To Teach Service Science? Logo Content of the course * Basic of Service Science * How to model services (4-diamants model) * Entrepreneurship ecosystem * Business models * Case studies * Energy market * Fuel distribution * Smart Grids * Smart Cities Logo What is service? * services are processes, performances, or experiences that one person or organization does for the benefit of another * In all cases, service involves deployment of knowledge, skills, and competences that one person or organization has for the benefit of another, often done as a single, customized job (Lusch & Vargo) Is It Possible To Teach Service Science? Logo Characteristics of a service * Services we speak about are information and knowledge intensive * Output is intangible, hard to quantifiable and measurable * Non-storable * Lack of mobility * Consumption runs simultaneously with the supply * The customer is presented on the production * Hardly specifiable Is It Possible To Teach Service Science? Logo Basic Service Economy Paradigms * Service is the fundamental basis of exchange * The customer is always a co-creator of the value * All social and economics actors are the resource integrators * Value is always uniquely and phenomenologically determined by the beneficiary Logo Service is the fundamental basis of exchange * The application of operant resources * The seller uses his resources to provide the service * The basis for all exchange * There is not possible to simply exchange the product without using services or this possibility is only marginal * Service is exchanged for service * Services are used on both sides of the market to finish the transaction * Example: Credit cards transactions Logo The customer is always a co-creator of the value * The role of the customer is interactional * The customer can not be ignored * Without interaction with the customer the transaction can not be finished * Value creation is interactional * Example: * You can not provide the cloud service without communication with the customer and analysing of his/her needs Logo All social and economics actors are the resource integrators * Value creation is network of networks * The sellers needs to buy other services * The are customers for other providers * They also participate on value creation * The integration of the resources is kind of the service * Example * Internet provider needs to integrate: * Wired infrastructure – rent from the other company * Power supply – from electricity company * Logo Value is always uniquely and phenomenologically determined by the beneficiary * Value is * Idiosyncratic * Designed for particular customer * Experiential * The knowledge and information are not static * Contextual * The combination of knowledge and information is unique in every particular case * Meaning laden * Client and provider should understand the meaning of the value (must see the value for both) Logo Advanced SDL Paradigms * Indirect exchange masks the fundamental basis of exchange * Goods are distribution mechanism for service provision * Operant resources are the fundamental source of competitive advantage * All economies are service economies * The enterprise cannot deliver value, but only value proposition * A service-centered view is inherently customer oriented and relational Logo Indirect exchange masks the fundamental basis of exchange •The application of specialized skills and knowledge is the fundamental basis of exchange •Service is provided through complex combinations of goods, money and institutions •Service basis of exchange is not always apparent •Example: •Operational leasing of the car •Car is seemed to be a prior goods •Prior is the service for the company – cost saving, additional services • Logo Goods are distribution mechanism for service provision •Goods deliver their value through use •Using goods is the service •We are not buying goods to own them but to use them •Price difference is based on the difference of service the goods provide •Example: •Two phones – cheap and expensive •Both provide the basic service •The more expensive one should provide more services including prestige (Vertu luxury phones) Logo Operant resources are the fundamental source of competitive advantage •We speak bout knowledge an information intensive services •The services are provided by combination of specialized knowledge, ownership of information and combination of other resources (labour, capital) •The comparative ability to cause desired change drives competition •Example: •Apple and iPhones – new way of communication Logo All economies are service economies •Present economics systems can not exist without services •Even developing countries are dependent on services •Example: Payments are done by mobile phones •Services are now becoming more apparent with increased specialization and outsourcing •X as a Service, where X could be •Infrastructure •Software •Payment •Anything else • Logo The enterprise cannot deliver value, but only value proposition •Not only enterprise, generally every entity providing a service (provider) •School, university, state •Provider can offer their applied resources for the value creation •Collaborate on value creation following acceptance of value propositions •Can not create and/or deliver value independently •Example: •University and its study programs Logo A service-centered view is inherently customer oriented and relational •Service is defined in terms of customer-determined benefit •Service is co-created with the customer •Only customer decide the final version of the service •Co-creation is inherently customer oriented and relational •Example •Development of the IT services •Always need to ask about the basic of the problem they are solving Logo * Service is some kind of action bringing some usefulness to receiver of this action. * Purpose and/or goal of this action must be the use (usage) of the action results or outcomes * Provided actions are strongly connected (related) to knowledge and information. * Knowledge - information and final usefulness are positively correlated Service modelling Logo * Provider – somebody / something that perform the action and by this provide the service * Client – somebody / something that receives results of this action * Where somebody / something could be * Individuals * Organized group of individuals * Technology assembled and organized into value adding application * Any combination of previous items Service proprieties Logo * Target is the part of the reality to be transformed or operated for the sake of client * It could be practically anything * An individual * A group of individuals * An organization * Computer network * Technology * It is the „source of the problem“ * Service proprieties Logo * A service can be one shot or repeatable * Each service is connected with shared information * Each service is connected with shared knowledge * The key value is the performance (actions) of the services * Done now * Or promised in the future * Service features Logo Service system * Provider * Individual * Organization * Any of previous combined with the technology and/or piece of environment * Technology that provider is responsible for * Client * Individual * Organization * Any of previous combined with the technology and/or piece of environment * Portion of reality owned by Client * Target * The reality to be transformed or operated on by Provider for sake of Client * People, dimensions of business * Dimensions of products, technology artefacts & environment * Information, codified knowledge Logo Service system Provider Client Target Forms of ownership Forms of relationship Forms of responsibility Logo Client – Provider Relationship * Information Sharing * Knowledge Sharing * Negotiations * Balancing and establishing Value Proposition * Repetitive reviewing of previous items * In Mention Mode Logo Client – Target connection * Client owns the Target * Client owns rights to use and/or manipulate the Target * Client has (owns) problem lClient recognizes a problem on the Target lClient is willing to invest to the problem solution * The solution involves an operating and/or transformation of the Target * Relation is in Use mode Logo Provider – Target Connection * Kind of competence * Provider knows and is able to operate on the Target * Provider knows how and is able to transform the Target * Provider understands the Target and is able to plan operation on transformation of it * Provider improves in a way the Target for its better utilization by the Client (benefit for the Client) Logo Value creation * What is the value? * Sake of client? * The benefit of the client * Value is strongly related with the target * Value is created by both (client + provider) * Value is co-created * Value can be created only if Client wants (or needs) an added value on Target * Identifying a gap Logo Value proposition * The most important connection between C and P * The offer done by provider to the client * What he/she is able to do with the target to increase beneficiary of the client * Based on * Knowledge about target * Information about client * Similarities on the market * What we can do for what price Logo Value proposition Provider Client Target Forms of ownership C is owner of T or C needs an added value on T Forms of relationship value co-creation value proposition information sharing Forms of responsibility P is responsible for the actions with T Logo Mentioning and Using * Mentioning * To think about future actions * What / how / who / where / when / why / for how much * Negotiation between client and provider * Using * Use our capabilities to do some action to bring a value * Duality between mentioning and using * Each entity can mention, use or make both * Project management * Application of the principle of mention / use Logo Mention - Use Mention Provider Client Target Forms of ownership C is owner of T or C needs an added value on T Forms of relationship value co-creation value proposition information sharing Forms of responsibility P is responsible for the actions with T