Marketing Strategy
in Service Business
- amegaro@unisa.it -
Programme
• Marketing and Service Marketing: an overview
• Marketing plan
• New marketing strategies approaches: Relationship Marketing
and Many-to-Many network; Experience marketing; Nonconventional
marketing
• New marketing vision: Service Research - from S-D logic &
Service Science to service ecosystems & service systems
Case studies
Examples
Project work
Agenda: Lesson 5
• New marketing vision (II part): Service Research - from S-D
logic & Service Science to service ecosystems & service
systems
o SSMED, service systems & smart service systems
Examples
Service Science, Management,
Engineering and Design
5.1
Computer Science Service Research
What is the link?
Service Science, Management, Engineering
and Design
The Science Service, Management, Engineering and
Design (SSMED) by IBM Corporation as a project of
the Almaden Research Center, involved hundreds of
researchers in the world trying to promote a new
discipline to meet the most important themes
emerging: the study of service systems.
Service Science management, engineering and design (SSMED)
Aim: to combine and to apply computer science, operational
research, industrial engineering, management and social
sciences to find the most appropriate organizational model to
support the emergence of value
The founders: Spohrer and Maglio (2008)
• Multidisciplinary research stream that studies the implications
emerging from the new management approach to service
• Unifying framework for service design, delivery and evaluation that
aims at developing the capabilities required by service economy;
• Introduced after company’s shift from a good-logic to a service
centered perspective
Service Science
Always looking for service innovation, service science
would combine organization and human understanding
with business and technological understanding to:
(1) explain the origins and growth of service systems;
(2) solve fundamental problems such as how to invest
optimally to improve service productivity and quality;
(3) produce unique service professionals and service
scientists
Service Science
Many disciplines have accumulated knowledge
relevant to the understanding of service system,
each focusing on different aspects of the overall
system.
For instance, organization theory focuses on
structures, rules, and incentives to create
effective groups of individuals.
Service Science
Technology
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15
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Technology
1990 - 2004
1960 - 1990
Prima del 1990
1900 - 1960
16. Organization Theories
17. Operations Research
18. Systems Engineering
19. Management Science
20. Games theories
14. Information Science
15. Human Resource Management
21. Industrial Engineering
22. Marketing
23. Management Psychology
24. Business Administration
25. Economics
26. Law
27.Sociology
28.Formation
2. Activities and management of services
1. Science and Information Systems
3. Services engineering
4. Marketing of services
5. Social Complexity
6. Computational economy
7.Organizational theories
8. Management of innovation
9. Experimental economics
10. AI & Games
11. Management and Information Systems
12. Computer Supported . Work (CSCW)
13. Business Support Systems
• Service is related to value cocreation
among actors.
• Adopting a Service view improves
positive interaction between
entities in reticular system.
• Service co-creation involves many
actors within a dynamic process.
• Service exchangers need evolving
expertises and competencies.
Service is an ever complex issue to deal with.
Service Science
The service-dominated economy has been multisectoral
and transdisciplinary. This makes difficult to define a new
kind of discipline that could be considered really “cross
and unifying”. There are important academic debates on
how to describe the implications of service concept
characterizations both for basic and applied research.
Service Science focuses on a new and updated service
concept, on the study of service systems and on the
recent conceptual and interpretative development of
smart service systems.
Service Science, Management,
Engineering and Design
Service Science, Management, Engineering and Design (SSMED), proposes several
prospects of investigation and embraces many fields of interest and application.
• In terms of Science, it investigates what service systems are and how they really
evolve, focusing on the active role of the people employed in them, of knowledge, of
shared information, and of technologies, as well as on the importance of the active
participation of the services’ users (the demand) in the production process (offer);
• In terms of Management it investigates possible solutions for implementing
evaluation of efficiency, sustainability reports, and systemic interaction within
service systems;
• In terms of Engineering it is responsible for developing new technologies for the
processes of detection, measurement, and dissemination of information-essential
for sharing in the contemporary process of value-generation;
• In terms of Design it seeks to deepen the appropriate configuration techniques for
the proper structuring of service systems.
Service Science, Management,
Engineering and Design
Service systems are value-creation networks composed of
(Bryson et al. 2004; Maglio et al. 2006):
• People
• Organizations
• Technology
• Shared information
Service Systems
• promote real-time relationships and accelerate up colearning
processes in many fields (e.g. smart services in the
energy sector, transport, etc.).
• come from systematic methods, continuous learning, data
collection, innovation, social responsibility and network
governance, and all the operations that benefit from the
application of new technologies.
Service systems: value-co-creation configuration of people,
technology, value propositions connecting internal and
external service systems, and shared information able to
create and deliver value to providers, users and other
interested entities, through service.
SPOHRER, MAGLIO, BAILEY AND GRUHL (2007)
(1) Service Systems: definition
The aim of service system is to
use its own resources and the
resources exchanged with
other actors to improve its
own and other’s well-being
Service
systems
SSMED Foundations Main Focus
Resources: Everything that has a name and is useful can be viewed as a resource Useful instruments for
activities
Entities: Some complex resource configurations can initiate actions, and these are
called service system entities (or just entities, or sometimes just service systems)
Openness of evolving
systems
Access rights: dealing with the social norms and legal regulations associated with
resource access and usage.
Supra-Systemsrelevance
Value Co-creation Interactions: Also known as value-proposition-based interaction
mechanisms
Jointprocess within Service
Systems
Governance Interactions: Intuitively, governance mechanisms are a type of valueproposition
between an authority service system entity and a population of
governed service system entities
Common finality,internal
andexternal equilibrium
Outcomes: When service system entities interact, value-co-creation is only one of
the possible outcomes.
Valueintendedin an
extendedway
Stakeholders: The four primary types of stakeholders are customer, provider,
authority, and competitor
Contextualinfluencesand
self-regulation
Measures: The four primary types of measures are quality, productivity,
compliance, and sustainable innovation
Up to now only qualitative
Networks: Also known as service system networks, service systems entities interact
with other service system entities (normatively) via value-propositions
Networked embeddedness
SSMED Key Concepts
Value-Co-creation
Entities
(Systems)
Interactions
(Networks)
Outcomes
(Value Changes)
Value Proposition
Based Interactions
Governance Mechanism
Based Interactions
Access Rights
Measures
(Rankings)
Resources
Stakeholders
(Roles)
win-win
lose-lose win-lose
lose-win
Source: www.ibm.com
Luca Carrubbo – Brno 2017
value-co-creation configurations,
resources integrators,
knowledge-based,
capable of enabling connections and interaction,
with the aim of reaching desired outcomes,
simply, always, an operative application,
any number of elements, interconnections, attributes,
and stakeholders interacting in a co-productive
relationship.
… a Service System is basically composed of heterogeneous
entities, interacting with each other with specific purposes
5
(2) Service Systems: definition
Service System definitions Authors Year
Service systems represent value co-creation configuration of people, technology, value propositions connecting internal
and external service systems , and shared information (e.g., language, laws, measures, and methods), like an assemblage
of unites entities by some form of regular interaction or interdependence.
Spohrer, Maglio, Bailey
and Gruhl
2007
Service Systems can simply be a software application, or a business unit with an organization, from a project team, a
business department, a global division; it can be a firm, institution, government agency, town, city or nation; it can also be
a compostiion of numerous collaboratively connected service systems within and/or across organizations.
Qiu, Fang, Shen and Yu 2007
Service Systems act as resource integrators, understandable in terms of elements of a work system, within the
organization and through the network enduring resource specialization, those operand and operant, such as knowledge,
skills, know-how, relationship, competences, people, products, money, etc.
Spohrer, Anderson, Pass
and Ager
2008
Every service systems is both a provider and client of service that is connected by value propositions in value chains, value
networks, or value-creating systems.
Vargo, Maglio and Akaka 2008
A service system is any number of elements, inteconnections, attributes, and stakeholders interacting in a co-productive
relationship that create value, in which principal interactions take place at the interface between the provider and the
customer.
Spohrer, Vargo, Maglio
and Caswell
2008
A service system primarly relates to customer-provider interactions as well as open system with it being capable of
improving its own state and the one of another system though acquiring, sharing, or applying resources, with the aim of
creating a basis for systematic service innovation.
Golinelli 2008
Service systems are a complex interplay betwwen form and customer that form an open system which needs to be
designed using the techniques of viable systems and systems dynamics, in which both parties are focused on achieving
outcomes.
Ng and Maull 2008
Service systems can be divided into “front stage” (about provider/customer interactions) and “back stage” (about
operational efficiency) and service performance relies on both of them, putting people (customers and employees),
rather than physical goods, in the centre of its organizational structure and operations. The smallest service system is a
single person; the largest one is represented by the global economy. A service system essentially is a social-technical
system, focusing on engineering and delivering services using all available means to realize respective values for both
provider and customer.
Qiu 2009
Service systems can be represented as real networks, in which the same entities combine their streghts through direct
and indircet connectivity, as they are oriented toward enduring competitiveness and daily intercations with other external
interdependent service systems.
Polese 2009
Luca Carrubbo – Brno 2017
«A service system is any number of elements,
interconnections, attributes and stakeholders interacting in a
co-productive relationship that create value, in which the
principal interactions take place at the interface between the
provider and the customer»
The different definitions
Spohrer, Vargo,
Maglio and
Caswell, 2008
«A service system primarily relates to customer-provider
interactions as well as open system with it being capable of
improving its own state and the one of another system
though acquiring, sharing, or applying resources, with the
aim of creating a basis for systematic service innovation»
Golinelli, 2008
«Service systems can be represented as real networks, in
which the same entities combine their strengths through
direct and indirect connectivity, as they are oriented toward
enduring competitiveness and daily interactions with other
external interdependent service systems»
Polese, 2009
The concept derives from systemic vision and network theory
(Richardson, 1972; Normann and Ramirez, 1993; Castells,
1996; Capra, 2002)
Service Systems: origins
entity emerging from a specific structure (organzationalphysical
equipment) thanks to interactions among all system’s
members (Barile, 2013).
Aim: survival through the acquisition (and the exchange) of
knowledge from the other systems situated in the context
which leads to the creation of new knowledge.
Since value co- creation is centred on knowledge exchange to
acquire mutual benefits, system is the most adequate
configuration for companies aiming at acquiring sustainable
competitive advantage.
System
Luca Carrubbo – Brno 2017
• “complex of interacting elements” (Von Bertalaffy, 1956)
• “an entity that is adaptable for the purpose of surviving in its changing
environment” (Beer, 1975);
• “entity which is a coherent whole” (Ng, Maull and Yip, 2009)
From Systems Theory
Composed of many parts (Parsons, 1965), boundaries,
connections and different relationships with relevant
stakeholders based on the sharing of critical and
influential capabilities
sub-systems focus on the analysis of relationships
among its own internal components while suprasystems
focus on the connections between the analysis
unit and other influencing systemic entities in their
context (Golinelli, 2005)
SYSTEM
Actors &
connections
SUB-SYSTEMS
SUPRA-SYSTEMS
Today, service systems represent an emerging issue in economic
research, all-encompassing many specific topics (innovation,
smart cities and communities) and even quality, traditionally
related to technologies and processes
MAIN REFERENCES:
ALTER, S. (2008)
SPOHRER, J., VARGO, S.L., MAGLIO, P.P, CASWELL, N. (2008)
Service Systems
Reinterpretation of service design, service supply and fruition, in
which multiple active actors synergistically participate in the
value co-creation process, which is characterized by resourcesharing
and common finality.
Service Science, Management,
Engineering and Design
SSMEDProcesses and
Business
Models
People
and
Culture
Science and
Technology
Information
Organizations: interconnected systems entities
sharing the same value system.
(1) Service Systems: ORGANIZATIONS
A Service system is composed of a network of organizations
carrying out integrations of multiple resources in order to
achieve reciprocal benefits for all the stakeholders.
Every member of the system has its own interests and pursues
specific aims. Thus, managers should seek to harmonize the
differing needs of each subject in an attempt to satisfy the
stakeholder’s demands and, at the same, the well-being of the
system. Individual
objectives
System’s
Goal
Human factor is essential to balance the
needs of all the stakeholders.
(2) Service Systems: PEOPLE
Knowledge is the real added value to foster value co- creation,
since this process is grounded of the exchange of internal and
external (contextual) competencies and resources
In a market based on intangibilities, service delivery does not
represent only economic exchange, but can be undesrtood as the
result of the integration of the specialized skills of each member.
Customers can help firm to improve service starting from service
design, by sharing their capabilities and creativity.
ICTs: opportunities for providers and consumers to
exchange resources, fostering the sharing of value
propositions at intra- and inter-organizational level
(3) Service Systems: TECHNOLOGY
The diffusion of new technologies and platforms (community,
forum, blog, social network) can enhance the interactions among
stakeholders, with an increase in stakeholder engagement.
Users can make comments and judge service quality, providing
organizations with suggestions on the improvement of the
offering.
The more the social and relational capital grow, the more the
knowledge exchanged intensifies.
The possibility to transfer every kind of information in real time
permits users to play a predominant role in business decisionmaking
and service improvement
(4) Service Systems: INFORMATION
Through technology and ICTs co- creators can
constantly share flows of information, increase
their knoweldge, strenghten relationships and
modify their behaviors to pursue common goals.
The combination of the 4 elements of service systems
(organizations, people, technologies and information) allows to
create value through the implementation of a networked system
in which companies, institutions, organizations and users share a
systematic flux of information and know-how, which can be
managed in an efficient way thanks to technology
Service System as Value Network
People
Shared
Information
Organizations
Technology
Luca Carrubbo – Brno 2017
iterative, interactive, instrumented, interconnected, intelligent
S.M.A.R.T.: Specific, Measurable, Agreed, Realistic and Timely
(More measurement data, More networks, More learning and adaptation)
Smart traffic
systems
Smart water
management
Smart energy
grids
Smart
healthcare
Smart food
systems
Intelligent
oil field
technologies
Smart regionsSmart
weather
Smart
countries
Smart supply
chains
Smart cities
Smart retail
Source: www.ibm.com/think
Complex Service Systems
Luca Carrubbo – Brno 2017
Smarter Food
Making retail smarter
Iterative, interactive, instrumented, interconnected, intelligent
(More measurement data, More networks, More learning and adaptation)
Smarter Products
Smarter Planet
There is an increasing demand for ‘smart service systems’ based upon ICT, to
create a basis for systematic and sustainable service innovation in complex
environment.
Smart Service Systems
S.M.A.R.T.: Specific, Measurable, Agreed, Realistic and Timely
(More measurement data, More networks, More learning and adaptation)
Smart service systems are service systems in which smart
products are boundary-objects that integrate resources and
activities of the involved actors for mutual benefit.
SSS concerns several elements interacting with each other and
working together for a common final goal, through smart
solutions.
Smart service systems need to be understood as complex,
open, and dynamic sociotechnical systems.
Smart Service Systems definition
Service Science vs S-D logic
SPOHRER, J., ANDERSON, L., PASS, N., AGER, T. (2008)
SPOHRER, J. MAGLIO, P.P., BAILEY, J., GRUHL, D. (2007)
VARGO, S.L., LUSCH, R.F., WESSELS, G. (2008)
• Relational approach to business
• Focus on resources (RBV)
• Many-to-many logics to business
behaviour
Similarities with SDL
Differences with SDL
• Practical approach
• Technological- Informational focus
• Smart vision on planet
• Measurement of service and
systematic search for innovation
and continuous improvement
Antonietta Megaro
amegaro@unisa.it
THANK YOU.
Questions? Comments?