Service and System thinking
Department of Computer Systems and Communications
Academic Year: 2024-2025
Francesco Caputo
Francesco.caputo2@unina.it
Service and Systems Design
Product processes Vs. Service processes
Product process
Service process
Source: Dhaliwal et al., 2011: pp.3-4
The “mental model of ‘products’ and ‘services’ does not appear to be helpful in
thinking about twenty-first century organizations. Perhaps it is time to jettison this
mental model (Lovelock 2004) and move instead to the concept of a continuum of
outputs” (Dhaliwal et al., 2011:. p. 4)
Product processes Vs. Service processes
An updated view of Service provision
Source: Purchase et al., 2011: p. 124
An updated view of Service provision
Source: Y.-H. Tan et al., 2011: p. 53
Steps for Service and Systems Design
✓ Step I: Identify an Operations Domain and Scope the Opportunity
✓ Step II: Characterize, Model and Optimize the Environment
✓ Step III: Develop Effective Human Factors Practices
✓ Step IV: Develop Tools, Training and Support Infrastructure for a Large Scale
Rollout
✓ Step V: Integrate with Related Corporate Processes
✓ Step VI: Deliver Business Results on a Large Scale
Source: Ray, 2011
Slack et al. (2006) have identified five sources of competitive advantage in the
service design.
Competitive advantages in Service Design
Competitive advantages in Service and Systems Design
“Through their services or products,
organizations seek to elicit favorable
customer experiences that stimulate the
behaviors of repetition (customers buy
the service or product again) and
service/product promotion (satisfied
customers advocate use of the service
or product amongst their social
network)” (Dhaliwa et al., 2011: p. 7).
Competitive advantages in Service and Systems Design
Components of customer–provider alignment
Source: Luftman et al., 2011: p. 149
Relevant issues for Service Design
Issues Description
Intangible
“Intangible things are not physical objects and only exist in
connection to other things” (p. 21).
Heterogeneous
“A common service varies according to the context, nature and
requirements of each customer” (p. 21).
Inseparable
“Services may be said to be inextricably linked with customers in
terms of production and consumption and so it is said that service is
inseparable” (p. 22).
Perishable
“Services are not a stock of fixed assets and it is not possible to store
services in inventories” (p.22).
Source: Elaboration from Parry et al, 2011
Elements for Service and Systems Design
Elements Product Service
Experience
It refers to the producers’ ability
to reduce the cost and to align
the product’s characteristics to
the market needs.
It refers the complex of interactions
and relationships between providers
and users needed to support the
service delivery.
Quality
It refers to the tangible
characteristics of products and it
can measured ex-ante.
It is based on the perception of users
and it is measured in terms of
differences between expectations and
reality.
Tradability
It refers to the payment to
acquire the ownership of a
specific product.
It refers to the relationships between
users and providers direct to ensure
the co-creation of service.
Service Management Vs. Product Management
The three questions that make up the core paradigm are the questions that
preoccupy managerial decision-making in transactional service organisations:
✓How much work is coming in?
✓How many people have I got?
✓How long do they take to do things?
In line with Chase’s ideas about efficiency (Chase 1978), managers think of their
job as a resource-management problem.
Source: Seddon et al., 2011: pp. 43-44
The core paradigm leads managers to do the following types of things in pursuit of
improving service operations:
✓ Reduce average activity time (through procedures, job aids, call coaching and
✓ targets)
✓ Use I.T. to replace, support or control the service agent
✓ Outsource activity to lower-cost organisations/economies
✓ Increase functional specialisation (to reduce training costs)
✓ Standardise work processes
✓ Put similar work into back-office factories
Source: Seddon et al., 2011: pp. 43-44
Service Management Vs. Product Management
The value Matrix for Service Design
A general map for Service and Systems Design
A general map for Service and Systems Design
Source: Y.-H. Tan et al., 2011: p. 62
1. Provide the Vision
“If there is likely to be an impact on people’s jobs it should also set out how the
organization will support those involved”.
2. Make Sure You Are Visible
“The role of Leader is to inspire and empower and in doing so they release talent from
those around them”.
3. Focus on the Priorities
“If change to the culture is required then you need to understand how the existing
structure and systems reinforce it”.
4. Communicate
“It is essential to communicate all the time so that you maintain a shared vision of the
future; one that will sustain the organization through the tough decisions that will need
to be taken”.
Leadership in Service and Systems Design
Source: Smart et al. 2011: pp. 155-156
Questions ???