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![Constructing a Value Proposition
** Expected ** VPj = [SE,B,C,P,Q,Sc,R,M]j
Service Performance
Experience Metrics
Benefits
Stakeholder
Roles
Costs Quality
The Customer will will
will Probability Schema for Data
have a lot of VP’s do not
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Kwan, S.K., Muller-Gorchs, M. (2011). "Constructing Effective Value Propositions for Stakeholders in Service System Networks," Proceedings >
Proceedings of SIGSVC Workshop . Sprouts: Working Papers on Information Systems, 11(160). http://sprouts.aisnet.org/11-160
Kwan 2012 39](https://image.slidesharecdn.com/servicedesignyuanze120612-121205175752-phpapp02/75/Yuan-Ze-University-Service-Design-Basics-12-6-2012-39-2048.jpg)
Uploaded byStephen Kwan
Yuan Ze University - Service Design Basics, 12/6/2012
The document discusses service design from a modeling perspective that incorporates service thinking, system thinking, design thinking, and business thinking to provide an integrated approach across disciplines in the service design process. It outlines key concepts in service science, service systems, value co-creation, design thinking, and business thinking to demonstrate how an integrated modeling approach can effectively manage information and knowledge from design to engineering of service systems.
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Yuan Ze University - Service Design Basics, 12/6/2012
- 1. Service Design Basics– from System to Business Modeling Dr. Stephen K. Kwan Professor, Service Science Management Information Systems College of Business Administration San José State University, CA, USA http://www.sjsu.edu/ssme Contact: [email protected] Presented at Yuan Ze University December 6th, 2012, Taiwan Download these slides at: http://www.slideshare.net/StephenKwan Kwan 2012 1
- 2. Do you knowthe way to San José? Kwan 2012 2
- 3. Silicon Valley &ItsEnvirons Kwan 2012 3
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- 6. Abstract This presentation looksat service design from a modeling perspective that incorporates service thinking, system thinking, design thinking, and business thinking. This approach provides an avenue of integration across different disciplines and roles in the service design process. A desirable outcome of this integration would be more effective information and knowledge management from design to engineering of service systems. Kwan 2012 6
- 7. Some Definitions Service Scienceis 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. “Service Science, Management, Engineering, and Design (SSMED): An Emerging Discipline – Outline and References”, International Journal of Information Systems in the Service Sector, 1(3), 2009. Kwan 2012 7
- 8. Service System Worldview1 Service Customer Provider Service Experience A Service System and Its Entities 1Kwan, S. K. & Min, J. H. (2008) “An Evolutionary Framework of Service Systems”. Presented at the International Conference on Service Science, Beijing, China, April 17-18. Kwan 2012 8
- 9. A Service SystemNetwork Service Service Interactions System A Service System B Service Service System E System C Service System D Service System F Kwan 2012 9
- 10. Service System Worldview Employees & Stockholders Community Service Customer Provider Service Partners Experience Service System Competition Society Kwan 2012 10
- 11. Value Co-Creation ThroughValue Propositions Employees & Value Stockholders Community Value Service Value Customer Provider Value Service Partners Experience Service System Competition Society Kwan 2012 11
- 12. Service Systems, Computing,and IT Services1 Service Provider’s Back Stage Support Back Stage Processes Information Technology Platform Front Stage Front Stage Processes ITSM – Management of the Processes Service Computing and Infrastructure of IT Services (e.g., SOA) 1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008. Kwan 2012 12
- 13. Service System Design(1) From: To: Service Customer System Design Service System Engineering Kwan 2012 13
- 14. Service System Design(2) Service System Design Business Thinking Thinking Thinking Thinking A Multi-disciplinary Approach Service Customer System Design Service System Engineering Knowledge Management – maintaining integrity of information and knowledge throughout the lifecycle Kwan 2012 14
- 15. What is Design(1) A conscious effort to create something that is artistic, purposeful, and better. Not casual, you have to work at it Creativity is needed here Object Product Service Kwan 2012 15
- 16. What is Design(2) A conscious effort to create something that is artistic, purposeful, and better. Pure Art Kwan 2012 16
- 17. What is Design(3) A conscious effort to create something that is artistic, purposeful, and better. Utilitarian, Commodity Kwan 2012 17
- 18. What is Design(4) A conscious effort to create something that is artistic, purposeful, and better. Form Function Desirable State Not easily Can apply metrics measurable and measurements Connection to engineering Kwan 2012 18
- 19. Design and Innovation Design New A conscious effort to create something that is artistic, purposeful, and better. ^ Unique Innovation Desirable 혁신 创新 Valuable… CREATING SOMETHING 創新 革新 NEW Kwan 2012 19
- 20. Service System Designas part of the Service System Life Cycle Design is an important component in the study of Service Systems e.g., SSMED – D is for Design Discovery Conception Operation Design Development Engineering Kwan 2012 20
- 21. Incorporating Multiple Perspectives in Modeling Competition External or Internal Forces Strategy Customers create impetus for Change Regulations Discovery Conception Obsolescence Technology Design Innovation Operation Servitization .. Development Engineering J. Bradford Jensen Kwan 2012 21
- 22. Incorporating Multiple Perspectives in Modeling for example: Service Thinking Servitization Platformtization Discovery Conception Open Service Innovation Operation Design Development Engineering (S-D) Logic - Service Dominant Logic Vargo & Lusch Kwan 2012 and many more! 22
- 23. Foundational Premises ofService Dominant Logic Kwan 2012 23
- 24. Incorporating Multiple Perspectives in Modeling for example: System Thinking Discovery Conception Operation Design C. West Churchman Russell L. Ackoff Development Engineering and many more! Herbert Simon’s The Sciences of the Artificial Kwan, S. K. & Min, J. H. (2008) “An Evolutionary Framework of Service Systems”. Presented at the International Conference on Service Science, Beijing, China, April 17-18. Kwan 2012 24
- 25. Incorporating Multiple Perspectives in Modeling Discovery Conception Operation Design Design Thinking Development Engineering Kwan 2012 25
- 26. Design Thinking –some resources Emotional Innovation Business (Viability) Experience Innovation Design People Thinking (Desirability) Process Functional Innovation Technology Innovation (Feasibility) Kwan 2012 26
- 27. Design Thinking –some resources Peter G. Rowe Stickhorn & Schneider Thomas Lockwood Kwan 2012 27
- 28. Design Thinking –some resources Divergent Converge Thinking nt Thinking © Cockayne and Carleton Kwan 2012 28
- 29. Incorporating Multiple Perspectives in Modeling Discovery Conception Operation Design Business Thinking Development Engineering Kwan 2012 29
- 30. Business Thinking -Service System Worldview1 Employees & Stockholders Community Service Customer Provider Service Partners Experience Service System Competition Society 1Kwan, S. K. & Min, J. H. (2008) “An Evolutionary Framework of Service Systems”. Duplicate Presented at the International Conference on Service Science, Beijing, China, April 17-18. Slide Kwan 2012 30
- 31. Business Thinking -ValueCo-Creation Through Value Propositions Employees & Value Stockholders Community Value Service Value Customer Provider Value Service Partners Experience Service System Competition Society Duplicate Slide Kwan 2012 31
- 32. Stages in CustomerEmpowerment in Value Co-Creation Stage 1: Value Chain Value Proposition Focal Service Customer Relationship Provider Service Experience 5 Kwan, S. K. & Yuan, S. T. ”Customer-Driven Value Co-Creation in Service Networks”, 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 2012 32
- 33. Stage 2: TraditionalService Value Network Value Proposition Focal Service Customer Relationship Provider Provider Service Partner Experience Network Value Proposition cf. ICT-enabled service networks, mobile applications, etc. Kwan 2012 33
- 34. Stage 3 –Improved Value Chain Value Proposition Focal Service Customer Relationship Provider Value Proposition Service Customer’s Experience Social Network Kwan 2012 34
- 35. Stage 4: CustomerDriven Service Value Network Value Proposition Focal Service Customer Relationship Provider Value Value Proposition Proposition Provider Service Partner Customer’s Experience Social Network Network cf. “Resource Integrators” in Service Dominant Logic literature Kwan 2012 35
- 36. Variety of ValuePropositions Maslow’s Hierarchy Of Needs Service Provider Society Hedonic Stakeholders Spiritual Community Cultural Corporal Employees Emotional Intellectual Stockholders Familial…. Partners A point in this 3-D space is a potential Customers Value Proposition e.g. Service Provider / Society / Environmental Kwan 2012 36
- 37. Disposable Income & Desire for Services Needs vs. Wants Kwan 2012 37
- 38. Value Systems andValue Dimensions Provider’s Value System Opportunities for Value Co-Creation Customer’s ★ Value System ★ ★ ★ ★ ★ ★ ★ Kwan, S.K., Hottom, P., Kieliszewski, C. “Moving from B2X to B2X2Y Value Propositions in Service System Networks”, 1st International Conference on Human Side of Service His Customer’s Value System Engineering, HSSE 2012, San Francisco, 24 July, 2012. Kwan 2012 38
- 39. Constructing a ValueProposition ** Expected ** VPj = [SE,B,C,P,Q,Sc,R,M]j Service Performance Experience Metrics Benefits Stakeholder Roles Costs Quality The Customer will will will Probability Schema for Data have a lot of VP’s do not do of Success to choose from for +$ do Exchange Kwan, S.K., Muller-Gorchs, M. (2011). "Constructing Effective Value Propositions for Stakeholders in Service System Networks," Proceedings > Proceedings of SIGSVC Workshop . Sprouts: Working Papers on Information Systems, 11(160). http://sprouts.aisnet.org/11-160 Kwan 2012 39
- 40. Business Thinking –some resources Osterwalder & Pigneur Kwan 2012 40
- 41. Service System Framework & Service System Networks Foresight and Innovation Method Business Model, Value Propositions & Service Patterns © Cockayne and Carleton Kwan 2012 41
- 42. Foresight and InnovationMethod © Cockayne and Carleton Process Chain Network Diagram UI Prototyping UML – Use Cases BPMN Work System Looking for the MANGA right tools to connect to the Story Service Blueprint next stage Boards Kwan & Müller-Gorchs 2011 Kwan 2012 42
- 43. From Design toEngineering Discovery Conception Operation Design Development Engineering Engineering Discipline & Methodology Service Design Engineer? Kwan 2012 43
- 44. Some aspects ofService System Engineering Service Provider’s Back Stage Support Back Stage Processes Information Technology Platform Front Stage Front Stage Processes ITSM – Management of the Processes Service Computing and Infrastructure of IT Services (e.g., SOA) Duplicate 1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008. Slide Kwan 2012 44
- 45. Incorporating Multiple Perspectives in Modeling Discovery Conception Development Operation Design Discipline & Methodology Development Engineering and RAD, Agile, Extreme Programming, etc. Kwan 2012 45
- 46. Incorporating Multiple Perspectives in Modeling Discovery Conception Operations Design Operation Management Development Engineering Kwan 2012 46
- 47. Service System OperationalWorldview (1) Service Management Fitzsimmons & Fitzsimmons Employees & Capacity Stockholders & Manpower Planning, Community Training Service Customer Facility Location Provider & Design Service Partners Experience Social Networking Competition Competitive Market Customer Service Strategy Society Segmentation Flow & Concept Operating Service Realized Strategy Delivery Duplicate Slide Kwan 2012 47
- 48. Service System OperationalWorldview (2) Value Proposition Focal Service Customer Relationship Provider Value Value Proposition Proposition Provider Service Partner Customer’s Experience Social Network Network Information & Duplicate Knowledge Management Slide Kwan 2012 48
- 49. Information & Knowledge Management 2008 Olympic Games Both US teams dropped the baton Kwan 2012 49
- 50. Poor (Communication and)Information & Knowledge Management Kwan 2012 50
- 51. Information & Knowledge Management 2012 Olympic Games US men‟s won silver US women‟s won gold Kwan 2012 51
- 52. Information & Knowledge Management How can we effectively define, capture, share and maintain the information and knowledge from the different stages of the Service System Life Cycle? From: To: Kwan 2012 52
- 53. Information & KnowledgeManagement - Sharing the Canvas Customer Designer • Service Thinking • System Thinking • Design Thinking • Business Thinking Manager • Engineering Discipline Engineer • Development Discipline • Operations Management Operator Developer Who are these artists? Kwan 2012 53
- 54. T-shaped People (1) Industry says: “We need to hire more T-shaped people!” Across industries Complex Communications Across Fields Across cultures Across functions Across disciplines = More experienced Develop More adaptive New More collaborative Knowledge Broaden In-depth With With knowledge Research Based on slides by Global Jean Paul Jacob of IBM of a specific Educational discipline program Academia says: “We need to hire more T–shaped faculty!” Kwan 2012 54
- 55. T-shaped People (2) PaulHarris, “Help Wanted: „T-Shaped‟ Skills to meet 21st Century Needs”, T&D, September 2009 Kwan 2012 55
- 56. We need T-shapedPeople Who can work together as a Team Using Design Thinking as the basis of Project-based Team Building 56 Kwan 2012 56 Kwan 2012
- 57. Design Thinking forManagers Some Business Schools are teaching Design Thinking: Toronto Northwestern Maastricht Berkeley Virginia St. Gallen ………. Kwan 2012 57
- 58. T-shaped People (3) Kwan 2012 58
- 59. Service Design Basics– from System to Business Modeling Dr. Stephen K. Kwan Professor, Service Science Management Information Systems College of Business Administration San José State University, CA, USA http://www.sjsu.edu/ssme Contact: [email protected] Fin Presented at Yuan Ze University December 6th, 2012, Taiwan Download these slides at: http://www.slideshare.net/StephenKwan Kwan 2012 59
- 60. Value Proposition Model(VPM) Starting with the Service System Service Customer Provider Service Experience Kwan 2012 60
- 61. VPM – acommon example Service Customer Value Proposition Provider Customer Service Experience Service Customer Experience Service Experience Kwan 2012 61
- 62. VPM – individualsand community Service Customer Value Proposition Provider Community/ Social Customer Network A Shared Experience Service Experience Service Experience Customer Service Experience Kwan 2012 62
- 63. VPM – individualsand Facebook community Service Customer Value Proposition Provider Community/ Social Customer Network A Shared Experience Service Over 1 Billion !! Experience Service Experience Customer Service Experience Kwan 2012 63
- 64. VPM – serviceprovider partners Service Customer Provider Value Proposition Customer Service Service Experience Experience Service Experience Service Experience Value Proposition Vendor Kwan 2012 64
- 65. VPM – partner‟sacquistion of customer Service Customer Provider Customer Service Service Experience Experience Service Experience Service Experience Service Vendor Experience Kwan 2012 65
- 66. Example 1 of4 Service Customer Provider Customer Service Service Experience Experience Service Experience Service Experience Vendor Kwan 2012 66
- 67. Example 2 of4 Service Customer Provider Customer Service Service Experience Experience Service Service Experience Service Experience Experience Service Vendor Vendor Experience Kwan 2012 67
- 68. Example 3 of4 Service Customer Provider Customer Service Service Experience Experience Service Service Experience Service Experience Experience Service Vendor Vendor Experience Kwan 2012 68
- 69. Example 4 of4 Service Customer Provider Customer Service Service Experience Experience Service Experience Service Experience Service Vendor Experience Kwan 2012 69
- 70. Example: E-Commerce Customer Amazon.com Bookcloseout_us theBookGrinder nengland4 Kwan 2012 70
- 71. VP0 Se0 SE0 Amazon.com S0 SP0 Se1 Bookcloseout_us S1 SP1 S4 SP4 Customer Se2 theBookGrinder S2 SP2 S5 Se3 negland4 S3 SP3 S6 Kwan 2012 71
- 72. Service Pattern 1– Single Service Episode Customer Instantiation of the Service Experience at a particular point VP0 In time SE0 Focal Relationship Time SP0 SE0 = Service Experience provided by SP0 SP0 = Service Provider of the Focal Relationship (the basis of the Value Proposition from Kwan & Yuan 2011) VP0 = Value Proposition offered by SP0 to Customer for SE0 Kwan 2012 72
- 73. Pattern 2 –Continuous Service over a Period of Time Customer VP0 SE0 Time SP0 Kwan 2012 73
- 74. Service Pattern 3– Service in Parallel Customer VP0 SE0 Se0 Se1 Se2 Time Instantiation of the Service SP0 SP1 SP2 Experience at a particular point In time Kwan 2012 74
- 75. Pattern 3 –Continuous Service with Occasional Service Episodes Customer VP0 SE0 Se1 Se2 Se0 Time SP0 Kwan 2012 75
- 76. Pattern 4 –Service provided by more than one Partner Service Providers Customer VP0 SE1 SE2 SE3 SE0 Time SP0 SP1 SP2 SP3 VP1 VP3 SE4 SE6 VP2 SE5 Kwan 2012 76