Extending conceptualization of

service systems: The case of public

transport system development in

Slovenia

Tomaž Kolar, Faculty of Economics Ljubljana, Slovenia

Agenda

• Theoretical background: Services systems

• Structural elements >

• Managerial issues

• Empirical research: Institutional comparison

• Findings, implications and future prospects

Service marketing system - Servuction

(Source: Lovelock & Wirtz 2010)

Serviscape model

(Source: Bitner, 1992; from: Lovelock & Wirtz 2010)

Service science view

„Service system is configuration of

people, technologies, organizations

and shared information, able to create

and deliver value to providers, users

and other interested entities, through

service”

Maglio and Spohrer (2008a)

General / Viable systems view

Concepts Marketing implications

Systems

approach

Customers, businesses, communities, can all be seen as systems.

„PTS as organization which produce traffic“

Systems

hierarchy

Every actor in a market is a resource integrator that coordinates its

own resources (components/sub-systems) and a set of

acquired/available resources (released by suprasystems).

Open

systems

Organizations do not create value in isolation, but in

various value co-creation processes.The notion of co-creation

implies vanishing boundaries between actors within markets.

Systems

viability

Every actor in a market attempts to behave in a viable,

sustainable, and harmonious manner in pursuit of its own goals.

Reduction-

ism and

holism

A full understanding of the market requires both an holistic view of

the whole and the analysis of individual elements and their

relationships.

Source: Barile and Polese (2011)

Business ecosystems view

Healthy ecosytem:

• Productivity / Robustness

• Diversity (niche players)

• Keystone organizations

(> common platforms &

resources)

Macromarketing view

Marketing systems are complex, adaptive, social

networks in which both structure and function are

important for dynamic matching of goods and

needs. There is some diversity in the level of

aggregation, in the roles of coordination and

control, in the link with broader exchange or

economic systems, and in the identification of

system boundaries and components.“

(Layton, 2007)

Researching marketing systems

• Environment; Initial Conditions,

Boundaries, Inputs

• Components; Subsystems, Relationships,

Flows, Stakeholders

• Attributes; Static/dynamic, governance,

adaptivity, innovation

• Outcomes; Economic, Satisfaction,

Quality of life, Externalities

Continuum of relevant system theories

MICRO MACRO

Servuction

Serviscape

Service

science

Business

ecosystems

Marketing

systems

Management / Marketing role / tasks !?

Boundary spanning marketing

organization (Hult, 2011)

Empirical research – goals:

• Identification of relevant components and attributes

of PTS system

• Reccomendations for design and management of

PTS system

• Key improvements and tools for increased

awareness and use of PTS system

• Relevant inputs, expected outputs and key external

influences on the PTS system

• Warranted customer role in the PTS system

Method and informants

Survey among representatives of five institutions:

• Government/Ministry of infrastructure

• Urban planning institute

• Civic association for sustainable development

• Faculty of economics (marketing department)

• Start-up company (mobile applications for traffic)

Short questionnaire with 13 open-ended questions, related with

research goals (e.g.):

Long-term improvement of awareness/use through PTS improvements

• „What priorities should guide the development of the PTS in the future?“

• „Which elements and activities of the PTS are crucial for its performance?“

• „What role should users of PTS play in the development of the PTS?“

Findings: PTS components and attributes

Broad agreement: From fragmentation > integration of various

sub-systems / levels;

• State / regions / cities

• Bus / train („Road traffic (too) high priority“)

• Uncoordinated: schedules, ticket systems

• Closed / static / dependent system

Different views on:

• Role of information / knowledge for PTS development

• „Pathological dependence on car in Slovenia“ (> symbolic /

ideological aspect of PTS – car as „enemy“)

• System limits: PTS as open system, including private cars,

car-sharing initiatives, taxi companies, parking facilities, etc.

Findings : inputs and outcomes of PTS

Broad agreement on:

• Needed hard, „enabling“ resources; financial, infrastructure

and political support

• Key outputs/performance criteria: acess,

development/efficiency, low price and user satisfaction

Diverging views on:

• Role of soft inputs/resources (knowledge, strategy,

information)?

• Expected outputs; Long-term, external outputs; quality of life

(health etc.), economic, social, ecological externalities = hi or

no priority!?

• Subsidization of transport companies

Findings: design and governance

Broad agreement on;

• Public, state owned, governed, centrally planned and

controlled PTS

• Integration, efficiency, „product“ improvements (e.g. BUS

lines) and promotion of PTS as managerial priorities

• Important stakeholders: various institutions (incl. schools,

social sciencies, local communities), technological

companies, users

Less common;

• From project-based development to long-term process

based long-term planning and development

• Refocusing: from transport to MOBILITY management

• Possibilities/challenges; Move towards market-based,

corporate, independent and outcome-driven system

Findings: user/customer role

Agreement on: higher involvement and more active role

Diverging views on scope and extent of customer involvement;

• Users as target for change of „traffic habits“

• Satisfaction measurement and collecting suggestions

• Users participate in planning, information exchange

• Users contribute resources (cars, responsibilities!)

• Co-management and development of PTS

Implications and challenges

• Service systems: from micro/descriptive/service quality

towards strategic tool for value provision

• Structural > Dynamic / Managerial / In/Output issues

(> flows, transformational processes; self-regulation)

• Internal > external/holistic approach; service ecosystem

health, externalities, long-term impact on quality of life

• Enrichment and benefits of multidisciplinary approach

(conceptual, toolbox; personal mobility management; road

safety/ „Vision Zero“ - as learning example)

• Marketing role and its (system) contribution;

• downstream > upstream interventions

• Strategic choices (segmentation, positioning)

• Boundary-spanning and navigational role

• Platforms for Co-creation of value (Customers/stakeholders)

• Evaluation (marketing audit) of actual plans / projects

Thank you!

Questions welcomed