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In this Issue

• June 2017 Newsletter

• New Programme!Ecosystems Strategy

• Service Week 2017 -Bridging to newservice technology

• New Deputy Directorof the ServiceAlliance

• Exploring the Journeyto Services - ThoughtLeadership Blog

• Webinar -Ecosystems valueframework

• RECODE Network atCIRP ManufacturingSystems 2017 -Taiwan

• 2 day executiveprogramme - Makingthe shift to services

• Service ExcellenceProgramme - Veolia

• Human-TechnologyFrontier for SmartServices

• Risks of outcome-based servicecontracts

• UK Defence andSecurity InnovationInitiative

• Theme update -Making the shift toservices

• Business ecosystemsclassification

• Webinar - B2Bpartnerships

• Theme update - Dataanalytics for services

June 2017 Newsletter

Welcome to the June 2017 edition of the Cambridge Service Alliancenewsletter. This quarter has seen some interesting developments forthe Alliance, including the appointment of Dr Mohamed Zaki asDeputy Director, and the introduction of our new executiveprogramme on Business Ecosystems, which you can find out moreabout below. We hope you enjoy this edition of the newsletter. Pleaseforward this to any colleagues who may be interested using the linkabove. If you would like to hear more about the Alliance or find outhow you can get involved please contact us.

Andy Neely, Director, Cambridge Service Alliance

New Programme! Ecosystems Strategy

We are pleased to announce a new executive programme onEcosystems Strategy, to be held in Cambridge on 22 November2017. This new programme builds on expertise developed in theEcosystems, Value Mapping and Analysis Research Stream, andprovides an opportunity for executives to learn first hand some of thetechniques developed by the Alliance. This course will show you how,through understanding your business' ecosystem and leveragingpartnerships, you can deliver services quickly and effectively. [more]

• Alliance Visitor -Martin Fritz

• Bridging the co-creation gap

• Tim Pearceplacement at AlanTuring Institute

• Seminar on co-creation in LivingLabs

• Theme update:Ecosystems valuemapping and analysis

• Exploring the Journeyto Services

OUTPUTS/PRESENTATIONSAND EVENTS

Events

Executive Programmes

Shift to Services 2-dayprogramme 15-16 November 2017

Ecosystems 1-dayprogramme 22 November 2017

Community Of Interest

2017

11-12 July28-29 November

Cambridge Service Week 2017

5-6 October: AcademicConference10 October: Industry Day11 October: Partners Day

Webinars

Service Week 2017 - Bridging to new servicetechnology

Cambridge Service Week 2017 willcommence with the AcademicConference on 5-6 October, followed bythe Industry Day Conference on Tuesday10 October and a Partner only event on11 October. The theme for this year will be 'Bridging to “new”service technology'. At this event the speakers will be examining notonly the technologies important for service delivery, but will be lookingat what needs to be done in the short term to enable your organisationto be ready for these technologies. They will give examples of digitalservice strategy and will show how they create value throughtechnology today and plan to do so in the future. [more]

New Deputy Director of the Service Alliance

Dr Mohamed Zaki has been appointed asDeputy Director of the Cambridge ServiceAlliance, to provide local leadership,following Professor Andy Neely’sappointment as Pro-Vice-Chancellor:Enterprise and Business Relations.Professor Neely intends to stay involvedin the Alliance and participate as activelyas he can. Dr Zaki's research interests liein the field of Big Data advancedmodelling and its application on digital

manufacturing and services. He uses an interdisciplinary approach todata science techniques to address a range of real organisations’problems. Dr Zaki is research manager and co-investigator in manyUK research councils projects (EPSRC/ESRC) and industrial researchprojects sponsored by big organisations such as IBM, Cisco, BAESystems, Caterpillar, Rolls Royce, Zoetis, Pearson, GEA FoodManufacturer.

Exploring the Journey to Services - ThoughtLeadership Blog

Many organisations, whenexploring their transition toServices ask themselves thequestion: ‘what does aservice journey look like?'. Atthe Cambridge ServiceAlliance, this question alsoemerged when our IndustryPartners met to discuss ‘theshift to services’ – amongthem Presidents, VicePresidents and Directors ofCaterpillar, Zoetis, GEA, IBM,BAE Systems and Pearson.Interestingly, around the

10 July 2017 - BusinessEcosystems: Towards aClassification Model -Florian Urmetzer

12 June 2017 - Exploringthe Journey to Services -Veronica Martinez

8 May 2017 - A Processfor B2B Partnerships:designing to delivercapability acrosscompanies - FlorianUrmetzer

10 April 2017 -Investigating risks ofoutcome-based servicecontracts from aprovider’s perspective -Jingchen Hou

13 March 2017 - TheEcosystem ValueFramework: SupportingManagers to UnderstandValue Exchange betweenCore Businesses inService Ecosystems -Florian Urmetzer

Presentations andPapers

Papers

'Exploring the Journeyto Services', by VeronicaMartinez, Andy Neely,Chander Velu, StewartLeinster-Evans and DavBisessar

‘Bridging the Co-creation Gap BetweenCo-creators,Companies and LivingLab’ by Katharina Greve,Veronica Martinez andAndy Neely

'Business Ecosystems:Towards a ClassificationModel' by FlorianUrmetzer, Andy Neely andVeronica Martinez

Exploring the Journeyto Services, Martinez V.,Neely A., Velu C, Leinster-Evans S. and Bisessar D.(2017).  InternationalJournal of ProductionEconomics. (In Press)

table, none of the firms couldarticulate the lessons fromtheir own service journeys ina comprehensive manner.This is not an uncommonissue in organisationsembarking on the journey toprovide services.

So, we setup aninterdisciplinary team ofacademic and industrialpartners to explore theJourney to Services. Theconcept itself is not new butcertainly largely unexplored.Through 7 years of an in-depth study of three comparable firms andcountless sets of workshops and interviews with other firms (foracademic details please read our journal paper), we jointly discoveredwhat a service journey looks like:

The Five Key Lessons You Need to Know about the Service Journeyare:

1. The service journey in industrial manufacturers is neither logical norstructured but much more emergent and intuitive in nature.

2. Similar steps, different journeys. Some organisations followedsimilar steps but the sequence of these were different. Often thesequence of steps in the service journey is described as a ‘backand forth’ sequence – or trial and error. Exploited by choices, thetypical examples include: the services are ready to be sold, but thesales training and/or incentives for selling services are missing.Services are offered to customers, customers buy them, but theaccounting systems are set to manage product transactions andnot service contracts. Services are designed, as products,consequently the service experience is missed and gradually theservices fail.

3. The evolution and coexistence of different services. Typically, in thefirst three years of the service journey, organisations incrementallyevolve by offering basic to intermediate services. After the fourthyear, organisations follow ‘the continuous evolution of the basicand intermediate services and the emergence of complexservices’. Then, the coexistence of basic, intermediate andcomplex services varies across the service continuum.

4. The pace of change. Once organisations embark in the servicejourney, they are in continuous ‘change’ (flux) as opposed topunctuated interventions of change. This is the continuous granularchange at different functional levels throughout the organisation.

5. Service Strategy: Seven associated stages of the service strategymodel should be considered by organisations to manage theirservice journeys.

From our perspective, we think the understanding of the servicejourney has evolved significantly over recent years. This is the firstframework that longitudinally maps the journey to services. Firmswhich have used the framework express more confidence in managingthe transition process and are more prepared to handle the issues thatthey confront. In future, organisations urgently need to focus on the

'The interplay ofcustomer experienceand commitment', byTimothyKeiningham, JoanBall, Sabine Benoit (néeMoeller), Helen L.Bruce, AlexanderBuoye, JulijaDzenkovska, LindaNasr, Yi-Chun Oh, andMohamed Zaki,(2017), Journal ofServices Marketing, Vol.31 Iss: 2.

'The Role of Big Data toFacilitate RedistributedManufacturing Using aCo-creation Lens:Patterns fromConsumer Goods', byMohamed Zaki, BabisTheodoulidis, PhilipShapira, Andy Neely, andEfe Surekli (2017),Procedia CIRP,Forthcoming July 2017.

'Digital RedistributedManufacturing (RdM)Studio: A Data-DrivenApproach to BusinessModel Development', byChristopher Turner,Ashutosh Tiwari1, JoseLuis Rivas Pizarroso1,Mariale Morenol,Doroteya Vladimirova ,Mohamed Zaki , andMartin Geißdörfer (2017),in Sustainable Design andManufacturing 2017,Smart Innovation,Systems andTechnologies 68, SpringerInternational Publishing

'Dynamics of innovationmade in LATAM', byDavid Diaz and MohamedZaki “Lo ‘Big’ y lo notanto”,(2017), “Dinámicas de lainnovación made inLATAM”, SpanishTranslation.

dynamic evolution of their service journeys, particularly on theproactive management of individual lifecycles of their services. AsJoseph Schumpeter expressed – the importance to focus on the‘creative destruction’ within their processes of transformation.

Read our monthly paper,  journal paper ‘Exploring the journey toservices’ or listen to our podcast.

PODCAST recording on thisresearch with Dr VeronicaMartinez

Webinar - Ecosystems value framework

In this webinar FlorianUrmetzer discusses the paper'The Ecosystem ValueFramework: SupportingManagers to UnderstandValue Exchange betweenCore Businesses in ServiceEcosystems', which focuseson building a framework tohelp solve a factual problemoften described by the managerial staff of companies. [more] [watch]

RECODE Network at CIRP ManufacturingSystems 2017 - Taiwan

Mohamed Zaki presented hisfeasibility study 'The Role ofBig Data to FacilitateRedistributed ManufacturingUsing a Co-creation Lens:Patterns from ConsumerGoods', at the RECODEWorkshop at CIRPmanufacturing systems 2017conference in Taichung,Taiwan. The paper proposes aconceptual framework tostimulate and organisethinking about emerginginterrelationships between bigdata, co-creation and

redistributed manufacturing, built upon an extensive literature reviewand qualitative analysis of 15 cases from the consumer goods industryusing primary and secondary data. [more]

2 day executive programme - Making the shiftto services

New dates for the next edition of the Alliance's popular two-dayexecutive workshop, 'Making the Shift to Services', have beenannounced. This will again be held on 15-16 November 2017, at theIfM, Cambridge, where delegates will be introduced to the idea ofservitization in the manufacturing context, looking particularly at therole of technology and big data. [Watch a webinarintroduction] [book]

Service Excellence Programme - Veolia

A Two-Day ServiceExcellence Programme hasbeen developed anddelivered to Veolia by theCambridge Service Alliance.The participants werebusiness unit managers fromVeolia Water Technologiesand other Veolia product

groups. The work included pre-interviews with all attending managersto assess participants needs. Then, the bespoke programme wasdesigned and executed. The work included the development ofservice innovations for the business units. The newly developedservices concepts will be presented to the CEO of Veolia in Paris onthe 16 June 2017.

Human-Technology Frontier for Smart Services

Dr. Veronica Martinez wasinvited to Silicon Valley todebate the human-technology frontier for nextgeneration of smart services.The event was sponsored by the the National Science Foundation &ISSIP on the 28 and 29 March 2017.  The Final Agenda with

presentations is available along with presentations made during theworkshop.

Risks of outcome-based service contracts

'Investigating risks ofoutcome-based servicecontracts from a provider’sperspective'

In this webinar Jingchendiscusses her paper whichreports her research into therisks of outcome-basedcontracts. Increasinglyservitized companies use outcome-based contracts (OBCs) orperformance-based contracts (PBCs) to provide advanced servicessuch as availability or capability. By proposing the risk framework ofOBCs, this paper provides guidance for risk management forpractitioners who use outcome-based contracts for the serviceprovision. [more]

UK Defence and Security Innovation Initiative

The Cambridge ServiceAlliance was represented byDr Florian Urmetzer at the UKDefence and SecurityInnovation Initiative eventorganised by the Ministry ofDefence, CambridgeEnterprise and the MaxwellCentre. Florian presentedinsights and learnings intotransferring his own research on Ecosystem mapping and valueexchange into BAE Systems. The research is now used in the solutionsales cycle of BAE Systems. The meeting introduced the 'The Defenceand Security Accelerator', which is the new part of the 'DefenceScience and Technology Laboratory (DSTL)', and aims at increasing ofresearch for defence.

Theme update - Making the shift to services

This month, the shift to service team welcomed the fantastic additionof two members: Caroline Burstall from Perkins and Chris Weeks fromCaterpillar. In this phase of the project, we interviewed the 'Provides'of Digital Twins. IBM and Siemens participated this month in ourresearch. Multiple interviewees from Design to ImplementationDepartments shared with us their 'realities as to how Digital Twins areused and applied to diverse contexts'. We explored how Digital Twinsare shaping the future of our industries, in particular the ServiceIndustry. From this exploratory data gathering, we learnt that DigitalTwins have different levels and dimensions that are important tounderstand in the mission of extracting the Best in Class companies.A convergent agreement among the interviewees shows that the

Digital Twins have a long and strong trajectory for Future Product-Service Business Models. [more]

Business ecosystems classification

The Alliance paper for April focused onclassification of business ecosystems,which allows the differentiation of inter-company connections. The problem arosefor the researchers that the definition of abusiness ecosystem lacks separation inthe types of connection betweencompanies. Business ecosystems arefound to differentiate significantly, startingfrom loosely coupled to highly regulatedand organised company relationships.Some may even result in newly foundedbusiness ventures. [more]

Webinar - B2B partnerships

In this webinar FlorianUrmetzer discusses theexecutive briefing on 'AProcess for B2BPartnerships - designing todeliver capability acrosscompanies'. The briefingaimed to provide a handrailprocess for consideration of adiscussion on how to build a

partnership and drive it towards delivery. [webinar]

Theme update - Data analytics for services

This year the Data Analytics for Services Theme will be focusing onService Consumer's Experience Analytics. The project aims todevelop a methodology using big data and cognitive computing forunderstanding the service consumer’s experience through theconsumer journey. This year, we will experiment with one of ourpartners, how we can capture and analyse the raw components of CX(e.g., social listening, text, mobile applications, location-based data) tofurther understand CX and the consumer journey. The project aims todevelop a review app and a text mining methodology forunderstanding the service consumer’s experience in real time and usethe generated insights to improve and design better service delivery.[more]

Alliance Visitor - Martin Fritz

We are pleased to welcome Martin Fritzeto the Cambridge Service Alliance.  Martinjoins us as a visitor and will be working ona joint research project with Florian

Urmetzer. The project seeks toconceptually examine and empiricallyinvestigate strategic threats ofservitization. Martin P. Fritze is a PhDstudent at the Institute for Marketing andService Research at University of Rostockin Germany. Martin’s research bridges theknowledge on product and servicesmarketing. Most recently, he investigatesthe role of possessions and ownership inthe service context. [more]

Bridging the co-creation gap

Living labs offer a new open innovationplatform for companies to engage in co-creation. This study offers first insightsinto the operational activities, designstructures and data collection approacheswhich are implemented to facilitate theco-creation process in living labs. Thestudy integrates findings from asystematic literature review with primarydata collected with managers andresearchers of a living lab calledJOSEPHS, co-creators and companiesthat have utilized the living lab. [more]

Tim Pearce placement at Alan Turing Institute

Alliance PhD researcher Tim Pearce hashas been accepted onto the Alan TuringInstitute (ATI) PhD enrichment schemeand will be based there for the academicyear 2017-18. The ATI is the nationalcentre for data science research. Tim willcontinue to work on his PhD topic inwarranty data analytics, and hopes tobenefit from being in surroundings at theforefront of machine learning and AIresearch.

Seminar on co-creation in Living Labs

Katharina Greve recently gave a seminaron 'Co-creation in Living Labs: AnInterorganisational Perspective' at CarloCattaneo University in Castellanza, Italy.The focus of the seminar was theinteraction between different stakeholdersthat engage in co-creation in the contextof JOSEPHS - a German living lab fornew product and service development. Inaddition, Katharina presented empirical

findings that describe how co-creation can be facilitated in a largenetwork of stakeholders that are involved in living labs. This seminarhas been part of a series of postgraduate lectures in the 'CompanyNetworks Management and Design' course at Carlo CattaneoUniversity (LIUC). [more]

Theme update: Ecosystems value mapping andanalysis

This research revolves around how to design a firm, or a part of thefirm, that allows the delivery of a solution to a customer that haschanging needs over time. This is taking into consideration theintegration to multiple partners of a business ecosystem. Theproblems firms are facing is that the orchestration of service deliveryacross firms, is often based on contracts. However the value deliveryoften needs to be flexible over time, this has an impact on execution,accountability, capability and capacity of firms as well as theircustomers. We understand well that customers’ needs to service andsolution delivery needs change over time. [more]

Exploring the Journey to Services

Firms are increasingly providing servicesto complement their product offerings.This study investigates ‘what does aservice journey look like?’ It analysesthe actual service journeys undertaken bythree firms in the well-being, engineeringand learning sectors. This paper tells you;i) Why the fourth year in the transition toservices is crucial. ii) Why the pace ofservice development is important, and iii)When the coexistence of basic,intermediate and complex servicesoccurs. [more]

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