Stephen K. Kwan, San José State University, CA, USA Contact: [email protected] Presented at the...
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Stephen K. Kwan, San José State University, CA, USA http://www.sjsu.edu/ssme Contact: [email protected] Presented at the Case Studies in Service Innovation Conference SSMEnetUK, Manchester Business School June 14-15, 2010, Manchester, UK Service Systems, Value Propositions and Service Innovation
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Transcript of Stephen K. Kwan, San José State University, CA, USA Contact: [email protected] Presented at the...
Stephen K. Kwan,San José State University, CA, USA
http://www.sjsu.edu/ssme
Contact: [email protected]
Presented at the Case Studies in Service Innovation Conference
SSMEnetUK, Manchester Business SchoolJune 14-15, 2010, Manchester, UK
Service Systems, Value Propositions,and Service Innovation
2Kwan & Yuan 2010
Motivation
• Service Dominant Logic – high level perspective of provider-customer interaction
• Service Science – Static Value Propositions before start of service
Service Value Networks – provides symmetry between provider and customer driven value co-creation
Customers dynamically enhance value based on creation/choice of service value network endpoints – leads to more service value varieties and innovative opportunities
3Kwan &Yuan 2010
From:
To:
Formulation of Value
To:
Customer Value = (Results + Process Quality ) / (Price + Customer Access Costs)
Heskett et all 1997
Harvey 2005
Better Off
ServiceExperience
ServiceProvider
Customer
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.
Service System Worldview1
4Kwan & Yuan2010
5
ServiceSystem A
ServiceSystem B
ServiceSystem C
ServiceSystem D
ServiceSystem E
ServiceSystem F
Service Interactions
5
A Service System Network
Kwan & Yuan2010
6
ServiceSystem A
ServiceSystem B
ServiceSystem C
ServiceSystem D
ServiceSystem E
ServiceSystem F
Service Interactions
6
A Service Supply Chain
Kwan & Yuan 2010
7Kwan &Yuan 2010
Example: Purchases from Amazon.com
Amazon.comBookcloseout_us
nengland4
theBookGrinder
Customer
USPS
USPS
USPS
Service Supply Network
USPS
“transparent”service provider
Not being evaluated
Example: Purchases from Amazon.com
ServiceExperience
ServiceProvider
Customer
Society
Community
Competition
Partners
Service System
Employees &Stockholders
Service System Worldview
9Kwan & Yuan 2010
ServiceExperience
ServiceProvider
Customer
Society
Community
Competition
Partners
Employees &Stockholders
Service System Worldview
10Kwan & Yuan 2010
MarketSegmentation
ServiceConceptRealized
CustomerFlow &ServiceDelivery
OperatingStrategy
FacilityLocation& Design
Capacity& Manpower
Planning,Training
CompetitiveStrategy
SocialNetworking
ServiceExperience
ServiceProvider
Customer
Society
Community
Competition
Partners
Service System
Employees &Stockholders
Value
Value
Governance
Value
11
Value
Value Co-Creation Through Value Propositions
Kwan & Yun 2010
12Kwan 2010
InformationTechnology
Platform
Service Provider’s Back Stage Support
BackStage
Processes
FrontStage
ProcessesFront Stage
Service Computing
Service Systems, Computing, and IT Services1
1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008.
ITSM – Management of the Processesand Infrastructure of IT Services
13
Customer
ServiceExperience
ServiceProvider
Stage 1: Value Chain
FocalRelationship
Value Proposition
Stages in Customer Empowermentin Value Co-Creation
Kwan & Yuan 2010
14
Stage 2: Traditional Service Value Network
Customer
ServiceExperience
ServiceProvider
Value Proposition
Provider PartnerNetwork
FocalRelationship
Value Proposition
Kwan & Yuan 2010
Stage 3 – Improved Value Chain
Customer’sSocial
Network
Customer
ServiceExperience
ServiceProvider
Value Proposition
FocalRelationship
Value Proposition
Kwan & Yuan 2010
16Kwan & Yuan 2010
Product Placements
Ad’s and “Buy Me”
TV Programs
Their Friends
Target Audience
Example of Customer DrivenService Value Network
Illustration from: Vascellaro, J. A. “Video’s New Friends”, The Wall Street Journal, February 28, 2008.
17Kwan &Yuan 2010
Taking Advantage of Social Networks
Stage 4: Customer Driven Service Value Network
Customer’sSocial
Network
Customer
ServiceExperience
ServiceProvider
Value Proposition
FocalRelationship
Value Proposition
Provider PartnerNetwork
Value Proposition
Kwan & Yuan 2010
19
Stages of Customer Empowerment
12
34
Sta
keho
lder
s
Service Provider
Society
Community
Employees
Stockholders
Partners
Customers
A point in this 3-D space is a Potential Value
Proposition
Strategic Directions
Variety of Value Propositions
Econom
icE
nvironmental
Societal
SocialP
olitical
Kwan & Yuan 2010
20
Value Propositions can also be bi-directional
Service Provider
Society
Community
Employees
Stockholders
Partners
Customers
Ser
vice
Pro
vide
r
Soc
iety
Com
mun
ity
Em
ploy
ees
Sto
ckho
lder
s
Par
tner
s
Cus
tom
ers
??
Kwan & Yuan 2010
21Kwan &Yuan 2010
Innovation
CREATINGSOMETHING
NEW
혁신創新创新革新
Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value.
National Innovation Initiative
Innovation can happen anyway on the Value Chain!
(business model, organization, environment, process, technology, etc.)
ServiceExperience
ServiceProvider
Customer
Society
Community
Competition
Partners
Employees &Stockholders
Example: Theodoulidis et al. “Innovation Perspective of a
Personal Financial Services Call Center
22Kwan & Yuan 2010
MarketSegmentation
ServiceConceptRealized
CustomerFlow &ServiceDelivery
OperatingStrategy
FacilityLocation& Design
Capacity& Manpower
Planning,Training
CompetitiveStrategy
√ √ √
√
√
√
√
23Kwan &Yuan 2010
Business Process Management Game from IBM
24Kwan &Yuan 2010
Innov8
25Kwan &Yuan 2010 25
Using the Game to LearnAbout Service SystemsWith Multiple Queues
Innov8
26
Example: Andrea Cocchi,“Innovation by Intermediation”
Kwan & Yuan 2010
27
Example: Jinluan Ren“Innovation in … CMMB”
Customer
CBBM ServiceExperience
CBC
Provider PartnerNetwork
Kwan & Yuan 2010
CBBM for Subscription Fees,Value-added Service
EricssonAdvertisers, Elec. Comm.
Licenseand Fees
China Mobile
TeleComm. Companies
28
Stages of Customer Empowerment
12
34
Sta
keho
lder
s
Service Provider
Society
Community
Employees
Stockholders
Partners
Customers
Strategic Directions
Example: Mark Stein“Sustainable Procurement in the UK Public Sector”
Econom
icE
nvironmental
Societal
SocialP
olitical
Kwan & Yuan 2010
* energy usage * Carbon dioxide/methane emissions * other
emissions * water pollution * waste to landfill * hazardous substances *
natural resources * water * biodiversity * local environment
* energy usage * Carbon dioxide/methane emissions * other emissions * water pollution * waste to landfill * hazardous substances * natural resources * water * biodiversity * local environment
* employment, diversity, education * health * community * developing world supply chains
29
Stages of Customer Empowerment
12
34
Sta
keho
lder
s
Service Provider
Society
Community
Employees
Stockholders
Partners
Customers
Strategic Directions
Example: Peter Ward“SMS for Life, ……”
Econom
icE
nvironmental
Societal
SocialP
olitical
Kwan & Yuan 2010
Roll Back Malaria
* energy usage * Carbon dioxide/methane emissions * other emissions * water pollution * waste to landfill * hazardous substances * natural resources * water * biodiversity * local environment
30
How the Framework could complement the Foresight Method applied to Services
© Cockayne and Carleton
31
How the Framework could complement the Foresight Method applied to Services
© Cockayne and Carleton
Global Innovation NetworkProject
32
How the Framework could complement the Foresight Method applied to Services
© Cockayne and Carleton
Service SystemThinking
Business Models &Value Propositions
33Kwan & Yuan 2010
Example of how the Framework could complement an Innovation Method applied to Services
UML – Use Cases
Service Blueprint
Story Boards
UI Prototyping
BPMN
etc.
MANGA textbooks
Kwan 2010 34
Teaching MBA Class at Sogang University
34Kwan & Yuan 2010
35
Using the Foresight Method
36
Sample Project from SJSU MBA Students
36Kwan & Yuan 2010
37Kwan &Yuan 2010
Teaching the method for “Service Made in ?country?”
Stephen K. Kwan,San José State University, CA, USA
http://www.sjsu.edu/ssme
Contact: [email protected]
Presented at the Case Studies in Service Innovation Conference
SSMEnetUK, Manchester Business SchoolJune 14-15, 2010, Manchester, UK
Service Systems, Value Propositions,and Service Innovation
