A Business Logic of Services
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The document outlines the business logic of services, emphasizing their role as products offered by service producers aligned with customer intent and capability. It defines services and categorizes them into distinct classes while exploring their impacts, commitment levels, and the importance of managing change effectively in service procurement. Additionally, it discusses how the interplay of various business factors affects service selection and value creation.
A Business Logic of Services
- 1. A Business Logic of Services Why Services Make Sense, If And When They Do © 2014 Malcolm Ryder / archestraresearch
- 2. How to use this notebook The following series of notes is nota fast read, nota slide show, and notan ebook. The sequence of notes goes overa line of thought compiling a range of empirical observations distinguishing services from other business production resources. No external citations are included or necessary in this notebook. All text and images in the notebook are copyrighted. ©2014 Malcolm Ryder / archestraresearch
- 3. Who Cares? Service Producers •Services are the “product” offered by the service producer. The product acceptance and utilization must grow from successful relevance to the customer’s intent and from the customer’s product- enabled capability. The highest product value derives from it being used where it is needed, not merely where it is available. Service Users •Industrial development, funding, and competition all independently change and can separately or together modify the probability that existing operations can reliably create and defend the opportunities necessary for the business. The business must anticipate and coordinate those independent factors to exploit change and manage risk.
- 4. Why Services? Remove barriers to agility Complexity Impermanence Economy of Scope Maintenance, Knowledge, Quality Expense, Conservation, Need Opportunity Capacity vs. vs. vs. vs. vs. Service design Service availability ©2014 Malcolm Ryder / archestraresearch
- 5. What is a service? Regardless of type, means or implementation, all services have the same distinguishing definition: •A “service” is a set of outputs from an ongoing operation, that are available to a requester, on demand by the requester, under terms of agreement. Operational outputs can occur continuously without ever acquiring accessibility, utility and manageability as a service. Some outputs of an operation can be offered as a service while other outputs of the same operation may not be offered.A requester can be a person or a device. A service offers a design, a vehicle, and a method of obtaining the operational outputs. But regardless of the formof the service –for example, being a technology, an activity, or a blend of the two –the qualifying definition of a “service” never changes.
- 7. DELIVER PROVIDE FULFILL SUPPLY OUTCOME OUTPUT ENABLE SUPPORT REACTIVE PROACTIVE TACTICAL STRATEGIC As shown in the matrix, the business logic of the varieties of service corrects a very common misperception. The correction is that the four central activities are not “attributes” or “phases” of a service. Nor are they synonyms. Instead, they are four different classes of services that can be offered, which immediately affects the services catalog. SERVICE CLASS VARIATIONS ©2014 Malcolm Ryder / archestraresearch
- 8. CONTRACTED JOINED SUBSCRIBED ACQUIRED OUTCOME OUTPUT ENABLE SUPPORT REACTIVE PROACTIVE TACTICAL STRATEGIC Obtaining service implicitly includes a level of recipient underwriting that is distinguishable by levels of commitment. The commitment is an investment in a blend of purpose and risk. For the service client, the level of commitment usually corresponds to how much an opportunity cost is considered to be an investment. SERVICE PROCUREMENT ©2014 Malcolm Ryder / archestraresearch
- 9. PROTECT PRODUCE MANAGE COMPLY OUTCOME OUTPUT ENABLE SUPPORT REACTIVE PROACTIVE TACTICAL STRATEGIC Intended impacts correspond to designated responsibilities, which mainly identify roles in a relationship between the service vendor and the service client. “Performance” criteria apply through the context of the responsibility. SERVICE IMPACT ©2014 Malcolm Ryder / archestraresearch
- 10. PREFERRED ESSENTIAL CRITICAL ACCEPTED OUTCOME OUTPUT ENABLE SUPPORT REACTIVE PROACTIVE TACTICAL STRATEGIC The type and level of attraction of the service reflects a type of need behind a demand. Proactive value has more requiredsignificance. Reactive value has more discretionarysignificance. Integrationstrengthens towards the proactive. Adoptionstrengthens towards the strategic. SERVICE VALUE ©2014 Malcolm Ryder / archestraresearch
- 12. Business Difference Service is obtained to “make a difference”, with a calculated persistence, in an effectively managed way. This requires the service introduction to cause a “change” to occur. The executive concern: Using the correct approach for solving the right problem The four classes of services take on significance according to a variety of businessperspectivesthat test the propriety of the available service. The perspectives examine the idea of what business change is most important, and what mode of change is most effective for that purpose.
- 13. Why change?Decision Factors Perspective Options Adoption Importance Assurance Subject choosing the offer defining the scope of change incorporating the effort targeting the effects Variable service class results drivers roles Issue selection risk investment stakes priority authorization solution management Discussion points commitment, responsibility, dependency intention, development, goal initiatives, demand, impact intention, optimization, result Available? Relevant? Compatible? Effective? Client perspectives vet the service against the current state: ©2014 Malcolm Ryder / archestraresearch
- 14. Objective Purpose Status Effect Requirement Enable Outcomes Provide Joined Produce Essential Support Outcomes Deliver Contracted Protect Critical Enable Outputs Fulfill Subscribed Manage Preferred Support Outputs Supply Acquired Comply Acceptable Service Class Commitment Responsibility Dependency Increasing fusion of vendor-client business model Service Selection (Business Options) ©2014 Malcolm Ryder / archestraresearch
- 15. Objective Future State Business Effect Business Change Returns Enable Outcomes Model JointProduction Innovation Advantage Support Outcomes Performance AssuredReliability Progress Competency Enable Outputs Position Secured Capacity Productivity Continuity Compatibility Support Outputs Resource Certified Quality Activity Compliance Reliability Result Intended Developed Goal Service Investment (Business Adoption) Stakes are taken in accordance with the priority (importance @ urgency) of “intent” Increasing fusion of vendor-client business model ©2014 Malcolm Ryder / archestraresearch
- 16. Objective Goal Objective Action Change Enable Outcomes Reduce competition for opportunities Advantage Provide Innovation Support Outcomes Maximize assets Competency Deliver Progress Enable Outputs Minimize risk of status quo Compatibility & Continuity Fulfill Productivity Support Outputs Raise baseline of acceptability Compliance & Reliability Supply Activity Drivers Initiatives Demand Impact Service Priority (Business Importance) Clients will authorize internal and external organizations to prioritize objectives per the chosen goal Increasing fusion of vendor-client business model ©2014 Malcolm Ryder / archestraresearch
- 17. Objective Service Function Business Effect Business Scope Future State Enable Outcomes Essential Provision JointProduction Structural Model Support Outcomes Critical Delivery AssuredReliability Transactional Performance Enable Outputs Preferred Fulfillment Secured Capacity Environmental Position Support Outputs Acceptable Supply Certified Quality Procedural Resource Role Intended Optimal Result Service Management (Business Assurance) Service results are planned “solutions” for leveraging opportunity Increasing fusion of vendor-client business model ©2014 Malcolm Ryder / archestraresearch
- 19. Objective Business Scope + Future State Change Scenario Improvement Enable Outcomes Structural Model Innovation Market strategy Leverage Support Outcomes Transactional Performance Progress Businessdevelopment Brand Enable Outputs Environmental Position Productivity Operations Scale Support Outputs Procedural Resource Activity Procurement Quality Opportunity + Result Impact Context Benefit Value Hierarchy Increasing fusion of vendor-client business model Business is focused on recovery, maintenance, or upgrades of benefits ©2014 Malcolm Ryder / archestraresearch
- 20. © 2014 Malcolm Ryder / archestraresearch mryder@malcolmryder.com