SSME Introduction

SSME S ervice S ciences, M anagement & E ngineering

S ervice S cience, M anagement, and E ngineering (SSME) is a term introduced by IBM to describe Services Sciences, an interdisciplinary approach to the study, design, and implementation of services systems complex systems in which specific arrangements of people and technologies take actions that provide value for others More precisely, SSME has been defined as the application of science, management, and engineering disciplines … to tasks that one organization beneficially performs for and with another SSME IT .. Bridging Knowledge Operations Management Marketing Human Resource Management Engineering Information Technology Arts etc ENG OM HR MKT

Services Services are anything of economic value that cannot be dropped on your foot the key to service value is in actions , performed now or promised for the future. Services transform/protect or promise to transform/protect a state of the target of the service. The client may not have the skill, time, desire, or authority to perform self-service, do it themselves. Services often create mutual interdependencies. Services are value coproduction performances and promises between clients and providers, with alternative work sharing, risk sharing, information sharing, asset sharing, and decision sharing arrangements and relationships (promises to perform now or in the future, once or repeatedly, when needed or demanded, standard or customized, satisfaction guaranteed or best effort, service levels fixed or variable) SSME Aims Make productivity, quality, compliance, sustainability, learning rates, and innovation rates more predictable in the service sector especially complex organization to organization services – business to business, nation to nation, organization to population Jim Spohrer, Ontolog Forum | http://ontolog.cim3.net | December 8th, 2005

SSME There are many reasons for focusing on services and interdisciplinary approaches to it: The economies of most developed countries are dominated by services 70% of the labor, GDP, etc. Even traditional manufacturing companies such as GE (70% services revenue) and IBM (50% services revenue) need to add high values services to grow their businesses. Information services and business services are two of the fastest growing segments of the service economy. Nederland | 73,5% GDP: Service industry Jim Spohrer, Ontolog Forum | http://ontolog.cim3.net | December 8th, 2005

Service marketing – customer focus service quality, customer satisfaction and loyalty, service encounters, servicescapes, blueprinting, customer-centric innovation, generating revenue and loyalty through service(s), technology-delivered service, co-production and co-creation of service, self-service technologies Service operations – internal system and process focus service operations design, queuing theory, efficient delivery of services, technology-delivered service, yield management Service management – employee focus service-profit chain, service orientation, frontline service, service culture and climate, linkage theory, hiring practices for service, service strategy SSME Note: There is intriguing overlap in the research represented by the three disciplinary streams Topics explored in the past 20 years Since 2004, IBM has been working with many pioneers in these streams to call for a systematic approach to service research and education. The initiative was clearly driven by IBM’s own substantial growth in services and its recognition of a potential future shortage of knowledge and skills required for service innovation Zeithaml, Parasuraman, Berry Fitzsimmons, Fitzsimmons Heskett, Sasser, Schlesinger Examples

Accounting Consulting Design Advertising I.T. Maintenance Etc. Construction Food Textiles Metal Machinery Chemical Etc, Self-service Business-To-business service Transformative services Services Between firms Service inside The firm Marketed Services Finance, banking, insurance, legal, real estate, etc Business services Personal Services Domestic Hotel Entertainment Repairs, Etc Distributive services Wholesale, storage, retail, transportation, communication Nonmarketed services Education, heath, social welfare, public administration, police, legal, fire, defense, etc Consumer service The Browning-Singlemann classification Services proximity to the final customer The distinction between industry and service sectors is, in fact, largely irrelevant. Clearly, these two sectors are evolving in symbiosis: services cannot prosper without a powerful industrial sector, and industry is dependent on services. Products can be seen as the physical embodiment of the service provided: cars provide comfortable transport, and television sets deliver entertainment. This inevitably means that in today’s world, the distinction between industry and services becomes artificial and meaningless. ◄ Usefull classification ? Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006

Product excellence and scale Industrial- ization Experience Commodities Relatively pure goods Service intensive goods and consumer durables Goods and information intensive services Relatively pure services industry services Service aspect Product aspect ◄ Backstage activities Transformation Labor & Capital Raw materials Finished products Pure Product Experience Labor & Capital Pure Service Probably the best way to understand the difference between services and manufacturing is to contrast the two activities using a blackbox approach to represent each — and asking the simple questions “What goes into the black box?” and “What comes out?” Frontstage activities ► Services is frontstage Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006 Customer Customer

Service experience Customer - Service System - ◄ front stage back stage ► Service provider Service system Usability Responseness Flexibility/ customization/ uniqueness Transparency Enjoyment Efficiency/ productivity Robustness Standardization/ reuse Scalability ◄ front stage back stage ► represents the interaction the customer or service consumer has with the service is the part of the service value chain that the service consumer can't see 1) Service system and its entities Every organization, whether in business, government, health care or education consists of front stage and back stage activities. Services deal with the front stage interactions ; manufacturing and production with the back stage operations . Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006

Service provider Service experience Customer Partners Competition - Service System - Society Community Employees & Stakeholders Service experience Customer - Service System - 1) Service system and its entities 4) Stakeholders in service system worldview ◄ front stage back stage ► Service provider Service system Service System A Service System B Service System C Service System E Service System F Service Interactions 3) Service Supply Network Service System D 2) Service Systems Network 2) Service system network | 3) Service supply network An Evolutionary Framework of Service Systems, Kwan, Min , 2008

Teboul Service Intensity Matrix Intensity of Interaction (process | people) ◄ customization standardization ► ▲ high level of interaction low level of Interaction ▼ Expected correlation Outcome (product) Service experience front stage Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006

Sofitel Novotel Ibis Etap Formule 1 $130 $80 $50 $32 $25 Rich and customized service Limited standardized service High intensity Low intensity 1,5 employees/ room Varity Customization Limited Standard 0,8 employees/ room 0,6 employees/ room 0,4 employees/ room 0,3 employees/ room 0,16 employees/ room Intensity Of Interaction hotels The intensity of interaction can also be measured in the number of employees per room, as shown for Marriott hotels. hotels Service experience The Service Intensity Matrix is very useful for positioning services in the same industry Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006 Ritz Carlton Marriott hotels Marriott Hotels suite Residence Inn CourtYard Fairefield

Variety customization Standard product High intensity Low intensity Job shop Production line Gourmet restaurant Flexible Functional organization Fast food Rigid sequence of operations Back stage Product-process matrix ▼ Front-stage and back-stage matrices for the restaurant business The back stage and the front stage are clearly two different worlds. Lessons drawn from manufacturing do not necessarily apply to services, and vice versa. An insurance company can invest considerable amounts in its backstage activities to achieve economies of scale, but this effort may lose much of its effectiveness if the company neglects its interface with customers. However, understanding the difference between front stage and back stage does not mean that they must be separated. Our distinction, which is intentionally exaggerated, should not lead us to deform the reality. These two components are closely interwoven. They are both part of the same system, and backstage activities exist to support the front stage." Service provider Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006 ▲ Front stage Service-intensity matrix

Variety, customization, Richness of interaction Standard transaction Face-to-face interaction Online processing Intensity of interaction Reduce reach for greater richness of interaction sacrifice richness for greater reach Traditional trade-off add richness at low cost with participation Positioning in E-service front stage Service is Front Stage, Positioning Services for Value Advantage, James Teboul , 2006

Supplier Production process Customer Inputs Outputs Supplier Production process Customer Inputs Outputs With service processes, the customer provides significant inputs into the production process. With manufacturing processes, groups of customers may contribute ideas to the design of the product, but individual customers' only participation is to select and/or consume the output. All managerial concerns unique to service operations are founded in this customer-input distinction . 1) Non-Service I/O Model (e.g., make-to-stock manufacturing) 2) Service I/O Model Clarifying services operations management with a unified services theory, Froehle & Sampson, POMS CHRONICLE VOLUME13 NUMBER 1 Unified Services Theory (UST)

A service system is nevertheless distinguished from other types of systems by the fact that the customer may be actively involved in all nine classes: customer - as initiator and receiver of the service the customer is characterized as looking for novelty, reliability - or both goals - as setting the primary objectives for the design and operation of the service t he service should an Internet shopper to configure the product variant he wishes to purchase input - as a client upon whom the service is to be performed a patient coming for treatment output - as a client upon whom a service has been performed the patient after treatment process - as a participant in the process an Internet sales transaction incorporates a dialogue facility between a customer and a sales agent human enabler - as a resource in the process an Internet sales transaction involves the customer as an independent agent physical enabler - as providing a resource to the process an Internet shopper uses his own computer to access the vendor site informatic enabler - as applying his own knowledge to the process an Internet shopper uses his own know-how regarding the product to configure the model he wishes to buy environment - as setting constraints or standards for acceptable service levels Internet shopper demands 24-hour availability of a dialogue facility Advances in Services Innovations, Kani, Karner, 2007 Customer involvement

customer inputs outputs capital labor knowledge facilities producer critical audience customer inputs outputs critical audience material inputs capital labor knowledge facilities service provider on-demand manufacturing processes user input intensity low high “ With services, the primary inventory costs are costs to the customer , including psychological costs of being inventoried in a queue and good will costs of being unable to receive appropriate service.” Customer as inventory Services as Customer-Intensive Systems Managing quality is difficult in service processes for a variety of reasons, many of which stem from customer inputs. “ Customer inputs can be incomplete (e.g., tax documents), unprepared (e.g., students), or have unrealistic expectations (e.g., cancer patient). This lack of consistency in the quality of customer-supplied inputs represents a challenge for the service provider to deliver on promises when inputs are questionable.” Services as customer intensive systems, Pinhanez, 2007

The Seven Service Design Contexts : Seven Contexts for Service System Design, Robert J. Glushko , 2009, http://people.ischool.berkeley.edu/~glushko/glushko_files/SevenContexts.pdf Provider Customer Provider Customer Technology Provider Customer Technology Provider Customer Technology Customer Technology Provider Customer Technology Provider Customer 2 Customer 3 Customer n Customer Provider Technology Customer Device independent Service Technology 2 Customer Technology 1 Technology 3 Technology n Customer Customer Customer Computational service Computational service Provider Customer Computational service Computational service 1 Computational service 2 Computational service 3 2. Tech-enhanced p2p 3. Self-service 4. Multi-channel 5. Multiple devices 6. Computational service 7. Location-based & context-aware service 1. Person-to-person Context Diagrams Assisted Facilitated Customer improvised Legend Information exchange No direct exchange Service transformation Label Subcategory Channel binding C2C “Crowdsourcing” Derivational and Compositional Relationships

2. Tech-enhanced p2p 3. Self-service 4. Multi-channel 5. Multiple devices 6. Computational service 7. Location-based & context-aware service 1. Person-to-person Context Personalization Ergonomics, usability Complementarity, reciprocity, integration Consistency, scaleability Information and process standards, choreography Sensor technology Empowerment, touch points, line of visibility Concepts and concerns Customer modeling and segmentation, CRM Iterative prototyping, heuristic evaluation, customer analytics Process modeling Capability modeling, model-based interfaces, graceful degradation Use cases, data and document modeling, service oriented architecture, design patterns Managing identify and privacy Ethnography, blueprinting, personas Methods The Seven Service Design Contexts : Seven Contexts for Service System Design, Robert J. Glushko , 2009, http://people.ischool.berkeley.edu/~glushko/glushko_files/SevenContexts.pdf

Service System Design An interdisciplinary framework that integrates the design of various levels of the multi-interface service system. SSD stages 1. Customer experience mapping (Customer Experience Requirements) 2. Positioning the service system in the customer value constellation of offerings 3. Designing the service system a. Service system architecture b. Service system navigation 4. Designing the service interaction experience Patrício, Fisk, Cunha, Constantine, 2008 Overall customer experience Value constellation Overall service experience Multi-interface Service system service interaction experience service experience Blueprint The different levels of Service system design

Customer value constellation Multi-channel Service System Service interaction The different levels of Service system design Patrício, Fisk, Cunha, Constantine, 2008

Car information services Personal recommendations Registration office Insurance company Car manufacturer Car dealer Buying a car Bank Customer value constellation for buying a car Positioning the Service system in the customer value constellation The firm must position its service offering within the value-creating system, by positioning the service system in the constellation of service offerings. The core of a bank’s services is financial services, but many banks have made partnerships with other companies to enhance their ability to add value to the overall customer experience for a given activity, such as buying a house. Patrício, Fisk, Cunha, Constantine, 2008

Service system architecture for bank loans Service system architecture The Service System Architecture defines, for the different tasks along the service experience, which channels and support processes are responsible for the overall service offering. This architecture therefore depicts the structure of the service system, providing an integrated view of the multi-channel service offering Patrício, Fisk, Cunha, Constantine, 2008

Service system navigation for loans partial view Service System Navigation The Service System Navigation maps the alternative paths customers may take across the different channels along the tasks of the service experience. This view allows for better identification and design of service interface links that enable customers to smoothly move from one channel to another along the service experience. The service system navigation therefore offers a dynamic view of the service system. Patrício, Fisk, Cunha, Constantine, 2008

Service Experience Blueprint After the multi-interface level view of the service system, the design can drill down to each concrete channel, using the Service Experience Blueprint (SEB) diagram. The SEB maps the interaction experience for a given task in a concrete interface, based on customer experience requirements. Service experience blueprint Patrício, Fisk, Cunha, Constantine, 2008

SSME Introduction

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SSME Introduction