A concept of Service Mediator ＆ Its potential Applications Minh Chau Doan* , Kunio Shirahada, Michitaka Kosaka Graduate school of Knowledge Science Japan Advanced Institute of Science and Technology

Potential Applications Contents Background Research objectives Introduction Service Dominant Logic Service Field Concept Foundations Concept Case Studies Verified model Service Mediator Local Governance Management Human Resource Management Potential Applications Conclusions Conclusion

Introduction Background Research objectives

Manufacturing shift to servitizing Background Service Value co-creation Satisfaction Optimal value in use ? Solution providers (Mediation) Manufacturing shift to servitizing Gaps in shifting operation Providers & users faces difficulties in collaboration Providers & users require more support to promote their business Neutral third party Transfer value only Do not actually engage in the collaboration process

Background Information service business ? ? ? ? ? ? ? ? ? ? ? ? ? Service customers Service providers How to match a7 a6 a9 a4 a3 a2 a1 a5 an a10 s1 s6 sn s2 s5 How to match s4 s10 s8 s9 s7 s3 ? ? ? ? ? ? ? ? ? ? ? ? ?

Service Mediator based on SDL & Service Field Research Objectives Matching supply and demand to extract value in use Support the collaboration Optimize service value co-creation Service Mediator based on SDL & Service Field Introduce a new business model concept: Service mediator model based on SDL & Service Field Propose potential applications for mediator model

Concept Foundations Service Dominant Logic Service Field

S-D Logic Foundations VALUE IN USE Customers Providers Customers Co-create Providers Customers Value proposition Providers Customers VALUE IN USE Value creation Co-create GOOD DOMINANT LOGIC SERVICE DOMINANT LOGIC Value in use depends on “customers’ agreement” 9/18/2018

Service Field Foundations People Promotion Providers Customers Service Time Cost Productivity Physical evidence Place Service Field : a cooperative environment containing all contexts of services

Service Field Foundations Magnetic field Electro magnetic power Electron charge electro-magnetic power = charge of electrons * the electro-magnetic field Service value = service * service field 9/18/2018

Service Mediator Concept Case Studies Verified model

Service mediator concept Classification of business models and new service model hypothesis

Hypothesis Co-creation Customers Providers Service Field Service Mediator Manage Support Service Field Place Time Cost Physical evidence People Promotion Service Productivity Providers Customers Co-creation Hypothesis of service mediator concept 9/18/2018

Hypothesis Required functions of Service Mediator Function 1 : Collect many providers and users information related to targeted service Function 2 : Match pair of providers and users perfectly based on service field Function 3 : Support the co-creation

Case studies Hitachi TWX-21 Famous IT service company in Japan Page 15 Hitachi TWX-21 Famous IT service company in Japan Have over 43.000 clients use its service TWX-21 cloud flatform to support service exchange Strong tools such as ASP or eMP to support the value co-creation

Hypothesis and Results Function 1: Collect many providers and users information related to targeted service Hitachi is a very famous and high reputation IT service company in Japan Function 2 : Match pair of providers and users perfectly based on service field Effective data processing and mining system Function 3 : Support the co-creation Powerful IT infrastructures 24/7 helpdesk Feedback system with “Do & Check” process Professional consultants

Case Studies Cookpad Inc. No.1 recipe website in Japan Page 17 Cookpad Inc. No.1 recipe website in Japan Over 1.000.000 users Huge database of recipe A cooperative website for manufacturers and consumers

Hypothesis and Results Function 1 : Collect many providers and users information related to targeted service Cookpad is No.1 recipe website in Japan Huge amount of users and access Function 2: Match pair of providers and users perfectly based on service field Powerful search engine to find right requirements of users Data mining to offer suggestions of cook-lovers’ behaviors to manufacturers. Function 3 : Support the co-creation Powerful IT infrastructures Dynamic marketing/campaign to pull and push users and manufacturers together Attractive interface and display of website

Verified model Information service firms 9/18/2018

Verified model Required functions of Service Mediator Function 1 : Trustworthy brand and effective exchange environment to collect many providers and users information related to targeted service Function 2 : Well-equipped and powerful service field to match pair of providers and users perfectly based on service field Function 3 : Effective engines to support the co-creation

Potential Applications Local Governance Management Human Resource Management

Potential applications of SM Local governance management for tourism Issues: Many tourists do not have information of small places although they have great points for tourism。 Firms in tourism fields and travelers are lack of co-creation. Small place cannot boost their tourism without support.

Why government should be a Mediator Government has good position to gather users and suppliers work together Government has good database which can support the collaboration. Government has well-trained officer who able to encourage the interaction.

Hypothesis for government functions: Page 24 Hypothesis for government functions: Trustworthy brand and effective exchange environment Branding more for new image of government as a friendly and supportive mediator 2. Well-equipped and powerful service field Powerful IT infrastructure. Effective service fields. 3. Effective engines Adequate law pass. Effective investment management Fair and Favor support for tourism firm

Government system as a mediator Page 25 Users Suppliers Government Government’s system Support co-creation Support co-creation Information on Service field Users’ needs Suppliers’ seeds Information on Service field Service Field Management Business man Family Young people Packbacker Etc. Hotel Transportation Restaurant Shop Sightseeing Etc. Government system as a mediator

Potential applications of SM Human resource Issues: There are many information of supply and demand in human resource which is needed to be match perfectly. HR cover many tasks such as recruit, C&B, training, planning etc => it needs an effective system to satisfy both employers and employees. Employers and employees are lack of fields to co-create and share there mutual interests. Firms work separately or group but cannot gather customers

Why HR should be a Mediator HR manages and controls the relationship between employers and employees. HR is the only channel for employees share and feedback their issues. Work for benefit of both employers and employees

Hypothesis for HR functions: Page 28 Trustworthy brand and effective exchange environment Branding as a good mediator for both employers and employees 2. Well-equipped and powerful service field Efficient database Organize dynamic service field for interactions and collaborations Powerful data mining system to match right requirements and offers Effective engines Fair policies Soft power Balance the benefit between employers and employees

Human Resource Collaborate flat-form organized by HR Employer Employee Page 29 Collaborate flat-form organized by HR Employer Employee Value = contribution, branding Value = Compensation & Benefits Employees’ Data Communication Policy Work life balance Service system of HR Human Resource Manage Support

Conclusion Conclusions

Conclusions Regarding Service transformation, this model has an impact on optimizing the service value and service satisfaction. Mediator model can be applied for many service process. Required functions should be explored more to encourage the effective of mediator model 9/18/2018

Thank you very much