1. 1 An Evolutionary Framework of Service Systems Stephen K. Kwan, Ph.D. San José State University San José, CA, USA kwan_s@cob.sjsu.edu Jae H. Min, Ph.D. Sogang University Seoul, Korea jaemin@sogang.ac.kr 2008

2. 2 Motivations for this Research OR/IEMS CS/AIMultiagentSystems Economics & Law Game Theory MIS Anthropology & Psychology OrganizationTheory GeneralSystemsTheory ServiceOperationsMarketingManagementQuality Supply Chain Human Factors DesignInnovationEngineeringSystemsComputingEconomicsArtsScience Information Science(i-schools) A Service System is Complex 1. There is still much debate as to what is Service Science and what is a Service System. ”Service Science is just ___ ____”

3. 3 Motivations for this Research http://www.cob.sjsu.edu/ssme/refmenu.asp Jim Spohrer and Stephen K. Kwan, "Service Science, Management, Engineering, and Design (SSMED): Outline & References". 2. Service Science – The Study of Service Systems is still a nascent multidisciplinary area of study.

4. 4 Motivations for this Research 3. Need a simpler Framework for Teaching about Service Systems and extensible for Future Research. http://www.cob.sjsu.edu/kwan_s/297D/

5. 5 Customer ServiceExperience ServiceProvider A Service System and its Entities A Service is a time-perishable, intangible experience performed for a customer performed for a customer acting in the role acting in the role of a co-producer. of a co-producer. James Fitzsimmons

6. 6 Service System A Service System B Service System C Service System D Service System E Service System F Service Interactions A Service Systems Network

7. 7 Service System A Service System B Service System C Service System D Service System E Service System F A Service Supply Network [Amazon.com Example]

8. 8 ServiceExperience ServiceProviderCustomer Society Community Competition Partners Service System Employees & Stockholders Stakeholders in Service System Worldview [Review Strategic Service Vision]

9. 9 ServiceExperience ServiceProviderCustomer Society Community Competition Partners Service System Value Governance Employees & Stockholders Value Propositions and Governance

10. 10 Offer of Service Intent to Transact ServiceConsumption Settlement Feedback CRM Marketing Reservation/Prepayment ServiceDelivery Payment Assessment Browser Interested Buyer Payer Concerned Abandonment Abandonment BackStage Employees, Equipment, Technology, other Customers, etc. Employees, Equipment, Technology, Suppliers, etc. Customer Role Sub-Systems Customer ServiceExperienceServiceProvider Entities: DisputeResolution Acceptance AdvertisingAwareness Service System Details (1) FrontStage

11. 11 Browser Interested Buyer Payer Concerned Offer of Service Intent to Transact Service Consumption Settlement Feedback CRM Marketing Reservation Service Delivery Payment Assessment Abandonment Employees, Equipment, Technology, other Customers, etc. Employees, Equipment, Technology, Suppliers, etc. Customer Role Sub-Systems Customer Service Experience Service Provider Conversion New Repeat INFORMATION ? Dispute Resolution Acceptance Advertising Awareness Service System Details (2) Back Stage Front Stage Other Research Areas

12. 12 Service Systems are Complex and Dynamic Changes vs. Sustainability Time ContinuousImprovement You Competition Natural Decay Competitive Advantage (seeking Competitive Parity or “leapfrogging”) (if no Continuous Improvement) Adapted from James Teboul’s Service is Front Stage

13. 13 Factors Affecting The Evolution of Service Systems UncontrollableLong-termMacro-levelDisruptiveControllableShort-termMicro-levelConstant Technology,Economy,Culture,Globalization, Environment, … Community,Customer,Stockholders,Employees,Partners,Competitors, Government, … External Internal Adapt or Perish Continuous Improvement

14. 14 Summary 1.A Service Systems Framework – Customers, Service Providers, Service Experience, Service Supply Network 2.Service System Worldview – Service System, Community, Stakeholders, Partners, Competitors, Government 3.Service System Details – Front Stage, Back Stage, Role of Customers, Technology, Employees, Systems, Resources, … 4.Changes and Sustainability of Service Systems 5.Factors affecting the Evolution of Service Systems – External vs. Internal Factors 6.Role of service providers – Adapt to environmental changes and accept internal pressures as constructive motives