1. Stephen K. Kwan San José State University, CA, USA http://www.sjsu.edu/ssme Contact: stephen.kwan@sjsu.edu BUS 4 188 Service Systems Framework, Value Propositions & Business Processes

2. ServiceExperience ServiceProviderCustomer A Service System and Its Entities 1 Kwan, 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 Worldview 1 2Kwan 2010

3. 3 Service System A Service System B Service System C Service System D Service System E Service System F Service Interactions 3 A Service System Network Kwan 2010

4. 4 Service System A Service System B Service System C Service System D Service System E Service System F Service Interactions 4 A Service Supply Chain Kwan 2010

5. 5 Example: Purchases from Amazon.com Kwan 2010

6. Amazon.com Bookcloseout_us nengland4 theBookGrinder Customer USPS Service Supply Network USPS “transparent” service provider Not being evaluated Example: Purchases from Amazon.com Kwan 2010

7. ServiceExperience ServiceProviderCustomer Society Community Competition Partners Service System Employees & Stockholders Service System Worldview 7Kwan 2010

8. ServiceExperience ServiceProviderCustomer Society Community Competition Partners Service System Employees & Stockholders Value Value Value Governance Value 8 Value Value Co-Creation Through Value Propositions Kwan 2010

9. 9 Customer Driven Service Value Network Customer’sSocialNetwork Customer ServiceExperience ServiceProvider Value Proposition Provider Partner Network Value Proposition Kwan 2010

10. 10Kwan 2010 10 Stages of Customer Empowerment 1 2 3 4 Stakeholders 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 Economic Environmental Societal Social Political Hedonic

11. 11Kwan 2010 11 Product Placements Ad’s and “Buy Me” TV Programs Their Friends Target Audience Example of Customer Driven Service Value Network Illustration from: Vascellaro, J. A. “Video’s New Friends”, The Wall Street Journal, February 28, 2008.

12. 12Kwan 2010 Offer of Service Intent to Transact ServiceConsumption Settlement Feedback CRM Marketing Reservation/Prepayment ServiceDelivery Payment Assessment Browser Interested Buyer Payer Concerned Abandonment Abandonment Front Stage Back Stage Employees, Equipment, Technology, other Customers, etc. Employees, Equipment, Technology, Suppliers, etc. Customer Role Sub-Systems Customer ServiceExperienceServiceProvider Entities: DisputeResolution Acceptance Advertising Awareness Service System and Business Processes