1. S-D Logic Service(s) Science Rationale(s) Presentation for the Cambridge Service Science (SSME) Symposium July 14, 2007 Stephen L. Vargo Shidler Distinguished Professor Associate Professor of Marketing Shidler College of Business University of Hawaii at Manoa

2. S-D Logic Service Sciences Management and Engineering The Apparent Problem Why Now? Increasing shift to a services economy creating need for increased need for understanding services innovation and production Research Problem How to achieve interdisciplinary integration of economics knowledge from Service marketing Service operations management Information technology Etc Stakeholders Partly revealed in the title Science? Technology (engineering) Application (management) Implies alternative stakeholders Academics Design and Production Firm How to apply production knowledge to making services

3. S-D Logic Service Science for Service Systems The Meta Problem? Why Needed? Shift to service economy does not capture Real problem is that we have: Increased separation of knowledge and matter/people (liquification) Increase specialization (unbundling) Leads to more flexible recombination's (density) Goods-centered economic-science foundation is flawed Thus, integration of economic-science-derivative knowledge will not solve The research Problem How to develop a new, more robust service-centered foundation for understanding economic exchange (i.e., a true service science) Must be goods relevant Normative application rests on positive foundation Stakeholders Same as above, plus ALL OTHER SERVICE SYSTEMS Customers and customer networks Value networks and partners Cities, States, Nations Etc. How to understand and apply value co-creation processes among service systems

4. S-D Logic For More Information on S-D Logic visit: sdlogic.net We encourage your comments and input. Will also post: Working papers Teaching material Related Links Steve Vargo: svargo@sdlogic.net Bob Lusch: rlusch@sdlogic.netsvargo@sdlogic.netrlusch@sdlogic.net Thank You!