Dr. Stephen K. KwanProfessor, Service Science

Management Information SystemsCollege of Business AdministrationSan José State University, CA, USA

http://www.sjsu.edu/ssme

Contact: stephen.kwan@sjsu.edu

Introduction to Service Science,Management, Engineering,

and Design (SSMED)

November, 2012

119A Fall 2012

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A Framework for Service Science and Some Research Challenges

Some Definitions

Service Science is short for Service Science, Management, Engineering and Design (SSMED1).

Service Science is concerned with the study of Service Systems.cf. Computer Science is concerned with the study of Computer Systems.

Service Systems are man-made complex systems designed to improve the quality of life by co-creating value through value propositions among the stake-holders.

1 Spohrer, J., Kwan, S.K. “Service Science, Management, Engineering, and Design (SSMED): An Emerging Discipline – Outline and References”, International Journal of Information Systems in the Service Sector, 1(3), 2009.

3

“Service Science is just ___<name your discipline>____”

OR/IEMS

CS/AIMultiagent Systems

Economics & LawGame Theory

MIS Anthropology& Psychology

OrganizationTheory

A ServiceSystem is Complex

ServiceOperationsMarketing

ManagementQuality

Supply ChainHuman Factors

DesignInnovation

EngineeringSystems

ComputingEconomics

ArtsScience

InformationScience

(i-schools)

GeneralSystemsTheory

Service Science is a Big Tent(for every variety of disciplines)

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What kinds of skills should a service scientist have? Academic disciplines evolving to combine technology, business, and social-organization

4

Technology

Business

Social-Organizational

5

1

9 2527

14

28

10

26

24

84

1. Information Sci & Sys

2. Service Ops & Mgmt

3. Service Engineering

4. Service Marketing

5. Social Complexity

6. Agent-based comput-ational economics

7. Computational Organization Theory

14. Computer & Information Sciences

15. Human Capital Management (HCM)

16. Organization Theory

17. Operations Research

18. Systems Engineering

19. Management Science

20. Game Theory

21. Industrial Engineering

22. Marketing

23. Managerial Psychology

23

67

11

12

13

1516

17

18

1920

21

22

23

1990-2004

1960-1990

1900-1960

Before 1900

8. Management of Innovation & Tech (MoT)

9. Experimental Economics

10. AI & Games

11. Management of Information Systems

12. Computer Supported Collab. Work (CSCW)

13. Performance Support Systems In Business & Organization

24. Business Administration (MBA)

25. Economics

26. Law

27. Sociology

28. Education

Quick Facts about US Service Sector

The largest labor force migration in human history is underway, driven by global

communications, business and technology growth, urbanization and

regional variations in labor and infrastructure costs and capabilities.

Numeric change in wage-salary employment by industry sector, projected 2004-14(Thousands)

Professional and business service 4566

Healthcare and social assistance 4303

CIA Handbook, International Labor OrganizationNote: Pakistan, Vietnam, and Mexico now larger LF than Germany

42%6433 3 1.4Germany

37%261163 2.1Bangladesh

19%201070 1.6Nigeria

45%6728 5 2.2Japan

64%692110 2.4Russia

61%661420 3.0Brazil

34%391645 3.5Indonesia

23%7623 1 5.1U.S.

35%23176014.4India

142%29224925.7China

40yr Service

Growth

S

%

G

%

A

%

Labor

%

Nation

World’s Large Labor ForcesA = Agriculture, G = Goods, S = Service

20102010

US shift to service jobs

(A) Agriculture:Value from harvesting nature

(G) Goods:Value from making products

(S) Service:Value from enhancing the

capabilities of people and their ability to interconnect and co-create value

Employment Change

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2011:1.6 17.3 81.1

Estimations based on Porat, M. (1977) Info Economy: Definitions and Measurement

Estimated world (pre-1800) and then U.S. Labor Percentages by Sector

The Origin of Wealthby Eric D. Beinhocker

2M years as hunting clans/bands10K years as farm families200 years as factory workers60 years (so far) as knowledge workers in organizations and now digital networks

The Pursuit of Organizational Intelligence, By James G.March

Service Worlds: Economics and Social ScienceInformation Service – recent growth engine

7

IBM and Services

8http://www-03.ibm.com/press/us/en/attachment/25091.wss?fileId=ATTACH_FILE1&fileName=Podcast%20interview%20with%20SFSU.mp3

IBM and SSME

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http://www.usnews.com/usnews/edu/grad/articles/brief/gbeng_brief_2.php

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Over 500 Universities world-wide are engaged

ServiceExperience

ServiceProvider

Customer

A Service System and Its Entities

1Kwan, 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 Worldview1

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ServiceExperience

ServiceProvider

Customer

Society

Community

Competition

Partners

Service System

Employees &Stockholders

Service System Worldview

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ServiceExperience

ServiceProvider

Customer

Society

Community

Competition

Partners

Employees &Stockholders

Service System Worldview

13

MarketSegmentation

ServiceConceptRealized

CustomerFlow &ServiceDelivery

OperatingStrategy

FacilityLocation& Design

Capacity& Manpower

Planning,Training

CompetitiveStrategy

SocialNetworking

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Service ManagementFitzsimmons & Fitzsimmons

ServiceExperience

ServiceProvider

Customer

Society

Community

Competition

Partners

Service System

Employees &Stockholders

Value

Value

Governance

Value

14

Value

Value Co-Creation Through Value Propositions

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InformationTechnology

Platform

Service Provider’s Back Stage Support

BackStage

Processes

FrontStage

ProcessesFront Stage

Service Computing(e.g., SOA)

Service Systems, Computing, and IT Services1

1 Kwan, S. K. & Hefley, B., “Service Systems”, 2008.

ITSM – Management of the Processesand Infrastructure of IT Services

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Product / Service Spectrum

Product Service

“Servitization”

“Productization”

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www.servtrans.com

Services Transformation and Innovation Group LLC

What do these have in common?

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Spring 2013 - Elective118S – Service Systems Management

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Service Management, Operattions,Strategy, Information Technology

Fitzsimmons & Fitzsimmons

Henry ChesbroughOpen Services Innovation

TextBooks