s-d logic the service ecosystem reflections upon systems theories and service research robert f....
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S-D Logic
The Service Ecosystem
Reflections upon Systems Theories and Service Research
Robert F. LuschMuzzy Chair in Entrepreneurship & InnovationUniversity of Arizona
Stephen L. VargoShidler Distinguished Professor of MarketingUniversity of Hawaii
June 9, 2010Naples, Italy
Università di Cassino
Mid Sweden University
Universidad Torcuato di Tella
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Exchange Systems …
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S-D Logic
ExperiencedKnowledgea
bleInnovative
and CreativeProduces /Creates Value
Inexperienced
Unknowledgeable
Passive/Dull Consumes/Destroys
Value
G-D Logic: A Logic of Separation
Producer Consumer
Sep
ara
tion
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S-D Logic
S-D Logic: A Logic of Togetherness
Sensing & Experiencin
g Creating
Integrating Resources Learning
Sensing & Experiencin
gCreating
Integrating Resources Learning
Cocreating
Cocreating
Firm Customer
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S-D Logic
Evolving Marketing Thought
To Market
WebPlumbin
g
Marketing To
Web 1.0Retrieve &
Read
Marketing With
Web 2.0Co-Create
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S-D Logic
Alexa Global Traffic Rankings
Rank 2005 2008 2010
1 Yahoo.com Yahoo.com Google.com2 Msn.com Google.com Facebook.com 3 Google.com Youtube.com Youtube.com4 Ebay.com Live.com Yahoo.com 5 Amazon.com Facebook.com Live.com 6 Microsoft.com Msn.com Wikipedia.com7 Myspace.com Myspace.com Baidu.com8 Google.co.uk Wikipedia.org Blogger.com9 Aol.com Blogger.com Msn.com
10 Go.com hi5.com qq.Com
Ranking as of: (1) 12/31/05; (2) 11/24/08; (3) 5/16/10Source: Alexa Global Traffic Rankings
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S-D Logic
Emergent, Co-created, Resource Integrating, Dynamic
WEB 1.0 WEB 2.0
Speak to Customer Conversation with Customer
Customer is Passive Customer is Experiencing
Customers Locate Content
Customers Offered Service
Push Messages Out Pull Customers In
Standardized Mass Produced Messages
Customized and Relevant Exchange of Messages
Seller Control Ecosystem Control
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S-D Logic
A service ecosystem is a spontaneously sensing and responding spatial and temporal structure of largely loosely coupled value proposing resource integrating social and economic actors interacting through institutions, technology and language to: Co-produce service offerings Exchange service offerings Co-create value
Service Ecosystems
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S-D Logic
EMERGENCE OF INTERNET
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S-D Logic
Phase Transition
A phase transition is a process where the characteristics of a given medium with given properties is transformed into a medium with new properties.
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PHASE TRANSITION
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LONG AND SMALL VIEWUniverse expanding from an extremely
dense and hot state.
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CAMBRIAN EXPLOSION
HUMAN ARTIFACTSINTERNET
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Inter-activity
Special-ization
Modularization
Ex-change
Transport
Commun-ication
Driving the
Phase Transitio
n
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S-D Logic
Phase Transition to Ecosystems
States Flows Hierarchical Control Rigid Structures Centralized
Management Defined Boundaries Secretive Closed Systems Produce & Store Optimizing Planning
Grounded Control Flexible Structure Distributed
Management Fuzzy Boundaries Transparent Open System On-Demand Adaptive & Learning Improvising
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S-D Logic
Phase Transition
MarketPlace
ConversationDialogue
Organization
Ecosystem
STATES FLOWS
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Phase Transition
MarketPlace
ConversationDialogue
Organization
Ecosystem
STATES FLOWS
GOODS
PUSH PULL
SERVICE
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S-D Logic
Phase Transition to Ecosystems:What it Means for Organizations
Old New Bureaucracy Learning
Factory Production
Co-creation Platforms
R&D Labs Innovation Platforms
Marketing Channels
Integration Platforms
Push
and
G-D
log
ic P
ull a
nd S
-D lo
gic
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S-D Logic
No B2B, B2C, C2B, etc…..
Resource
Integrating Actor
Resource
Integrating Actor
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S-D Logic
Resource Integrating Actors (RIA)
Coordinate
Communicate
RIA
Calculate
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Coordination
Communication
Calculation
Behavior
Meaning
Thoughts
Signifiers
Signs
Language
Resource Integration & 3
C’s
Source: Loebler & Lusch
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RI Platform
s
Unified Communica
tion Platforms
CloudComputing Platforms
Mobility Platform
s
Coordination
Platforms
Resource Integrating Platforms
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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: [email protected] Bob Lusch: [email protected]
Thank You!
Mid Sweden University
Universidad Torcuato di Tella
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S-D Logic
Some DefinitionsSystem = set of interacting or interdependent entities forming an integrated whole.
Service = application of resources for the benefit of another actor (Vargo and Lusch 2004)
Service System = A dynamic value co-creation configuration of resources, including people, organizations, shared information (language, laws, measures, methods) and technology, all connected internally and externally to other service systems by value propositions. (Spohrer et al.2007)
Ecosystem = a system formed by the interaction of a community of actors in an environment that these actors through interaction create.