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A Conceptual Model of Service Exchange in Service‐Dominant Logic Geert Poels Faculty of Economics and Business AdministraBon, Ghent University 19‐2‐2010 1 IESS 1.0 Geneva 17‐19 February 2010

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A Conceptual Model of Service Exchange in Service-Dominant LogicGeert PoelsFaculty of Economics and Business Administration, Ghent University

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AConceptualModelofServiceExchangeinService‐DominantLogic

GeertPoelsFacultyofEconomicsandBusinessAdministraBon,GhentUniversity

19‐2‐2010 1IESS1.0Geneva17‐19February2010

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Outline

•  Service‐DominantLogic•  ServiceSystem

•  Servicesystemmodelling=businessmodelling

•  TheResource‐Event‐Agentconceptualmodel

•  TheResource‐Service‐Systemconceptualmodel

•  Openissues,challenges,futureresearch

19‐2‐2010 2IESS1.0Geneva17‐19February2010

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Service‐DominantLogic•  Service‐DominantLogic(Vargo&Lusch)‘’ServiceScienceembracestheworldviewoftheservice‐dominantlogic.’’(CambridgeSSMEsymposium,July2007)

•  Mainideas–  ServiceistheapplicaBonofcompetences(skills,knowledge)forthe

benefitofanotherparty–  Alleconomicexchangesareserviceexchanges:serviceisexchanged

forserviceonthebasisofvoluntaryeconomicreciprocity–  Goodsareinvolvedinthisprocessasappliancesforserviceprovision:

theyareconveyorsofcompetences–  SDLrepresentsashi\inthinkingaboutvalueintermsof

•  Operandresources(‘D‐resources’):passiveresourcesthatrequireacBontomakethemvaluable

to•  Operantresources(‘T‐resources’):acBveresourcesthatembodycompetences

andthatcanactonotherresourcestomakethemvaluable

19‐2‐2010 3IESS1.0Geneva17‐19February2010

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Comparingthe‘new’and‘old’logics

•  Goods‐DominantLogic–  Servicesareseenasunits

ofoutput–  Valueinexchange:valueis

createdthroughtransferofresources

–  Onepartyproducestheservicesandanotherpartyconsumestheservices

•  Service‐DominantLogic–  Serviceisseenasaprocess–  Valueinuse:valueis

createdthroughresourcesacBnguponotherresources

–  EachpartybringsinormakesaccessibleitsownresourcesandbothparBesco‐createvaluefortheservicebeneficiary

Service‐DominantLogicrepresentsashi<inlogicofexchange,notjustashi<intypeofproductthatisunderinvesCgaCon.

19‐2‐2010 4IESS1.0Geneva17‐19February2010

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ServiceSystem

•  DefiniBon(Maglio,Vargo,Caswell,Spohrer)‘’anopensystem(1)capableofimprovingthestateofanothersystemthroughsharingorapplyingitsresources(i.e.,theothersystemdeterminesandagreesthattheinteracBonhasvalue),and(2)capableofimprovingitsownstatebyacquiringexternalresources(i.e.,thesystemitselfseesvalueinitsinteracBonwithothersystems)’’

19‐2‐2010 5IESS1.0Geneva17‐19February2010

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•  KeycharacterisBcs–  AservicesystemisaconfiguraBonofresources,ofwhichatleastoneoperantresource•  physicalresourceswithlegalrights(people)•  conceptualresourceswithlegalrights(organizaBons)•  conceptualresourcestreatedasproperty(sharedinformaBon)•  physicalresourcestreatedasproperty(technology)

–  ServiceistheapplicaBonorsharingofresourcesforthebenefitofanothersystem•  Atleastoneoperantresourcethatembodiescompetencesisappliedorshared

–  ServiceentailsaninteracBonwithanotherservicesystem•  Serviceisco‐creaBonofvalueratherthanproducBonbyoneparty•  Theotherpartyneedstobringinormakeaccessibleitsresources

–  ThereisaneconomicmoBveforservicesystemstointeract•  Aserviceleadstoanotherservicethatbenefitstheservicesystem

19‐2‐2010 IESS1.0Geneva17‐19February2010 6

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Servicesystemmodelling=businessmodelling

•  Service‐DominantLogicassumesaneconomiccontextforserviceexchanges–  Enterprisesareamajorcategoryofservicesystem–  Thebusinesslogicofanenterpriseisexpressedinabusinessmodel

→modellinganenterpriseasaservicesystem,emphasizingtheapplicaBonofitsresourcesforthebenefitofanothersysteminthecontextofeconomicexchange,isbusinessmodelling

•  Businessmodellingknowledgehasbeenspecifiedandformalizedinbusinessmodelontologies,whichofferconceptsintermsofwhichbusinessmodelscanbearBculated

19‐2‐2010 IESS1.0Geneva17‐19February2010 7

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REAtakesaGoods‐DominantLogicperspecCveoneconomicexchangeasservicesareasubtypeofEconomicResource

•  Servicesareeconomicresourcesthatcanbetransferred,i.e.controlovertheservicescanbetransferedfromonepersontoanother.

•  Theprovider‘produces’theservices(i.e.createsvalue)andthereceiver‘consumes’theservices(i.e.destroysvalue)

•  Thevalueoftheservicesisdeterminedthroughtheeconomicexchange,usuallyintermsofwhatisbeingpaidforthem

•  Tomodelthetransferaneconomiceventisneeded,e.g.aservicestransfer,provisionordeliveryevent.

Resource‐Event‐AgentModel

19‐2‐2010 8IESS1.0Geneva17‐19February2010

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Example:acarchangeoilservice

Economicresources Economicevent Economicagents

19‐2‐2010 9IESS1.0Geneva17‐19February2010

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Resource‐Service‐SystemModel(1)

InaService‐DominantLogicinterpretaConofREA,servicemapstoeconomicevent,nottoeconomicresource

19‐2‐2010 11IESS1.0Geneva17‐19February2010

BasicResource/Service/SystemConstellaCon

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Examplerevisitedagain

OperandResources Service Servicesystems

OperantResource

19‐2‐2010 12IESS1.0Geneva17‐19February2010

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Resource‐Service‐SystemModel(2)

19‐2‐2010 IESS1.0Geneva17‐19February2010 13

ServiceExchangeView

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Resource‐Service‐SystemModel(3)

19‐2‐2010 IESS1.0Geneva17‐19February2010 15

ServiceSystemComposiConView

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Resource‐Service‐SystemModel(4)

19‐2‐2010 IESS1.0Geneva17‐19February2010 16

ServiceAccountabilityView

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Futureresearch

•  Extendconceptualmodeltoaccommodate– Processstructureofservice:servicelifecyclemodel

– Service(system)componentstructure:servicecomposiBonmodel

•  ModeltesBng

•  Ontologydevelopment

•  Ontologyalignment

19‐2‐2010 18IESS1.0Geneva17‐19February2010

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Auxiliaryslides

19‐2‐2010 IESS1.0Geneva17‐19February2010 19

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MoBvaBon–ServiceScience

•  New,disBnctfieldbasedonaninterdisciplinaryapproachtoresearch

•  IniBaBvelaunchedin2004byIBM,intendingtointegrateseparateserviceresearchareas

•  DefiniBons(Maglioetal.)–  ‘’ServicescienceisthestudyoftheapplicaBonoftheresourcesofoneormoresystemsforthebenefitofanothersystemineconomicexchange.’’

–  ‘’NormaCveservicescienceisthestudyofhowonesystemcanandshouldapplyitsresourcesforthemutualbenefitofanothersystemandofthesystemitself.’’

–  ‘’Servicescience,management,andengineering(SSME)istheapplicaBonofnormaBveservicescience.’’

19‐2‐2010 20IESS1.0Geneva17‐19February2010

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PRINCIPLES:‐ServicesystemsinteracCnginaservicetakeonproviderorclientroles‐TheprovidertakesresponsibilityfortransformingoroperaCngonaservicetargetthatisownedbytheclient‐TheinteracConofbothsystemsisrequiredtocreatevaluefortheclient19‐2‐2010 21IESS1.0Geneva17‐19February2010

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Theneedformodellingservicesystems

•  ModelinghelpsstudyingservicesystemsandtheirinteracBons

•  ArecommendaBonforresearchmadeattheCambridgeSSMEsymposium(July2007)–  ‘’createmodellingandsimulaBontoolsforservicesystems’’

•  AchallengeforServiceScienceresearch–  ‘’Chiefamongthechallengesthatlayaheadisthechallengeofdevelopingasharedvocabularythatcanbeusedacrossdisciplinestodescribethegreatvarietyofservicesystems.’’

19‐2‐2010 IESS1.0Geneva17‐19February2010 22

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Theneedformodellingservicesystems–citaBonsfromServiceScienceliterature

•  ‘’somedayservicescienBstsmayworkwithformalmodelsofservicesystems”

•  “ModelsandanalyBcalmethodsforservicesystemswillallowustofindopportuniBesforefficiencygainsandtocreatenewinformaBon‐basedservices.”

•  ‘’understandingserviceandserviceinnovaBonrequiresnewwaysofthinking(worldviewsorlogics)andnewabstracBons’’

•  ‘’Perhapsmorethananyothersubjects,advancementinServiceSciencedependsonmodelsandsimulaBonsofalternaBveservicesystemsdesigns.’’

•  “FormalrepresentaBonandmeasurementofworkinservicesystemsisagrandchallengefortheserviceseconomy”

19‐2‐2010 23IESS1.0Geneva17‐19February2010

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IndependentviewREAmodel

19‐2‐2010 IESS1.0Geneva17‐19February2010 24

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REA‐Basedserviceontologies

19‐2‐2010 IESS1.0Geneva17‐19February2010 25

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Examplerevisited

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FoundaBonalOntologyforServiceScience

•  ‘’ItseemslegiBmatetoassumethatgoodsareobjects(endurants,inDOLCE’sterms),whileservicesareevents(perdurants)’’

⇒ ConformwithService‐DominantLogic(‘serviceasaprocess’)

⇒ Aserviceisnottransferable⇒ ThedisBncBonbetweenaserviceeconomicresourceandaservice(transfer)economiceventisnotsupported

19‐2‐2010 27IESS1.0Geneva17‐19February2010

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Resource‐Service‐SystemModel(5)

19‐2‐2010 IESS1.0Geneva17‐19February2010 28

ServiceProcessView