Difference between revisions of "Service Systems Engineering"

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== '''Introduction''' ==
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The growth of Services in the ever evolving Global economy has brought much needed attention to [[Service Science (glossary)]] and [[Service Systems Engineering (glossary)]]. The primary areas of research include the development of formal methodologies for understanding end-user (customer) interactions with enterprises from a socio-economic and technological perspective for value co-creation and productivity improvements. Service Systems require trans-disciplinary collaborations between society, science, enterprises and engineering. Service transactions are customized and personalized to meet a particular customer need, which requires a disciplined and systemic approach among different stakeholders and resources to take an end-user (service oriented customer-centric) approach in the design and delivery of the service. (Hipel et al. 2007; Tien and Berg 2003; Vargo and Akaka 2009; Maglio and Spohrer 2008; Maglio et al. 2010)
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'''''Lead Authors:''''' ''Ricardo Pineda, Bud Lawson, Richard Turner''
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The growth of services in the ever-evolving global economy has brought much needed attention to {{Term|Service Science (glossary)|service science}} and {{Term|Service Systems Engineering (glossary)|service systems engineering}} (SSE). Research focuses on developing formal methodologies to understand enterprise-end-user ({{Term|Customer (glossary)|customer}}) interactions from both socio-economic and technological perspectives, and to enable {{Term|Value (glossary)|value}} co-creation and productivity improvements. Service systems require trans-disciplinary collaborations between society, science, enterprises, and engineering. Service transactions are customized and personalized to meet a particular customer need. This requires a disciplined and systemic approach among {{Term|Stakeholder (glossary)|stakeholders}} and resources to emphasize end-user satisfaction in the design and delivery of the service (Hipel et al. 2007; Tien and Berg 2003; Vargo and Akaka 2009; Maglio and Spohrer 2008; Maglio et al. 2010).
  
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Service Systems Engineering (SSE) has usually been a Proprietary Process closely guarded by Product Businesses and Service Businesses for their competitive advantage.  Traditional Systems Engineering (TSE) practices have been primarily applied in Aerospace and Defense sectors while Service Systems Engineering practices have been applied by [[Information and Communications Technologies (ICT) (glossary)]] service providers. (AT&T SRP 2008; Eppinger 2001; Whitten and Bentley 2007; Freeman 2004)  One example of a "Service Realization Process" from AT&T is shown in the figure below.
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==Topics==
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Each part of the SEBoK is divided into knowledge areas (KAs), which are groupings of information with a related theme. The KAs in turn are divided into topics. This KA contains the following topics:
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*[[Service Systems Background]]
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*[[Fundamentals of Services]]
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*[[Properties of Services]]
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*[[Scope of Service Systems Engineering]]
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*[[Value of Service Systems Engineering]]
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*[[Service Systems Engineering Stages]]
  
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[[File:SSE_SSE_Intro_Fig1.png|700px|AT&T Service Realization Process]]
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==Introduction==
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New Service Development (NSD) has usually been a proprietary {{Term|Process (glossary)|process}} closely guarded by product {{Term|Business (glossary)|businesses}} and service businesses for their competitive advantage. Traditional systems engineering practices have been primarily applied in aerospace and defense sectors while SSE practices have been applied by {{Term|Information and Communications Technologies (ICT) (glossary)|information and communications technologies}} (ICT) service providers (Booz, Allen, and Hamilton 1982; Johnson et al. 2000; Eppinger 2001; Freeman 2004; Whitten and Bentley 2007; AT&T SRP 2008; Lin and Hsieh 2011).
  
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Figure 1. AT&T Service Realization Process (Source: AT&T SRP 2008)
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These early efforts were, and in some instances remain, very important for {{Term|Product (glossary)|product}} and service businesses. However, the growth and ubiquity of the World Wide Web, advances in computer science and ICT, and business process management through “social networking,” support the realization of closely interrelated service systems. Product business (manufacturing, agriculture, etc.) and service business distinctions are going away (Spohrer 2011).
  
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These early efforts were, and in some instances continue to be, very important for [[Product (glossary)]] and Service Businesses. However, with the explosive growth and ubiquity of the World Wide Web and advances in computer science, in ICT, and in Business Processes Management through “social networking”, create the on-set of closely inter-related Service Systems. [[Product Business (glossary)]] (manufacturing, agriculture, etc.) and [[Service Business (glossary)]] distinctions are going away (Spohrer 2011).
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These services, or service innovations, must take into account social aspects, {{Term|Governance (glossary)|governance}} processes, business processes, operational processes, as well as design and development processes. The customer, service provider, product provider, and intermediaries need to collaborate toward the optimization of customer experiences and customer provided value (through co-creation). The interrelations among different stakeholders and resources require that methodologies, processes, and tools be dynamically tailored and delivered for either foreseen or newly discovered services to rapidly adapt to changing {{Term|Enterprise (glossary)|enterprise}} and end-user environments.  
  
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These services – or service innovations – must take into account social aspects, governance processes, business processes, operational processes, as well as design and development processes where the customer, service provider, product provider, and intermediaries need to collaborate toward the optimization of customer experiences and customer provided value (through co-creation). The inter-relations among different stakeholders and resources require that Methodologies, Processes and Tools be dynamically tailored and delivered for either foreseen or newly discovered services to rapidly adapt to changing [[Enterprise (glossary)]] and end-user environments.  
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Even in the case of static, predetermined, interaction rules, the major problems faced in the definition, design, and implementation of services have been in understanding the integration needs among different systems, system entities, stakeholders, and in defining the information flows required for the governance, operations, administration, management and provisioning (OAM&P) of the service. (Maier 1998; Jamshidi 2008; Pineda 2010; Luzeaux and Ruault 2013). Thus, the 21st century technology-intensive services are “information-driven, customer centric, e-oriented, and productivity-focused" as discussed by Chesbrough (2011), Chang (2010), Tien and Berg (2003), and Hipel et al. (2007).  A detailed discussion of these characteristics is given in the [[Value of Service Systems Engineering]] article within this KA.
  
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Even in the case of static, pre-determined interaction rules, the major problems faced in the definition, design and implementation of services has been in developing the integration needs among different entities, stakeholders, and in developing the information flows required for the governance, operations, administration, management and provisioning (OAM&P) of the service.  (Maier 1998; Jamishidi 2009; Pineda 2010; Luzeaux and Ruault 2010) 
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==Service Systems Engineering Knowledge Area Topics==
  
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The unique characteristics and evolving methods of Service Systems Engineering are shown in the table below (Tien and Berg 2003).
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This knowledge area (KA) describes best practices in SSE during the service design process and outlines current research on methods, processes, and tools. It does not attempt to describe the initial efforts and research in service science that were proposed and introduced by International Business Machines (IBM) (Maglio and Spohrer 2008), but it does recognize their leadership in championing these concepts in undergraduate and graduate curricula.
  
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[[File:SSE_SSE-Intro_Fig2.png|700px|Service Systems Engineering: Unique Characteristics and Evolving Methods]]
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The rest of the KA is organized in the following way:  
  
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Figure 2. Service Systems Engineering: Unique Characteristics and Evolving Methods (Source: Tien and Berg 2003)
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The [[Service Systems Background]] article presents some background on the transition from a manufacturing economy toward the service economy brought by the World Wide Web through co-creation of end-user value. It describes how this transformation is impacting industries, such as healthcare, agriculture, manufacturing, transportation, supply chain, environmental, etc. The article also describes the scope of the SSE discipline's contributions to meeting the needs of the service sector companies in strategic differentiation and operational excellence (Chang 2010) by pointing out some differences between product-oriented {{Term|Systems Engineering (glossary)|systems engineering}} and SSE.
  
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== '''Service SE Knowledge Area Topics''' ==
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The [[Fundamentals of Services]] and [[Properties of Services]] articles take the reader through a general discussion of services and current attempts to classify different types of services, in particular, attention is paid to the properties of service systems for the service sector, such us transportation, environmental and energy services, consulting services, healthcare, etc.
  
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This Knowledge Area (KA) describes best practices in Service Systems Engineering during the Service Design Process and outlines current research on Methods, Processes, and Tools (MPTs)  leading toward the Services of the 21st Century.  We do not attempt to describe the initial efforts and research leading toward the introduction of Service Science which was initially proposed and introduced by IBM (Maglio and Spohrer 2008) as Service Science, Management and Engineering (SSME) but do recognize their leadership in getting support from academia and government to define a 21st century curricula at the undergraduate and graduate level to respond to the markets need for engineers of the 21st Century (NAE 2011).
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The [[Scope of Service Systems Engineering]] and [[Value of Service Systems Engineering]] articles cover the value of SSE, defining (or using when available) service architecture frameworks, and the stages of the service development process from concept to {{Term|Life Cycle Management (glossary)|life cycle management}}.  
  
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The rest of the Knowledge Area is organized in the following way:
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The [[Service Systems Engineering Stages]] article summarizes the major SSE process activities that need to be carried out during the service design process and the needed output (work products) in each of the service design process stages.
  
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The [[Service Systems Background]] article presents some background on the transition from a manufacturing oriented economy toward the service economy brought by the World Wide Web through co-creation of end-user value. We also describe how this transformation is impacting industries such as healthcare, agriculture, manufacturing, transportation, supply chain, environmental, etc.  This article also describes the scope of Service Systems Engineering discipline to contribute toward the needs of the service sector companies in strategic differentiation and operational excellence (Chang 2010) pointing out some differences between product-oriented Traditional Systems Engineering (TSE) and [[Service Systems Engineering (SSE) (glossary)]].
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==Service Innovation and Value-Co-creation==
  
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The [[Fundamentals of Service]] and [[Properties of Services]] articles takes the reader through a general discussion of services and current attempts to classify different types of services; particular attention is paid to the properties of Service Systems for the service sector such us transportation, consulting services, healthcare, etc.
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Service innovation has several dimensions. Service innovation can come about through the creation of a service concept which is sufficiently different that it is not merely an improved service, but in reality is a new service concept. To maintain the rigor and value of innovation, it is necessary to distinguish between an improved service, which may generate some additional value, and a truly new and innovative service concept, which may generate a great deal of value. Dr. Noriaki Kano, a renowned {{Term|Quality (glossary)|quality}} management guru, has suggested that every service concept has its inherent attributes and we should strive to continuously improve upon these; but this is not innovation (Kano 1996).
  
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The [[Scope of Service Systems Engineering]] and [[Value of Service Systems Engineering]] articles are the heart of the Knowledge Area covering the value of service systems engineering, the needs of defining (or using when available) Service Architectural Frameworks, and the stages of the Service Development Process from Concept to [[Life Cycle Management (glossary)]].  
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To be innovative, the change in a value proposition cannot be incremental, but it must be enough to significantly impact customer and competitor behavior (e.g., new market creation). Value innovation involves a shift in perspective of customer needs that requires a rethinking of what service value proposition is delivered (Kano 1996).  
  
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The [[Service Systems Engineering Stages]] article summarizes the major Service Systems Engineering Process activities that need to be carried out during the Service Design Process and the needed output (work products) in each of the Service Design Process stages.
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Innovation can also come through a significant change in the way or the reason the customer is engaged or connected. In a {{Term|Service Value Chain (glossary)|service value chain}} the customer may well change from being just a receiver of service value to becoming a co-creator, or an active participant in the design and delivery, i.e., service transaction of service value. At the retail level, when a customer designs the time, route, and price selection for a plane ticket purchased online, he is co-creating the service. Value innovation involves a shift in perspective of customer needs that requires a rethinking of how a service value proposition is delivered (Bettencourt 2010).
  
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==Topics==
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Finally, service innovation can come through significant changes in the way the enterprise is organized to create a service value proposition from concept through delivery. A considerable improvement in the enterprise structure and/or governance can be seen as innovation. Value innovation involves a shift in perspective of customer needs that requires a rethinking of how an enterprise organizes to support a service value proposition. 
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The topics included in this Knowledge Area include:
 
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*Topic: [[Service Systems Background]]
 
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*Topic: [[Fundamentals of Services]]
 
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*Topic: [[Properties of Services]]
 
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*Topic: [[Scope of Service Systems Engineering]]
 
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*Topic: [[Value of Service Systems Engineering]]
 
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*Topic: [[Service Systems Engineering Stages]]
 
  
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== '''Service Innovation & Value-Co-creation''' ==
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Continuous improvement can be reasonably planned and predicted while innovation and breakthroughs cannot. The most effective way to obtain innovation and breakthroughs is to encourage the culture, environment, and atmosphere that are conducive to innovation and breakthroughs. Innovative co-creation requires the integration of people, ideas, and technology for the purpose of creating value for themselves, their customers, companies, and society. 
  
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Service innovation has several dimensions. Service innovation can come about through the creation of a service concept which is sufficiently different that it is not merely an improved service, but in reality is a new service concept. To maintain the rigor and value of innovation, we must distinguish between an improved service (which may generate some additional value) and a truly new and innovative service concept, which may generate a great deal of value.  Dr. Noriaki Kano, a renowned quality management guru, has suggested that every service concept has its inherent attributes and we should strive to continuously improve upon these; but this is not innovation.
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The lone inventor sees a problem and must work to create the solutions to all dimensions of the problem. Co-creators see the problem and realize that there may already be several creators, each already having a piece of the solution. Co-creation embraces the value of things “not invented here” because of the velocity they can bring to ideation and time to market. This service innovation process is facilitated by modern mass (and at the same time, personal) communication technology evident in social networking platforms.
  
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To be innovative, the change in a value proposition cannot be incremental, but it must be enough to significantly impact customer and competitor behavior (e.g., new market creation).  Value innovation involves a shift in perspective of customer needs that requires a rethinking of what service value proposition is delivered. (Kano 1996)
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==Towards a Discipline of Service Systems Engineering==
  
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Innovation can also come through a significant change in the way or the reason the customer is engaged or connected. In a [[Service Value Chain (glossary)]], the customer may well change from being just a receiver of service value to becoming a co-creator, or an active participant in the design and delivery, i.e., Service transaction, of service value. At the retail level, when a customer designs the time, route and price selection for a plane ticket purchased online, he is co-creating the service. Value innovation involves a shift in perspective of customer needs that requires a rethinking of how a service value proposition is delivered.  (Bettencourt 2010)
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Mindful of the evolution taking place in the global economy and the world markets, it would be futile to attempt covering all the major advances and the boundless possibilities in the services sector for the rest of the century. The services sector covers wide areas of application studied in many different fields (e.g., business science, social science, cognitive science, political science, etc.). The field of service systems, a trans-disciplinary analysis and study of services, was only introduced 10 to 15 years ago. As a consequence, much of the existing literature on services and service-innovation is scattered. The main objective of this KA is to document the systems engineering processes, methodologies, and existing tools as applied to the service design process, and to introduce critical SSE challenges and research areas.
  
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Finally, service innovation can come through significant changes in the way the enterprise is organized to create a service value proposition from concept through delivery.  A considerable improvement in the enterprise structure and/or governance can be seen as innovation.  Value innovation involves a shift in perspective of customer needs that requires a rethinking of how an enterprise organizes to support a service value proposition. 
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==References==
  
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Continuous improvement can reasonably be planned and predicted.  Not so with innovation and breakthroughs.  The most effective way to obtain innovation and breakthroughs is to encourage the culture, environment, and atmosphere that are conducive to innovation and breakthroughs.  Innovative co-creation requires the integration of people, ideas, and technology for the purpose of creating value for themselves, their customers, companies, and society. 
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===Works Cited===
  
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The lone inventor sees a problem and must work to create the solutions to all dimensions of the problem. Co-creators see the problem and realize that there may already be several creators, each already having a piece of the solution. Co-creation embraces the value of things “not invented here” because of the velocity they can bring to ideation and time to market. This service innovation process is facilitated by modern mass (and at the same time, personal) communication technology evident in social networking platforms.
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AT&T SRP. 2008. ''Technical Approach to Service Delivery''. General Services Administration, AT&T Bridge Contract No. GS00Q09NSD0003. Accessed on June 1, 2011. Available at: http://www.corp.att.com/gov/contracts/fts_bridge/technical/07_vol_I_section_1.pdf.  
  
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== '''Towards a Discipline of Service SE''' ==
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Bettencourt, L. 2010. ''Service Innovation: How to Go from Customer Needs to Breakthrough Services''. New York, McGraw-Hill Professional. July 2010.
  
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We are very mindful of the evolution taking place in the global economy and the world markets. It would be foolish to pretend we can exhaustively cover all the major advances being made and the boundless possibilities in the services sector for the rest of the century.  The services sector covers wide areas of application studied in many different fields (e.g., business science, social science, cognitive science, political science, etc.) and only until recently the new field of Service Systems (10 to 15 years ago) has been introduced for the trans-disciplinary analysis and study of services per se.   
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Booz, Allen, and Hamilton. 1982. ''New Products Management for the 1980s''. New York, NY, USA: Booz, Allen, and Hamilton Inc.   
  
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As a consequence, much of the existing literature on services and service-innovation is scattered. Thus, the main objective of this Knowledge Area is to document the Systems Engineering processes, methodologies and existing tools as applied to the Service Design Process. We also discuss the main challenges and Research areas required in Service Systems Engineering to realize the full potential of Service Systems.
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Chang, C.M. 2010. ''Service Systems Management and Engineering: Creating Strategic Differentiation and Operational Excellence''. New York, NY, USA: John Wiley & Sons, Inc.
  
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Chesbrough, H. 2011. ''Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era''. San Francisco, CA, USA: Jossey-Bass.
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Eppinger, S. 2001. "Innovation at the Speed of Information" ''Harvard Business Review''. 79 (1): 149-158.
  
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== '''Key Terms''' ==
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Freeman, R.L. 2004. ''Telecommunication Systems Engineering'', 4th ed. New York, NY, USA: John Wiley & Sons.
  
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<blockquote style="background-color:#9AFEFF; border:1px solid black; padding:8px;">
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Hipel, K.W., M.M. Jamshidi, J.M. Tien, and C.C. White. 2007. ''"The Future of Systems, Man, and Cybernetics: Application Domains and research Methods''. IEEE Transactions on Systems, Man, and Cybernetics - Part C: Applications and Reviews. 37 (5): 726-743.
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===Service===
 
  
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'''A service can be defined as an activity required by one or more users who have agreed on the terms of outcomes and quality of service without details to how it is provided. A service is also, simply put, an act of help or assistance. In a more formal sense:
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Jamshidi M, ''System of Systems Engineering: Innovations for the Twenty-First Century''. New York, NY, USA: John Wiley & Sons. November 2008.
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<blockquote>
 
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'''Services are activities that cause a transformation of the state of an entity (people, product, business, and region or nation) by mutually agreed terms between the service provider and the customer.''' 
 
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</blockquote>
 
  
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'''In the service-dominant logic (S-DL) for marketing, service is the application (through deeds, processes, and performances) of specialized operant resources (knowledge and skills) for the benefit of another entity or the entity itself.(Vargo and Akaka 2009)'''  
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Johnson, S.P., L.J. Menor, A.V. Roth, and R.B. Chase. 2000. "A critical evaluation of the new service development process: integrating service innovation and service design," in Fitzsimmons, J.A., and M.J. Fitzsimmons (eds.). ''New Service Development - Creating Memorable Experiences''. Thousand Oaks, CA, USA: Sage Publications. p. 1-32.
  
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'''In the field of Service Science, Management, and Engineering (SSME), the following is offered:'''
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Kano, N. 1996. ''Guide to TQM in Service Industry''. Tokyo, Japan: Asian Productivity Organization.
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<blockquote>
 
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'''Services are processes, performances, or experiences that one person or organization does for the benefit of another – such as custom tailoring suit, cooking a dinner to order, driving a limousine, mounting a legal defense, setting a broken bone, teaching a class, or running a business’s information technology infrastructure and applications. In all cases, service involves deployment of knowledge, skills, and competences that one person or organization has for the benefit of another (Vargo and Lusch 2004), often done as a single, customized job. And in all cases, service requires substantial input from the customer or client (Sampson 2001) – how else could your steak be customized for you unless you tell your waiter how you want it prepared? (http://en.wikipedia.org/wiki/Service_Science,_Management_and_Engineering)'''
 
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</blockquote>
 
  
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'''Furthermore:'''
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Lin, F.R., and P.S Hsieh. 2011. A SAT View on New Service Development." ''Service Science''. 3 (2): 141-157.
  
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*'''Services are economic activities offered by one party to another, most commonly employing time-based performances to bring about desired results in recipients themselves or in objects or other assets for which purchasers have responsibility. In exchange for their money, time, and effort, service customers expect to obtain value from access to goods, labor, professional skills, facilities, networks, and systems; but they do not normally take ownership of any of the physical elements involved. (Lovelock & Wirtz 2007)'''
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Luzeaux, D. and Ruault. J,. ''System of Systems''. New York, NY, USA: John Wiley & Sons. March 2013.
  
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*'''A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer. (Fitzsimmons & Fitzsimmons 2007)'''
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Maglio, P., C. Kieliszewski, and J. Spohrer. 2010. ''[[Handbook of Service Science]]'', 1st ed. New York, NY, USA: Springer Science + Business Media.
  
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*'''The application of competences (knowledge, skills and resources) by one entity for the benefit of another entity in a non-coercive (mutually agreed and mutually beneficial) manner.'''
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Maglio, P., and J. Spohrer. 2008. "Fundamentals of Service Science." ''Journal of the Academy of Marketing Science''. 36 (1): 18-20.  
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**'''Value co-creation interactions (typically with well-defined customer-provider entities as parties who initiate, directly or indirectly, front-stage and back-stage activities in anticipation of value results)'''
 
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**'''An economic activity offered by one party to another, most commonly employing time-based performances to bring about desired transformation results in recipients themselves or in objects or other assets for which purchasers are responsible. In exchange for their money, time and effort, service customers expect to obtain value from the access to goods, labour, professional skills, facilities, networks and systems; but they do not normally take ownership of any of the physical elements involved.  (IFM 2008)'''
 
  
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===Service System===
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Maier, M.W., 1998. "Architecting Principles for System of Systems." ''Systems Engineering''. 1 (4): 267-284.
  
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'''A Service System is defined as “a dynamic configuration of resources (people, technology, organizations and shared information) that creates and delivers value between the provider and the customer through services” (IFM 2008).  This dynamic configuration is illustrated in the System Coupling Diagram (Lawson 2010) where a situation (need for a service) is met by (interacts with) a respondent system (service system) based upon the use of system assets.'''
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Pineda, R. 2010. "Understanding Complex Systems of Systems Engineering." Presented at Fourth General Assembly, Cartagena Network of Engineering, September 21-24, 2010, Metz, France.
  
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'''A service system can also be thought of as a collection of entities that performs the operations, administration, management and provisioning (OAM&P) of resources that together provide the opportunity to co-create value by both the service provider and the service consumer.''' 
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Spohrer, J.C. 2011. "Service Science: Progress & Directions." Presented at International Joint Conference on Service Science, May 25-27, 2011, Taipei, Taiwan.
  
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'''The Cambridge white paper defines a service system in this manner (IFM 2008).'''
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Tien, J.M., and D. Berg. 2003. "[[A Case for Service Systems Engineering]]." ''Journal of Systems Science and Systems Engineering''. 12 (1): 13-38.
  
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* '''Service systems are dynamic configurations of resources (people, technology, organisations and shared information) that can create and deliver service while balancing risk-taking and value co-creation. The dynamics are in part due to the ongoing adjustments and negotiations that occur in all systems involving people. People are the ultimate arbiters of value and risk in service systems (in part because people are legal entities with rights and responsibilities). Service systems are complex adaptive systems.'''
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Vargo, S.L., and R.F. Lusch. 2004. "[[The Four Service Marketing Myths – Remnants of a Goods-Based Manufacturing Model]]." ''Journal of Service Research''. 6 (4): 324-335.
  
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===Service Systems Engineering===
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Vargo, S.L., and M.A. Akaka. 2009. "Service-Dominant Logic as a Foundation for Service Science: Clarifications." ''Service Science''. 1 (1): 32-41.
  
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'''Service Systems Engineering (SSE) is the application of SE principles and concepts in the development, delivery,  operation, and life cycle management of service systems. The key focus of SvSE is on the transactions between a service provider and service consumers. The consumer can be an individual, an organization, or even an entire enterprise.'''
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Whitten, J., and L. Bentley. 2007. ''Systems Analysis and Design Methods''. New York, NY, USA: McGraw-Hill Higher Education.
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</blockquote>
 
  
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===Primary References===
  
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Maglio, P., C. Kieliszewski, and J. Spohrer. 2010. ''[[Handbook of Service Science]]'', 1st ed. New York, NY, USA: Springer Science + Business Media.
  
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==References==
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Tien, J.M., and D. Berg. 2003. "[[A Case for Service Systems Engineering]]." ''Journal of Systems Science and Systems Engineering''. 12 (1): 13-38.
  
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===Citations===
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Vargo, S.L., and R.F. Lusch. 2004. "[[The Four Service Marketing Myths – Remnants of a Goods-Based Manufacturing Model]]." ''Journal of Service Research''. 6 (4): 324-335.
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AT&T SRP. 2008. Technical Approach to Service Delivery. General Services Administration, AT&T Bridge Contract No. GS00Q09NSD0003, http://www.corp.att.com/gov/contracts/fts_bridge/technical/07_vol_I_section_1.pdf. accessed on June 1st 2011.
 
  
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Chang 2010. Service Systems Management and Engineering, Creating Strategic Differentiation and Operational Excellence, Chang C.M., John Wiley & Sons, Inc., 2010, ISBN 978-0-470-42332-5.
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===Additional References===
  
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Eppinger, S. 2001. Innovation at the Speed of Information. Harvard Business School Publishing Corporation.
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AT&T SRP. 2008. ''Technical Approach to Service Delivery''. General Services Administration, AT&T Bridge Contract No. GS00Q09NSD0003. Accessed on June 1, 2011. Available at: http://www.corp.att.com/gov/contracts/fts_bridge/technical/07_vol_I_section_1.pdf.  
  
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Fitzsimmons & Fitzsimmons. 2007. Service Management: Operations, Strategy, Information Technology. McGraw-Hill.  ISBN: 978-0077228491.   
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Booz, Allen, and Hamilton. 1982. ''New Products Management for the 1980s''. New York, NY, USA: Booz, Allen, and Hamilton Inc.   
  
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Freeman, R.L. 2004. Telecommunication Systems Engineering. Wiley-Interscience. 4 edition. ISBN-10: 0471451339; ISBN-13: 978-0471451334.
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Chang, C.M. 2010. ''Service Systems Management and Engineering: Creating Strategic Differentiation and Operational Excellence''. New York, NY, USA: John Wiley & Sons, Inc.
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 +
Eppinger, S. 2001. "Innovation at the Speed of Information." ''Harvard Business Review''. 79 (1): 149-158.
  
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Hipel, K.W., Jamshidi, M.M., Tien, J.M., and White, C.C. 2007. The Future of Systems, Man, and Cybernetics: Application Domains and research Methods. IEEE Transactions on Systems, Man, and Cybernetics-Part C: Applications and Reviews 37 (5): 726-743.  
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Freeman, R.L. 2004. ''Telecommunication Systems Engineering'', 4th ed. New York, NY, USA: John Wiley & Sons.
  
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IFM 2008. University of Cambridge Institute for Manufacturing (IfM) and International Business Machines (IBM) “Succeeding through service innovation: A service perspective for education, research, business and government”, April 2008, ISBN:978-1-902546-65-0.
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Hipel, K.W., M.M. Jamshidi, J.M. Tien, and C.C. White. 2007. "The Future of Systems, Man, and Cybernetics: Application Domains and research Methods." ''IEEE Transactions on Systems, Man, and Cybernetics - Part C: Applications and Reviews''. 37 (5): 726-743.  
  
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Jamshidi, M. 2009. System of Systems Engineering: Innovations for the 21st Century. John Wiley & Sons. ISBN # 978-0-470-19590-1.
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Johnson, S.P., L.J Menor, A.V. Roth, and R.B. Chase. 2000. "A critical evaluation of the new service development process: integrating service innovation and service design," in Fitzsimmons, J.A., and M.J. Fitzsimmons (eds.). ''New Service Development - Creating Memorable Experiences''. Thousand Oaks, CA, USA: Sage Publications. p. 1-32.
  
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Kano, N. 1996 “Guide to TQM in Service Industry”, Asian Productivity Organization, 92833311302, ISBN: 97892833114300.
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Kano, N. 1996. ''Guide to TQM in Service Industry''. Tokyo, Japan: Asian Productivity Organization.
  
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Lovelock & Wirtz. 2007. Services Marketing: People, Technology, Strategy. 7th Edition. Prentice Hall. ISBN: 978-0-13-610721-7.
+
Lin, F.R., and P.S Hsieh. 2011. A SAT View on New Service Development." ''Service Science''. 3 (2): 141-157.
  
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Maier, M.W. 1998. Architecting Principles for System of Systems. Systems Engineering 1 (4): 267-284.
+
Luzeaux, D. and Ruault, J. 2013. ''Systems of Systems'', Wiley.
  
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Maglio, P., Kieliszewski C., and Spohrer, J. 2010. Handbook of Service Science. Springer. 1st Edition. ISBN-10: 9781441916273; ISBN-13: 978-1441916273.
+
Maier, M.W. 1998. "Architecting Principles for System of Systems." ''Systems Engineering''. 1 (4): 267-284.
  
−
Maglio P. and Spohrer, J. 2008. Fundamentals of Service Science. Journal of the Academy of Marketing Science 36 (1): 18-20. DOI: 10.1007/s11747-007-0058-9.  
+
Maglio, P., and J. Spohrer. 2008. "Fundamentals of Service Science." ''Journal of the Academy of Marketing Science''. 36 (1): 18-20.  
  
−
Pineda, R. 2010. Understanding Complex System of Systems Engineering. Invited paper. International Engineering Network Plenary. Metz, France.
+
Pineda, R. 2010. "Understanding Complex Systems of Systems Engineering." Presented at Fourth General Assembly, Cartagena Network of Engineering, September 21-24, 2010, Metz, France.
  
−
Sampson, S.E. 2001. Understanding service businesses. John Wiley: New York, NY.  
+
Spohrer, J.C. 2011. "Service Science: Progress & Directions." Presented at International Joint Conference on Service Science, May 25-27, 2011, Taipei, Taiwan.
  
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Spohrer, J.C. 2011. Service Science: Progress & Directions. International Joint Conference on Service Science. Taipei, Taiwan.
+
Vargo, S.L., and M.A. Akaka. 2009. "Service-Dominant Logic as a Foundation for Service Science: Clarifications." ''Service Science''. 1 (1): 32-41.
  
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Tien, J,M. and Berg, D. 2003. A Case for Service Systems Engineering. Journal of Systems Science and Systems Engineering 12 (1): 13-38.
+
Whitten, J., and L. Bentley. 2007. ''Systems Analysis and Design Methods''. New York, NY, USA: McGraw-Hill Higher Education.
  
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Vargo, S. L. and Lusch, R. F. 2004. The Four Service Marketing Myths – Remnants of a Goods-Based Manufacturing Model. Journal of Service Research 6: 324-335.
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<center>[[Product Systems Engineering Special Activities|< Previous Article]] | [[Applications of Systems Engineering|Parent Article]] | [[Service Systems Background|Next Article >]]</center>
  
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Vargo, S.L. and Akaka, M.A. 2009. Service-Dominant Logic as a Foundation for Service Science: Clarifications. Service Science 1 (1): 32-41.
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<center>'''SEBoK v. 2.9, released 20 November 2023'''</center>
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Whitten, J. and Bentley, L. 2007. Systems Analysis and Design Methods. McGraw-Hill. ISBN 13:978-0-07-305233-5.
 
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===Primary References===
 
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Chang 2010. [[Service Systems Management and Engineering]]: Creating Strategic Differentiation and Operational Excellence, Chang C.M., John Wiley & Sons, Inc., 2010, ISBN 978-0-470-42332-5.
 
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Freeman, R.L. 2004. [[Telecommunication Systems Engineering]]. Wiley-Interscience. 4 edition. ISBN-10: 0471451339; ISBN-13: 978-0471451334.
 
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Maglio, P., Kieliszewski C., and Spohrer, J. 2010. [[Handbook of Service Science]]. Springer. 1st Edition. ISBN-10: 9781441916273; ISBN-13: 978-1441916273.
 
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Tien, J,M. and Berg, D. 2003. [[A Case for Service Systems Engineering]]. ''Journal of Systems Science and Systems Engineering'' 12 (1): 13-38.
 
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===Additional References===
 
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All additional references should be listed in alphabetical order.
 
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====Article Discussion====
 
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[[{{TALKPAGENAME}}|[Go to discussion page]]]
 
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<center>[[Product Systems Engineering|<- Previous Article]] | [[Applications of Systems Engineering|Parent Article]] | [[Service Systems Background|Next Article ->]]</center>
 
  
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==Signatures==
 
 
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[[Category:Part 4]][[Category:Knowledge Area]]
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--[[User:Blawson|Blawson]] 20:38, 15 August 2011 (UTC)
 

Latest revision as of 23:30, 18 November 2023

Lead Authors: Ricardo Pineda, Bud Lawson, Richard Turner

The growth of services in the ever-evolving global economy has brought much needed attention to service scienceservice science and service systems engineeringservice systems engineering (SSE). Research focuses on developing formal methodologies to understand enterprise-end-user (customercustomer) interactions from both socio-economic and technological perspectives, and to enable valuevalue co-creation and productivity improvements. Service systems require trans-disciplinary collaborations between society, science, enterprises, and engineering. Service transactions are customized and personalized to meet a particular customer need. This requires a disciplined and systemic approach among stakeholdersstakeholders and resources to emphasize end-user satisfaction in the design and delivery of the service (Hipel et al. 2007; Tien and Berg 2003; Vargo and Akaka 2009; Maglio and Spohrer 2008; Maglio et al. 2010).

Topics

Each part of the SEBoK is divided into knowledge areas (KAs), which are groupings of information with a related theme. The KAs in turn are divided into topics. This KA contains the following topics:

Introduction

New Service Development (NSD) has usually been a proprietary processprocess closely guarded by product businessesbusinesses and service businesses for their competitive advantage. Traditional systems engineering practices have been primarily applied in aerospace and defense sectors while SSE practices have been applied by information and communications technologiesinformation and communications technologies (ICT) service providers (Booz, Allen, and Hamilton 1982; Johnson et al. 2000; Eppinger 2001; Freeman 2004; Whitten and Bentley 2007; AT&T SRP 2008; Lin and Hsieh 2011).

These early efforts were, and in some instances remain, very important for productproduct and service businesses. However, the growth and ubiquity of the World Wide Web, advances in computer science and ICT, and business process management through “social networking,” support the realization of closely interrelated service systems. Product business (manufacturing, agriculture, etc.) and service business distinctions are going away (Spohrer 2011).

These services, or service innovations, must take into account social aspects, governancegovernance processes, business processes, operational processes, as well as design and development processes. The customer, service provider, product provider, and intermediaries need to collaborate toward the optimization of customer experiences and customer provided value (through co-creation). The interrelations among different stakeholders and resources require that methodologies, processes, and tools be dynamically tailored and delivered for either foreseen or newly discovered services to rapidly adapt to changing enterpriseenterprise and end-user environments.

Even in the case of static, predetermined, interaction rules, the major problems faced in the definition, design, and implementation of services have been in understanding the integration needs among different systems, system entities, stakeholders, and in defining the information flows required for the governance, operations, administration, management and provisioning (OAM&P) of the service. (Maier 1998; Jamshidi 2008; Pineda 2010; Luzeaux and Ruault 2013). Thus, the 21st century technology-intensive services are “information-driven, customer centric, e-oriented, and productivity-focused" as discussed by Chesbrough (2011), Chang (2010), Tien and Berg (2003), and Hipel et al. (2007). A detailed discussion of these characteristics is given in the Value of Service Systems Engineering article within this KA.

Service Systems Engineering Knowledge Area Topics

This knowledge area (KA) describes best practices in SSE during the service design process and outlines current research on methods, processes, and tools. It does not attempt to describe the initial efforts and research in service science that were proposed and introduced by International Business Machines (IBM) (Maglio and Spohrer 2008), but it does recognize their leadership in championing these concepts in undergraduate and graduate curricula.

The rest of the KA is organized in the following way:

The Service Systems Background article presents some background on the transition from a manufacturing economy toward the service economy brought by the World Wide Web through co-creation of end-user value. It describes how this transformation is impacting industries, such as healthcare, agriculture, manufacturing, transportation, supply chain, environmental, etc. The article also describes the scope of the SSE discipline's contributions to meeting the needs of the service sector companies in strategic differentiation and operational excellence (Chang 2010) by pointing out some differences between product-oriented systems engineeringsystems engineering and SSE.

The Fundamentals of Services and Properties of Services articles take the reader through a general discussion of services and current attempts to classify different types of services, in particular, attention is paid to the properties of service systems for the service sector, such us transportation, environmental and energy services, consulting services, healthcare, etc.

The Scope of Service Systems Engineering and Value of Service Systems Engineering articles cover the value of SSE, defining (or using when available) service architecture frameworks, and the stages of the service development process from concept to life cycle managementlife cycle management.

The Service Systems Engineering Stages article summarizes the major SSE process activities that need to be carried out during the service design process and the needed output (work products) in each of the service design process stages.

Service Innovation and Value-Co-creation

Service innovation has several dimensions. Service innovation can come about through the creation of a service concept which is sufficiently different that it is not merely an improved service, but in reality is a new service concept. To maintain the rigor and value of innovation, it is necessary to distinguish between an improved service, which may generate some additional value, and a truly new and innovative service concept, which may generate a great deal of value. Dr. Noriaki Kano, a renowned qualityquality management guru, has suggested that every service concept has its inherent attributes and we should strive to continuously improve upon these; but this is not innovation (Kano 1996).

To be innovative, the change in a value proposition cannot be incremental, but it must be enough to significantly impact customer and competitor behavior (e.g., new market creation). Value innovation involves a shift in perspective of customer needs that requires a rethinking of what service value proposition is delivered (Kano 1996).

Innovation can also come through a significant change in the way or the reason the customer is engaged or connected. In a service value chainservice value chain the customer may well change from being just a receiver of service value to becoming a co-creator, or an active participant in the design and delivery, i.e., service transaction of service value. At the retail level, when a customer designs the time, route, and price selection for a plane ticket purchased online, he is co-creating the service. Value innovation involves a shift in perspective of customer needs that requires a rethinking of how a service value proposition is delivered (Bettencourt 2010).

Finally, service innovation can come through significant changes in the way the enterprise is organized to create a service value proposition from concept through delivery. A considerable improvement in the enterprise structure and/or governance can be seen as innovation. Value innovation involves a shift in perspective of customer needs that requires a rethinking of how an enterprise organizes to support a service value proposition.

Continuous improvement can be reasonably planned and predicted while innovation and breakthroughs cannot. The most effective way to obtain innovation and breakthroughs is to encourage the culture, environment, and atmosphere that are conducive to innovation and breakthroughs. Innovative co-creation requires the integration of people, ideas, and technology for the purpose of creating value for themselves, their customers, companies, and society.

The lone inventor sees a problem and must work to create the solutions to all dimensions of the problem. Co-creators see the problem and realize that there may already be several creators, each already having a piece of the solution. Co-creation embraces the value of things “not invented here” because of the velocity they can bring to ideation and time to market. This service innovation process is facilitated by modern mass (and at the same time, personal) communication technology evident in social networking platforms.

Towards a Discipline of Service Systems Engineering

Mindful of the evolution taking place in the global economy and the world markets, it would be futile to attempt covering all the major advances and the boundless possibilities in the services sector for the rest of the century. The services sector covers wide areas of application studied in many different fields (e.g., business science, social science, cognitive science, political science, etc.). The field of service systems, a trans-disciplinary analysis and study of services, was only introduced 10 to 15 years ago. As a consequence, much of the existing literature on services and service-innovation is scattered. The main objective of this KA is to document the systems engineering processes, methodologies, and existing tools as applied to the service design process, and to introduce critical SSE challenges and research areas.

References

Works Cited

AT&T SRP. 2008. Technical Approach to Service Delivery. General Services Administration, AT&T Bridge Contract No. GS00Q09NSD0003. Accessed on June 1, 2011. Available at: http://www.corp.att.com/gov/contracts/fts_bridge/technical/07_vol_I_section_1.pdf.

Bettencourt, L. 2010. Service Innovation: How to Go from Customer Needs to Breakthrough Services. New York, McGraw-Hill Professional. July 2010.

Booz, Allen, and Hamilton. 1982. New Products Management for the 1980s. New York, NY, USA: Booz, Allen, and Hamilton Inc.

Chang, C.M. 2010. Service Systems Management and Engineering: Creating Strategic Differentiation and Operational Excellence. New York, NY, USA: John Wiley & Sons, Inc.

Chesbrough, H. 2011. Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era. San Francisco, CA, USA: Jossey-Bass.

Eppinger, S. 2001. "Innovation at the Speed of Information" Harvard Business Review. 79 (1): 149-158.

Freeman, R.L. 2004. Telecommunication Systems Engineering, 4th ed. New York, NY, USA: John Wiley & Sons.

Hipel, K.W., M.M. Jamshidi, J.M. Tien, and C.C. White. 2007. "The Future of Systems, Man, and Cybernetics: Application Domains and research Methods. IEEE Transactions on Systems, Man, and Cybernetics - Part C: Applications and Reviews. 37 (5): 726-743.

Jamshidi M, System of Systems Engineering: Innovations for the Twenty-First Century. New York, NY, USA: John Wiley & Sons. November 2008.

Johnson, S.P., L.J. Menor, A.V. Roth, and R.B. Chase. 2000. "A critical evaluation of the new service development process: integrating service innovation and service design," in Fitzsimmons, J.A., and M.J. Fitzsimmons (eds.). New Service Development - Creating Memorable Experiences. Thousand Oaks, CA, USA: Sage Publications. p. 1-32.

Kano, N. 1996. Guide to TQM in Service Industry. Tokyo, Japan: Asian Productivity Organization.

Lin, F.R., and P.S Hsieh. 2011. A SAT View on New Service Development." Service Science. 3 (2): 141-157.

Luzeaux, D. and Ruault. J,. System of Systems. New York, NY, USA: John Wiley & Sons. March 2013.

Maglio, P., C. Kieliszewski, and J. Spohrer. 2010. Handbook of Service Science, 1st ed. New York, NY, USA: Springer Science + Business Media.

Maglio, P., and J. Spohrer. 2008. "Fundamentals of Service Science." Journal of the Academy of Marketing Science. 36 (1): 18-20.

Maier, M.W., 1998. "Architecting Principles for System of Systems." Systems Engineering. 1 (4): 267-284.

Pineda, R. 2010. "Understanding Complex Systems of Systems Engineering." Presented at Fourth General Assembly, Cartagena Network of Engineering, September 21-24, 2010, Metz, France.

Spohrer, J.C. 2011. "Service Science: Progress & Directions." Presented at International Joint Conference on Service Science, May 25-27, 2011, Taipei, Taiwan.

Tien, J.M., and D. Berg. 2003. "A Case for Service Systems Engineering." Journal of Systems Science and Systems Engineering. 12 (1): 13-38.

Vargo, S.L., and R.F. Lusch. 2004. "The Four Service Marketing Myths – Remnants of a Goods-Based Manufacturing Model." Journal of Service Research. 6 (4): 324-335.

Vargo, S.L., and M.A. Akaka. 2009. "Service-Dominant Logic as a Foundation for Service Science: Clarifications." Service Science. 1 (1): 32-41.

Whitten, J., and L. Bentley. 2007. Systems Analysis and Design Methods. New York, NY, USA: McGraw-Hill Higher Education.

Primary References

Maglio, P., C. Kieliszewski, and J. Spohrer. 2010. Handbook of Service Science, 1st ed. New York, NY, USA: Springer Science + Business Media.

Tien, J.M., and D. Berg. 2003. "A Case for Service Systems Engineering." Journal of Systems Science and Systems Engineering. 12 (1): 13-38.

Vargo, S.L., and R.F. Lusch. 2004. "The Four Service Marketing Myths – Remnants of a Goods-Based Manufacturing Model." Journal of Service Research. 6 (4): 324-335.

Additional References

AT&T SRP. 2008. Technical Approach to Service Delivery. General Services Administration, AT&T Bridge Contract No. GS00Q09NSD0003. Accessed on June 1, 2011. Available at: http://www.corp.att.com/gov/contracts/fts_bridge/technical/07_vol_I_section_1.pdf.

Booz, Allen, and Hamilton. 1982. New Products Management for the 1980s. New York, NY, USA: Booz, Allen, and Hamilton Inc.

Chang, C.M. 2010. Service Systems Management and Engineering: Creating Strategic Differentiation and Operational Excellence. New York, NY, USA: John Wiley & Sons, Inc.

Eppinger, S. 2001. "Innovation at the Speed of Information." Harvard Business Review. 79 (1): 149-158.

Freeman, R.L. 2004. Telecommunication Systems Engineering, 4th ed. New York, NY, USA: John Wiley & Sons.

Hipel, K.W., M.M. Jamshidi, J.M. Tien, and C.C. White. 2007. "The Future of Systems, Man, and Cybernetics: Application Domains and research Methods." IEEE Transactions on Systems, Man, and Cybernetics - Part C: Applications and Reviews. 37 (5): 726-743.

Johnson, S.P., L.J Menor, A.V. Roth, and R.B. Chase. 2000. "A critical evaluation of the new service development process: integrating service innovation and service design," in Fitzsimmons, J.A., and M.J. Fitzsimmons (eds.). New Service Development - Creating Memorable Experiences. Thousand Oaks, CA, USA: Sage Publications. p. 1-32.

Kano, N. 1996. Guide to TQM in Service Industry. Tokyo, Japan: Asian Productivity Organization.

Lin, F.R., and P.S Hsieh. 2011. A SAT View on New Service Development." Service Science. 3 (2): 141-157.

Luzeaux, D. and Ruault, J. 2013. Systems of Systems, Wiley.

Maier, M.W. 1998. "Architecting Principles for System of Systems." Systems Engineering. 1 (4): 267-284.

Maglio, P., and J. Spohrer. 2008. "Fundamentals of Service Science." Journal of the Academy of Marketing Science. 36 (1): 18-20.

Pineda, R. 2010. "Understanding Complex Systems of Systems Engineering." Presented at Fourth General Assembly, Cartagena Network of Engineering, September 21-24, 2010, Metz, France.

Spohrer, J.C. 2011. "Service Science: Progress & Directions." Presented at International Joint Conference on Service Science, May 25-27, 2011, Taipei, Taiwan.

Vargo, S.L., and M.A. Akaka. 2009. "Service-Dominant Logic as a Foundation for Service Science: Clarifications." Service Science. 1 (1): 32-41.

Whitten, J., and L. Bentley. 2007. Systems Analysis and Design Methods. New York, NY, USA: McGraw-Hill Higher Education.

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