Introducción a la service science

Service Science,

Management, and
Engineering
(and Design)
(and Art)
Introducción a la Service Science
Jordi Busquets
Salome Valero

Tomàs Cerdà – Septiembre 2012

1 © 2012 IBM Corporation
© 2005 IBM Corporation

Grado de Informática y Servicios

 La ingeniería orientada a la excelencia en los servicios. ¿Hace falta un nuevo
ingeniero en el mundo de los servicios?

 El sector servicios se ha convertido, en el principal contribuidor del PIB y la
principal fuente de ocupación de las economías de los países desarrollados.

 Del paradigma industrial centrado en el producto, hacia un paradigma de
servicios centrado en el cliente o usuario.

 Es en este contexto en el que una nueva disciplina académica, profesional y
empresarial aparece: SSME (Service Science, Management and Engineering) y
que está redefiniendo el papel de los profesionales y en particular los ingenieros
que necesita la economía de los servicios.

 UAB e IBM: Acuerdo Marco de Colaboración. Escola Gimbernat i Tomàs Cerdà:
Grado de Informática y Servicios.


What is Service Science or SSME(D)?

Today, SSME is a call for
academia, industry, and
governments to focus on
becoming more systematic
about innovation in the
service sector, which is the
largest sector of the economy in
most industrialized nations, and
is fast becoming the largest
sector in developing nations as
well. SSME is also a proposed
academic discipline and
research area that would
complement – rather than
replace – the many disciplines
that contribute to knowledge
about service.


What is Service Science or SSME(D)?

Service Science, Management,
and Engineering (SSME) is a
term introduced by IBM to
describe Service Science, an
interdisciplinary approach to the
study, design, and
implementation of services
systems – complex systems in
which specific arrangements of
people and technologies take
actions that provide value for
others. More precisely, SSME
has been defined as the
application of science,
management, and engineering
disciplines to tasks that one
organization beneficially
performs for and with another.


Global Service Economy

Ten Nations US Employment History & Trends
Total 50% of World Wide Labor
A = Agriculture, G = Goods, S = Services 1980-2010 2010
PC Age
United States
Nation A G S Service
% % % Growth (A) Agriculture:
Value from
China 50 15 35 191%
harvesting nature
India 60 17 23 28%
U.S. 3 27 70 21%
(G) Goods:
Value from
Indonesia 45 16 39 35% making products

Brazil 23 24 53 20% (S) Services:
Value from enhancing the
Russia 12 23 65 38% capabilities of things (customizing,
distributing, etc.) and interactions between things
Japan 5 25 70 40%
Nigeria 70 10 20 30%
Bangladesh 63 11 26 30%
Spain 3.4 30 66 53%
The largest labor force migration in human
International Labor Organization history is underway, driven by global
communications, business and technology
growth, urbanization and low cost labor


Where the growth is…

US Gross Domestic Product

Products Services

Material 11% 30%

Information 9% 50%
& Organization

-Based on Uday Karmarkar, UCLA
(Apte & Karmarkar, 2006)


Service sector employment

In 2006 the service sector’s
share of global employment
overtook agriculture for the
first time, increasing from
39.5% to 40%. Agriculture
decreased from 39.7% to
38.7%. The industry sector
accounted for 21.3% of total
employment.

- International Labour Organization

http://www.ilo.org/public/english/region/asro/bangkok/
public/releases/yr2007/pr07_02sa.htm

Fitzsimmons & Fitzsimmons (2008)


Knowledge-Intensive Service Activities (KISA)

 More jobs require expert
thinking and complex
communication skills 15
Expert Thinking
 Specialization and 10
Complex
integration are both 5 Communication
Routine Manual
important!
0
Routine Cognitive

 Fission and fusion -5 Non-routine
Manual
-10
1969 1974 1979 1984 1989 1994 1999

Percentile change in skill descriptions 1969-1999
Based on U.S. Department of Labor’s
Dictionary of Occupational Titles (DOT)
From Levy and Marnane (2004),
Autor, Levy Marnane (2003)


IBM’s business

Revenue Growth by Segment

100

80

Revenue ($B)
Services
60 Software
Systems
40
Financing
20

0
1982 1988 1994 1998 2004 2008 2010
Year


Not just IBM…


Why innovation in services matter?


IBM
IBM Global
Services


Something about services

 Value co-creation

 “Servitization” of products

 Front-office/Back-office

 Customer experience

 Complex systems / Service Systems


Value co-creation

James Teboul, “Services is Front Stage. We are all
in services… more or less” (2007)

New view of value-creation processes

PRODUCTION CONSUMPTION
SYSTEM SYSTEM
Exchange
Process
Preparations Behavioral
Outcome Value
With service processes, the response
customer provides significant Output
inputs into the production process. Infrastructure
-Sampson & Froehle (2006)
Goods-dominant logic view

PRODUCTION CONSUMPTION
SYSTEM SYSTEM
The customer is always a Process Co-production
co-producer. Preparations Outcome
-Vargo & Lush (2004)
Interactions

Contract

Service-dominant logic view

Paul Lillrank, “An event-based approach to services,”
15 Presented at Frontiers in Service Conference, October 2008 © 2012 IBM Corporation

“Servitization” of goods


Service Encounter


Front-office / Back-office

Integrated Product/Service design

Customer
Front Stage Back Stage
Facing
Sales
Products offering
Service mix offering
Value Force Information
Client Systems
Co-creation
& Product request
Service demand Channels
Channel Delivery Technology

Product fullfilment


Global / Local delivery


Mairi McIntyre, Univ. of Warwick


Understanding service systems

 Service
 Service is the application of
competences for the benefit of
another entity
 Service System
 Value co-creation configurations of
integrated resources: people,
organizations, shared information
and technology

 Service Science
 Service science is the systematic
study of service and service
systems
 SSME
 SSME is a discipline that brings
together scientific understanding,
engineering principles, and
management practices to design,
create, and deliver service systems


Typical Service Lifecycle

 Service Strategy and Planning

 Service Design

 Service Engineering

 Service Development and Project Management + Service Innovation

 Service Marketing

 Service Delivery and Operations

 Service Quality

 Service Analysis and Evaluation


Service Science

principles

SCIENCE
formality
repeatability
testability
simplicity
models
simulation


Science

 Science is the of making hypotheses about the world, and
supporting or refuting them with scientific methods
 Scientific methods include:
 Rigorous and methodical reasoning
 Based on repeatable measurements and observations
 Using controlled experiments and
 The laws of logic and mathematics

Einstein: "No amount of experimentation can ever prove me right; a single experiment
27 can prove me wrong." © 2012 IBM Corporation

Sample Hypotheses in Service Science

 Customer satisfaction is a good predictor of business growth
 A combination of technical and personal skills are necessary for
customer facing service providers to achieve high satisfaction
ratings
 The cost of full refunds to dissatisfied customers is compensated
for by return business
 Automation of service processes is cost effective in terms of
return on investment

Hypotheses usually take the form of a mathematical model

Something about services… more

 Value co-creation
 “Servitization” of products
 Front-office/Back-office
 Customer experience
 Complex systems / Service Systems
 But many more aspects…
 Business Service Modelling / Simulation
 Stock, capacity and demand management
 Services Quality
 Service Design
 Service Innovation
 Resources management
 ….


Need more T-shaped people – both deep and broad
Science and Engineering
Industrial and Systems Engineering
Service Education is Interdisciplinary

Computer Science & Info. Systems
Math and Operations Research
Economics and Social Sciences
Business Anthropology
Organizational Change & Learning
Business and Management

30

Need for Academic Curricula Change

Business Models Science
& &
Processes Technology
SSME
People
&
Culture

The marketplace requires innovation that combines
31 people, technology, value and clients © 2012 IBM Corporation

What Are We Saying?

 To Universities
 Update your curricula - teach in context around services
 Train your students to be more multi-disciplinary with skills in technology, business and
people/culture
 Help develop new scientific models and algorithms to improve profitability of services
businesses

 To Governments
 Fund University research and curricula for Service Science to help your economy and
develop skills for the 21st Century

 To Industry Partners
 Fund and participate in new Service Innovation Research
 Help with University outreach

 To IBMers
 Get involved with University Outreach for SSME and develop training materials


Skills for 21st Century


Service Science
Discipline Classification System
A. General D. Service Management G.Service Arts
1. Service Science Education 1. Service Marketing 1. Service Arts Theory
2. Research in Service Science 2. Service Operations 2. Traditional Service Arts
3. Service Science Policy 3. Service Management 3. Performance Arts
4. History of Services 4. Service Lifecycle 4. History of Service Arts
5. Case Studies 5. Service Innovation Management 5. Service Arts Education
6. Miscellaneous 6. Service Quality
7. Human Resources Management
H.Service Industries*
B. Service Foundations 8. Customer Relationship Management
1. The Service Industry
1. Service Theory 9. Services Sourcing
2. Utilities
2. Service Philosophy 10. Services Law
3. Wholesale Trade
3. Economics of Services 11. Globalization of Services
4. Retail Trade
4. Theoretical Models of Services 12. Service Business Education
5. Transportation and Warehousing
5. Mathematical Models of Services 6. Information Services
6. Service Complexity Theory E. Human Aspects of Services 7. Finance and Insurance
7. Service Innovation Theory 1. Service Systems Evolution 8. Real Estate and Rental
8. Service Foundations Education 2. Behavioral Models of Services 9. Professional and Technical Services
3. Decision Making in Services 10. Management Services
C. Service Engineering 4. People in Service Systems 11. Administrative and Support Services
1. Service Engineering Theory 5. Organizational Change in Services 12. Educational Services
2. Service Operations 6. Social Aspects of Services 13. Health Care and Social Assistance
3. Service Standards 7. Cognitive Aspects of Services 14. Arts, Entertainment, and Recreation
4. Service Optimization 8. Customer Psychology 15. Accommodation and Food Services
5. Service Systems Engineering 9. Education in Human Aspects of Services 16. Public Administration Services
6. Service Supply Chains 17. Other Service Industries
7. Service Engineering Management F. Service Design
8. Service Systems Performance 1. Service Design Theory
9. Service Quality Engineering 2. Service Design Methodology
10. New Services Engineering 3. Service Representation
11. Computer Services 4. Aesthetics of Services
12. Information Technology Services 5. Service Design Education
13. Service Engineering Education

Claudio Pinhanez & Paul Kontogiorgis, “A proposal for a service science discipline classification systems,”
Presented at Frontiers in Service Conference, October 2008

University Response

 Grado de Informática y Servicios, Escola Gimbernat i Tomàs Cerdà, UAB,
Barcelona.

 More than 240 Universities in 42 countries are teaching SSME courses

 There are more than 102 degree programs in SSME worldwide

 Numerous SSME Workshops

 24 Service Research Centers Worldwide


IBM Systems Journal Dedicated to SSME - 2008


http://www.ibm.com/university/ssme


thanks


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