This document summarizes a presentation on creating knowledge structures for service science. It includes: - An overview of the development of service science in Japan and objectives of the S3FIRE program to create new service science knowledge and build a research community. - A discussion of what constitutes service research and development (R&D) and challenges in defining service R&D boundaries. - Descriptions of communication tools used in the S3FIRE program, including a service system model and classifications of research areas and processes. - Results of a survey on the usefulness of these communication tools for research discussions and understanding issues.

1. Creating Knowledge Structure
for Service Science
Yuriko Sawatani @ Waseda University, Japan
PICMET 2013

2. Agenda
• Introduction
• Service R&D
• Communication tools for Service Science
• Applying communication tools to R&D
projects
• Survey and results
• Discussions
2013/7/30 2

3. Service Science in Japan
• “Innovate America” (Palmisano Report) 2004/12
– “Services science can begin to address major questions at the heart of 21st century innovation”
• The Third Science and Technology Basic Plan 2006/3
– Need to address emerging & interdisciplinary field of research
• Outline of the Economic Growth Strategy (METI) 2006/7
– Innovation in service industry
• Establishment of Service Productivity & Innovation for Growth (SPRING, 2007/5)
• Establishment of Service Engineering Research Center (AIST, 2008/4)
• Innovation 25 2007/6
– Service Innovation
• Service Innovation Human Resource Development Promotion Program (MEXT)
– 6 universities (2007), 7 universities (2008)
• Act on Enhancement of Research and Development Capacity (Article 47) 2008
– Research focusing on applying national sciences to social science and management engineering
• Commission on Promotion of Service Science and Engineering (MEXT) 2008
• Feasibility Study for the program planning (JST) 2009
• Service Science, Solutions and Foundation Integrated Research program 2010/4
• The New Growth Strategy (Basic Policies) Toward a Radiant Japan 2010/6

4. Objectives of S3FIRE
(Service Science, Solutions and Foundation Integrated Research program)
1. Create new SSME knowledge for performance/quality
improvement and a new service model targeting on
various service systems
– Establish scientific foundation for SSME
– Contribute to the society by utilizing and deploying
research outcomes
1. Build community of researchers and practitioners in
the field of SSME
This is the first service science research program aiming the fusion of arts
and sciences supported by the management team of the program.
The program is facilitated by social technology funding agency.
2013/7/30 Japan Science and Technology/RISTEX 4

5. Research Type A. Research on Soution-Development
Research Type B.
Research on Scientific Element of Service Science
S3FIRE Program
Specific and Latent Needs of
SocietyGovernment & Public Policy
Medical, Healthcare & Social welfare Services
Learning & Education
Sustainability
Transportation
Management
Research & Development Management
Fundamental Disciplines and Methodologies
Natural Sciences Social Sciences
Complexity simulation,Emergency Medicine,
Operations Research, Pharmaceutical Sciences,
Multiple Classification Analysis, etc.
Cognitive Science,Social
Psychology, Educational
Psychology,Ethnography, Environmental
Economics, etc.
Management
Engineering, Human
Engineering, Quality
Engineering,etc.

6. Value co-creation management
Research
impact
•Research plan (total, yearly)
•Site visits (a few times / year)
•Research plan
(total, yearly)
•Research report
(total, yearly)
•Review meeting
Project progress monitoring
•Dashboard
•IP, Information, Fund operation
New service
system creation
Value co-
creation
New research
theme creation
Site Sphere
R&D activities Mutual
understanding of
R&D and site
Site knowledge
R&D
Sphere
Value co-
creation
Sphere
Service systemsResearch elements
Service Science
Knowledge
Industrial forumin & out reach Community
Program
Scientific Social Impacts
Knowledge
Economic Social Impacts
Industrialization
Project

7. Agenda
• Introduction
• Service R&D
• Communication tools for Service Science
• Applying communication tools to R&D
projects
• Survey and results
• Discussions
2013/7/30 7

8. Service Research
Frascati Manual version6 （OECD 2002）
• Research and experimental development
(R&D)
– Research and experimental development (R&D)
comprise creative work undertaken on a
systematic basis in order to increase the stock of
knowledge, including knowledge of man, culture
and society, and the use of this stock of
knowledge to devise new applications.” (OECD
2002 p.20)

9. social sciences and humanities
• For the social sciences and humanities, an appreciable
element of novelty or a resolution of
scientific/technological uncertainty is again a useful
criterion for defining the boundary between R&D and
related (routine) scientific activities. This element may be
related to the conceptual, methodological or empirical part
of the project concerned. Related activities of a routine
nature can only be included in R&D if they are undertaken
as an integral part of a specific research project or
undertaken for the benefit of a specific research project.
Therefore, projects of a routine nature, in which social
scientists bring established methodologies, principles and
models of the social sciences to bear on a particular
problem, cannot be classified as research. (OECD 2002
p.48)

10. Why difficult to identify service R&D
• Defining the boundaries of R&D in service activities is difficult, for
two main reasons:
– first, it is difficult to identify projects involving R&D; and,
– second, the line between R&D and other innovative activities which
are not R&D is a tenuous one. ….
• Identifying R&D is more difficult in service activities than in
manufacturing because it is not necessarily “specialised”. It covers
several areas: technology-related R&D, R&D in the social sciences
and humanities, including R&D relating to the knowledge of
behaviour and organisations. ….
• Also, in service companies, R&D is not always organised as formally
as in manufacturing companies (i.e. with a dedicated R&D
department, researchers or research engineers identified as such in
the establishment’s personnel list, etc.).

11. How to identify service R&D
• “The following are among the criteria that can
help to identify the presence of R&D in service
activities:
– Links with public research laboratories.
– The involvement of staff with PhDs, or PhD students.
– The publication of research findings in scientific
journals, organisation of scientific conferences or
involvement in scientific reviews.
– The construction of prototypes or pilot plants (subject
to the reservations noted in Section 2.3.4).” (OECD
2002 p.48-49)

12. Service innovation research
 Shift to Service Economy
 transforming social structure affects to research and development
(R&D) organization
 Macro level surveys on service innovation do not capture R&D
reality
12
R&D management
Service marketing &
management (1980-)
Focused
industry
Product based industry Service industry
Research
New Product
Development (NPD)
New Service Development
(NSD)
Innovation
source
Technology trajectory
Service professional
trajectory
Outcomes
Product and process
innovation
Process and
knowledge/organizational
innovation

13. Customer Focused Product Innovation Research
• R&D and marketing collaboration
– Effect to function expansion of product, reduction of
product development period
• User innovation research (von Hippel 1994)
– Information stickiness based
13
R&D Marketing Customer
Product Innovation
Company
R&D Customer
Company
User Innovation
Products・toolkits

14. Service Innovation Process Research
14
 Service innovation process by companies and customers collaboration
 Facilities, Transformation, Usage (Moeller 2008)

15. Service Research Model for Value co-creation
15
New service
system
creation
Value co-
creation
New research
theme
creation
Site
Sphere
R&D
activities Mutual
understanding
of R&D and site
Site
knowledge
R&D
Sphere
Value co-
creation
Sphere

16. Agenda
• Introduction
• Service R&D
• Communication tools for Service Science
• Applying communication tools to R&D
projects
• Survey and results
• Discussions
2013/7/30 16

17. Service Science related disciplines
Business & Organization
People
Information
TechnologyBehavioral sciences and education, Game theory and mechanism design
Cognitive science and psychology
Complex adaptive systems theory
Computer supported cooperative
work
Financial and value engineering
Industrial engineering (IE) and
systems
Industrial and process automation
Knowledge management
Management of information
systems
Management of technology &
innovation
Marketing and customer
knowledge
Computer
science and
AI/web
services
Statistical
control
theory
System design
and software
architecture
Economics
and law
Engineering economics and management, Supply chain management
Experience design, theatre and arts
Human
resourc
e
manage
ment
Political
Science
International Trade
Mathematics and non-linear
dynamics
Operations management (OM)
Operational research (OR)
Organization theory and learning
Project management
Queuing theory
Simulation, modeling
visualization
Sociology and anthropology
Strategy and finance
Systems dynamics theory and
design
Total quality
management, lean, six sigma
Software
metrics
and
develop
ment
Ref: “Succeeding through service innovation” http://www.ifm.eng.cam.ac.uk/ssme/

18. SP
A.Service
Provider
B.Service
Receiver
C.Service
Set
Service interactions
Content (People, Technology, Shared information)
Channel (a method or system for communication or distribution)
Context
Research Areas
Receiver
activities
•Marketing
•Behavior science
•Kansei eng
•Human modeling
•Human
management
Service provider
environment
•Human resource
•Education
•Building
•IT infrastructure
Service value
•Value eng
•Knowledge eng
•Macro/Micro economics
Provider activities
•Design
•System eng
•OR/IE
•Quality management
•Cost management
Function realization
•robotics
•Requirement eng
•SW eng, Informatics
•Robotics
Organization science
•Management science
•System eng
•Social science
Provider/Receiver
interaction
•consensus building
•Interaction design
•Anthropology
•Behavior
science
•Game theory
Service system
management
•Policy, Social
system
•Platform
Environmental
factor
•Politics, Society,
Economy
•Culture, Civilizat
ion

19. System layer X Context dependency
Micro view Macro view
System layer
low (structural)
Context dependency
high (ecological)
Behavior science
Social study
Law
Economics
Sustainability
Complex system
Service system management
Product Design
Robotics
Function realization
Service eng
PSS
OR/IE
Provider activities
Quality management Provider
environment
Kansei eng
Human eng
Psychology
Receiver activities
Human modeling
Service marketing
R-P Interaction
Business
process
management
Human network
Service value
Service management
Consensus building
Human management
Value co-creation
Business
management
Organization science
Management science

20. Research Areas X SSME related discipline
20
Business & Organization
People
Information
Technology
Ref: “Succeeding through service innovation” http://www.ifm.eng.cam.ac.uk/ssme/
Value co-creation
Service value
Provider activities
Organization
science
Service provider
environment
Receiver activities
Function realization
Service system management
Provider/Receiver
Interaction

21. Research Areas X SSME related discipline
21
Business & Organization
People
Information
Technology
Ref: “Succeeding through service innovation” http://www.ifm.eng.cam.ac.uk/ssme/
Value co-creation
Service value
Provider activities
Organization
science
Service provider
environment
Receiver activities
Function realization
Service system management
Provider/Receiver
Interaction
2010-A2
2010-A1
2010-B1
2011-A2
2011-A1
2011-B1
2011-B3
2011-B2
2010-B2
2012-B1
2012-A2
2012-A3
2012-A4
2012-A1

22. Service system layer
Macro layer
Meso layer
Micro layer
• Social system
• Policy making
• Organization
strategy
• Collaborative
behavior
• Person to person
• Operation
7/8/2013 Waseda University 22

23. Research process
Concept model
development
Classification,
Systemization
Investigation
Hypothesis, Theor
em
Experimentation, De
sign
Verification, Analy
sis
Mathematical
model
Analysis,
Classification
Research review,
Case study
review
Concept
development
■ Deductive approach
■ Inductive
approach
Data
collection
Concept
model
Technology development
Survey
design
Verification,
Analysis,
Adaptation
Formalization
7/8/2013 Waseda University 23

24. Agenda
• Introduction
• Service R&D
• Communication tools for Service Science
• Applying communication tools to R&D
projects: Survey and results
• Discussions
2013/7/30 24

25. project Service system layer Research area Industry
Service
value, Value
co-creation
2011-B2
Micro Service value
Restaurant,
Entertainment
Meso Service value
Meso Service value
Meso Service system management
2010-A2
Micro-Meso Providers and Receivers interaction
Public service
Micro-Meso Service system management
2010-B2
Meso Providers and Receivers interaction
Education, RetailsMicro Service value
Meso Service system management
Provider and
Receiver
interaction
2011-B1
Micro Service value
Healthcare
Meso Providers and Receivers interaction
2011-B3
Meso Service value
Public service
Micro Provider activities
Meso Providers and Receivers interaction
Meso Provider activities
Meso Service value
Meso Provider activities
Meso Service value
Meso Service value
Function
realization
toward value
co-creation
2011-A1
Meso-Macro Service system management
Agriculture
Micro Function realization
2011-A2
Meso Service system management
Public service
Micro Function realization
Meso Service value
Micro-Meso Receiver activities
2010-A1
Micro Function realization
Healthcare
Meso Service system management
2010-B1
Micro Function realization
Travel
Micro Providers and Receivers interaction
Micro Service system management
Meso Service value
Meso Provider activities
Meso Receiver activities
Micro Receiver activities

26. SP
A.Service
Provider
B.Service
Receiver
C.Service
Set
Service interactions
Content (People, Technology, Shared information)
Channel (a method or system for communication or distribution)
Context
Research Areas
Receiver
activities
•Marketing
•Behavior science
•Kansei eng
•Human modeling
•Human
management
Service provider
environment
•Human resource
•Education
•Building
•IT infrastructure
Service value
•Value eng
•Knowledge eng
•Macro/Micro economics
Provider activities
•Design
•System eng
•OR/IE
•Quality management
•Cost management
Function realization
•robotics
•Requirement eng
•SW eng, Informatics
•Robotics
Organization science
•Management science
•System eng
•Social science
Provider/Receiver
interaction
•consensus building
•Interaction design
•Anthropology
•Behavior
science
•Game theory
Service system
management
•Policy, Social
system
•Platform
Environmental
factor
•Politics, Society,
Economy
•Culture,
Civilization
Project focus (multiple selection)

27. Service system layer
Macro layer
Meso layer
Micro layer
• Social system
• Policy making
• Organization
strategy
• Collaborative
behavior
• Person to person
• Operation
7/8/2013 Waseda University 27
Most of
projects

28. Research process
Mathematical
model
Analysis,
Classification
Research review,
Case study
review
Concept
development
■ Deductive
approach
■ Inductive
approach
Data
collection
Concept
model
Technology development
Survey
design
Verification, Analy
sis, Adaptation
Formalization
7/8/2013 Waseda University 28
HCI（Human Computer Interface）, CSCW (Computer-Supported Cooperative Work)
Text mining, network analysis, field test, simulation
Gamification, soft system method, business model canvas

29. Survey
Research session and Research areas
Understanding research areas
Understanding value co-creation session
Service system model is useful for research discussion
Understanding provider and receiver interaction session
Understanding function realization session
Communication tools
Service system model is useful for research discussion
Research area is useful for research discussion
Research area is useful for understanding research issues
Service system layer is useful for research discussion
Service system layer is useful for understanding research issues
Service system layer is useful for understanding social deployment issues
For the future session setting
For deeper research discussion, which clusters are useful?
a. Industry b. Research approach c. Research methods d. Research area e. Research
process
For considering the research project deployment, which clusters are useful?
a. Industry b. Research approach c. Research methods d. Research area e. Research
process
7/8/2013 Waseda University 29

30. Results
Research session and Research areas Mean SD
Understanding research area clustering 3.55 0.93
Understanding value co-creation session 4.02 1.09
Service system model is useful for research discussion 3.88 1.27
Understanding provider and receiver interaction session 4.02 1.07
Understanding function realization session 4.30 0.78
Communication tools Mean SD
Service system model is useful for research discussion 3.88 1.27
Research area is useful for research discussion 3.78 1.01
Research area is useful for understanding research
issues 3.57 1.09
Service system layer is useful for research discussion 3.83 1.08
Service system layer is useful for understanding research
issues 3.59 1.01
Service system layer is useful for understanding social
issues 3.53 1.067/8/2013 Waseda University 30

31. Research session and Research areas
• New introduced research areas are not easy
• Function realization, focusing on
engineering research approach is easier to
recognize
7/8/2013 Waseda University 31
0 1 2 3 4 5
Understanding function realization…
Understanding provider and receiver…
Understanding value co-creation session
Understanding research area clustering
Mean

32. Communication tools
• Service system layer: research discussions
• Research area: research discussions
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3.35 3.4 3.45 3.5 3.55 3.6 3.65 3.7 3.75 3.8 3.85
Research area is useful for research discussion
Research area is useful for understanding research issues
Service system layer is useful for research discussion
Service system layer is useful for understanding research
issues
Service system layer is useful for understanding social
issues
Mean

33. For the future session setting
• Research methods: research depth
• Research approach: research depth and
deployment
7/8/2013 Waseda University 33
0 5 10 15 20
Industry
Research approach
Research methods
Research area
Research process
Research depth
Deployment into society

34. Discussions
• Possibility to facilitate service science knowledge
infrastructure applying these tools
• Answering a how question, research methods and
approaches, is also required
• There are risks to reduce the research scopes by
introducing these common frameworks
• Understand research methods and approaches
discussion for Service science research as the next
step
7/8/2013 Waseda University 34

35. Thank you!