Pockets of Service Research

1
Pockets of Service Research

• Peter J Wild
• Institute of Manufacturing
• Engineering Design Centre
• Department of Engineering
• University of Cambridge

2
Motivation

• To provide a brief overview of significant and
  pertinent research in several disciplines
• Service Marketing
• Design
• Engineering Design Manufacturing
• Not complete
• No Computing (SOA, Software as Service)
• No Management (Servitization)

3
Structure

• Service Marketing
• IHIP and refinements
• Service Blueprinting
• Service Dominant Logic
• Design
• Journey to the Interface
• Nelsons Qualities of Service
• Engineering Design Manufacturing
• Functional Products
• Product-Service Systems

4
Services Marketing

• Discipline that emerged out of marketing based on
  the recognition that services are not produce /
  goods / products
• some change is brought about in the condition of
  some person or good, with the agreement of the
  person concerned or economic unit owning the good
  (Hill 1977, p.318).
• Regan (1963), Rathmall (1966), Shostack (1977)
• Fisk et al. (1993)
• Crawling Out, Scurrying About, Standing Erect
• Overlap and Competition with Service Operations,
  Economics and Management
• generally ignorant of HCI and hold stereotypes
  about Computing

5
Services Marketing

• IHIP and refinements
• Service Dominant Logic
• Service Blueprinting

6
IHIP and refinements

• Rathmall (1966) 3 observations amongst many
• Intangibility
• Imprecise standards
• Imperishable
• Evolved to become IHIP (Vargo and Lusch 2004 p.
  326).
• Intangibilitylacking the palpable or tactile
  quality of goods.
• Heterogeneity the relative inability to
  standardize the output of services in comparison
  to goods.
• Inseparability of production and consumption
  the simultaneous nature of service production and
  consumption compared with the sequential nature
  of production, purchase, and consumption that
  characterizes physical products.
• Perishability the relative inability to
  inventory services as compared to goods

7
Textbook consensus

• For example
• Kerin et al. (2003)
• Kotler (2001)
• Pride and Ferrell (2003
• Solomon and Stuart (2003)
• Mudie and Cottam (1993/1999)
• Swallowed without critique by
• Agouridas and Kossmann 2007
• Alonso-Rasgado et al. 2004
• Baltacioglu et al. 2007
• Candi 2007
• Hofacker et al. 2007
• Kundu et al. 2007

8
Critiques and Additions

• Wyckham et al. (1975)
• Shostack (1977)
• Lovelock (1983)
• Lovelock and Gummesson (2004)
• Vargo and Lusch (2004)
• Corrêa et al. (2007)

9
IHIP Refinements

• Lovelock (1983)
• Tangible and Intangible Services
• People or Things
• Hill (1977, 1999)
• Tangible and Intangible Products
• Intangibles are Originals that is, additions
  to knowledge and new information of all kinds,
  and also new creations of an artistic or literary
  nature (p.438).
• A heterogeneous group of intangible entities such
  as a book, music composition, film, process,
  plan, blueprint or computer programme.
• Wild et al (2007, in preparation)
• Coupling analysis of Products and Services
• Profile along 30 or so Product-Service dimensions
  

10
Service Blueprinting Evolution

• Shostack (1980s)
• motivated to identify and represent service
  functions benefits standards and tolerances.
• Temporal order Timings The Line of visibility
• Later work with Kingman-Brundage suggested a
  spiral lifecycle for SB development
• Very popular in Service Marketing and Service
  operations communities and texts

11
Service Blueprinting
12
Components

• Customer Actions
• Employee actions
• Onstage
• Backstage
• Support Processes
• Physical Evidence
• Lines
• Interaction separates customer and supplier
  interaction.
• Visibility denotes what customers see.
• Internal Interaction separates front and back
  office capabilities.
• Order penetration separates activities that are
  independent and dependent on customers.
• Implementation separates planning, management,
  control, and support activities.

13
Uses

• Recognizing roles and interdependencies
• Facilitating both strategic and tactical
  innovations
• Transferring and storing innovation knowledge
• Designing the Moments of Truth
• Clarifying competitive positioning

14
Service Blueprinting

• No known conceptual or empirical comparison of SB
  with other methods for mapping processes or
  analysis of tasks (e.g., IDEF, BMPN, TA).
• However, all components of SB can be
  represented in BPMN
• There are no known studies on the efficacy of SB
  or its perceived or actual usability by end users
  of a service.

15
Service Dominant Logic

• IHIP maybe falling apart as a paradigm for
  Services Marketing
• Number of suggested alternatives, within and
  outside of Services Marketing
• Service Dominant Logic is one that has produced
  much excitement and debate.

16
Service Dominant Logic

• Service the application of specialised
  competencies through deeds, processes, and
  performances for the benefit of another entity or
  the entity itself (p. 2).
• we use the singular service in S-D logic,
  indicating a process of doing something for
  someone, rather than the plural services,
  implying units of output as would be consistent
  with G-D logic.
• Goods and Services are subsumed in the exchange
  of value between parties
• words (and distinctions) like producer and
  consumer, goods and services, demand and supply,
  etc. carry very specific connotations and an
  implied logic that are often incompatible with
  emerging conceptualizations (p. 286).

17
Service Dominant Logic

• FP1. The application of specialised skills and
  knowledge is the fundamental unit of exchange
• FP2. Indirect exchange masks the fundamental
  unit of exchange
• FP3. Goods are distribution mechanisms for
  service provision
• FP4. Knowledge is the fundamental source of
  competitive advantage
• FP5. All economies are service economies
• FP6. The customer is always co-creator
• FP7. The enterprise can only make value
  propositions
• FP8. A service-centred view is customer oriented
  view and relational
• FP9 Organisations exist to combine specialist
  competencies into complex service that provides
  desired solutions

18
Service Dominant Logic

• Most glaring failures of the SDL is its
  reluctance to define what it means by value
• Despite the co-creation of value being at the
  core of the SDL
• Implicit notion of value sometimes
• Cost
• Benefit
• Something else even more mysterious

19
Design

• the conscious and intuitive effort to impose
  meaningful order (Papanek 1997 p.4).
• involves balancing issues of method, aesthetics,
  teleology, use, need, association (1997, p.5)

20
Design Journey to the Interface

• DEMOS is a think tank concerned with democracy
  in public services.
• Journey to the Interface pamphlet Parker and
  Heapy outline their vision and strategy
• The major thrust of their work is taking issue
  with the design of services based around the
  assumption that they are like products.
• service is seen as a commodity, rather than
  something deeper, a form of human interaction (p.
  8).
• They take an approach that concerns learning how
  to create deeper forms of satisfaction and
  wellbeing through service is the long-term
  priority (p. 9)

21
Design Journey to the Interface
22
Design Nelsons Qualities of Service

• Nelson (2002) considers a number of different
  types of service
• Lip
• Room
• Self
• Military / Protective
• Social / Public

23
Design Nelsons Qualities of Service

• Full service
• Embraces all the positives and avoids the
  negatives of the above
• the outcome of full service is adequate
  essential and significant to the well-being of
  the clients and stakeholders

24

• Beneficial to user
• Individual expression
• Allows emergent entities
• Avoids rights without responsibilities (all
  parties)
• Protects vulnerable parties
• Avoids collateral damage (actual and
  metaphorical)
• Distinguishes between good ends and bad ends
• Contributes to the common good
• Relationship of maturity and complexity
• Conspiracy of empathy and creative struggle
• Contract between equals
• All have a voice
• Provides for the common good
• Evokes the uncommon good

25
Engineering Design Manufacturing

• Functional Products
• Product centric, Value added services
• Product-Service Systems
• Sometimes product centric
• Generally Service centric
• Heavily associated with Sustainability

26
Functional Products Alonso-Rasgado et al 2004

• Are products that comprise combinations of
  hard and soft elements (p. 515)
• Service is composed of four subcomponents
  service operations experience outcome and
  value (p. 521)
• Service design is analogous to hardware design

27
Functional Products Alonso-Rasgado et al 2004
28
Product-Service Systems

• Term Product-service systems seems to have first
  appeared Goedkoop et als report (1999).
• a marketable set of products and services
  capable of jointly fulfilling a users need. The
  PS system is provided by either a single company
  or by an alliance of companies. It can enclose
  products (or just one) plus additional services.
  It can enclose a service plus an additional
  product. And product and service can be equally
  important for the function fulfilment. The
  researchers need and aim determine the level of
  hierarchy, system boundaries and the system
  elements relations (p.18).

29
Product Service Systems

• A system of products, services, supporting
  networks and infrastructure that is designed to
  be competitive, satisfy customer needs and have a
  lower environmental impact than traditional
  business models (p. 239 Mont 2002).

30
Product Service Systems

• System ambiguous and divisive
• Says nothing about the relationships between the
  product, service
• Possible to take an engine for a haircut
• And little about trade-offs
• DfS of an engine could increase fuel burn, so
  that could bugger the environmental impact

31
McAloone and Andreasen (2002)

• Activity domain
• a sequence of multiple, interrelated life phases
  and activities throughout the products service
  time, i.e. the period where it is utilised in
  accordance with its planned purpose
• Artefact System Domain
• a set of multiple, interrelated systems, between
  which the product life phase system of use is the
  predominant, but where other systems (the
  producers maintenance system, the overall system
  related to the product, the supply of input to
  the product, etc.) can also be of importance.
• Value domain
• a set of multiple stakeholders values,
  determining the utilisation and reactions to the
  above and determining how seriously the side
  effects are regarded

32
Methodologies

• A range of tools and methodologies exist for
  designing PSS however, these tend to lack a
  critical and in-depth evaluation of their
  performance in practice they are typically a
  subtle development of more conventional
  processes and there is a lack of evidence for
  the completeness of the set of tools and methods
  proposed.
• Baines et al 2007

33
(No Transcript)
34
Broad Requirements

• Environment
• Domain
• Activities
• Tools and Artefacts
• Goals
• Agents, Collaborations and Groups
• Value(s) and Effectiveness

35
References

• Agouridas, V., and Kossmann, M. (2007) Combined
  Requirements Engineering (CRE) The quest for
  widening the applicability of requirements
  engineering practices in the emerging
  product-service paradigm. 17th Annual
  International Symposium of the International
  Council on Systems Engineering, 24-28 June.
• Alonso-Rasgado, T., Thompson, G., and Dannemark,
  O.J. (2004) State of the Art in Service Design
  and Modelling. Report, D2.1..4_1, Vivace Project,
  Manchester.
• Alonso-Rasgado, T., Thompson, G., and Elfström,
  B.-O. (2004) The design of functional (total
  care) products. Journal of Engineering Design, 15
  (6), pp. 515-540.
• Baltacioglu, T., Ada, E., Kaplan, M.D., Yurt, O.,
  and Kaplan, Y.C. (2007) A New Framework for
  Service Supply Chains. The Service Industries
  Journal, 27 (2), pp. 105-124.
• Bitner, M.J., Ostrom, A.L., and Morgan, F.N.
  (2007) Service Blueprinting A Practical Tool for
  Service Innovation. Innovation in Services
  Conference, Berkeley, April 26-28.
• Candi, M. (2007) The role of design in the
  development of technology-based services. Design
  Studies, 28 (6), pp. 559-583.
• Corrêa, H.L., Ellram, L.M., Scavarda, A.J., and
  Cooper, M.C. (2007) An operations management view
  of the services and goods offering mix.
  International Journal of Operations Production
  Management, 27 (5), pp. 444-463.
• Fisk, R.P., Brown, S.W., and Bitner, M.J. (1993)
  Tracking the Evolution of the Services Marketing
  Literature. Journal of Retailing, 69 (1), pp.
  61-103.
• Fließ, S., and Kleinaltenkamp, M. (2004)
  Blueprinting the service company Managing
  service processes efficiently. Journal of
  Business Research, 57 (4), pp. 392-404.
• Goedkoop, M., van Halen, C., te Riele, H., and
  Rommens, P. (1999) Product Service Systems,
  Ecological and Economic Basics. Report, PRé
  Consultants, Amersfoort The Netherlands.
• Hill, P. (1977) On Goods and Services. Review of
  Income Wealth, 23 (4), pp. 315-338.
• Hill, P. (1999) Tangibles, intangibles and
  services. Canadian Journal of Economics, 32 (2),
  pp. 426.
• Hofacker, C.F., Goldsmith, R.E., Bridges, E., and
  Swilley, E. (2007) E-Services A Synthesis and
  Research Agenda. Journal of Value Chain
  Management, in press pp. 13-44.
• Lovelock, C.H. (1983) Classifying Services to
  Gain Strategic Marketing Insights. Journal of
  Marketing, 7 (Summer), pp. 9-20.

36
References

• Lovelock, C.H., and Gummesson, E. (2004) Whither
  Services Marketing? Journal of Service Research,
  7 (1), pp. 20-41.
• McAloone, T.C., and Andreasen, M.M. (2002)
  Defining product service systems. Meerkamm, H.
  (Ed). Design for X, Beiträge zum 13 Symposium,
  Lehrstuhl für Konstruktionstechnik, TU Erlangen,
  10 - 11 October 2002. pp. 51-60.
• Mont, O.K. (2002) Clarifying the concept of
  product-service system. Journal of Cleaner
  Production, 10 (3), pp. 237-245.
• Morelli, N. (2003) Product-service systems, a
  perspective shift for designers A case study
  the design of a telecentre. Design Studies, 24
  (1), pp. 73-99.
• Morelli, N. (2006) Developing new product service
  systems (PSS) methodologies and operational
  tools. Journal of Cleaner Production, 14 (17),
  pp. 1495-1501.
• Nelson, H.G. (2002) Systems Science in Service to
  Humanity. Systems Research and Behavioral
  Science, 19 (5), pp. 407-416.
• Rathmell, J.M. (1966) What Is Meant by Services?
  Journal of Marketing, 30 (4), pp. 32-36.
• Regan, W.J. (1963) The Service Revolution.
  Journal of Marketing, 27 (3), pp. 57-62.
• Shostack, G.L. (1977) Breaking Free from Product
  Marketing. Journal of Marketing, 41 (2), pp.
  73-80.
• Shostack, G.L. (1982) How to Design a Service.
  European Journal of Marketing, 16 (1),
• Vargo, S.L., and Lusch, R.F. (2004) Evolving to a
  new dominant logic for marketing. Journal of
  Marketing, 68 (1), pp. 1-17.
• Vargo, S.L., and Lusch, R.F. (2004) The four
  service marketing myths. Journal of Service
  Research, 6 (4), pp. 324-335.
• Wyckham, R.G., Fitzroy, P.T., and Mandry, G.D.
  (1975) Marketing of Services. European Journal of
  Marketing, 9 (1), pp. 59.
• Wild, P.J., Jupp, J., Kerley, W., Eckert, C.M.,
  and Clarkson, P.J. (2007) Towards a Framework for
  Profiling of Products and Services. Stockton,
  D., Khalil, R., and Baines, R. (Eds). 5th ICMR,
  Leicester, Inderscience. pp. 285-290.