Service Science - Lecture Notes | MGMT 150, Study notes of Introduction to Business Management

Download Service Science - Lecture Notes | MGMT 150 and more Study notes Introduction to Business Management in PDF only on Docsity! Service Science Paul P. Maglio UC Merced Monday, 6 – 9 PM Room CSB 120 MGMT 150/COGS 152 Fall 2007 Lecture 1 MGMT 150/COGS 152 Fall 2007 2 What the heck is “service science”? Lecture 1 MGMT 150/COGS 152 Fall 2007 5 What are some services? • Transportation – Trains, planes • Hospitality – Hotels, restaurants • Infrastructure – Telephone, electricity • Government – Police, fire • Financial – Banking, investments • Entertainment – Television, movies • Professional Services – Doctors, lawyers • Education – K-12, colleges, universities • IT Services – Outsourcing, consulting • Business Services – Consulting, outsourcing Lecture 1 MGMT 150/COGS 152 Fall 2007 6 So what the heck is service? In economics and marketing, a service is the non-material equivalent of a good. Service provision has been defined as an economic activity that does not result in ownership, and this is what differentiates it from providing physical goods. It is claimed to be a process that creates benefits by facilitating either a change in customers, a change in their physical possessions, or a change in their intangible assets. By supplying some level of skill, ingenuity, and experience, providers of a service participate in an economy without the restrictions of carrying stock (inventory) or the need to concern themselves with bulky raw materials. On the other hand, their investment in expertise does require marketing and upgrading in the face of competition which has equally few physical restrictions. - from Wikipedia, see http://en.wikipedia.org/wiki/Services Lecture 1 MGMT 150/COGS 152 Fall 2007 7 So what the heck is service? • Deed, act, or performance – Berry (1980) • All economic activity whose output is not physical product or construction – Brian et al (1987) • A time-perishable, intangible experience performed for a customer acting as co-producer – Fitzsimmons & Fitzsimmons (2001) • A change in condition or state of an economic entity (or thing) caused by another – Hill (1977) • Deeds, processes, performances – Zeithaml & Bitner (1996) • Application of specialized competences through deeds, processes, and performances to benefit another – Vargo & Lusch (2004) Lecture 1 MGMT 150/COGS 152 Fall 2007 10 Who am I? Why am I here? Lecture 1 MGMT 150/COGS 152 Fall 2007 11 Who are you? Why are you here? Lecture 1 MGMT 150/COGS 152 Fall 2007 12 What will you learn? You will learn about service. You will learn what service is, why it is different from other sectors and other jobs, and why it is important. You will learn about problems in service, such as measuring performance, increasing quality, and creating innovation. You will learn how some have recently begun to study service from a variety of different perspectives – including social sciences, cognitive science, management, engineering, and others – to address these problems. You will learn how interdisciplinary research might be effective in studying and understanding service. In the end, you will be able to have an informed and intelligent conversation about the nature of service, how to think about measurement in service, and how to increase innovation in service. And you will be (at least a little more) ready for the workforce you are about to enter. Lecture 1 MGMT 150/COGS 152 Fall 2007 15 What will you do? Lecture 1 MGMT 150/COGS 152 Fall 2007 16 What will you do? Lecture 1 MGMT 150/COGS 152 Fall 2007 17 What will you do? Lecture 1 MGMT 150/COGS 152 Fall 2007 20 What will you read? Articles Butler, P., Hall, T. W., Hanna, A. M., Mendonca, L., Auguste, B., Manyika, J., & Sahay, A. (1997). A revolution in interaction. The McKinsey Quarterly, 1997/1, 4 – 23. Glushko, B. & Tabas, L. (2007). Bridging the front stage and back stage in service system design. Manuscript under review. Harmon, E. Hensel, S. C. & Lukes, T. E. (2006). Measuring performance in services. The McKinsey Quarterly, 2006/1, 31 – 39. Hutchins, E. (1995). How a cockpit remembers its speeds. Cognitive Science, 19, 265-288. Available at http://hci.ucsd.edu/lab/hci_papers/EH1995-3.pdf Johnson, B. C., Manyika, J. M., & Yee, L. A. (2005). The next revolution in interactions. The McKinsey Quarterly, 2005/4, 20 – 33. Maglio, P. P., Kandogan, E., & Haber, E. (2007). Distributed cognition and joint activity in computer-system administration. In M. S. Ackerman, C. Halverson, T. Erickson, & W. A. Kellogg (Eds.), Resources, co-evolution, and artifacts: Theory in CSCW. New York: Springer. Maglio, P. P., Srinivasan, S., Kreulen, J. T., Spohrer, J. (2006). Service systems, service scientists, SSME, and innovation. Communications of the ACM, 49, 81-85. Normann, R. & Ramirez, R. (1993). From value chain to value constellation: Designing interactive strategy. Harvard Business Review, 71, 65 – 77. Palmisano, S. J. (2006). The globally integrated enterprise. Foreign Affairs, 85, 127 – 136. Available at http://www.ibm.com/ibm/governmentalprograms/samforeignaffairs.pdf Spohrer, J., Maglio, P. P., Bailey, J. & Gruhl, D. (2007). Steps toward a science of service systems. Computer, 40, 71-77. Tien, J. M. & Berg, D. (2003). A case for service systems engineering. Journal of Systems Science and Systems Engineering, 12, 13 – 38. Vargo, S. L. & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68, 1 – 17. Optional Arthur, W. B. (1999). Complexity and the economy. Science, 284, 107 – 109. Available at http://www.santafe.edu/~wbarthur/Papers/Pdf_files/Econ_&_Complex_Web.pdf Beardsley, S. C., Johnson, B. C., & Manyika, J. M. (2006). Competitive advantage through better interactions. The McKinsey Quarterly, 2006/2, 52 – 63. Bryson, J. R., Daniels, P. W., & Warf, B. (2004). Service worlds: People, organisations, and technologies (Chapters 1 – 2). New York: Routledge/Taylor & Francis, pp. 1 – 34. Cherbakov, L. Galambos, G, Harishankar, R., Kalyana, S. & Rackham, G. (2005). Impact of service orientation at the business level. IBM Systems Journal, 44, 653 – 658. Available at http://www.research.ibm.com/journal/sj/444/cherbakov.pdf Coase, R. (1937). The nature of the firm. Economica, 4, 386 – 405. Available at http://www.cerna.ensmp.fr/Enseignement/CoursEcoIndus/SupportsdeCours/COASE.pdf Frei, F. X. (2006). Breaking the trade-off between efficiency and service. Harvard Business Review, 84, 93 – 101. Gadrey, J. (2002). The misuse of productivity concepts in services: Lessons from a comparison between France and the United States. In J. Gadrey & F. Gallouj (Eds). Productivity, Innovation, and Knowledge in Services: New Economic and Socio-economic Approaches. Cheltenham UK: Edward Elgar, pp. 26 – 53. Heskett, J. L., Jones, T. O., Loveman, G. O., Sasser, W. E., Schlesinger, L. A. (1994). Putting the service profit chain to work. Harvard Business Review, 72, 164 – 174. Hill, T. P. (1977). On goods and services. The Review of Income and Wealth, 23, 315 – 338. Hill, P. (1999). Tangibles, intangibles and services: A new taxonomy for the classification of output. Canadian Journal of Economics, 32, 426 – 446. Available at http://www.csls.ca/journals/sisspp/v32n2_09.pdf Karmarkar, U. (2004). Will you survive the services revolution? Harvard Business Review, 82, 100 – 107. Mann, C. (2003). Globalization of IT services and white collar jobs: the next wave of productivity growth. International Economics Policy Briefs, IIE, No PB03-11. Available at http://www.iie.com/publications/pb/pb03-11.pdf Papazoglu M. (2003). Service-oriented computing: Concepts, characteristics and directions. In Proceedings of the Fourth International Conference on Web Information Systems Engineering. Available at http://infolab.uvt.nl/pub/papazogloump-2003-51.pdf Rust, R. T. & Chung, T. S. (2006). Marketing models of service and relationships. Marketing Science, 25, 560 – 580. Schultze, U. & Bhappu, A. D. (2005). Incorporating self-serve technology into co-production design. International Journal of E-Collaboration, 1, 1 – 23. Smith, A. (1776). The wealth of nations. (Chapter 1). Available at http://www.econlib.org/LIBRARY/Smith/smWN.html Lecture 1 MGMT 150/COGS 152 Fall 2007 21 Will this be on the test? Lecture 1 MGMT 150/COGS 152 Fall 2007 22 Will this be on the test? • There is no test UCMCROPS Home % Resources e Announcements Site Resources | Upload-Download Multiple Resources | Permissions | Options Assignments Blogger Chat Room Copy | Remove | Move Location: C1] Fo7.MGMT150COGS152 LEC Resources Discussion @ Titles Access Created By Modified size rap Bax (2 Fov-momT150c0Gs152 LEC Resources ~ add + Actions Email Archive Forums FB course overview and Syllabus ~ Actions Entire site Paul Maglio ‘Aug 26, 2007 12:42 pm 44.1 KB Sa BH Gy Lectures + add + Actions Entire site Paul Maglio, ‘Aug 26, 2007 12:42 pm 0 items MailToot Messages 5 Readings + Add > Actions Entire site Paul Maglio Aug 26, 2007 12:42 pm 3 items: Podeasts Gl Week 1 - aug 27 ~ Add Actions Entire site PaulMagtio —Aug 26, 2007 12:42 pm 1 item Poll Postem FB Week 2 - sept 3 + Add | + Actions | Entire site Paul Maglio ‘Aug 26, 2007 12:42 pm 1 item Resources = Shas on Week 3 - Sept 10 ~ Add + Actions Entire site Paul Maglio ‘Aug 26, 2007 12:42 pm 2 items Schedule Search o Week 4 - Sept 17 + Add | Actions Entire site Paul Magtio Aug 26, 2007 12:42 pm 2 items Section info = ~ iis CG Hidden stuff ~ add || ~ Actions | Entire site Paul Maglio Aug 26, 2007 12:42 pm 1 item Site info Tests & Surveys _» Show other sites Wiki Helo Lecture 1 MGMT 150/COGS 152 Fall 2007 25 UCMCROPS Home % Resources e Announcements Site Resources | Upload-Download Multiple Resources | Permissions | Options Assignments Blogger Chat Room Copy | Remove | Move Location: C1] Fo7.MGMT150COGS152 LEC Resources Discussion @ Titles Access Created By Modified size rap Bax (2 Fov-momT150c0Gs152 LEC Resources ~ add + Actions Email Archive Foran: FB course overview and Syllabus + Actions Entire site Paul Maglio ‘Aug 26, 2007 12:42 pm 44.1 KB Sa BH Gy Lectures + add + Actions Entire site Paul Maglio, ‘Aug 26, 2007 12:42 pm 0 items MailTool Messages 5 Readings. + Add + Actions Entire site Paul Magtio ‘Aug 26, 2007 12:42 pm 3 items: a TB Week 1 - aug 27 ~ Add > Actions Entire site Paul Magtio, ‘Aug 26, 2007 12:42 pm 4 tern Poll Postem Dp Week 2 - Sept 3 + Add | + Actions Entire site Paul Magtio ‘Aug 26, 2007 12:42 pm 4 item Resources ——— Shas on Week 3 - Sept 10 ~ Add + Actions Entire site Paul Maglio ‘Aug 26, 2007 12:42 pm 2 items Schedule Search o Week 4 - Sept 17 + add + Actions Entire site Paul Maglio, ‘Aug 26, 2007 12:42 pm 2items Section Info = _ - Site o (4) Hidden stuff ~ Add | ~ Actions Entire site Paul Maglio Aug 26, 2007 12:42 pm 1 item Site Info Tests & Surveys > Show other sites Wiki Help Lecture 1 MGMT 150/COGS 152 Fall 2007 26 CMCROPS Home % Resources e Announcements Site Resources | Upload-Download Multiple Resources | Permissions | Options Assignments : C1] FO7-MGMT150COGS152 LEC Resources Blogger Feet ChatRoom Copy | Remove | Move Discussion [) TI itie Access Created@y Modified size == (CW Fo7-momT150c0G5152 LEC Resources ~ addy Actions Email archive Fora FB course overview and Syllabus + Actions Entire site Paul Maglio ‘Aug 26, 2007 12:42 pm 44.1 KB ‘Gradebook CG Lectures + Add + Actions Entire site PaulMagtio Aug 26, 2007 12:42 pm 0 items MailToot Messag r Readings. + Add = + Actions Entire site Paul Maglio Aug 26, 2007 12:42 pm 3 items: Podeasts Gl Week 1 - aug 27 ~ Add | > Actions Entire site PaulMagtio Aug 26, 2007 12:42 pm 1 item Poll Ti Bl Week 2 - sept 3 + Add + Actions Entire site Paul Maglio. Aug 24, 2007 12:42 pm 4 item 5 Week 3 - Sept 10 + Add + Actions Entire site Paul Magtio ‘Aug 26, 2007 12:42 pm Zitems Search o Week 4 - Sept 17 + add + Actions Entire site Paul Maglio Aug 26, 2007 12:42 pm 2items Section Info = - CG Hidden stutt ~ Add||~ Actions | Entire site PaulMagtio Aug 26, 2007 12 1 item Site Info Tests & Surveys _» Show other sites Wiki Halo | Lecture 1 MGMT 150/COGS 152 Fall 2007 27 Lecture 1 MGMT 150/COGS 152 Fall 2007 30 Now some bad news… • Fitzsimmons, J. A. & Fitzsimmons, M. J. (2005). Service management: Operations, strategy, and information technology (4th Edition), Irwin/McGraw-Hill. (Chapters 1, 2, 5, 6, 15). • Glushko, R. J. & McGrath, T. (2005). Document engineering: Analyzing and designing documents for business informatics and web services. MIT Press. (Chapters 1, 4). • Herzenberg, S., Alic, J., & Wial, H. (1998). New rules for a new economy: Employment and opportunity in postindustrial america. Cornell University Press. (Chapter 5). • Lovelock, C. & Wirtz, J. (2007). Service marketing: People, technology and strategy (6th Edition). Pearson/Prentice Hall. (Chapters 1, 2, 4, 8, 10; and Cases 4, 14, and 16). • Spangler, S. & Kreulen, J. (2007). Mining the talk: Unlocking the business value in unstructured information. IBM Press. (Chapters 1, 2). .X X Lecture 1 MGMT 150/COGS 152 Fall 2007 31 So, if you had to choose… • No one likes this, but copyrights cost money* – $104 for a Print reader (+tax and shipping) – $100 for a Digital Only reader (+tax)** – $112 for a Print + Digital reader (+tax and shipping) *all costs approximate **with digital only, you get 2 chances to print out chapters Lecture 1 MGMT 150/COGS 152 Fall 2007 32 Why is service so important? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1810 1835 1860 1885 1910 1935 1960 1985 2010 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1810 1835 1860 1885 1910 1935 1960 1985 2010 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1810 1835 1860 1885 1910 1935 1960 1985 2010 Japan China Russia 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1800 1820 1840 1860 1880 1900 1920 1940 1960 1980 2000 United States 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1800 1820 1840 1860 1880 1900 1920 1940 1960 1980 2000 Germany 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1800 1820 1840 1860 1880 1900 1920 1940 1960 1980 2000 India agriculture manufacturing services Source: 2004 IBM Study based on national labor data Lecture 1 MGMT 150/COGS 152 Fall 2007 35 What do service jobs look like? Government & security Health & education Financial & insurance Professional & business Information & communication Retail & wholesale Leisure & hospitality Transportation & utilities High skill executive, judge doctor, professor, dean broker, partner executive, lawyer, scientist, engineer, architect, entrepreneur executive, engineer executive, proprietor producer, director, proprietor, designer, star athlete performer pilot, executive, engineer Semi- autonomous legislator, policy researcher, patent analyst pharmacist, nurse, teacher, technician analyst, actuary, underwriters manager, accountant, HR, PR, marketing, business dev technician, system administrator, journalist, writer, announcer buyer, high end sales actor, performer, artist, technician attendant, maintenance technician, plumber, electrician Unrationalized labor intensive police, firefighter, security guard nurses aid, day care worker, ambulance driver adjustors, auditor, investigators admin. assistant, hiring specialist, door to door sales call center specialist, librarian sales clerk, stocker, shipping & receiving maid, janitor, waiter, gardener, cook, barber truck driver, field force technician, machine operator Tightly constrained inspectors, data entry data entry bank teller, check proofers inspectors, receptionist telephone operator sales counter clerks fast food worker inspectors Client citizen, plaintiff, defendant, inventor patient, student, subscriber shareholder, client, subscriber client subscriber consumer, shopper guest subscriber, commuter - based on Herzeberg et al, (1998). All occupations span a range, placement is representative only. Lecture 1 MGMT 150/COGS 152 Fall 2007 36 What is involved in service? Service Provider - Individual - Organization - Technology Service Target: The reality to be transformed or operated on by provider, for the sake of client -People, dimensions of -Business, dimensions of -Products, technology artifacts & env. -Information, codified knowledge Service Client - Individual - Organization - Public or Private Forms of Service Relationship Forms of Ownership Relationship (co-create value) Forms of Responsibility Relationship Forms of Service Interventions - based on Gadrey (2002)- r ( ) Lecture 1 MGMT 150/COGS 152 Fall 2007 37 What is a service system? • Service systems are value co-creation configurations of people, technology, internal and external service systems connected by value propositions and shared information (such as language, laws, measures, models) • Service science is the study of service systems Lecture 1 MGMT 150/COGS 152 Fall 2007 40 Wait… something is due next time? Sept 10 One-page paper due: Describe a specific business service you use, explaining how it relates to Teboul’s (or other) definition of service Papers must be double-spaced with 1-inch margins on all sides, and formatted in a legible font (such as Times Roman) with font-size 12. Papers must have a title, your name must be at the top of each page, and each page must be numbered. All papers must include references formatted in a standard style, either following The Chicago Manual of Style (15th edition) or the Publication Manual of the American Psychological Association (5th Edition). All papers must be clearly written (see Strunk and White’s classic, Elements of Style), and must be proofread so they contain minimal typos and the like. Lecture 1 MGMT 150/COGS 152 Fall 2007 41 Questions?