Service Science Definition Update: Towards Service Sciences, Management, and Engineering (SSME) April 20t^h, 2005 April 20^th quick update: Some upcoming events § May, Oxford University § June 3-4, Marc Davis, Bentley College, Service Innovation event § June 21-22, Nirmal Pal, Penn State, Service Innovation event § July 4, System Science Conference Keynote § July-Aug, Bill Rouse visits Almaden for 2 weeks § August, Japan Ministry of Education § October, Frontiers in Services Conference (Panel/Paper Award) § October, Norway Service Innovation Conference § December, UCSC POMS Conference (Presentation/Paper Award) § TBD (Berkeley, Northwestern, RPI, GTech, Darden, NSF, DoC) § Develop On campus champions, reading lists, curriculum, courses, research agenda, grant proposals, student pipelines, visiting faculty and post-docs, etc. List of fundamental problems that can only be solved with a multidisciplinary approach spanning schools of sciences, management, and engineering Backup Slides Service Innovations Event Plans § Berkeley May 6^th (Henry Chesbrough) § Bentley June 3-4 (Mark Davis – author of Service Management textbook) § Penn State June 20-21 (Nirmal Pal) § Arizona State University (Sept/Oct) § Northwestern (Sept/Oct) § RPI (Q4 2005, Q1 2006) § UCSC (TBD) § Department of Commerce (TBD) § NSF (TBD) § Darden (TBD) § These are follow-on to the Nov 17-18^th Service Innovation event at Almaden § Goal: Multidisciplinary focus on service innovation Definition § Service Science short for “Service Sciences, Management, and Engineering” § The application of scientific, engineering and management disciplines to tasks that one organization beneficially performs for and with another ("services“). § The study of service systems and their emergent and designed evolution. Service systems are made up of large numbers of interacting clients and providers coproducing value. One mechanism for creating value is specialization, which results in the need for coordination. Service Science – Reading List § Motivation Chesbrough (2005) Towards a new science of services. Harvard Business Review. Chesbrough (2004) A failing grade for the innovation academy. Financial Times. Rust (2004) A call for a wider range of services research. J. of Service Research. Tien & Berg (2003) A case for service systems engineering. J. Sys. Science & Sys. Eng. Rouse (2004) Embracing the enterprise. Industrial Engineer. Karmarkar (2004) Will you survive the services revolution. Harvard Business Review. § Philosophy Vargo & Lusch (2004) Evolving a new dominant logic for marketing. J. of Marketing. § Exemplar Model Oliva & Sterman (2001) …Quality erosion in the services industry. J. of Management Science. § Economics Bryson et al (2005) Service worlds. Routledge. London, UK. Herzenberg et al (1998) New rules for a new economy. Cornell University Press. Ithaca, NY. § Technology McAfee (2005) Will web services really transform collaboration? MIT Sloan Management Review. § Textbooks Fitzsimmons & Fitzsimmons (2001) Service management. McGraw-Hill. New York, NY. Sampson (2001) Understanding service businesses. John Wiley: New York, NY. § Evolution Nelson (2003) On the uneven evolution of human know-how. J. of Research Policy. Agre (2004) An anthropological problem, a complex solution. J. of Human Organization. Grand Challenges (per Maglio) § 1.The value of method is to enable average performers to operate like higher skill performers. But when is this possible? Under what circumstances? When is it impossible? What are tradeoffs in reskilling people versus modifying the method? Example: An average cook might seem like an expert in a gourmet kitchen using an easy to follow cookbook. § 2. What is the optimal experience-capture to method? What is the best way to go from experience to repeatable behaviors in similar but different client situations --- and with different people executing the method? What is the tradeoff of innovation versus errors in dealing with exceptional cases and differences? How does having a supervisor or mentor that checks performance help? § 3. How can get an organization to change when times are good? According to Sam Palimisano in his HBR interview in December, it is easy to change when times are bad (witness IBM in the early 1990s), but how can we structure or encourage change when times are good but might be bad later? § 4. What grand challenge problem is worthy of both academics and businesses? Academics need a problem whose solution requires more deep knowledge and an integration across discipline silos, and businesses need a problem whose solution raises “all ships” by accelerating value creation and capture from service innovations and bestowing businesses with predictable growth advantages. § 5. Can there be a science of social-technical-economic systems, systems that by their very nature are diffciult or impossible to predict? Will the word “science” evolve in meaning to include methods for expanding knowledge about systems that are difficult or impossible to predict – such as social-economic systems that invite “gaming” (as soon as the system becomes a little bit predictable competing dynamics are set in motion to both maintain the predictability and disrupt the predictability)? Overview § Weekly Service Science Forum calls with team room (Wed 10:30 EST; lead Ruoyi Zhou/Almaden/IBM) Purpose: Weekly update on four key activity areas (next slide) § Current external activities: Interactions with faculty in services-related areas Purpose: Talks, students, papers, grant proposals, curriculum design, research agenda, faculty and SUR awards, service innovations events on campus § What will success look like? More awareness in IBM of best academic and government work (new patents?) More services content in existing courses More government investment to make service innovation a more systematic process More successful high quality research papers, journals, conferences Multidisciplinary centers with a focus on service innovations Ultimately, new academic discipline and degree programs that create graduates capable of excelling in service innovation, performance, and research IBM viewed as thought leader in establishing more systematic approaches to service innovation (service science) Service Science Forum Provides Updates On… Some faculty conversations around Service Science § Faculty Awards § Henry Chesbrough, Berkeley § Tom Malone, MIT Sloan § Drew Isaacs, Berkeley § Bob Glushko, Berkeley § Bob Sutton, Stanford WTO § Steve Barley, Stanford WTO § Jim Fitzsimmons, UT Austin § Jim Tien, RPI (Systems Engineering) § Scott Sampson, BYU Marriott § Uday Karmarkar, UCLA Anderson § Sponsorships § Tennenbaum Institute (Bill Rouse) § Journal of Service Research (Roland Rust) § POMS Best Paper (Uday Apte) § Future Faculty Award Candidates? § Pam Hinds, Stanford WTO § Kathleen Carley, CMU § Mary Jo Bitner, ASU § Steve Brown, ASU § John Bender, Stanford § James March, Stanford § Byron Reeves, Stanford § Nirivakar Singh, UCSC § Elaine Hyder, CMU § Mike Radnor, Kellogg § Nirmal Pal, PSU § Ram Akella, UCSC § Dan Freedman, UCSC § Mark Davis, Benton § James Hoopes, Babson § Diane Bailey, Stanford § Daniel Berg, RPI § Tarek Kahlil, Miami § Bill Hefley, CMU § Mathias Hild, U Virginia § Lee Giles, PSU § Steve Atler, USF § Marco Iansiti, Harvard § Bob Lusch, U Arizona § Roland Rust, U Maryland § Mike Radnor, NWU § Ira Weiss, Dean College of Management, NC State Definitions of Services § Deed, act, or performance (Berry, 1980) § An activity or series of activities… provided as solution to customer problems (Gronroos, 1990) § All economic activity whose output is not physical product or construction (Brian et al, 1987) § Intangible and perishable… created and used simultaneously (Sasser et al, 1978) § A time-perishable, intangible experience performed for a customer acting in the role of co-producer (Fitzsimmons, 2001) § Joint production (Fuchs, 1968) § A change in condition or state of an economic entity (or thing) caused by another (Hill, 1977) § Characterized by its nature (type of action and recipient), relationship with customer (type of delivery and relationship), decisions (customization and judgment), economics (demand and capacity), mode of delivery (customer location and nature of physical or virtual space) (Lovelock, 1983) § Deeds, processes, performances (Zeithaml & Bitner, 1996) So, services are… Pay for performance in which client and provider coproduce value § High talent performance Knowledge-intensive business services (business performance transformation services) § High tech performance Computational services (e-commerce, self service – client does work) Even here… talent builds, maintains, upgrades, etc. the technology § Routine performance This is being automated, outsourced, migrated to high talent/value sectors, or otherwise being rationalized High talent performance is on the rise in the US economy Why Service Science? New knowledge drives the process of systematic innovation… Trend 1: Rise of the Service Economy Trend 2: Rise and Shift in Service Research