Service System Life Cycle Service Dominant Logic Diamond of Diamonds Earned Value Management Diamond of Business Development OPVK_MU_EN_stred_2.jpg Service Dominant Logic Another context to solve usual business issues. Service-Dominant Logic •Developed by Vargo and Lush, 2004 •Developed for marketing in service oriented economy •Recognized as a fundamental principle within current economy development •Described by 10 foundational premises S-DL Foundational Premises •FP1 Service is the fundamental basis of exchange –Service is an application of competences (UKE, EC) for benefit of a party; –Direct exchange is the service for service exchange. •FP2 Indirect exchange masks the fundamental basis of exchange –service-money-goods-service S-DL Foundational Premises (2) •FP3 Goods are distribution mechanisms for Service provision –Goods help solve the efficient knowledge transfer problem; –Well designed goods accumulate great deal of knowledge and skills. •FP4 Operant resources are the fundamental source of competitive advantage –Distinguish operant from operand ! –Operant can take action … is the service system entity (agent) S-DL Foundational Premises (3) •FP5 All economies are service economies –…be they hunter-gatherer, agricultural, manufacturing or service depend on human knowledge application to create benefit—that is service •FP6 The customer is always a co-creator of value –Every service system entity is both a customer and provider –They interact to co-create value S-DL Foundational Premises (4) •FP7 The enterprise cannot deliver value, but only offer value propositions. –Value propositions are at the heart of value-co-creation interactions •FP8 A service-centered view is inherently customer oriented and relational. –a service provider’s knowledge of a customer –quality of their relationship (level of trust) –… both directly relate to the quality of value propositions that the service provider can offer S-DL Foundational Premises (5) •FP9 All economic and social actors are resource integrators. –Three categories: Market-facing (free access), Private (privileged access), Public (shared access) –In creating or realizing VP with others, SS* entities will reconfigure or integrate resources •FP10 Value is always uniquely and phenomenologically determined by the beneficiary. –Value determination is contextual, history dependent, and unique to an entity (agent). S-DL try to use it when evaluating particular business situations. Diamond of Diamonds The Fifth Diamond A possible pattern of thinking in MENTION-USE Logic or A possible pattern of S-R-O-D scheme utilization PRESENT PRESENT PAST FUTURE PRESENT PAST FUTURE PRESENT Experience, live out, - USE Experience, live out, - USE PAST FUTURE PRESENT Visualization, think about, - MENTION DIAM_4_full_plus DIAM_1_Attention Experience, live out, - USE PAST FUTURE PRESENT DIAM_2_cognitive_elements DIAM_3_Organization DIAM_4_full_plus DIAM_1_Attention DIAM_2_cognitive_elements DIAM_3_Organization Experience, live out, - USE PAST FUTURE PRESENT Visualization, think about, - MENTION DIAM_4_full_plus DIAM_1_Attention DIAM_2_cognitive_elements DIAM_3_Organization PAST FUTURE PRESENT What the Attention is focused on ? DIAM_4_full_plus DIAM_1_Attention DIAM_2_cognitive_elements DIAM_3_Organization PAST FUTURE PRESENT DIAM_4_full_plus DIAM_1_Attention DIAM_2_cognitive_elements DIAM_3_Organization PAST FUTURE PRESENT DIAM_4_full_plus DIAM_1_Attention DIAM_2_cognitive_elements DIAM_3_Organization PAST FUTURE PRESENT DIAM_4_full_plus DIAM_1_Attention DIAM_2_cognitive_elements DIAM_3_Organization Experience, live out, - USE PRESENT Visualization, think about, - MENTION PAST FUTURE PRESENT Please, Think about it ! Selected business issues (1) How to monitor progress and performance (2) Diamond of Business Development EVM = “Earned” Value Management •Key questions: State of elaboration? Time? •It integrates dimensions of the Triple constraint •BAC = Budget at completion •PV = Planned Value •AC = Actual Costs •EV = “Earned” Value • •Some differences •Some ratios Cumulative values Time 0 Budget at Completion (BAC) PV Plan of the Project Plan of the project •BAC represents total value of project in money spent for it •BAC is set based on estimations, experience, and market situation •The basis for BAC setting is WBS (GBS) •PV is a curve of cumulative value of project in money spent up to given time point Cumulative values Time 0 Budget at Completion (BAC) Data Date PV Monitoring Cumulative values Time 0 Budget at Completion (BAC) Data Date PV EV Earned Value Earned Value is estimated summing up values of reached deliverables according to WBS Cumulative values Time 0 Budget at Completion (BAC) Data Date PV AC Actual costs Actual Cost is taken from the Project Accounting System, which can be exactly separated part of Permanent Organization Accounting System. Variances from the approved plan: SV = EV – PV … schedule variance; EV ≤ PV if EV is measured in WBS nodes completion; CV = EV – AC … cost variance; Cumulative values Time 0 Budget at Completion (BAC) Data Date PV EV AC Performance indicators: SPI = EV / PV … schedule performance index CPI = EV / AC … cost performance index Cumulative values Time 0 Budget at Completion (BAC) Data Date PV EV AC Cumulative values Time 0 Budget at Completion (BAC) Data Date PV EV AC Forecasting Estimate at Completion (EAC) ETC = Estimate to Complete Diamond 8 - a Business Development Diamond A Model for New Business Development Usual Approach j0195812 j0222015 j0215086 j0285360 Idea Product/ Service Business Plan Launch RESEARCH SPECIFICATION/ IMPLEMENTATION/ PRODUCTION SPECIFICATION/ IMPLEMENTATION/ PRODUCTION BUSINESS Drawbacks j0195812 j0222015 j0215086 j0285360 Idea Product/ Service Business Plan Launch RESEARCH SPECIFICATION/ IMPLEMENTATION/ PRODUCTION SPECIFICATION/ IMPLEMENTATION/ PRODUCTION BUSINESS Where the Problem is? j0195812 j0222015 j0215086 j0285360 Idea Product/ Service Business Plan Launch RESEARCH SPECIFICATION/ IMPLEMENTATION/ PRODUCTION SPECIFICATION/ IMPLEMENTATION/ PRODUCTION BUSINESS Where the Problem is? j0195812 j0222015 j0215086 j0285360 Idea Product/ Service Business Plan Launch RESEARCH SPECIFICATION/ IMPLEMENTATION/ PRODUCTION SPECIFICATION/ IMPLEMENTATION/ PRODUCTION BUSINESS Solution •The whole Company has to function as a Service System. •No part could be excluded! •Leadership from the front. •Diam3 principles of organization. •Diam4 principles of acting. •The whole process “Research-Specification-Implementation-Production-Business” goes as a Dual Service System between Devel&Application on one hand and Business on the other hand RESEARCH SPECIFICATION IMPLEMENTATION/ PRODUCTION BUSINESS j0195812 j0222015 j0215086 j0285360 Idea Launch Product/ Service Business Plan Service System RESEARCH SPECIFICATION IMPLEMENTATION/ PRODUCTION BUSINESS j0195812 j0222015 j0215086 j0285360 Idea Launch Product/ Service Business Plan Service System Devel& Application Team Business Team RESEARCH SPECIFICATION IMPLEMENTATION/ PRODUCTION BUSINESS j0195812 j0222015 j0215086 j0285360 Idea Launch Product/ Service Business Plan Service System Devel& Application Team Business Team (Finance Sales Marketing) RESEARCH SPECIFICATION IMPLEMENTATION/ PRODUCTION BUSINESS j0195812 j0222015 j0215086 j0285360 Idea Launch Product/ Service Business Plan Service System Devel& Application Team Business Team Successful Business RESEARCH SPECIFICATION IMPLEMENTATION/ PRODUCTION BUSINESS j0195812 j0222015 j0215086 j0285360 Idea Launch Product/ Service Business Plan Service System Devel& Application Team Business Team Successful Business THE TARGET CUSTOMER PROVIDER Dual Service System 1/2 RESEARCH SPECIFICATION IMPLEMENTATION/ PRODUCTION BUSINESS j0195812 j0222015 j0215086 j0285360 Idea Launch Product/ Service Business Plan Service System Devel& Application Team Business Team Successful Business THE TARGET CUSTOMER PROVIDER Dual Service System 2/2 The END