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Service Systems
and
Shared Value Creating
Zdenko Stanicek, CPD (IPMA Level A)
Mycroft Mind, a.s.
&
Faculty of Informatics, Masaryk University

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The basic question:
•How to do the right things and how to do them well …
•… while everybody has different notion about
–What are “the right things”
–What means “well done”

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1
Service Systems

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CLIENT
PROVIDER
TARGET
Individual or
Organization or
Technology
(owned or operated by
Provider)
Individual or
Organization
(private or public,
human or semi-human
living or artificial)
The reality to be transformed
or operated on by P for the sake of C
(people and dimensions of, business and dimensions of,
 products, technical artifacts, environment, information,
codified knowledge)
P provides service
to C;
C co-operates with P;
value co-production;
value proposition;
information shared
P is responsible
for actions with T
C is owner of T
or C needs an added
value on T
C
P
T
MENTION
C
P
T
C
P
T
TIME

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How to deliver benefit to customers
•This, what directly is, or can be, useful, i.e., which directly brings or can bring benefits, is a
SERVICE
•… not a PRODUCT
•… not a PROVIDER / PRODUCER
•SERVICE is the benefit making element
•Two possible paradigms exist in business:
–PRODUCT oriented
–SERVICE oriented

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Product
Functionalities
PRODUCER
CUSTOMER
Purchase / Sell
Develop /
Maintain /
Develop /
…
Use
PRODUCT oriented projects

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Product
Functionalities
PRODUCER
CUSTOMER
Purchase / Sell
Develop /
Maintain /
Develop /
…
Use
Help
PRODUCT oriented projects

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Product
Functionalities
PRODUCER
CUSTOMER
Purchase / Sell
Develop /
Maintain /
Develop /
…
Use
SERVICE
Help
PRODUCT oriented projects

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Service
Functionalities
PROVIDER
 CLIENT
Co-operate / Provide
Develop /
Maintain /
Develop /
…
Use
SERVICE oriented projects

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Service
Functionalities
PROVIDER
CLIENT
Co-operate / Provide
Develop /
Maintain /
Develop /
…
Use
SERVICE
SERVICE oriented projects

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Jim Spohrer
How the current Customer imagines the situation :

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Jim Spohrer
How the current Customer imagines the situation :
Goods-Dominant Logic

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Jim Spohrer
What we need to reach success:

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Jim Spohrer
What we need to reach success:
Service-Dominant Logic

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Jim Spohrer
Shift from Value creation to Value co-creation

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Service System
•A composition of compositions of People, Technology, and Information, providing benefits to
recognized clients – in particular contexts.
•A service system comprises people and technologies that adaptively compute and adjust to a
system’s changing value of knowledge.
•It comprises service providers and service clients working together to co-produce value in complex
value chains or networks.
•Individuals, families, firms, nations, and economies – all represent instances of service systems.

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Service systems and PPP
•Service System behavior can be effectively described by means of
–Projects
–Programs of projects
–Portfolios of projects or programs or (another) portfolios
•Key questions:
–What are the benefits?
–What is the value?
–Is it worth to invest?

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Shared Value Creation

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Humankind  (??)
•Ants are social beings …
•…
•Eagles are individual beings …
•…
•Humans are both, individual and social beings
•
•What are the implications of this fact?

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… to sustain as an Individual
•Creating Private Value
INCOME
FLOW
OUTCOME
FLOW

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CPV-only examples
•Eat
•Make money while no focus on non-monetary values
•Make a private benefit with no benefits for environment
•Transform or operate on a Target for the sake of myself (… or ourselves in case of a company)
•“Restaurant with poor meals …”

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… to sustain as a Society
•Creating Shared Value
INCOME
FLOW
OUTCOME
FLOW

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CSV examples
•Charity
•Altruism
•Make benefits for environment
•Transform or operate on a Target for the sake of clients
•Well functioning hospital …
•Well performed service of any kind …
•

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Creating Shared Value
INCOME
FLOW
OUTCOME
FLOW
INNOVATION
CREATING
ORGANIZING
Do the right things
Do the things well

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Business Space
INCOME
FLOW
OUTCOME
FLOW
INNOVATION
CREATING
ORGANIZING

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The Law of CSV+CPV co-operation
INCOME
FLOW
OUTCOME
FLOW
INNOVATION
CREATING
ORGANIZING

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The Law of CSV+CPV
co-operation
•This is a law of sustainability of both:
– of the individuals
– of the society
•How to measure CPV?
•How to measure CSV?
•Is there a chance to fix capitalism?
INCOME
FLOW
OUTCOME
FLOW
INNOVATION CREATING
ORGANIZING

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What is the impact of
CSV+CPV law
on 3 pillars of modern society?
Terčový diagram
TECHNOLOGY
PEOPLE
BUSINESS

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People

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People dimension
•Change of behavior
•Change of mind
•
–Is it possible?
–What is GTM?
–What is T-shaped professional?
–Do we understand the nature of logical closure of a piece of information?

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The “GTM”
Beggar
Thief
Charity
Stupidity
Trade
Trade
Competition
game with
zero sum
I
Give
I
Give
I
Take
I
Take
Co-operation
added value

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t-shaped
T-shaped Professional
(IBM, SSME)

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Understanding the nature of logical closure of a piece of information
• Reversed triangular inequality for logical consequences of sets of propositions
•Èi=1n [Cn Pi] Í [Cn (Èi=1n Pi)]

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Èi=1n [Cn Pi] Í [Cn (Èi=1n Pi)]
≤
+
+ …
message1
message2
messageN
INFORMATION SILOS
CO-CREATED
INFORMATION
co-created message

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Technology

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Technology dimension
•We are technology oriented people …
•T-shaped professionals need “T-shaped technology”
–
–Does it exist?
–What is really a technological enabler of benefit realization?
–Could it be other way than the one where technology is a supporter of HEP (= Holistic Event
Processing)?
–What means T-shaped technology?

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Technology ?
•We can have
–Hammer
–Handsaw
–Pliers
–Screwdriver
–…
•Or, we can have
–WORKSHOP (WORKROOM)
But the customer benefit is not about more programs, modules, components, and more functionalities
This is about integrated and consistent value delivering tools for customers
Such technology is an ENABLER for a reasonable BUSINESS CHANGE

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Events, Data, Information
Action
What’s the
question?
Ocean of data !!

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Action
PYRAMID
OF DECISION MAKING
Events, Data, Information
Ocean of data !!

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Action
What can I obtain as a service ?
What is my problem !
Events, Data, Information
Ocean of data !!

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Action
Ocean of data !!
Useful information
DISTILLATION
Events, Data, Information
Enabling technology

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Action
PRINCIPLE
OF ‘HEP’
How to improve it
 ???
Events, Data, Information

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Akce
This is the goal !
In a given particular situation satisfied Customer of a Service of “information provision”
… and is this really all what we can have?
Events, Data, Information

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Action
Data not taken into account previously
Step by step
extension and
improvement
of the
service
Events, Data, Information

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≤
+
+ …
• Reversed triangular inequality for logical consequences of sets of propositions
•Èi=1n [Cn Pi] Í [Cn (Èi=1n Pi)]
“T-shaped technology”
TECHNOLOGY
TECHNOLOGY

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Business

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How to sell a good and useful solution?
•Is it easy?
•Why is it an issue? A good solution sells itself! (YES/NO ?)
•How to explain to a “flat” money-oriented decision maker the non-monetary value?
•Is it a question of “invisible hand of the market”?
•… asymmetric distribution of information …

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Problem
•We are living in the World with asymmetric distribution of information
PROVIDER
CLIENT
The presumption of the market value balancing by the market is no more valid !

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Questions:
•Do we understand the Ashby’s law of “Requisite Variety”?
•Tenders? Are they the means to obtain what we need for a good price?
•Are our systems viable?
•Can Service Systems help in the situation of asymmetric information distribution?
•

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Doubts about common beliefs
•Adam Smith: The invisible hand of the market!
–???
–Is it still valid?
•Tenders where the price is the only one criterion!
–???
–Can we obtain what we need?

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Service Systems creating shared value by means of PrPgPf
•Reversed triangular inequality for logical consequences of sets of propositions
•Èi=1n [Cn Pi] Í [Cn (Èi=1n Pi)]
•
•Apparently this is the most usable mathematical formula for business and management …
≤
+
+ …

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Èi=1n [Cn Pi] Í [Cn (Èi=1n Pi)]
•People minds, technologies, business practices
that support the silos
•Not connections oriented approach
•Management by reports
•Ignoring Ashby’s law
•Weak support of CSV
•SeS-s governed by PrPgPf principles and best practices
•Management “from the front” based on full acceptation of Ashby’s law
•Change of “flat” monetary oriented managers
•Chance for CSV !!!

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≤
+
+ …
Èi=1n [Cn Pi] Í [Cn (Èi=1n Pi)]

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Èi=1n [Cn Pi] Í [Cn (Èi=1n Pi)]
This is the mathematical proof of Ashby’s law !!
INCOME
FLOW
OUTCOME
FLOW
INNOVATION
CREATING
ORGANIZING
The Viable ServiceSystems Principle
The Law of
CSV+CPV
co-operation

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Is there a chance to fix capitalism?

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Thank you for your attention !
Zdenko Stanicek,
CPD (IPMA level A)
“IPMA Level A - Certified Projects Director:
Has at least five years of experience in portfolio management and/or
programme management with strategic relevance.
• Is responsible for the management of a complex portfolio of a company / organisation or a branch
of the organisation, or for the management of one or more important programmes.
• Contributes to strategy and makes proposals to senior management.
• Develops project management personnel and coaches project managers to improve their competence in
PM.
• Directs senior project managers and project managers and manages the members of the portfolio or
programme team.
• Develops and implements project management requirements, culture, processes, methods, techniques,
tools, handbooks, guidelines for his programme or portfolio.”