}Asymmetric information
}Information gap
}Filling the information gap
}Role of IT in filling the gap
}Role of government on information market
}

}Service System
}Elements of service system
◦Client
◦Provider
◦Target
}Consequences and relations
◦

Service system
* Provider
* Individual
* Organization
* Any of previous combined with the technology and/or piece of environment
* Technology that provider is responsible for
* Client
* Individual
* Organization
* Any of previous combined with the technology and/or piece of environment
* Portion of reality owned by Client
* Target
* The reality to be transformed or operated on by Provider for sake of Client
* People, dimensions of business
* Dimensions of products, technology artefacts & environment
* Information, codified knowledge

Client – Provider Relationship
* Information Sharing
* Knowledge Sharing
* Negotiations
* Balancing and establishing Value Proposition
* Repetitive reviewing of previous items
* In Mention Mode

* Client owns the Target
* Client owns rights to use and/or manipulate the Target
* Client has (owns) problem
lClient recognizes a problem on the Target
lClient is willing to invest to the problem solution
* The solution involves an operating and/or transformation of the Target
* Relation is in Use mode

Provider – Target Connection
* Kind of competence
* Provider knows and is able to operate on the Target
* Provider knows how and is able to transform the Target
* Provider understands the Target and is able to plan  operation on transformation of it
* Provider improves in a way the Target for its better utilization by the Client (benefit for the
Client)

Mentioning and Using
* Mentioning
* To think about future actions
* What / how / who / where / when / why / for how much
* Negotiation between client and provider
* Using
* Use our capabilities to do some action to bring a value
* Duality between mentioning and using
* Project management

Mention - Use
Mention
Provider
Client
Target
Forms of ownership
C is owner of T or
C needs an added
value on T
Forms of relationship
value co-creation
value proposition
information sharing
Forms of responsibility
P is responsible for
the actions with T

* a tendency to take undue risks because the costs are not borne by the party taking the risk
* The customer is able to affect an event he is insured against, but the seller has no power to
monitor or affect this event.
* ERP supplier has limited information about customers IT security
* Provider has limited information about the basement of the real client´s problem
* Double moral hazard
◦Client does not know if the provider is able to operate on the particular target

}Illusion of value proposition
}Provider is not able to see the basis of target
}Client is not able to see the benefits of the cooperation
}Both are motivated to share information and knowledge
}Value proposition can not be set up
}
}

}The company needs information system to support its core business
}The company has serious problems with
◦communication with customers
}But also hidden problems
◦publishing information
◦time spent on one particular business case is too long – mostly caused by bad communication inside
the company

}Offers a big customised ERP system together with CMS system
◦CMS system has connection to Social Networks
}The problem to solve is the communication
}But it is not a part of the problem
}IT company needs to find its paths through particular targets – to analyse the situation if the
client
}

}Value proposition is hidden
◦is hidden by the hill
}Hierarchy of barriers hiding the target
◦have to be overcame step by step
◦leads to process of value estimation
}Value can not be proposed
}It can be only estimated
◦is used to find value proposition
◦there is not a target, only target area
–target area is the space of all sub-targets, corresponding with particular value estimation
}
}

}modified by the value co-creation process
}motivated by the decreasing of the level of information asymmetry of both parties
}the process is about particularize of value estimations
}till the moment of founding the value proposition
}

}can be found in the moment client and provider can see the target
◦share the same point of view
◦both can see the utility level
◦and share as well
}both partners agree with concrete mutual criteria of success
◦variables to test
–no of customers
–profitability
◦target values
–number of customers rise of 30%
–profitability rises more than 10%
}




}must be shared and paid
◦problem is complex
◦must be understood and explored
}provider must be paid for using his sources to do it
}Client is paying for the analysis of the target area
}

}Information asymmetry and its role in service system
}Value estimation
}Target area
}Negotiation and information sharing
◦Leeds to target finding