ࡱ> @ UbjbjFF ,,oWzzzzFFF<:zbrԌԌԌԌt$ R]v6۬c@۬۬6zzԌԌK۬zԌԌ۬ vh~ԌV 6 Fc "a0~zzzz~2DimKLD LU a66MT/(TModule 2: What are Services? Supporting presentation: 2-SSMEservices.ppt Table of Contents  TOC \o "1-4" \h \z \u  HYPERLINK \l "_Toc130354246" SSME: Services  PAGEREF _Toc130354246 \h 1  HYPERLINK \l "_Toc130354247" Table of Contents  PAGEREF _Toc130354247 \h 1  HYPERLINK \l "_Toc130354248" Presentation Notes  PAGEREF _Toc130354248 \h 1  HYPERLINK \l "_Toc130354249" Slide 1: Services  PAGEREF _Toc130354249 \h 1  HYPERLINK \l "_Toc130354250" Slide 2: Objectives  PAGEREF _Toc130354250 \h 1  HYPERLINK \l "_Toc130354251" Slide 3: Context and Motivations  PAGEREF _Toc130354251 \h 2  HYPERLINK \l "_Toc130354252" Slide 4: Percent Employment in Service Jobs  PAGEREF _Toc130354252 \h 2  HYPERLINK \l "_Toc130354253" Slide 5: Economic Evolution of Services  PAGEREF _Toc130354253 \h 3  HYPERLINK \l "_Toc130354254" Slide 6: What is a Service?  PAGEREF _Toc130354254 \h 4  HYPERLINK \l "_Toc130354255" Slide 7: Service Dominant View  PAGEREF _Toc130354255 \h 5  HYPERLINK \l "_Toc130354256" Slide 8: Provider-Client Relationship  PAGEREF _Toc130354256 \h 5  HYPERLINK \l "_Toc130354257" Slide 9: Services Process Matrix  PAGEREF _Toc130354257 \h 6  HYPERLINK \l "_Toc130354258" Slide 10: Nature of Services Act Matrix  PAGEREF _Toc130354258 \h 6  HYPERLINK \l "_Toc130354259" Slide 11: Client Relationships Matrix  PAGEREF _Toc130354259 \h 7  HYPERLINK \l "_Toc130354260" Slide 12: Availability of Services Matrix  PAGEREF _Toc130354260 \h 7  HYPERLINK \l "_Toc130354261" Slide 13: Services Demand Variation Matrix  PAGEREF _Toc130354261 \h 7  HYPERLINK \l "_Toc130354262" Slide 14: Services Delivery Matrix  PAGEREF _Toc130354262 \h 7  HYPERLINK \l "_Toc130354263" Slides 15 and 16: Distinguishing Services from Goods  PAGEREF _Toc130354263 \h 8  HYPERLINK \l "_Toc130354264" Slide 17: Current Services Thinking  PAGEREF _Toc130354264 \h 10  HYPERLINK \l "_Toc130354265" Slide 18: What are some everyday services?  PAGEREF _Toc130354265 \h 11  HYPERLINK \l "_Toc130354266" Slide 19: Recipients of a Service  PAGEREF _Toc130354266 \h 11  HYPERLINK \l "_Toc130354267" Slide 20: Complex Business Services  PAGEREF _Toc130354267 \h 12  HYPERLINK \l "_Toc130354268" Activities  PAGEREF _Toc130354268 \h 13  HYPERLINK \l "_Toc130354269" References and Additional Readings  PAGEREF _Toc130354269 \h 14  Presentation Notes The presentation paired with this services module is considered to be supplemental and provide general context around the evolution of services and their modern context in driving economies. Materials can be used as a stand-alone introductory topic or supplemental to individual topics. Slide 1: Services Services This module focuses on introducing a comprehensive set of definitions of services. The module includes materials that provide early definitions and thoughts on services. This brief history is and survey of services is also meant to provide some context around the burgeoning study of services and impact on modern economies. Slide 2: Objectives Objectives Attain a comprehensive definition of services Give context to the study of services Discuss history and early definitions of services Discuss differences between products and services Recongnize modern thinking behind services dominant logic of economic exchanges Slide 3: Context and Motivations Context and motivations Services becoming the new hub of most modern economies Services dominating current economic activities Trends in United States employment by sector, 1850-2000 (U.S. Department of Commerce, 1995, p. 417). The economic exchanges of advanced economies are becoming dominated by services; this is reflected in the economic data of the United States and other countries (US Department of Commerce, 1995). (The trends figure illustrates the job distribution in various economic sectors of the United States. The services sector overwhelms all other sectors.) This dominance is not restricted to the more traditional notion of services, (e.g., hospitality, healthcare, or education) but also appears in less traditional industries such as in the information technology (IT) services landscape. (Indeed, the services divisions of many IT providers are overshadowing their total revenues.) Services seem to be the new hub of most economies. For instance infrastructure services such as transportation, communication, and education are links to all other economic sectors. Not to be forgotten, one of the largest and most important providers of services is the government (e.g., drinking water, public safety, and generalized healthcare). Slide 4: Percent Employment in Service Jobs 1980198719931999USA67.17174.380.4Canada67.270.874.873.9Japan54.558.159.972.4France56.963.666.470.8Italy48.757.760.261.1China13.117.821.226.4Percent employment in service jobs, 1980-1999 (United Nations, 1999). The United Nations (1999) percent employment in service jobs illustrates the following: Other industrialized nations have are also experiencing increases in employment in service jobs. Currently considered to be the manufacturer of the world, Chinas services job increase has been less pronounced than the other countries in the table. Canadas distribution is very similar to the United States. The primary purpose of the field of Services Sciences, Management, and Engineering (SSME) is to help: Understand and define the services dominant economic shift. Discover the fundamental principles underlying services. Determine the elements necessary for systematic services innovation. In this module, we attempt to broadly address the question: What are services? Slide 5: Economic Evolution of Services The figure on slide 5 was created by combining two views of services history: Marketing View (Vargo & Lusch, 2004a) and Social View (Fitzsimmons & Fitzsimmons, 2003). This (not to scale) timeline is provided to yield a perspective of the simplified and general evolution of services and is not thought to be inclusive of all thoughts on the topic. Each of the figures elements are explained in greater detail as follows. Discussion of services as a means of economic exchange started as early as the late 1800s by Adam Smith (1991). To get an overview of services thinking in academic disciplines that highlights the post-1800s, it helps to look into the ongoing debate of goods vs. services from both a marketing and economic perspective as well the more social and management point-of-view. Vargo and Lusch (2004a) summarize the debate of goods versus services as a primary economic exchange by dividing the debate into the following broad periods of marketing thinking: Classical and neoclassical views [1800s] Value embedded in matter (good-centric view) Wealth created by acquiring tangible things Marketing is matter in motion Early formative marketing [19001950] Characteristics of good Marketing institutions role is to embed value Transaction and output are keys Decision marketing schools [1950s] Marketing as decision-making activity Four Ps: product, place (distribution), promotion, and price Optimality of decisions Marketing management and experts [1970s] Determine companys marketing decision variables Maximize companys objectives in the face of noncontrollable demand variables Relationship marketing Quality and resource management Supply and value chain management Customer fulfillment and satisfaction [1980s] The primary motivation of services is to achieve high customer satisfaction This leads to assuring service quality attributes that are important to customer segments Services dominant logic [2000s] Everything is seen through the services lens Products are the materialization of knowledge sold to consumers to satisfy a service need Fitzsimmons and Fitzsimmons (2003) take a complementary view of the evolution of services by considering the stages of development of societies. The highlight three periods as: Pre-industrial society Population tries to survive against the forces of nature Technology has very low impact or is nonexistent Societies are agrarian and structured by traditions Industrial society Production of goods dominate economic activities The quantity of produced goods is the primary factor Labor union helps regulate social life and rights Postindustrial society Quality of life is the most important aspect of day-to-day activities Information is the key resource Services that improve life activities such as health-care and education are paramount Dominance of jobs in the service sector such as knowledge workers with professional and technical skills If one ascribes to the generalized services timeline, it follows that the evolution of economies will lead to the dominance of services as a means for sharing and using the skills and knowledge necessary to create business, government, or personal valuean argument that will lead to the final discussion of is there a need for a service science? Slide 6: What is a Service? Per Wikipedia (2006a): In economics and marketing, a service is the non-material equivalent of a good. 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. There a numerous definitions of a service or services in the literature (a few are listed below). This definition provided by Wikipedia (2006a) includes many ideas and constructs around services that are discussed in the literature. The definition is a launching point for the following material that provides additional detail with respect the ideas and constructs such as parties involved in a service, creating benefits (or value), and supplying an intangible. Following are some earlier and additional contemporary definitions of services. work output that perishes in the very instant of its production (Smith, 1991). A good is a tangible physical object or product that can be created and transferred; it has existence over time and thus can be created and used later. A service is intangible and perishable. It is an occurrence or process that is created and used simultaneously or nearly simultaneously (Sasser, 1978). A service is an activity or series of activities of more or less intangible nature that normally, but not necessarily, take place in interactions between customer and service employees and/or physical resources or goods and/or systems of the service provider, which are provided as solutions to customer problems (Gronroos, 1990). Services are deeds, processes, and performances (Zeithaml & Bitner, 1996). Slide 7: Service Dominant View Vargo and Lusch (2004) recently suggested that the dominance of the services sector in most developed countries point to a shift in the model of unit of economic exchanges. They propose a revised marketing logic that is centered on a services dominant view of all exchanges. (Note that, in general, the inclusion and redefinition of services as an economic unit seems to be a hot topic amongst macroeconomists due to impact in the calculations affecting NIPA (National Income and Product Accounts) which, in turn, affects GDP (gross domestic product) estimates (Whelan, 2001). The services dominant view revolves around three primary notions: Co-creation of value This is the idea of the customer as co-producer of the value extracted from the service system The customer as input to the service process Relationships The relationship with the customer is of paramount importance and is a source of innovation and differentiation Long-term relationships facilitate the ability to tailor the service offerings to the customers needs Service provisioning Provision service capacity to meet fluctuations in demands while retaining (quality of service) QoS QoS is mainly from the perspective of the customer Slide 8: Provider-Client Relationship Provider An entity (person, business, or institution) that makes preparations to meet a need An entity that serves Client An entity (person, business, or institution) that engages the service of another An entity being served Some general relationship characteristics are that the client Participates in the service process (also known as the service engagement) Co-produces the value The quality of service delivered depends on customers preferences, requirements, and expectations Although relatively simple, the definitions Provider and Client (or customer) definitions provided here are generally used through the modules. Slide 9: Services Process Matrix One approach to foster understanding across service sectors and hopefully catalyze service innovation is to come up with classification schemes for services. One such classification, illustrated by slide 10, is the service process matrix, originally proposed by Roger Schmenner in 1986 (this material is adapted from Lovelock (1983) and Fitzsimmons and Fitzsimmons (2003)). Services are classified under two dimensions: Degree of labor intensity Defined as the ratio of labor cost to capital cost Services with high labor intensity are schools and retailers (mass services) which depends on the manual labor of educators and the retail managersemployees who perform the services Degree of interaction and customization Ability of the service client to affect the value that is co-created Most professional services, (e.g., doctors, lawyers, and IT services) require a high-degree of customization Standardized services are the low-customization kind (e.g., clothes cleaning and auto repairs (service shops)) Slide 10: Nature of Services Act Matrix Lovelock (1983) proposed additional classification schemes that take into account various service dimensions. The classification schemes are: (1) nature of the service, (2) client relationships, (3) availability of service, (4) service demand variation, and (5) service delivery. These classifications schemes are illustrated on this and the next 5 slides. A key point to note is that this and the following classifications are characteristics in a continuum, they are all interrelated, and a service cannot be analyzed by looking at only one set of dimensions. The first matrix in Lovelocks classification tries to expose the nature of the service act by looking at two dimensions: Nature of the act Tangible Intangible Recipient of service People Things Tangible services that are directed at people include health-care, transportation, and restaurants. Tangible services can also be directed at things would include dry cleaning which is directed at the clothing. Intangible services are directed at peoples psyche and tend to be in the realm of entertainment, education, and media. Intangible services can also be directed at thing, where examples are banking services directed at someones assets. Understanding the nature of the service act can suggest areas of service innovation. For instance, since most banking services are directed towards things (assets) they might easily be delivered in a self-service environment. The Web, as a medium for most personal banking transactions, is a good example of the application of this insight in practice. Slide 11: Client Relationships Matrix Since the customer is a co-producer of the services value, it comes as no surprise that an important dimension of service classification is the types of relationships that a service provider has with its customers. The two dimensions are: Type of customer relationship Membership Informal Type of service delivery Continuous Discrete A long-term relationship with a customer may allow a service provider to offer customized services as well as special benefits. For instance, cell-phone service providers use the membership relationships that they have with customers to do cross-selling. Many standardized services are offered as continuous services with long-term customer relationships (e.g., basic utility services). When the relationship with the customer is informal, (e.g., public radio or TV stations) service providers offer differentiations by trying to forge better customer relationships. Slide 12: Availability of Services Matrix Another classification focuses on the availability of the services. The two dimensions are: Availability of service outlets Single site Multiple sites Nature of the interactions between the customer and the service providers employees Customer travels Service provider travels Transaction is at arms length of customer Generally, the more available a service is, the better. However, due to the nature of the service act, some services are easily replicable and therefore available in wide geographic areas (e.g., bus services and fast-food restaurants). Other services are restricted to unique sites and require travel by at least the client, provider, or an agent to access or experience the service (e.g., a sports arena or a theater). Slide 13: Services Demand Variation Matrix Lovelock (1983) proposes a services classification matrix dedicated to understanding services in the context of demand variations. If there is the assumption that services are perishable, that is they cannot be inventoried, the ability to plan and meet demands is critical to most services operations. The dimensions of this classification matrix are then: Demand fluctuations Wide Narrow Supply constraints Peak demand without delay Peak demand exceeds capacity Slide 14: Services Delivery Matrix The final classification in Lovelocks scheme is to look into the customization aspects of services delivery. In particular to see how services delivery is impacted by an employees judgment. The dimensions are: Extent of customization High for instance surgery which requires high judgment from service employee Low for instance being entertained by spectator sports requires low interaction from service employee Importance of service employees judgment High Low Slides 15 and 16: Distinguishing Services from Goods Slide 15 Inseparability Services are created and consumed at the same time Services cannot be inventoried Demand fluctuations cannot be solved by inventory processes Quality control cannot be achieved before consumption Consideration: Does the ability to tailor and customize goods to the customers demands and preferences mean that these goods also have an inseparability characteristic? Heterogeneity From the clients perspective, there is typically a wide variation in service offerings Personalization of services increases their heterogeneous nature Perceived quality-of-service varies from one client to the next Consideration: Can a homogeneous perception of quality due to customer preference idiosyncrasies (or due to customization) also benefit the goods manufacturer? Slide 16 Intangibility Services are ideas and concepts that are part of a process The client typically relies on the service providers reputation and the trust they have with them to help predict quality-of-service and make service choices Regulations and governance are means to assuring some acceptable level of quality-of-service Consideration: Do most services processes involve some goods? Perishability Any service capacity that goes unused is perished Services cannot be stored so that when not used to maximum capacity the service provider is losing opportunities Service capability estimation and planning are key aspects for service management Consideration: Do clients who participate in some service process acquire knowledge which represents part of the stored services value? What might the impact be? In an effort to find a comprehensive definition for services, an important question raised in the literature is: what are the characteristics that distinguish services from goods and vice versa? In material for slides 15 and 16, an initial answer to this question is provided. This answer is based on pioneering work by Christopher Lovelock (1983) that evolved into the IHIP (Inseparability, Heterogeneity, Intangibility, and Perishability) characteristics. The slides provide definition of each characteristic; however, in more recently Vargo and Lusch (2004a, 2004b) debate these characteristics as myths that are too limiting in scope and evolve services and goods into a services-centered view for all economic exchanges. Both points-of-view are provided on slides 15 and 16 to demonstrate an evolution in services thinking and to provide a forum for discussion of how the instructor or student might modify these notions. The bullet points under the IHIP characteristics are relevant to Lovelocks initial definitions and the Consideration is the counterpoint or myth proposed by Vargo and Lusch. Services have characteristics that distinguish them from goods. In particular, the customer of a service is typically a participant in the service process. The customer co-produces the value (or benefit) along with the service provider via ongoing interactions. The extent of the co-production varies from indicating preferences, e.g., styling preferences at a barbershop service, to being an active pseudo temporary employee of the service process, e.g., collecting your order at a fast-food restaurant, or scanning your items, bagging, and paying using a supermarket self-checkout service system. The customer as co-producer has interesting consequences; for instance, the quality of service (QoS) is typically tied to a customers (or set of customers) perspectives and experiences. That is partly why, trust and reputation are very important aspects of any service business, e.g., the reputation system of eBays sellers and buyers. What are some other key characteristics of services? Since goods are the opposite of services, an essential first-step in answering this question is to list the differences between goods and services. In general, the literature of services highlights four primary characteristics that distinguish services from goods. The lack of these characteristics in goods was initially thought to be the primary means of making the goods versus. services distinction (Fitzsimmons & Fitzsimmons, 2003, pp. 21-30): Inseparability Services are created and consumed at the same time Services cannot be inventoried Demand fluctuations cannot be solved by inventory purposes Quality control cannot be achieved before consumption Inseparability myth The ability to tailor and customize goods to the customers demands and preferences means that many goods also have that inseparability characteristic. The customer is also involved in the evolution of many tangible goods (e.g., automobile, houses, and personal computers). The customers involvement in tailoring the good to meet his or her needs suggests that goods (like services) also have the inseparability characteristic. Heterogeneity Because of the inseparability characteristic of services there are typically a wide variations in offered services from a customers perspective Personalization of services increases the heterogeneous nature Perceived QoS vary from one customer to the next Consideration, the Heterogeneity myth: Although services and their qualities are usually perceived differently from customers that do not automatically mean that there cannot be homogeneous delivery of some services. In many cases the perceived heterogeneity is due to the customers tailoring or quality perception rather than the delivery process. For example, the homogeneous delivery of a university lecture to all students. The homogeneous perception of quality due to customer preference idiosyncrasies (or due to customization) can also benefit goods manufacturers. For instance, computer manufacturers (e.g., Dell and Apple) allow customers to specify their options at purchase time resulting in just-in-time manufacturing of heterogeneous goods that meet the customers needs. Intangibility Services are ideas and concepts that are part of a process Customer typically rely on service providers reputation and the trust they have with them to help predict QoS and make service choices Regulations and governance are means to assuring some acceptable level of QoS (e.g., Sarbanes-Oxley for the financial services sector) Consideration, the Intangibility myth: Most services processes involve some goods which implies that services have a tangible characteristic. The focus should be shifted from whether there is a tangible representation (or outcome) to the services and instead toward the satisfaction expressed by the customer, i.e., whether the service created value for the customer with the correct quality attributes. Perishability Any service capacity that goes unused is perished, e.g., empty airline or theater seats Services cannot be stored so that when not used to maximum capacity the service provider is losing opportunities Service capacity estimation and planning are key aspects for service management, especially when demand fluctuatesthat is, the ability to predict and meet surges in demands Consideration, the Perishability myth The claim that services cannot be stored is nonsense. Services are stored in systems, buildings, machine, knowledge, and people (Gummesson, 2000). Customers that participate in some service process acquire knowledge which represents part of the stored services value. Slide 17: Current Services Thinking A service is a provider-to-client interaction that creates and captures value while sharing risks Services are value that can be rented Services are the application of specialized competences (skills and knowledge) Services are autonomous, platform independent, business functions Presented in this slide, as a general conclusion, are current ideas in exploring the question of what are services? that work towards creating a picture of what contemporary services are and their purposes in economic, technological, and social systems. Part of the difficulty in defining services is that they have greatly expanded beyond business-to-consumer forms that we as individuals are familiar with (e.g., hospitality, professional services, entertainment, and government). Services with paramount economic impact are in the domain of business-to-business (where, in a very generic definition, business could be a business enterprise, government, or other large institution). That is, one institution providing services to another (client) institution and the service engagement results in value for both entities. These definitional ideas provide additional context and detail to the general Wikipedia (2006) definition presented in this module and are not meant as a replacement and include: A service is a provider to client interaction that creates and captures value while sharing the risks of the interactions. Services are value that can be rented (in the broad sense) by the application of some process that the renter (client) participates in. This is a contrast with goods, whose value (once purchased) is owned by the customer (Lovelock & Gummesson, 2004). Services are the application of specialized competences (skills and knowledge) through deeds, processes, and performances for the benefit of another entity or the entity itself (Vargo & Lusch, 2004a). Services are autonomous, platform independent, business functions that are described and published using standard description and publication languages (i.e., XML). They can be invoked remotely over different networks using standard protocols. Their purpose is to allow the creation of flexible applications and businesses. Slide 18: What are some everyday services? This and the next two slides (i.e., What are some everyday services?, Recipients of a Service, and Complex business services) are meant to be used threefold: (1) as summary of this module, (2) to spark conversation about what are services?, and (3) as a launching point into an activity to support learning. Transportation Trains, planes, delivery Hospitality Hotels, restaurants Infrastructure Communications, electricity, water Government Police, fire, mail Financial Banking, investments Entertainment Television, movies, concerts Professional Services Doctors, lawyers, skilled craftspeople, project management Provided on this slide is a small set of services examples categorized by industry. At first glance, many of these examples seem to be only business-to-consumer (or B2C) services, however taking a closer look, how can they be defined as business-to-business (or B2B) services? For instance, in one circumstance banking is a B2C service for people holding individual checking, savings, or investments accounts with a bank. Under other circumstances, banking is a B2B service when the bank engages in providing financial services to other businesses (e.g., loans or insurance). How might each of these be viewed as a B2C or B2B service engagement? Slide 19 (Recipients of a Service) is one tool that might help in identifying context within and around different types of service engagements. Slide 19: Recipients of a Service What is the service acting upon and how is it doing it? People Processing Possessions processing Tangible Actions Service is aimed at peoples physical body Service is aimed at material items Intangible Actions Service is aimed at peoples psyche Service is aimed at informationThe nature of the service act (adapted from Lovelock, 1983, p. 15). This classification tries to expose the nature of the service act by looking at two dimensions: Nature of the act Tangible Intangible Recipient of service People Things Examples of services upon the physical body, the psyche, material items, and information are as follows: Body Travel Food Massage Exercise Beauty Psyche Art TV Education News Church Consulting Material Items Shipping House cleaning Trash Repairs Gas station Information Banks Legal Insurance Programming Research Consulting (note: different types of consulting may fall into other or multiple categories) Slide 20: Complex Business Services Business Transformation and Optimization On Demand Innovation Services Center for Business Optimization Component Business Modeling Consulting Services IT Services The material provided for this slide gives an example of what complex business-to-business service engagements are based on some of IBMs Business Transformation and Optimization services. On demand innovation services  HYPERLINK "http://www-1.ibm.com/services/us/bcs/html/bcs_ondemandservices.html" http://www-1.ibm.com/services/us/bcs/html/bcs_ondemandservices.html Rent a researcher New pharmaceutical manufacturing guidelines required new approaches to quality assurance  HYPERLINK "https://domino.research.ibm.com/odis/odis.nsf/pages/solution.12.html" https://domino.research.ibm.com/odis/odis.nsf/pages/solution.12.html Center for business optimization  HYPERLINK "http://www-1.ibm.com/services/us/bcs/html/bcs_centeroptimization.html" http://www-1.ibm.com/services/us/bcs/html/bcs_centeroptimization.html Business analytics and optimization Logistics scheduling, pricing, risk balancing, market investments Insurance company wanted to decrease wrongful payments and increase worker productivity; fraud and abuse solutions and process improvements were implemented  HYPERLINK "http://www-1.ibm.com/services/us/index.wss/casestudy/imc/a1011639?cntxt=a1008891" http://www-1.ibm.com/services/us/index.wss/casestudy/imc/a1011639?cntxt=a1008891 Component business modeling Maps people, process and technology to value and select the blocks to increase differentiation and understand consumption of resources  HYPERLINK "http://www-1.ibm.com/services/us/bcs/html/bcs_componentmodeling.html" http://www-1.ibm.com/services/us/bcs/html/bcs_componentmodeling.html Used methods to map new services plans for a financial institution, with new IT architecture design Consulting services Content management  HYPERLINK "http://www-306.ibm.com/software/info/contentmanagement/" http://www-306.ibm.com/software/info/contentmanagement/ Capture and manage data for legal retention requirements Customer relationship management  HYPERLINK "http://www-306.ibm.com/software/success/cssdb.nsf/CS/AMWR-65NRRJ?OpenDocument&Site=gicss67crm" http://www-306.ibm.com/software/success/cssdb.nsf/CS/AMWR-65NRRJ?OpenDocument&Site=gicss67crm Mail, messaging, document management, process reengineering Digital media  HYPERLINK "http://www-03.ibm.com/solutions/digitalmedia/doc/jsp/indseg/retail/index.jsp" http://www-03.ibm.com/solutions/digitalmedia/doc/jsp/indseg/retail/index.jsp Security surveillance Enterprise resource planning  HYPERLINK "http://www-306.ibm.com/software/success/cssdb.nsf/CS/HCTD-68JR3S?OpenDocument&Site=gicss67erp" http://www-306.ibm.com/software/success/cssdb.nsf/CS/HCTD-68JR3S?OpenDocument&Site=gicss67erp Acquisition consolidation Product lifecycle management Lifecycle planning, design, engineering, analysis, implementation, etc.  HYPERLINK "http://www-03.ibm.com/solutions/plm/index.jsp" http://www-03.ibm.com/solutions/plm/index.jsp Supply chain management Procurement planning, ordering, managing, delivery, sourcing, forecasting  HYPERLINK "http://www-03.ibm.com/solutions/businesssolutions/scm/index.jsp" http://www-03.ibm.com/solutions/businesssolutions/scm/index.jsp Wireless Hosted wireless instant messaging  HYPERLINK "http://www-03.ibm.com/solutions/businesssolutions/scm/index.jsp" http://www-03.ibm.com/solutions/businesssolutions/scm/index.jsp IT services  HYPERLINK "http://www-1.ibm.com/services/us/index.wss/gen_itservice" http://www-1.ibm.com/services/us/index.wss/gen_itservice Application development and systems integration Application management services Applications on demand Business continuity and recovery Customized training Equipment buyback and disposal Infrastructure and systems management IT performance Maintenance Networking Outsourcing / hosting Packaged application implementation Security and privacy Service oriented architecture Storage Technical support Wireless Activities The following are exercises to aid in exploring, learning, and understanding the complexity of services, how services are defined, and how much they penetrate into our lives. These activities might prove suitable topics for essay or discussion. Make a list of services that you use in your day-to-day activities and compare your common understanding and definition of these services against the definitions listed in this module. Using the service definition from Vargo and Lusch (2004a), try to find a list of skills and knowledge for the following common services: movie theater, coffee shop, cellular phone networks, and PC repair shops. Debate or discuss the notion of the limits of self-service. This could be a general debate based on all material learned or within the context of a current service notion (e.g., quadrants from Lovelocks matrix or the Vargo and Lusch definitions). Try to find counter-example services in each quadrant of Lovelocks service classification matrices. [Group] Discuss the consequences to industrialized nations such as the United States, United Kingdom, Canada, and so on of Chinas eventual shift to a service economy. What nation(s), if any, will most likely replace China as the manufacturer to the world? How will a shift in service delivery focus of one country impact other countries? [Group] Discuss and agree on a common view of what B2B and B2C mean. Make a list of how they are similar and how they differ. Finally, identify examples of where B2B and B2C overlap (where do the two types of transactions meet or link into each other?). References and Additional Readings References Fitzsimmons, J. A. & Fitzsimmons, M. J. (2003). Service management: Operations, strategy, and information technology (4th ed.). New York: McGraw-Hill. Gronroos, C. (1990). Service marketing and management. Lexington, MA: Lexington Books. Gummesson, E. (2000). Evert Gummesson: Stockholm University. In R.P. Fisk, S.J. Grove, J. John (Eds.), Services marketing self-portraits: Introspections, reflections, and glimpses from the experts (pp. 109-132). Chicago: American Marketing Association. Lovelock, C.H. (1983). Classifying services to gain strategic marketing insights. Journal of Marketing, 47, 12-17. Lovelock, C., & Gummesson, E. (2004). Wither services marketing? In search of a new paradigm and fresh perspectives. Journal of Service Research, 7 (1), 20-41. McAfee, A. (2005). Will web services really transform collaboration? MIT Sloan Management Review, 46 (2). 78-84. Sasser, E. (1978). Management of service operations: Text, cases, and readings. Boston, MA: Allyn and Bacon. Schemmer, R. W. (1986). How can services businesses survive and prosper? MIT Sloan Management Review, 27 (3), 25. Smith, A. (1991). The wealth of nations. Amherst, NY: Prometheus. United Nations. (1999). 1999 Statistical Yearbook. Department of International Economic and Social Affairs Statistical Office. New York: United Nations. United States Department of Commerce, Bureau of the Census, Statistical Abstract of the United States, 1995. Vargo, S.L., & Lush, R.F. (2004a). Evolving a services dominant logic. Journal of Marketing, 68, 1-17. Vargo, S.L., & Lush, R.F. (2004b). The four service marketing myths: Remnants of a goods-based, manufacturing model. Journal of Service Research, 6 (4), 324-335. Whalen, K. (2001). A two-sector approach to modeling U.S. NIPA data. United States Federal Reserve Board, Division of Research and Statistics. Retrieved March 2006, from http://www.federalreserve.gov/pubs/feds/2001/200104/200104pap.pdf Wikipedia. (2006a). Wikipedia: The free encylopedia. Retrieved March 2006, from http://en.wikipedia.org/wiki/Services Zeithaml, V.A., & Bitner, M.J. (1996). Services marketing. New York: McGraw-Hill. Additional Readings Bryson, J.R., Daniels, P.W., & Warf, B. (2004). Service worlds: People, organizations, technologies. New York: Routledge. International Business Machines Incorporated. (2006). IBM Research: Services Sciences, Management, and Engineering: About Us. Retrieved March 2006, from http://researchweb.watson.ibm.com/ssme/ International Business Machines Incorporated. (2006). Services Sciences, Management, and Engineering blog. Retrieved March 2006, from http://www-128.ibm.com/developerworks/blogs/dw_blog.jspa?blog=510 Karmarkar, U. (2004, June). Will you survive the services revolution? Harvard Business Review (Reprint R0406G). Singh, M.P. & Huhns, M.N. (2005). Service-oriented computing: Semantics, processes, agents. West Sussex, England: Wiley. And on the web: Berkeley Lecture Series 2006 Google as a Service  HYPERLINK "http://www.ischool.berkeley.edu/~glushko/SSME-Lectures-Fall2006/Russell-20060928.pdf" http://www.ischool.berkeley.edu/~glushko/SSME-Lectures-Fall2006/Russell-20060928.pdf Copyright IBM Corporation 2006, 2007. All rights reserved. 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