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Service Innovations 5
Thursday, November 18, 2004
Day 2. Jim: Service Innovation is going to be the key thing business and nations talk about. People have asked for a definition and taxonomy of services. Mike: Coming up with a definition is part of the reason for this meeting. Service: value-based relationship.

Jay: I feel that talking about service and products (and even about clients and providers) leads us to a false dichotomy. Service is co-created, not one side or the other. The "client" sometimes provides; the "provider" sells.

Scott Sampson, Associate Professor, Marriott School of Management, Brigham Young, provides an academic perspective. GDP is 80% services already. "Most people still view the world trough manufacturing goggles," says Fred Reichheld, Bain & Co. And indeed there are few courses in this major area. Academia invented functional silos! We pigeonhole everything into a discipline. "I may not be talking about your school." In manufacturing, it's more clear what department is in charge of each function; it works; students are prepared for real jobs.

The 7 Roles of Service Customers.
  1. Customer = supplier. "With services, customers provide signicant inputs into the production process." There's service supply chain management. Patients bring the cavities to the dentist. Fliers bring suitcases name tags and not dynamite.

  2. Customers provide the labor. With services, customer-labor may ignore, avoid, or reject technologies or process improvements (innovations)...What do providers want from customer-labor? Competence.

  3. Customer = QC. With services, the customer-product is averse to rework, and remembers any experience with inspection and rework." Process vs. outcome? Damage of the attitude in rework.

  4. Customer = product. Customer as inventory. Move it out. Don't put the customer in storage for a year.

  5. Customer = quality assessment. In process.

  6. Customer = design consultant. Experiential design. Customer feedback systems. Service blueprintns.

  7. Customer = customer. The chief competitor is the customers who can provide the service thense

How do we measure expectations?

Suvrajeet Sen, National Science Foundation. OR and Service Enterprise Engineering. A service is an action or a series of actions in response to customer requests arising from a desire to change states. "Any discipline that has to add science to its name probably isn't."

The next presentations were primarily informational, so it's best to look at their slides to get the details of their academic programs.

Is this science? Or is it engineering and optimization? That leaves out the human element. What do we call this? Customer Science? Co-creation? Customer Arts?

Service Oriented Architecture
Yesterday, MIT's Carl Hewitt asked a panel yesterday of the likely impact of Service Oriented Architecture. One panelist talked about the danger of hackers and another talked of how his company looked at things. Amazing as it seems, many people here don't seem to "get" the power of web services. In a breakout session, my suspicion was confirmed. Neither professors nor people from IBM Global Services understood the importance of web services!

On Tuesday, at TechLearn, I addressed SOA and web services and their potential impact on learning and suggested that SOA is inevitable because it's:
  • Incremental, pay-as-you-go
  • Overlays existing infrastructure
  • Lays foundation for interoperability
  • Provides componentized flexibility
  • Gives process owner ability to execute
  • Lower-cost maintenance
  • No vendor lock-in
  • Shortens time to get things done
  • Extreme payback
The Workflow Institute has lots of material on this. And I'll write up an article on it here


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