Presentation Transcript

1. Some views on the Future of Services Research

   Alistair Sutcliffe Visiting Professor, UCL Interaction Centre, University College, London CSR, Manchester, Nov 10th 2011
2. Presentation Outline Service Science Paradigms- Rental-Access and the Domain Theory Modelling Service Systems- lessons from Complex Adaptive Systems theory Services and Customer Engagement- some ideas from User Experience research IT – Services research agenda
3. Theme 1Frameworks and paradigms Design patterns for service systems Abstract models of service systems IT support - IT as the core service ‘product’ e-services - IT as facilitator for the design and running of service systems
4. Service Systems-Conceptual Frameworks Services are composed and co- experienced Provider- Consumer relationship Services as transient acts and resources Access not ownership IHIP (Kotler 2003, Pride and Ferrell 2003) Intangibility, Heterogeneity, (variability) Inseparability, Perishability, Rental Access Model (Lovelock & Gummesson 2004) Physical act on Person, Physical act on Object, Mental act on person, Information Processing Services are ‘rented’ and ‘experienced’
5. An Abstract Model of Services ? deliver o o o But some services are consumed and not returned client return service/resource request Supplier- owner Object Allocation- search & access control - search and matching customer needs and service properties - access control permissions Accounting Object Transfer - payment transactions, micro payments Object Composition - service aggregation (orchestration) Object Hiring Applications (Domain Theory, Sutcliffe 2002)
6. IT Opportunities ? Allocation- search and matching - strong Computer science interest, but is there anything new ? - data mining, intelligent search, constraint based search, ultimately depends on semantic knowledge (acquisition bottleneck) Accounting- payment - done deal…. micro payment systems, security etc. Composition - orchestration, service composition @ run time - strong computer science interest, but ultimately depends on standards …..services field is moving too quickly for standards - evolutionary computing optimisation for composition trade offs- - loose coupling of service interfaces
7. Object Hiring Family-design patterns ? Object Hiring Virtual resource rental Physical resource rental Agent services rental Physical services Knowledge services Rooms Cars Dress Books Computer games Internet access E-resources Management Design Education Analysis Forecasting.. Health care Hair dressing Training- skills
8. IT Research Opportunities Management & creativity support Search & matching Social recommenders Billing & Payment Loose Coupling Data Exchange Design & Development of E-services Design Methods & support tools Community & Social orchestration Composition & Orchestration
9. Theme 2Applying Social Psychology toService Systems Service systems are socio-technical systems Services involve collaborations between people (small groups) and organisations (small and large) The problem involves coordinating people and inter-organisational relationships Small group theory (Arrow et al 2000) is appropriate for small scale service collaborations
10. Small Group Model Arrow et al (2000) Small groups as complex systems Emergent properties: cohesion-integrity effectiveness- goals manage conflict satisfy members process information Global dynamics influences Local dynamics Agents Knowledge Skills Abilities Values Beliefs Attitudes Personal Cognitive Behavioural styles Networks of Agents, Tasks, Tools
11. Application to Service Systems Quality criteria to assess viability of service alliances cohesion-integrity- shared goals, coordination mechanisms ? effectiveness- processes in place to achieve service delivery ? manage conflict- trust and governance, negotiation procedures ? satisfy members- cost –benefit analysis for all stakeholders, motivation analysis- short and long term alliances process information- IT support and coordination between partners Design processes to support the above criteria- CSCW and CMC technology Shared Awareness and coordination
12. Types of Group mode of formation no external organiser external organiser goals teams, task forces, crews ad hoc task groups organisations social friendships, clans social clubs, societies members natural formation concocted groups
13. Application to Service Systems Crews –set roles for each member/partner -patterns for different service domains (see earlier Domain Theory) Group formation – external organiser - service brokers, matching process Group formation- social process - build on social media, configure service e-communities - creativity support- facilitate exchange of service success stories Method support - checklist for building service alliances - management guidelines
14. Group Life Cycle Formation phase New members Formation Senescence Organisation Operation Design phase Review phase Optimisation
15. Application to Service Systems Method support & management guidelines Formation phase - partner selection - motivation analysis- goal, learning, self esteem, altruism - KSA analysis- Knowledge Skills Abilities -VBA analysis- Shared Values Design Phase - governance, trust of procedures ? - coordination processes, shared awareness ? - monitoring performance Review Phase - monitoring against targets - negotiating change - termination procedures (governance)
16. Transaction Cost theory (Williamson 1980) Socio-Economic theory of markets and Inter-Organisational Relationships Predicts governance in IORs according to the nature of transactions Transactions categorised according to value and frequency Transaction costs are associated with managing the relationship - governance - coordination - management
17. Key components of the theory Transactions rated for value & frequency- predicts governance High coupling - capital goods or high-value assets High-level approval & control hierarchy Medium coupling – retail/wholesale products Less control but still for exceptional items Low coupling-routine purchase of supply/services Little scrutiny- market transactions Risks related to relationship type
18. T y p e o f G o o d s / s e r v i c e s m a t u r i t y o f m a r k e t n u m b e r o f v a l u e s u p p l i e r s f r e q u e n c y s u p p l y r i s k s u p p l y c o s t m a r k e t s h o r t t e r m c o n t r a c t l o n g t e r m c o n t r a c t h i e r a r c h y Tr a n s a c t i o n n e g o t i a t o n t y p e t r a n s a c t i o n c o s t s Relationship Selection Model i n f l u e n c e s d e t e r m i n e s c o n t r a c t s e t u p w o r k f l o w c o o r d i n a t i o n Governance Trust Procedure Legal contacts
19. Applying TC theory to services High Value, low volume - Architecture, Design, e.g. ARM microprocessors ARM does have close relationships with its customers- chip manufacturers but no take over (yet). Medium Value, and volume - consultancy, e.g. Accenture Relationship can be long lasting but no formal governance Low value, high volume - hairdressing, personal care services market style transactions Conclusions- maybe TC theory is less applicable to Services – more specialised so less advantage for vertical integration ?
20. Applying TC Theory to Services Physical act on Person, e.g. healthcare, lifestyle services, medium to low governance , short to long term relationships Physical act on Object e.g. rental – hire services, medium to low governance, short term relationships Mental act on Person, e.g. entertainment, education, low to medium governance, Information Processing e.g. marketing surveys, data analysis, low governance, transient goods Conclusion: For services it is not only the nature of the transaction that counts but also the duraction of the anticipated relationships (e.g. education alumni)
21. Theme 3.Services and Customer ExperienceSome motivation – Service Dominant Logic (Vargo & Lusch 2006, 2008) FP6 The customer is always a co-producer The customer is always a cocreatorof value. FP7 The enterprise can only make value propositions   FP8 A service-centered view is customer oriented and relational FP9 Organizations exist to integrate and transform microspecialized competences into complex services that are demanded in the marketplace FP10 Value is always uniquely and phenomenologically determined
22. Principles of CE (customer engagement)(Roderick et al 2011) FP1. CE reflects a psychological state, which occurs byvirtue of interactive customer experiences with afocal agent/object within specific service relationships FP2 CE states occur within a dynamic, iterative processof service relationships that co-creates value FP3 CE plays a central role within a nomological networkof service relationships FP4 CE is a multidimensional concept subject to a context-and/or stakeholder-specific expression ofrelevant cognitive, emotional, and behavioraldimensions FP5 CE occurs within a specific set of situationalconditions generating differing CE levels So are you much the wiser about CE ???
23. Applying Cognitive Theoryto CE Consumer attitudes and behaviour towards services involve judgement and decision making So let’s apply psychological theory of human decision making, e.g. - Klein (1980) Theory of Reasoned Action - Payne et al (1993), Adaptive Decision Making These theories tell us that human judgement is (a) influenced by context and the decision task (b) goes through difference phases over time (c) depends on the link between decision criteria and the context/task
24. Theory of UI quality judgement (after Payne et al 1993, Adaptive Decision Maker) Users’ background Knowledge/ training Culture Strategies Preference Intentions Behaviour Judgement - Decision making Process Criteria usability content aesthetics reputation customisation Context & task Criticality of decision Hartman, Sutcliffe & de Angeli, 2008, Towards a theory of user judgment of aesthetics and user interface quality.TOCHI15(4), 15-30.
25. Components of User Experience UX in the wide Experience throughout the Product life cycle Initial contact (aesthetics) Use (functionality, content) Customisation Support UX in the small (interaction, engagement) -Presence- user as interactor -Immersion in the interactive world -Flow and engagement in the interactive world -Social presence
26. Content services Reputation Trust Aesthetics Usability Engagement Customis- ability Flow Benefit Cost Need / Specificity Engagement and Attractiveness-Manchester framework: High level impression Design Quality Interaction Interactive experience
27. Customer experience- short term Behavioural response Emotional reaction Reflection Service trial Value appreciation Utility Motivational satisfaction Initial encounter Value perception Brand Appearance Service acceptance Value assessment Adaptation Customisation Ownership
28. Life span of Customer experience- longer term Initial Experience Mid term Experience Late Experience Value appreciation Motivational satisfaction Utility Interaction Value growth Learning Adaptation Customisation Ownership Trust Value perception Brand Appearance Aesthetics Interaction QoS Quality of Service Relationship
29. CE- Implications for Service Marketing Value reward & motivation Learning-adoption effort Value proposition- need to select the criteria appropriate for the service - Physical act on Person- interaction, flow - experience - Physical act on Object- utility, value - Mental act on Person- interaction, flow - experience - Information Processing- utility, value Evolution of the value proposition will vary with type of service - acts on person will need to change and adapt more than acts on objects Value proposition has to overcome the hump of indifference
30. Implications for Services Marketing-2 Value reward change/ learning effort Design co-creation effort Change points For longer term CE - relationships {trust} is important as well as the service {experience} - co creation in experience - co creation in design more involvement but more cost Value proposition needs the promise of change for long term relationships Rate of change and customisation is a delicate balance
31. Service research Priorities(from Ostrom et al 2010) 1. Fostering Service Infusion and Growth, 2. Improving Well-Being through Transformative Service 3. Creating and Maintaining a Service Culture- CAS Small group theory 4. Stimulating Service 5. Innovation, Enhancing Service Design, and Optimizing Service-Domain Patterns, Transaction cost theory, Small group theory 6. Networks and Value Chains. Domain Patterns, Small group theory 7. Effectively Branding and Selling Services, User Experience JDM theory 8. Enhancing the Service Experience through Cocreation, User Experience JDM theory 9. Measuring and Optimizing the Value of Service. User Experience JDM theory
32. Services Research Priorities- IT 1. Building business models for new service technologies (e.g., smart services, cloud computing)- Domain patterns 2. Accelerating adoption and acceptance of new, service orientedtechnologies User Experience JDM theory 3. Capturing and delivering service-oriented informationfor real-time decision making- Self adaptive systems and requirements monitoring 4. Enabling and accelerating mobile commerce andproductivity for consumers and employees Self adaptive systems and requirements monitoring 5. Enhancing online privacy and security of informationand assets to protect service consumers, employees,companies, and society 6. Using the service system paradigm to drive innovation 7. Enabling agility and integration through service orientedarchitecture and service platform. Domain patterns
33. Conclusions Services Science or SSME (misnomer!) is an applied, multi disciplinary field (see Maglio 2003 and others} It is therefore very similar to Human Computer Interaction - as a design discipline - draws on other foundational disciplines (psychology, sociology, computer science, management science) It differs by being a composite of - marketing, organisational design, & management To mature Service Systems Science needs (a) to be grounded in, and apply, more basic theory (b) apply knowledge from related disciplines rather than re-inventing the wheel.
34. Any questions ? and some references for the curious Lovelock CH, Gummesson E (2004) Whither services marketing? In search of a new paradigm and fresh perspectives. Journal of Service Research 7(1):20-41.  Lovelock CH, Wirtz J (2007) Services marketing: People, technology, strategy (6th edition). Prentice Hall, Upper Saddle River. Lusch RF, Vargo SL (2006) The service-dominant logic of marketing: Dialog, debate, and directions. M.E. Sharpe, Armonk.  Vargo SL, Lusch RF (2008) Service-dominant logic: Continuing the evolution. Journal of the Academy of Marketing Science 36(1):1-10. Amy L. Ostrom, Mary Jo Bitner, Stephen W. Brown, et al (2010), Moving Forward and Making a Difference: Research Priorities for the Science of Service. Journal of Service Research 2010 13: 4 Sutcliffe, A. G. (2002). The Domain Theory: Patterns for knowledge and software reuse. Mahwah NJ: Lawrence Erlbaum Associates. Sutcliffe, A. G. (2009). Designing for user engagement: aesthetic and attractive user interfaces. In Carroll, J.M. (Ed), Synthesis lectures on human centered informatics. San Rafael CA: Morgan Claypool. Sutcliffe, A. G., & Lammont, N. (2002). The Planet method for designing relationships in B2B e-commerce. Proceedings: Hawaii International Conference on System Sciences, Hawaii 7-10 January 2002, (pp. 2739-2748). Los Alamitos CA: IEEE Computer Society Press. Sutcliffe, A. G., & Lammont, N. (2001). Business and IT requirements for B2B e-commerce. International Journal of New Product Development & Innovation Management (Dec/Jan), 353-370.
35. Selecting appropriate relationships