A.A.

2024/2025

- [email protected] -
Table of content
• Marketing and Service Marketing: an overview
• Marketing plan (principles)
• New marketing strategies approaches: Relationship Marketing
and Many-to-Many network; Experience marketing;
Unconventional marketing
• New marketing vision: Service Research - from S-D logic &
Service Science to service ecosystems & service systems

Examples
Project work
Agenda: Lesson 5

• SSMED, service systems & smart service systems

• Service innovation and technologies as Decision Support

Systems for marketing strategies

Examples
 5.1
Service Science, Management,
Engineering and Design
Computer Science Service Research

What is the link?

 Service Science, Management, Engineering
and Design

The Science Service, Management, Engineering and

Design (SSMED) by IBM Corporation as a project of
the Almaden Research Center, involved hundreds of
researchers in the world trying to promote a new
discipline to meet the most important themes
emerging: the study of service systems.
 Service Science
Service Science management, engineering and design (SSMED)

• Multidisciplinary research stream that studies the implications

emerging from the new management approach to service
• Unifying framework for service design, delivery and evaluation that
aims at developing the capabilities required by service economy;
• Introduced after company’s shift from a good-logic to a service
centered perspective

The founders: Spohrer and Maglio (2008)

Aim: to combine and to apply computer science, operational
research, industrial engineering, management and social
sciences to find the most appropriate organizational model to
support the emergence of value
 Service Science
Always looking for service innovation, service science
would combine organization and human understanding
with business and technological understanding to:

(1) explain the origins and growth of service systems;

(2) solve fundamental problems such as how to invest
optimally to improve service productivity and quality;
(3) produce unique service professionals and service
scientists
 Service Science

Many disciplines have accumulated knowledge

relevant to the understanding of service system,
each focusing on different aspects of the overall
system.

For instance, organization theory focuses on

structures, rules, and incentives to create
effective groups of individuals.
 1900 - 1960

1990 - 2004 14. Information Science

Technology
Technology 15. Human Resource Management
1. Science and Information Systems

2. Activities and management of services 16. Organization Theories

17. Operations Research

3. Services engineering
14
4. Marketing of services 18. Systems Engineering
28
5. Social Complexity 21 18 19. Management Science
10
6. Computational economy 20. Games theories
3 11
5
7. Organizational theories 13 2 21. Industrial Engineering
7 1 8 17
6 22. Marketing
12 4
23. Management Psychology
15
16 27 9 25 22
1960 - 1990 24
23 19 Prima del 1990
8. Management of innovation
20
9. Experimental economics 26 24. Business Administration
10. AI & Games 25. Economics
11. Management and Information Systems 26. Law
12. Computer Supported . Work (CSCW) 27. Sociology
13. Business Support Systems 28. Formation
 Service Science
Service is an ever complex issue to deal with.

• Service is related to value co-

creation among actors.
• Adopting a Service view improves
positive interaction between
entities in reticular system.
• Service co-creation involves many
actors within a dynamic process.
• Service exchangers need evolving
expertises and competencies.
Service Science, Management,
Engineering and Design
The service-dominated economy has been multisectoral
and transdisciplinary. This makes difficult to define a new
kind of discipline that could be considered really “cross
and unifying”. There are important academic debates on
how to describe the implications of service concept
characterizations both for basic and applied research.

Service Science focuses on a new and updated service

concept, on the study of service systems and on the
recent conceptual and interpretative development of
smart service systems.
 Service Science, Management,
Engineering and Design
Service Science, Management, Engineering and Design (SSMED), proposes several
prospects of investigation and embraces many fields of interest and application.

• In terms of Science, it investigates what service systems are and how they really
evolve, focusing on the active role of the people employed in them, of knowledge, of
shared information, and of technologies, as well as on the importance of the active
participation of the services’ users (the demand) in the production process (offer);

• In terms of Management it investigates possible solutions for implementing

evaluation of efficiency, sustainability reports, and systemic interaction within
service systems;

• In terms of Engineering it is responsible for developing new technologies for the

processes of detection, measurement, and dissemination of information-essential
for sharing in the contemporary process of value-generation;

• In terms of Design it seeks to deepen the appropriate configuration techniques for

the proper structuring of service systems.
 Service Systems
Service systems are value-creation networks composed of
(Bryson et al. 2004; Maglio et al. 2006):
• People
• Organizations
• Technology
• Shared information

• promote real-time relationships and accelerate up co-

learning processes in many fields (e.g. smart services in the
energy sector, transport, etc.).
• come from systematic methods, continuous learning, data
collection, innovation, social responsibility and network
governance, and all the operations that benefit from the
application of new technologies.
 (1) Service Systems: definition
Service systems: value-co-creation configuration of people,
technology, value propositions connecting internal and
external service systems, and shared information able to
create and deliver value to providers, users and other
interested entities, through service.
SPOHRER, MAGLIO, BAILEY AND GRUHL (2007)

The aim of service system is to

Service
use its own resources and the systems
resources exchanged with
other actors to improve its
own and other’s well-being
 SSMED Key Concepts

Value-Co-creation

Entities Interactions Outcomes

(Systems) (Networks) (Value Changes)

Value Proposition Governance Mechanism

Based Interactions Based Interactions

Measures
Access Rights
(Rankings)
lose-win win-win
lose-lose win-lose
Stakeholders
Resources
(Roles)

Source: www.ibm.com
 SSMED Foundations Main Focus
Resources: Everything that has a name and is useful can be viewed as a resource Useful instruments for
activities
Entities: Some complex resource configurations can initiate actions, and these are Openness of evolving
called service system entities (or just entities, or sometimes just service systems) systems
Access rights: dealing with the social norms and legal regulations associated with Supra-Systems relevance
resource access and usage.
Value Co-creation Interactions: Also known as value-proposition-based interaction Joint process within Service
mechanisms Systems
Governance Interactions: Intuitively, governance mechanisms are a type of value- Common finality, internal
proposition between an authority service system entity and a population of and external equilibrium
governed service system entities
Outcomes: When service system entities interact, value-co-creation is only one of Value intended in an
the possible outcomes. extended way
Stakeholders: The four primary types of stakeholders are customer, provider, Contextual influences and
authority, and competitor self-regulation
Measures: The four primary types of measures are quality, productivity, Up to now only qualitative
compliance, and sustainable innovation
Networks: Also known as service system networks, service systems entities interact Networked embeddedness
with other service system entities (normatively) via value-propositions
 (2) Service Systems: definition
value-co-creation configurations,
resources integrators,
knowledge-based,
capable of enabling connections and interaction,
with the aim of reaching desired outcomes,
5 simply, always, an operative application,
any number of elements, interconnections, attributes,
and stakeholders interacting in a co-productive
relationship.

… a Service System is basically composed of heterogeneous

entities, interacting with each other with specific purposes

Luca Carrubbo – Brno 2017

Service System definitions Authors Year
Service systems represent value co-creation configuration of people, technology, value propositions connecting internal Spohrer, Maglio, Bailey 2007
and external service systems , and shared information (e.g., language, laws, measures, and methods), like an assemblage and Gruhl
of unites entities by some form of regular interaction or interdependence.
Service Systems can simply be a software application, or a business unit with an organization, from a project team, a Qiu, Fang, Shen and Yu 2007
business department, a global division; it can be a firm, institution, government agency, town, city or nation; it can also be
a compostiion of numerous collaboratively connected service systems within and/or across organizations.
Service Systems act as resource integrators, understandable in terms of elements of a work system, within the Spohrer, Anderson, Pass 2008
organization and through the network enduring resource specialization, those operand and operant, such as knowledge, and Ager
skills, know-how, relationship, competences, people, products, money, etc.
Every service systems is both a provider and client of service that is connected by value propositions in value chains, value Vargo, Maglio and Akaka 2008
networks, or value-creating systems.
A service system is any number of elements, inteconnections, attributes, and stakeholders interacting in a co-productive Spohrer, Vargo, Maglio 2008
relationship that create value, in which principal interactions take place at the interface between the provider and the and Caswell
customer.
A service system primarly relates to customer-provider interactions as well as open system with it being capable of Golinelli 2008
improving its own state and the one of another system though acquiring, sharing, or applying resources, with the aim of
creating a basis for systematic service innovation.
Service systems are a complex interplay betwwen form and customer that form an open system which needs to be Ng and Maull 2008
designed using the techniques of viable systems and systems dynamics, in which both parties are focused on achieving
outcomes.
Service systems can be divided into “front stage” (about provider/customer interactions) and “back stage” (about Qiu 2009
operational efficiency) and service performance relies on both of them, putting people (customers and employees),
rather than physical goods, in the centre of its organizational structure and operations. The smallest service system is a
single person; the largest one is represented by the global economy. A service system essentially is a social-technical
system, focusing on engineering and delivering services using all available means to realize respective values for both
provider and customer.
Service systems can be represented as real networks, in which the same entities combine their streghts through direct Polese 2009
and indircet connectivity, as they are oriented toward enduring competitiveness and daily intercations with other external
interdependent service systems.
 The different definitions
«A service system is any number of elements,
Spohrer, Vargo,
interconnections, attributes and stakeholders interacting in a
Maglio and
co-productive relationship that create value, in which the Caswell, 2008
principal interactions take place at the interface between the
provider and the customer»

«A service system primarily relates to customer-provider

interactions as well as open system with it being capable of Golinelli, 2008
improving its own state and the one of another system
though acquiring, sharing, or applying resources, with the
aim of creating a basis for systematic service innovation»

«Service systems can be represented as real networks, in

which the same entities combine their strengths through Polese, 2009
direct and indirect connectivity, as they are oriented toward
enduring competitiveness and daily interactions with other
external interdependent service systems»

Luca Carrubbo – Brno 2017

 Service Systems: origins
The concept derives from systemic vision and network theory
(Richardson, 1972; Normann and Ramirez, 1993; Castells,
1996; Capra, 2002)
System
entity emerging from a specific structure (organzational-
physical equipment) thanks to interactions among all system’s
members (Barile, 2013).

Aim: survival through the acquisition (and the exchange) of

knowledge from the other systems situated in the context
which leads to the creation of new knowledge.
Since value co- creation is centred on knowledge exchange to
acquire mutual benefits, system is the most adequate
configuration for companies aiming at acquiring sustainable
competitive advantage.
 From Systems Theory
SYSTEM
• “complex of interacting elements” (Von Bertalaffy, 1956)
• “an entity that is adaptable for the purpose of surviving in its changing
environment” (Beer, 1975);
• “entity which is a coherent whole” (Ng, Maull and Yip, 2009)

Composed of many parts (Parsons, 1965), boundaries,

Actors &
connections and different relationships with relevant
connections stakeholders based on the sharing of critical and
influential capabilities

SUB-SYSTEMS sub-systems focus on the analysis of relationships

among its own internal components while supra-
SUPRA-SYSTEMS systems focus on the connections between the analysis
unit and other influencing systemic entities in their
context (Golinelli, 2005)
Luca Carrubbo – Brno 2017
 Service Systems
Today, service systems represent an emerging issue in economic
research, all-encompassing many specific topics (innovation,
smart cities and communities) and even quality, traditionally
related to technologies and processes

Reinterpretation of service design, service supply and fruition, in

which multiple active actors synergistically participate in the
value co-creation process, which is characterized by resource-
sharing and common finality.

MAIN REFERENCES:
ALTER, S. (2008)
SPOHRER, J., VARGO, S.L., MAGLIO, P.P, CASWELL, N. (2008)
Service Science, Management,
Engineering and Design

Information

Processes and SSMED

Science and
Business Technology
Models

People
and
Culture
(1) Service Systems: ORGANIZATIONS
Organizations: interconnected systems entities
sharing the same value system.

A Service system is composed of a network of organizations

carrying out integrations of multiple resources in order to
achieve reciprocal benefits for all the stakeholders.

Every member of the system has its own interests and pursues
specific aims. Thus, managers should seek to harmonize the
differing needs of each subject in an attempt to satisfy the
stakeholder’s demands and, at the same, the well-being of the
system. Individual System’s
objectives Goal
 (2) Service Systems: PEOPLE
Human factor is essential to balance the
needs of all the stakeholders.

Knowledge is the real added value to foster value co- creation,

since this process is grounded of the exchange of internal and
external (contextual) competencies and resources

In a market based on intangibilities, service delivery does not

represent only economic exchange, but can be undesrtood as the
result of the integration of the specialized skills of each member.

Customers can help firm to improve service starting from service

design, by sharing their capabilities and creativity.
(3) Service Systems: TECHNOLOGY
ICTs: opportunities for providers and consumers to
exchange resources, fostering the sharing of value
propositions at intra- and inter-organizational level

The diffusion of new technologies and platforms (community,

forum, blog, social network) can enhance the interactions among
stakeholders, with an increase in stakeholder engagement.
Users can make comments and judge service quality, providing
organizations with suggestions on the improvement of the
offering.

The more the social and relational capital grow, the more the
knowledge exchanged intensifies.
(4) Service Systems: INFORMATION
Through technology and ICTs co- creators can
constantly share flows of information, increase
their knoweldge, strenghten relationships and
modify their behaviors to pursue common goals.

The possibility to transfer every kind of information in real time

permits users to play a predominant role in business decision-
making and service improvement

The combination of the 4 elements of service systems

(organizations, people, technologies and information) allows to
create value through the implementation of a networked system
in which companies, institutions, organizations and users share a
systematic flux of information and know-how, which can be
managed in an efficient way thanks to technology
 Service System as Value Network
Organizations

Technology

Shared
Information

People
 Complex Service Systems
iterative, interactive, instrumented, interconnected, intelligent
S.M.A.R.T.: Specific, Measurable, Agreed, Realistic and Timely
(More measurement data, More networks, More learning and adaptation)

Smart traffic Intelligent Smart food Smart Smart energy Smart retail
systems oil field systems healthcare grids
technologies

Smart water Smart supply Smart Smart Smart regions Smart cities
management chains countries weather
Source: www.ibm.com/think

Luca Carrubbo – Brno 2017

 Smarter Planet
Iterative, interactive, instrumented, interconnected, intelligent
(More measurement data, More networks, More learning and adaptation)

Smarter Food

Smarter Products

Making retail smarter

Luca Carrubbo – Brno 2017
 Smart Service Systems
S.M.A.R.T.: Specific, Measurable, Agreed, Realistic and Timely
(More measurement data, More networks, More learning and
adaptation)

There is an increasing demand for ‘smart service systems’ based upon

ICT, to create a basis for systematic and sustainable service innovation
in complex environment.
 Smart Service Systems definition
Smart service systems are service systems in which smart
products are boundary-objects that integrate resources and
activities of the involved actors for mutual benefit.
SSS concerns several elements interacting with each other and
working together for a common final goal, through smart
solutions.
Smart service systems need to be understood as complex,
open, and dynamic sociotechnical systems.
 Service Science vs S-D logic
Similarities with SDL
• Relational approach to business
• Focus on resources (RBV)
• Many-to-many logics to business
behaviour

Differences with SDL

• Practical approach
• Technological- Informational focus
• Smart vision on planet
• Measurement of service and
systematic search for innovation
and continuous improvement
SPOHRER, J., ANDERSON, L., PASS, N., AGER, T. (2008)
SPOHRER, J. MAGLIO, P.P., BAILEY, J., GRUHL, D. (2007)
VARGO, S.L., LUSCH, R.F., WESSELS, G. (2008)
 THANK YOU.

Questions? Comments?

Francesco Polese

[email protected]