Towards Smart Service Research and Innovation in

2020

Manoo OrdeedolchestChairman ICT PolicySripatum University

The International ACM Conference on Management of Emergent Digital EcoSystem

October 26, 2010

The Vision

Advances in digitization is increasing opportunities to create new products and services and transform businesses (Prahalad and Ramaswamy)

New economic, social, government, and cultural models emerging globally, largely driven by the Web (Dion Hinchcliffe)

Service Science, Management, Engineering and Design (SSMED)

SSMED is an interdisciplinary approach to the study, design, and implementation of services systems

Service science encompasses the application of scientific, engineering and management disciplines to tasks that one organization performs beneficially for others, generally as part of the services sector of the economy (Springer)

Toward a Technological Service Economy

Industrialized nations have only two technological avenues ahead to preserve or improve competitiveness: Enhancement of their tech contents

(high-tech strategy) Acceleration and/or improvement of

their existing tech contents (low-tech strategy) (Giancarlo Migliori)

Technological elements to support service innovation

NECTEC has launched a number of sponsored and collaborative research programs aiming at enhancing a set of core technologies to support service innovation in various domains such as: Smart health: Bio sensor, image processing, CT

scanner, etc. Smart Agriculture: Food safety related technologies,

Climate change forecasting and monitoring related technologies, etc.

Smart education: Interactive voice response, learning pedagogy related technologies, etc.

Smart Tourism: Dynamic location based system, Near Field Communication related technologies, etc.

Accelerate usage of the social computingThe Online Communitiessource: Dion Hinchcliffe

The Two-Dimension of Service Innovation

Mapping the Service Science, Service Management, and Service Engineering and Design along the two-dimension of service innovation The technological innovation

(Technology enhancement) Accelerate usage of the social

computing (Technology improvement)

The Path to Service Innovation

Smart Services: Invent smart product. Case of General Motors Smart Windshields to guide drivers

Business transformation: Tire co. mileage based service; from product to service

Increase service contents: Competing in service. Case of Ingram Micro Seismic service

Market reach: Co-creation, Self-service, Social CRM. Case of “Build Your Honda” via Honda e-Commerce

Ad

van

ced

tech

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al ele

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Low Apply social computing technologies High

High

Low

SSMED

Transfo

rmatio

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Increase Service Content

Introduce new services in order to add more value to the product

The case of Ingram Micro Seismic service Ingram provides the Remote Network

Monitoring and Management system to its VARs. Ingram’s service offers great value to VARs; it gives VARs the ability to:▪ Proactively diagnose failure modes in advance▪ Perform system maintenance before an outage

occurs▪ Fix the problem remotely without having to deploy

technicians to the client site

Innovating Smart Services

Smart services are intelligence built within products; it is about awareness and connectivity rather than bundling products with upkeep and upgrades. It requires enhanced technologies.

The case of GM’s innovation of the Smart Windshield to enhance vision of the road for drivers

Smart Service with Smart Product

To enhance vision of the road. By using an infrared sensor to detect where the edge of the road is, we can show you that edge by highlighting it on the windshield and that can be very helpful if you're driving through foggy conditions.

GM Smart Windshield

Market Reach through Online Community

The case of extending “Customer Experience” to the existing product; the case of Honda (www.ehonda.com)

Honda customization service through eCommerce site allows customer select model, features, color, etc. through an interactive visual web portal (see the sample view next page)

Business Transformation

From business of selling product to selling services

Tire manufacturers are changing the selling model to a charge for service model—charge per mile of usage

They use RFID/sensor technologies and GPS to track speed and weight of loading, etc. as the basis for charge calculation

Business TransformationFrom business of selling product to selling service

Tire manufacturers are changing the selling model to a charge for service model—charge per mile of usage

They use RFID/sensor technologies and GPS to track speed and weight of loading, etc. as the basis for charge calculation

Five Perspectives on Service in Service Science (source: Bernd Stauss)

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Foundation for Development of Service Science (The Market Perspective) Service dominant logic (Vargo, Lusch

2006) Service is the basis of all exchange Indirect exchange among service systems

becomes a complex market with goods plays the roles facilitating the process of exchange

Value is always coreated and the firms cannot create and deliver value; they can only propose value

The service systems are characterized as resource integrators

Foundation for Development of Service Science (The Engineering Perspective)

Service scaling and transformation theory (Cheng Hsu, 2009) It is concerned with advancing values to

persons, organizations, and society through new business designs and service systems by digital connections scaling. A design science accompanies the theory to enable the service systems of population-oriented cocreation

Foundation for Development of Service Science (The Business Perspective)

Unified Service TheoryScott Sampson (2007) Service Science is the

science of consumer-producer interactions which involve producers satisfying needs of individual consumers by directly acting upon consumer resources of self, belongings, and/or information

Service Productio

n Process

Customer

Customer input

Supplier input

output

The Map of Opportunity

Smart Services: Invent smart product. Case of General Motors Smart Windshields to guide drivers

Business transformation: Goodyear mileage based service; from product to service

Increase service contents: Competing in service. Case of Ingram Micro Seismic service

Market reach: Co-creation, Self-service, Social CRM. Case of “Build Your Honda” via Honda e-Commerce

Ad

van

ced

tech

nolo

gic

al ele

men

ts

Low Apply social computing technologies High

High

Low

Productivity

Innovation

Growth

Transformatio

n

Where to go from here?

In service science: we still need to understand a whole lot about service quality, customer expectation, issues such as user control, access, confidence and trust, and user experience.

In service management: we need to understand value creation, brand management, personalization, coproduction, managing for emergent behavior, knowing when and how to capitalize on the innovations

Where to go from here?

In service engineering: we need to know how to adopt SOA and create a suitable service platform, not only standard but adtoping and using effectively.

In service design: We need to know to unify in a user centric design guided service devlopment process, emphasize on user interface and customer interaction at touch points

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End of Presentation