Service Management and Information Systems – Summary and Outlook Univ.-Prof. Dr.-Ing. Wolfgang Maass Chair in Economics – Information and Service Systems (ISS) Saarland University, Saarbrücken, Germany WS 2011/2012 Thursdays, 8:00 – 10:00 a.m. Room HS 024, B4 1

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 2  

General Agenda

1.  Introduction 2.  Service Strategy 3.  New Service Development (NSD) 4.  Service Quality 5.  Supporting Facility 6.  Forecasting Demand for Services 7.  Managing Demand 8.  Managing Capacity 9.  Managing Queues 10. Capacity Planning and Queuing Models 11.  Services and Information Systems 12.  ITIL Service Design 13.  IT Service Infrastructures 14.  Summary and Outlook

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 3  

(1)  Introduction: Definitions of Services

“A service is a time-perishable, intangible experience performed for a customer a c t i n g i n t h e r o l e o f c o -producer.” (Fitzsimmons & Fitzsimmons, 2011)

“A service is an activity or series of activities of more or less intangible nature that normally, but not n e c e s s a r i l y , t a k e p l a c e i n interactions between customer and service employees and/or physical or goods and/or systems of the service provider, which are provided as s o l u t i o n s t o c u s t o m e r problems.” (Grönroos, 1990)

Services are frequently described as performances by a provider that create and capture economic value for both the provider and client . (Chesbrough & Spohrer, 2006)

“A service offering is produced using the firm’s resources including both tangible (such as goods) and intangible (such as knowledge, competence, relationship) assets.” (Arnould, 2008)

“Service is a process of applying the provider’s competence (knowlegde and skills) for the benefit of, and in conjunction with, the customer […].” (Chew, 2010)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 4  

(2) Service Strategy: Vision Wanted!

•  How to place a service in the market? - All begins with an entrepreneur’s idea and an unmet need … (Fitzsimmons & Fitzsimmons, 2011)

•  “For any given market space, service strategy defines the portfolio of services to be offered and the customers to be supported.” (Iqbal & Nieves, p. 161, 2007)

•  Strategic service vision needs to be formulated when entering a market

•  4 categories of elements of strategic service vision (Chase & Hayes 91)

•  Specific questions help to develop categories •  Startup firms should answer questions from right to left

Service Delivery System

Operating Strategy

Service Concept

Target Market Segments

Who is our intended customer? What are the most important elements of our service from the customers‘s perspective

How will we differentiate ourselves from our competitors?

How will we provide this differentiated service?

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 5  

(3) New Service Development: Service Blue Printing

•  “The development of a new service is usually characterized by trial and error. Developers translate a subjective description of a need into an operational concept that may bear only a remote resemblance to the original idea. No one systematically quantifies the process or devises tests to ensure that the service is complete, rational, and fulfills the original need objectively.” (Shostack, 1984, p. 133)

(Fitzsimmons & Fitzsimmons, 2011)

•  Service blueprint - capturing service design in a visual diagram (like building)

•  “A service blueprint allows a company to explore all the issues inherent in creating or managing a service.” (Shostack, 1984, p. 135)

•  “Service blueprinting, which started as an entirely manual process, has been automated by companies to provide “living blueprints” accessible to key parties online […].” (Bitner et al., 2010, p. 210).

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 6  

(3) New Service Development: Service Blue Printing

(Shostack, 1984, p. 135)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 7  

(4) Service Quality:

(Bitner et al., 2010, Parasuraman et al. 1988)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 8  

(5) Supporting Facility: Facility Layout Process Analysis

(Fitzsimmons & Fitzsimmons, 2011)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 9  

(6) Forecasting Demand for Services: Time Series Models: Exponential Smoothing with Trend Adjustment

(Fitzsimmons & Fitzsimmons, 2011)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 10  

(7) Managing Demand: Segmenting demand & Offering price incentives: First-degree price discrimination

(Varian, 2011)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 11  

(7) Managing Demand: Segmenting demand & Offering price incentives: Second-degree price discrimination

(Varian, 2011)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 12  

(7) Managing Demand: Segmenting demand & Offering price incentives: Third-degree price discrimination

d1

Output y

Price p

d2

y2* y1*

p1*

p2*

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 13  

(8) Managing Capacity: Yield Management

(Kimes, 1989; Fitzsimmons & Fitzsimmons, 2011)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 14  

(9) Managing Queues: Formalization of Queuing Systems: Poisson and Exponential Distribution

(Fitzsimmons & Fitzsimmons, 2011)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 15  

(10) Capacity Planning and Queuing Models: Features of Queuing Systems

(Fitzsimmons & Fitzsimmons, 2011)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 16  

(10) Capacity Planning and Queuing Models: Standard M/M/1 Model

(Fitzsimmons & Fitzsimmons, 2011)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 17  

(10) Capacity Planning and Queuing Models: Standard M/M/1 Model

(Fitzsimmons & Fitzsimmons, 2011)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 18  

(11) Services and Information Systems: ITIL Service Lifecycle (ITIL V3)

Service strategy -- start of service lifecycle: sets service management objectives, policies, and guidelines toward serving customers and market spaces

•  ITIL framework = set of specialized organizational capabilities for providing value to customers in the form of services

•  Capabilities = functions and processes for managing services over a lifecycle

•  service lifecycle emphasizes control of functions and processes

Service design -- design of innovative services, processes, measurements, metrics, technology including their architecture according to business objectives

(OGC, 2011)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 19  

(12) ITIIL Service Design – Service Catalogue Management

•  Structuring service catalogue •  Depends on audiences to be addressed –

views for diverse audiences •  Minimum: 2 different views – (1) business/

customer, and (2) technical / supporting service catalogue view

•  Further opportunity: 3 views, e.g., (1) wholesale, (2) retail, and (3) supporting service catalogue view

Service catalogue example

Customers (understand

portfolio of service provider)

Users (which services are available; how to place service requests)

Staff members (how supporting services and service provider assets support business activity)

Used by…

(OGC, 2011)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 20  

(13) IT Service Infrastructures - Characteristics of SOA

①  SOA != web services – web services are just an implementation of SOA and do not implement all aspects, e.g., no specification of service levels

②  Separates the “what” (interfaces) from the “how” (implementation)

③  Dynamic binding of modular components – loose coupling

④  Interoperability between platforms and languages

(Valipour et al., 2009)

SAP Enterprise Service Oriented Architecture (Enterprise SOA) •  SAP solutions currently using

Enterprise SOA: mySAP CRM, mySAP ERP, mySAP SRM [5]

IBM WebSphere software for SOA environments •  Application infrastructure,

application integration, business process management etc. [6]

Exemplary software products implementing the SOA idea:

(How?) SOA concepts, e.g., •  RPC protocol = remote procedure

call -- inter-process communication that allows an application to cause a procedure to execute in another address space, e.g., SOAP

•  Jini framework for development of distributed systems

•  REST architectural style •  WSDL = Web Services Description

Language – used for describing functionality offered by web service

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 21  

ISS Veranstaltungen SS 2012

Informationsmanagement (IFM) (Bachelor) •  Planung, Steuerung und Kontrolle von Information und

Wissen, Informationssystemen und Informations- und Kommunikationstechnologie

•  Credit Points: 6CP (VL und Übung) •  Studiengänge: Winfo (Bachelor), BWL (Bachelor),

W&R (Bachelor), WiPäd (Bachelor) Innovationsmanagement (IVM) (Master) •  Innovations- und Technologiemanagement aus

strategischer und operativer, unternehmerischer Sicht; Open Innovation; Rolle von Informationstechnologien; New Service / Product Development; Empirische Modelle

•  Credit Points: 3CP (VL) •  Studiengänge: Winfo (Master), BWL (Master), W&R

(Master), WiPäd (Master)

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 22  

Veranstaltungen SS 2012

Seminar “Neue Themen des Dienstleistungs-managements” (Bachelor & Master) •  Credit Points: Bachelor BWL - 6CP; Master BWL - 12

CP; Bachelor Winfo (PO 2009) - 6CP; Master Winfo (PO 2009) - 12 CP; Diplom BWL - 8BP; Diplom Wipäd - 8 BP; Master Wirtschaft & Recht (PO 2010) - 12 CP; Master Wirtschaft & Recht (PO 2008) - 10 CP; Master EFP - 12 CP

Evaluation of this semester’s DLM lecture: http://kwiksurveys.com?s=LJNEHJ_782826fa

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

Univ.-Prof. Dr.-Ing. Wolfgang Maass Chair in Information and Service Systems Saarland University, Germany

Univ.-Prof. Dr.-Ing. Wolfgang Maass  

08.02.12 Slide 24  

Back-Up: Reservation Systems and Overbooking