From Systems to Services: an Introduction to

Service Systems Engineering Dr. ing. Marco Lisi

European Space AgencySpecial Advisor of the European Commission

Skoltech, Skolkovo, Russian FederationMarch 14, 2014 4

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Objectives

• To recognize the importance of services in today’s world economy;

• To explain what a service-oriented, large and complex system means;

• To introduce a systemic approach to the engineering of service systems and enterprises;

• To suggest that beyond the obvious technological and technical challenges, a service provision perspective requires a conceptual paradigm shift much more difficult to accept than that required by systems engineering: moving from technologies/products to capabilities and services.

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Towards a Knowledge-Based…

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…and Service-Oriented Economy

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What do we mean by "service"?

• By the term “service” we mean the guaranteed and committed delivery of a capability to a community of potential customers/users;

• In the delivery of a service, the focus is more on the “commitment” (continued over time) than on the “technical performance” as such, which is though an essential prerequisite (but not an objective);

• NOTA BENE: services are not alternative to (or in competition with) technology and goods production. On the contrary, advanced, high value-added services need state-of-the-art technological products and systems to be provided. Examples:– Internet– Wireless communication networks– Electric power distribution infrastructure

What is a Service System?

• Service (or service-oriented) systems are systems meant to provide value-added services through the use of technology (mainly communications and computer technologies);

• A “service system” has been defined as a dynamic configuration of people, technology, organizational networks and shared information (such as languages, processes, metrics, prices, policies, and laws) designed to deliver services that satisfy the needs, wants, or aspirations of customers.

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Characteristics of Service Systems• Large and complex systems• Software intensive (several million lines of code) • Capabilities-based rather than platform-based • Organization and governance (human factor)• Technical performance is a prerequisite for production and

delivery of services, not a final objective• Requirements related to operations, in addition to technical

ones, assume a very high relevance:

Quality of Service (QoS) FlexibilityReliability, Availability, Continuity ExpandabilityMaintainability InteroperabilitySafety ResilienceSecurity

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Products vs. Services

CarsHighways

Trains Railways

Stations Parking areas Aircrafts Airports Ships Etc.

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Large and Complex Systems (1/2)• A large and complex system is a system composed of a

large number of interconnected elements, often developed and deployed worldwide, which interact dynamically, giving rise to emergent properties

• Examples of complex systems supporting services for civil applications include: global satellite navigation systems air traffic control systems railway control systems space systems such as the International Space Station or space

transportation and exploration vehicles surveillance, Earth observation and Homeland security systems electric power distribution systems telecommunication systems complex computer networks, including Internet.

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Large and Complex Systems (2/2)

• A complex system often integrates existing systems (or parts of them) in an overall large-scale architecture containing a large number of interfaces and implementing multiple modes of operation, in a highly dynamic environment

• Large and complex systems require extensive logistics and maintenance support capabilities

• Large and complex space-based systems (e.g. GPS, Galileo) are conceived to be in service for a long time; in this case the evolution of the system (up-grades and modifications) has to be taken into account from the beginning.

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Project/System Multiple Perspectives

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Specifying a Service System• Functional and technical performance: System Requirements Document (SRD)

• Operational requirements and scenarios: Concept of Operations (CONOPS) document

• Expected service behavior and non-functional performance: Service Level Agreement (SLA)

• A typical SLA defines Key Performance Indicators (KPI’s) and Key Quality Indicators (KQI’s), with target values and target ranges to be achieved over a certain time period.

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Concept of Operations (CONOPS)

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New Procurement Approach• Current systems engineering, project management and

acquisition practices still rely on their historical hardware engineering and acquisition legacy;

• Product-oriented, fixed-price, build-to-specification contracts give the illusion of a delivery within the allocated budget, but usually result in cost and schedule overruns;

• Many projects have difficulties integrating hardware, software and human factor aspects;

• Many projects fail to capture (and optimize) in their acquisition processes the multifaceted aspects of the systems they try to realize.

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Through-Life Capability Management

• Through-Life Capability Management (TLCM) is an approach to the acquisition and in-service management of a capability over its entire life-cycle, from cradle to grave

• TLCM means evaluating a capability not just in the terms of a single piece of equipment, but as a complete system or “system of systems”

• TLCM recognizes the value of concurrent engineering, being aware that the initial purchase cost (and risk) of a system is only a small fraction of the total cost of procurement

• The adoption of a TLCM approach implies the evaluation of all the costs involved in the utilization of a capability over its entire life-cycle, a.k.a. Total Cost of Ownership.

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Total Cost of Ownership

• Operators, including government establishments and commercial entities, are emphasizing reduced total cost of ownership of large and complex space systems;

• The Total Cost of Ownership (TCO) approach asks for cost trade-off’s throughout the total life cycle;

• An optimum balance must be found between non-recurring (CAPEX) development and integration costs and operating (OPEX) costs;

• Scalable architectures, design for reliability/ maintainability/supportability, interface standardization (physical and protocol levels) and SOA (Service-Oriented Architecture) technologies are promising “best practices” to achieve the total cost of ownership reduction goal.

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The Total Cost of Ownership Iceberg

From Products to Systems to Services

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From a System…

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…to a Service

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European GNSS Agency (GSA),Prague

Galileo Service Centre, Madrid

Early Services Task Force

Galileo System Infrastructure

Galileo Security

Monitoring Centre

Galileo Development & Acquisition Process

GalileoSystem

Assets(Satellite Constellation, GCC’s,

GCS, GMS, GDDN, etc.)

Galileo System Requirements

Galileo System Performance &

Operations

People(ESA Project Team,

Subco’s, EC, GSA, etc.)

Processes(Engineering Board, VCB,

CCB, CM, Ops Procedures, etc.)

Galileo Service Provision Process

GalileoServices

Assets(Galileo System, GSC, GPEC, etc.)

Galileo Services

Requirements

Galileo Services Provision

People(EC, GSA, ESA Support, Member States, Services

Providers, Operators, etc.)

Processes(Services Validation, KPIs

Monitoring, Security Monitoring, Helpdesk, etc.)

Service Lifecycle (ITIL Standard)

The ITIL Process Model

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Key Performance Indicators (KPIs)• KPIs are tools that may be used by an organization (in

our case, a service enterprise) to define, measure, monitor and track its performance over time toward the achievement of its goals;

• KPIs must be quantitative and quantifiable; • KPIs need to be tailored to the specific organization

priorities and performance criteria. So a service organization, based on a large, complex, high-technology system infrastructure, will look to KPIs that measure areas of performance such as Availability, Continuity, Mean Time to Repair (MTTR), customer satisfaction indices, etc.;

• KPIs are often of statistical nature: they can be evaluated over fixed or rolling time periods.

The ITIL KPIs Definition

Capability Maturity Model Standard

What is CMMI?

CMMI for Services Process Areas AreasThe ITIL Process Model

Quantitatively Managed Process (1/2)

Quantitatively Managed Process (2/2)

Continuously Optimized Process

The ISO/IEC 20000 Standard

Services and "Spirit to Serve"

“Real Power is Service”Pope Francis

“I slept and dreamt that life was joy. I awoke and saw that life was service. I acted and behold, service was joy”

Rabindranath Tagore

“We serve our interests best when we serve the public interest”

T. Watson, Jr.

“Joy can be real only if people look upon their life as a service, and have a definite object in life outside themselves and their personal happiness”

Lev Tolstoj

Conclusions

• Our economy is more and more depending on large, strategic and complex service infrastructures, based on large, strategic and complex systems;

• The design of a complex service enterprise requires a wide range of skills and expertise's, covering organizational, engineering, social, legal and contractual aspects;

• A Services Science is indeed needed, but it has to provide quick-winning and pragmatic answers;

• The advent of a services economy imposes a radical conceptual paradigm shift, more difficult to metabolize than that required by a systems engineering perspective;

• The “spirit to serve” (call it “customer focus”, if you like) is at the basis of all services.

GNSoS

ATM SoS GEOSS

The Global Systems of Systems Infrastructure

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