INFO3333 (Computing 3 Management)
Services Model and Service Management: An Introduction
Prof. Joseph Davis
School of Computer Science University of Sydney
The University of Sydney
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Outline
From Project Management to services and service management
Services, Service Economy, and the Services model
Key concepts
Service Computing and IT services
Evolving service ecosystems
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From PM to services and service management
Many of the IT projects that may be assigned to work on these days are likely to involve designing and implementing service systems
Service projects have features that are different from traditional software engineering and similar projects
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Goods and Services
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Service Economy
– Thecombinedservicesectordominatestheglobaleconomy,
– Accountsforroughly70-75%oftheGDPandnearly80% or employment of advanced economies including Australia’s,
– EvenemergingeconomieslikeIndiaandChinahaveservice sector accounting for approaching 40 – 50%
– Serviceeconomynolongerjustaresidualtomanufacturing and agriculture sectors,
– Informationtechnologyplaysacentralroleinservice systems
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Service Economy
120 100 80 60 40 20
0Estimations based on Porat, M. (1977) Info Economy: Definitions and Measurement
Services (Info) Services (Other) Industry (Goods) Agriculture Hunter-Gatherer
2000000 YA 20000 YA
10000 YA 2000 YA
1800 1850
1900 1950
2000 2050
… it’s a Services world…
(workforce distribution)
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
1800 1820
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
1800 1820
100% 90% 80% 70% 60% 50% 40% 30% 20% 10%
0%
1800 1820
1840
1860
1880
1900
1920
1940
1960
1980
2000
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
1810 1835 1860 1885 1910 1935 1960
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
1810 1835 1860 1885 1910 1935 1960
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
1985 2010
agriculture
manufacturing
services
United States
Japan
China
Germany
1840
1860
1880
1900
1920
1940
1960
1980
2000
1985 2010
Russia
India
1840
1860
1880
1900
1920
1940
1960
1980
2000
1810 1835 1860 1885 1910 1935 1960
1985 2010
100 80 60 40 20
0
1982 1988
Services Software Systems Other
IBM’s Revenue is Now Led by Services…
1994 1998 2004 Year
Revenue ($B)
Projected Service Employment Growth
US Bureau of Labor Statistics.
Skills and IT Services
› Shortage of people with integrated IT and Business training in Australia and overseas
– Not enough suitable applicants for jobs we need to fill in Australia
– expected to continue for next 3-5 years
– same situation at banks, airlines,
industry, government
› ….coupled with a skills problem:
– Graduates need different sets of skills in the business world today
Skills needed in business today…
Social Science (People skills)
Depth (deep problem solving expertise) Breadth (multidisciplinary approach, global outlook) Practical Experience (Internships, completed projects) Teaming (including ‘soft’ interpersonal skills ) Project Management (deadlines, budgets, leadership) Problem solving via social networks and computation Flexible, adaptive, and entrepreneurial
There is a skills gap in today’s graduates …technology OR business skills, but
may not have a good understanding of both
Services Sciences focuses on the multi- discipline skills that businesses are seeking today
Management (Business)
Engineering (Technology)
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Service System
– The basic unit of analysis is the service system,
– Service system is a socio-techno-economic system involving interplay among
people, technology, organizations to design, engineer, and deliver services
– Typically, customer and service provider agents work together using technology to co-produce value against some kind of service level agreement (SLA)
– Shared information helps coordinate activities – language, norms laws, measures, models, etc. (Spohrer et al. 2007)
– Simultaneity of production and consumption
– Growth requires innovation based on integration across technology, enterprise,
knowledge, and client needs.
– Significant focus on human agents and networks!
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B2B IT-centric services
A. Service Provider
• Organization – can Involve multiple agents
B. Service Client
• Organization- can
• Involve multiple agents
Service relations and interactions (co-creation of value)
IT-enabled interactions and solutions
Interventions of A on C
Interventions of B on C Forms of ownership of B on C
C. Service Target:
– based on Gadrey (2002)
A Conceptual Model of Service-value Networks
BASOLE, R. C. & ROUSE, W. B. (2008) Complexity of service value networks: Conceptualization and empirical investigation. IBM Systems Journal, 47, 53-70.
A General Typology of Services(Source:Fahnrich & Meirin 99)
Customer call centre retail trade
Knowledge consulting market research
Process
automatic car wash online banking
Flexibility life insurance
low
high
Variety
Contact Intensity low high
A working typology of services
Source: Howells and Tether 2004
PPhhyysisciaclaSelrSveicrevice
Services engaged in physical transformation of goods
Transportation, cargo handling and storage
People-oriented service
People-oriented service
Services dealing with the transformation of people
Aged care, child care
Information processing service
Information processing
Services engaged in the transformation of information
Library services, data processing; information goods
servic
Knowledge-creating service
Services engaged in the provision of knowledge- intensive services
R&D, Architectural services, consulting
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Service Systems
Knowledge-intensive service systems characterized by combination of:
› Person-to-person interactions among service provider and customer agents (service interaction networks),
› Computational processes and services,
› Technology-supported self-service,
› Multi-channel, multi-device, potentially location aware, and context based services
› Purposive – definable objectives and functions
› Systems partly designed; partly evolving – hence emergence,
› Large number of mutually interacting parts
› Potential for complementarity
Characterising IT services and the service sector
› Study of services is inherently inter-disciplinary
› Extreme diversity in the service sector – wide variation in their materiality and knowledge-intensity
› Nebulous nature of the output, difficulty in measuring the ‘product’; perishability
› Interactive nature of service design and delivery.
(CHIP – co-production, heterogeneity, intangibility, perishability)
Service Science ( continued )
Service Science
(inter-disciplinary body of scientific knowledge)
Service Economy
Service Computing
Business Process Modelling, Optimisation
Customer Relationship Management
Virtual enterprises/ organisations
Service Systems Management
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Dynamics of Service Systems (contd.)
Service System Lifecycle model
Infancy Phase: high level of interactions and creative problem solving – flexible technologies – fast adaptation – explorative learning,
Maturing/Commoditization Phase: Coding knowledge into standard methodologies, processes, systems and, tools – automation, exploitation of existing knowledge – factory model.
Reincarnation Phase: Transformation thru new innovations and breakthroughs (e.g.. Cloud computing for infrastructure services)
Managing service systems
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IT Service Management
› ITSM refers to a broad approach for conceptualising, designing, delivering, managing, and continuously improving service systems in organisations.
› ITSM frameworks (e.g. ITIL) has been developed to ensure that the right data, processes, people (skills), and technology are deployed so that the service system can be effective thereby enabling the organisation to achieve its goals.
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Service Level Agreement (SLA)
› SLA is formal and documented agreement between a service provider and customer that provides full details of each service provided and the expected level of service provided (mostly stated using suitable metrics and key performance indicators (KPIs))
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SLA example
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Service Computing
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Service Web
Service Web – an engineering project that can advance web technology to enable billions of services to be exposed, composed, consumed over the Web.
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EU SOA4All Project Approach – leveraging online communities
Source : J Domingue et al. (2009) ,“The Service Web: a Web of Billions of Services” , Towards the Future Internet
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Integrated Service Science
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Service Innovation
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Technological Developments and Service Systems
– WorldWideWebevolution,Web2.0,semanticweb
– Crowdsourcingandintegrationofhumancomputation
– Platformtechnologies
– Cloudcomputingandrelateddevelopments,
– EvolvingdevelopmentsaroundInternet-of-things(IoT)
– Analytics,AI,MachineLearning,BigData,smartservices,
block-chain
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Mobile and Big Data
– Locationawareservices,
– Detailed data capture of every tick of each service instance; improve service system effectiveness thru data mining and machine learning.
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Questions?
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