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Developing an MSc Module in Services Science Michael Lyons BT MSc – in Information & Communication Technologies • 15 module programme in its 16th year. • Operated by UCL, originally for BT professionals. • Modules now open to the comms & IT sector via e-Skills UK, providing CPD and MSc. • Specialist lecturers from a dozen universities. • Real time participation by remote groups in UK and overseas. • Current professional students number 550. © British Telecommunications plc Extending the Services Science Focus of the BTMSc Internet Services And Applications The ICT Business New Module/Modules: Networked Services Services and Systems Science Large Scale Software Systems © British Telecommunications plc Building Successful Business Cases The New Module • • • • Design of module led by Michael Lyons (BT). Academic owner and lecturing team identified. Scheduled for first presentation in April 2009. Services and Systems Science – the study of service systems – holistic, multi-disciplinary • Objective: Scientific methodology for developing predictable service systems. Benefits • Improved service design – Reduced risk for new services – Improved service systems – Lower costs: better use of people/ resources • • © British Telecommunications plc Greater organisational responsiveness Improved customer satisfaction/ loyalty The New Module • • • • Design of module led by Michael Lyons (BT). Academic owner and lecturing team identified. Scheduled for first presentation in April 2009. Services and Systems Science – the study of service systems – holistic, multi-disciplinary • Objective: Scientific methodology for developing predictable service systems. People Benefits • Improved service design Business Service Core Fundamental Skills © British Telecommunications plc – Reduced risk for new services – Improved service systems – Lower costs: better use of people/ resources Technology • • Greater organisational responsiveness Improved customer satisfaction/ loyalty Learning Objectives Science and Engineering Industrial and Systems Engineering Computer Science & Info. Systems Math and Operations Research Economics and Social Sciences Business Anthropology © British Telecommunications plc Organizational Change & Learning Business and Management • Understanding of key concepts and models arising from services research • Appreciation of range of factors (both technical and human) that need to be taken into account when designing a Service System • Recognition of the role of different disciplines and expertise in effective service delivery. BT Services • • • • • • System Services (Asset-based) IP infrastructure Basic connectivity Web-services and VAS Managed ICT services Outsourcing, including the managing networks and desktop Systems integration/consulting Knowledge Intensive and Professional Services © British Telecommunications plc Service Ecosystems Scope and Context Core Areas • Service Design (Front-stage) • Service Delivery (Back-stage) • Service Innovation Innovation New ways to deliver services Delivery Back stage New Services Design Front stage Single Company Portfolio Complex Large-scale ICT Systems Application Areas • Single company Innovation New ways to deliver services – Product portfolio New Services Delivery Design Systems engineering Processes orchestration Resource co-ordination Total Customer Experience Customer Journey Supplementary/support services Back stage Organisational View © British Telecommunications plc Front stage Customer View • Service Ecosystems – Multiple service providers • Large-scale ICT systems – Multiple services – Multiple service providers Service Design • What is delivered vs. how it is delivered • Service functionality (what is delivered) must satisfy formal requirements • How it is delivered has an emotional impact • Service ‘quality’ about what and how. Negative: Angry, frustrated, dissatisfied customers Neutral Affectivity Determined by what delivered? ‘Satisfied’ Customers Determined by how delivered? Positive: Loyal, enthusiastic, profitable customers • Affectivity: from affective - ‘causing emotion or feeling’ • Emotional impact of company actions/ processes on customer? • Links between affectivity/ trust/ loyalty/ revenue? • Holistic approach: total customer experience • Guidelines for service design • customer expectations • mapping to internal measures (RFT, CT etc) • Implications for service delivery: e.g. handling customer variability © British Telecommunications plc Service Delivery • Multiple systems: – Assembly, delivery, supply – Handling variability • Fault and order intake Reception Nonengineering clears End-to-end process steps* – Factory process • • • • High levels of predictability Input, process, output Readily automated ICT systems: SOA approaches Customer population Engineering operations Costs Customer satisfaction – Physical service process • Flow of people/ goods • Logistics, fulfilment, mobile engineers • Focus on dynamic modelling – Contact service process Need to adopt a systemic viewpoint: the organisation as a (socio-economic) system • Direct dealing with customers • Highly unpredictable (customer variability) • Management approaches © British Telecommunications plc * Falato P, Kell M (2007) Creating the service factory. http://uk.fujitsu.com/POV/articles/2007/service-industrialisation/ Service Innovation* • • Integration/ disaggregation of information value chain L Keeley (Doblin Inc.): Ten types of innovation: Inside-out Process Innovation Process Core Process How a company organises to support innovation Proprietary processes that add value Outside-in Offering Product/ Service Performance Service System Basic features, performance and functionality Customer Service Channel Brand Extended systems that surround an offering Finance Customer Experience How you connect your offerings to your customers How you express your offering’s benefit to customers How you service your customers • • Delivery Business Model Value Network How the enterprise makes money Enterprise structure and value chain How you create an overall experience for your customers Goods - focus on: offering Services - focus on: customer experience; core process; business model © British Telecommunications plc •Peer Insight (2007) Seizing the White Space: Innovative Service Concepts in the United States. Tekes Technology Review 205/2007. http://www.tekes.fi/eng/publications/innovative_service.pdf Lecturers/ Proposed Timetable • Michael Lyons – introduction and integrated view – cross-cutting themes: service thinking; governance • • • • • • • Bill Hollins – Service Design Roger Maull – Service Delivery Bruce Tether – Service Innovation Irene Ng – Customer Value and Co-creation Dave Cliff – Large-scale IT systems Linda Macaulay – Service Ecosystems Half-day session: BT examples/ integration Date Am Pm © British Telecommunications plc Monday 30/3 Introduction & Overview: Michael Lyons Customer Value and Co-creation: Irene Ng Tuesday 31/3 Service Design: Bill Hollins Wednesday 1/4 Service Delivery 1: Roger Maull Service Innovation: Bruce Tether Service Delivery 2: Kjeld Jensen/ Hazel Lacohee? Thursday 2/4 Large-scale IT Systems: Dave Cliff Service Ecosystems: Linda Macaulay Work in Progress: Issues • Ensure integrated view of Services Science. • Good overview of services research – Focus on ‘service systems’? • Is this an SSME module, or a ‘services module’ – What is core of SSME? • Personal view – SSME = study of service systems (as IBM) – Specific focus on ICT-enabled service systems • Links with other modules © British Telecommunications plc End Introduction: Services and Systems Science • • Importance of Services Services and Systems Science – the study of service systems – holistic, multi-disciplinary – Services > 70% US GDP – Information services > 50% US GDP, growing • • Impact of ICT: ICT enabled services Objective: Scientific methodology for developing predictable service systems. Benefits • Improved service design – Reduced risk for new services – Improved service systems – Lower costs: better use of people/ resources • • © British Telecommunications plc Greater organisational responsiveness Improved customer satisfaction/ loyalty Introduction: Services and Systems Science • • Importance of Services Services and Systems Science – the study of service systems – holistic, multi-disciplinary – Services > 70% US GDP – Information services > 50% US GDP, growing • • Impact of ICT: ICT enabled services Objective: Scientific methodology for developing predictable service systems. People Benefits • Improved service design Business Service Core – Reduced risk for new services – Improved service systems – Lower costs: better use of people/ resources Technology • • Fundamental Skills © British Telecommunications plc Greater organisational responsiveness Improved customer satisfaction/ loyalty CPD and T-Shaped People Science and Engineering Industrial and Systems Engineering Computer Science & Info. Systems Math and Operations Research Economics and Social Sciences Business Anthropology Organizational Change & Learning Business and Management © British Telecommunications plc The Research Model Customer Management Systems Employee Social System Transaction ICT Systems (People, skills, knowledge) Rules, Procedures, Mgt Style etc Info Processing ICT Systems Economic/ commercial Environment © British Telecommunications plc Suppliers Employers View People Business Service Core Fundamental Skills © British Telecommunications plc Technology Innovation Concepts • Innovation = ‘the successful exploitation of new ideas’ (DTI) – A process – An outcome • Innovation involves multiple, complementary, concurrent changes1 technologies, skills, organisation: – – – – • Products/ services Production process Skills used Customer inter-relations - Delivery process - Technologies used - Organisational structure - Other inter-relations Innovation approaches – Crowdsourcing – Open innovation • Innovation Technologies (IvT)2 – eScience – Simulation and Modelling • - Co-innovation - Virtual reality - Rapid prototyping Innovation as a core business process – Investment decisions – Patterns of collaboration (customers, suppliers, stakeholders) – Technology/ market choices © British Telecommunications plc 1 Tether B, Howells J (2007) “Changing Understanding of Innovation in Services” in “Innovation in Services” DTI Occasional Paper No. 9 2 Gann D, Dodgson M (2007) “Innovation Technology: How new technologies are changing the way we innovate” NESTA Provocation No. 5 Service Ecosystems Scope and Context Core Areas • Service Design (Front-stage) • Service Delivery (Back-stage) • Service Innovation Innovation New ways to deliver services Delivery Back stage New Services Design Front stage Single Company Portfolio Complex Large-scale ICT Systems Application Areas • Single company Innovation New ways to deliver services – Product portfolio New Services Delivery Design Systems engineering Processes orchestration Resource co-ordination Total Customer Experience Customer Journey Supplementary/support services Back stage Organisational View © British Telecommunications plc Front stage Customer View • Service Ecosystems – Multiple service providers • Large-scale ICT systems – Multiple services – Multiple service providers Information-processing services make up over 50% of US GDP and growing. (Chase & Apte, 2007) Product Services Material 6% 31% Information 10% 53% 16% 84% 37% 63% Information Services: • Underpinned/ enabled by ICT • Location-independent? © British Telecommunications plc Distribution of GDP in the US economy in 1997, excluding government, agriculture and mining, based on data from (Apte and Nath, 2007). Next Steps • Planning meeting to be held in May 2008. • Interested industry and academic participation sought. • For more details about the existing BTMSc Go to : www.btmsc.ee.ucl.ac.uk © British Telecommunications plc Service Delivery • Multiple systems: – Innovation, assembly, delivery, supply – Handling variability • End-to-end process steps* – Factory process • High levels of predictability • Input, process, output • Readily automated – Physical service process • Flow of people/ goods • Logistics, fulfilment, mobile engineers • Focus of dynamic modelling – Contact service process • Direct dealing with customers • Highly unpredictable (customer variability) © British Telecommunications plc * Falato P, Kell M (2007) Creating the service factory. http://uk.fujitsu.com/POV/articles/2007/service-industrialisation/ Service Design • What is delivered vs. how it is delivered • Service functionality (what is delivered) must satisfy formal requirements • How it is delivered has an emotional impact • Service ‘quality’ about what and how. Negative: Angry, frustrated, dissatisfied customers Neutral Affectivity Determined by what delivered? ‘Satisfied’ Customers Determined by how delivered? Positive: Loyal, enthusiastic, profitable customers • Affectivity: from affective - ‘causing emotion or feeling’ • Emotional impact of company actions/ processes on customer? • Links between affectivity/ trust/ loyalty/ revenue? • Holistic approach: total customer experience • Guidelines for service design • customer expectations • mapping to internal measures (RFT, CT etc) • Implications for service delivery: e.g. handling customer variability © British Telecommunications plc