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Service System Life Cycle

Service System Life Cycle. Service Dominant Logic Diamond of Diamonds Earned Value Management Diamond of Business Development. Service Dominant Logic. Another context to solve usual business issues. Service-Dominant Logic. Developed by Vargo and Lush, 2004

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Service System Life Cycle

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  1. Service System Life Cycle Service Dominant Logic Diamond of Diamonds Earned Value Management Diamond of Business Development

  2. Service Dominant Logic Another context to solve usual business issues.

  3. Service-Dominant Logic Developed by Vargo and Lush, 2004 Developed for marketing in service oriented economy Recognized as a fundamental principle within current economy development Described by 10 foundational premises

  4. S-DL Foundational Premises FP1 Service is the fundamental basis of exchange Service is an application of competences (UKE, EC) for benefit of a party; Direct exchange is the service for service exchange. FP2 Indirect exchange masks the fundamental basis of exchange service-money-goods-service

  5. S-DL Foundational Premises (2) FP3 Goods are distribution mechanisms for Service provision Goods help solve the efficient knowledge transfer problem; Well designed goods accumulate great deal of knowledge and skills. FP4 Operant resources are the fundamental source of competitive advantage Distinguish operant from operand ! Operant can take action … is the service system entity (agent)

  6. S-DL Foundational Premises (3) FP5 All economies are service economies …be they hunter-gatherer, agricultural, manufacturing or service depend on human knowledge application to create benefit—that is service FP6 The customer is always a co-creator of value Every service system entity is both a customer and provider They interact to co-create value

  7. S-DL Foundational Premises (4) FP7 The enterprise cannot deliver value, but only offer value propositions. Value propositions are at the heart of value-co-creation interactions FP8 A service-centered view is inherently customer oriented and relational. a service provider’s knowledge of a customer quality of their relationship (level of trust) … both directly relate to the quality of value propositions that the service provider can offer

  8. S-DL Foundational Premises (5) FP9 All economic and social actors are resource integrators. Three categories: Market-facing (free access), Private (privileged access), Public (shared access) In creating or realizing VP with others, SS* entities will reconfigure or integrate resources FP10 Value is always uniquely and phenomenologically determined by the beneficiary. Value determination is contextual, history dependent, and unique to an entity (agent).

  9. S-DLtry to use it when evaluating particular business situations.

  10. Diamond of Diamonds The Fifth Diamond A possible pattern of thinking in MENTION-USE Logic or A possible pattern of S-R-O-D scheme utilization

  11. PRESENT

  12. PRESENT

  13. FUTURE PRESENT PAST

  14. FUTURE PRESENT Experience,live out,- USE PAST

  15. FUTURE Visualization,think about,- MENTION PRESENT Experience,live out,- USE PAST

  16. FUTURE PRESENT Experience,live out,- USE PAST

  17. FUTURE Visualization,think about,- MENTION PRESENT Experience,live out,- USE PAST

  18. What the Attentionis focused on ? FUTURE PRESENT PAST

  19. FUTURE PRESENT PAST

  20. FUTURE PRESENT PAST

  21. FUTURE PRESENT PAST

  22. FUTURE Visualization,think about,- MENTION PRESENT PRESENT Experience,live out,- USE PAST

  23. Please, Think about it !

  24. Selected business issues (1) How to monitor progress and performance (2) Diamond of Business Development

  25. EVM = “Earned” Value Management Key questions: State of elaboration? Time? It integrates dimensions of the Triple constraint BAC = Budget at completion PV = Planned Value AC = Actual Costs EV = “Earned” Value Some differences Some ratios

  26. Plan of the Project Cumulative values Budget at Completion(BAC) PV 0 Time

  27. Plan of the project BAC represents total value of project in money spent for it BAC is set based on estimations, experience, and market situation The basis for BAC setting is WBS (GBS) PV is a curve of cumulative value of project in money spent up to given time point

  28. Monitoring Cumulative values Budget at Completion(BAC) PV 0 Data Date Time

  29. Earned Value Cumulative values Budget at Completion(BAC) PV EV 0 Data Date Time Earned Value is estimated summing up values of reached deliverables according to WBS

  30. Actual costs Cumulative values Budget at Completion(BAC) AC PV 0 Data Date Time Actual Cost is taken from the Project Accounting System, which can be exactly separated part of Permanent Organization Accounting System.

  31. Variances from the approved plan:SV = EV – PV … schedule variance; EV ≤ PV if EV is measured in WBS nodes completion; CV = EV – AC … cost variance; Budget at Completion(BAC) Cumulative values AC PV EV 0 Data Date Time

  32. Performance indicators:SPI = EV / PV … schedule performance indexCPI = EV / AC … cost performance index Budget at Completion(BAC) Cumulative values AC PV EV 0 Data Date Time

  33. Forecasting Cumulative values Estimate at Completion(EAC) ETC = Estimate to Complete Budget at Completion(BAC) AC PV EV 0 Data Date Time

  34. Diamond 8- a Business Development Diamond A Model forNew Business Development

  35. Usual Approach Idea RESEARCH Product/Service SPECIFICATION/ BusinessPlan IMPLEMENTATION/PRODUCTION SPECIFICATION/ Launch IMPLEMENTATION/PRODUCTION BUSINESS

  36. Drawbacks Idea RESEARCH Product/Service SPECIFICATION/ BusinessPlan IMPLEMENTATION/PRODUCTION SPECIFICATION/ Launch IMPLEMENTATION/PRODUCTION BUSINESS

  37. Where the Problem is? Idea RESEARCH Product/Service SPECIFICATION/ BusinessPlan IMPLEMENTATION/PRODUCTION SPECIFICATION/ Launch IMPLEMENTATION/PRODUCTION BUSINESS

  38. Where the Problem is? Idea RESEARCH Product/Service SPECIFICATION/ BusinessPlan IMPLEMENTATION/PRODUCTION SPECIFICATION/ Launch IMPLEMENTATION/PRODUCTION BUSINESS

  39. Solution The whole Company has to function as a Service System. No part could be excluded! Leadership from the front. Diam3 principles of organization. Diam4 principles of acting. The whole process “Research-Specification-Implementation-Production-Business” goes as a Dual Service System between Devel&Application on one hand and Business on the other hand

  40. Idea RESEARCH SPECIFICATION Product/Service BusinessPlan ServiceSystem IMPLEMENTATION/PRODUCTION BUSINESS Launch

  41. Idea Business Team RESEARCH Devel&Application Team SPECIFICATION Product/Service BusinessPlan ServiceSystem IMPLEMENTATION/PRODUCTION BUSINESS Launch

  42. Idea Business Team RESEARCH Devel&Application Team (FinanceSalesMarketing) SPECIFICATION Product/Service BusinessPlan ServiceSystem IMPLEMENTATION/PRODUCTION BUSINESS Launch

  43. Idea RESEARCH Devel&Application Team Business Team SPECIFICATION Product/Service BusinessPlan ServiceSystem IMPLEMENTATION/PRODUCTION BUSINESS SuccessfulBusiness Launch

  44. Idea RESEARCH PROVIDER CUSTOMER Devel&Application Team Business Team SPECIFICATION Product/Service BusinessPlan ServiceSystem IMPLEMENTATION/PRODUCTION BUSINESS SuccessfulBusiness Dual Service System1/2 THE TARGET Launch

  45. Idea RESEARCH CUSTOMER PROVIDER Devel&Application Team Business Team SPECIFICATION Product/Service BusinessPlan ServiceSystem IMPLEMENTATION/PRODUCTION BUSINESS SuccessfulBusiness Dual Service System2/2 THE TARGET Launch

  46. The END

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