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The Future of Service: An Extrapolation of the Present or a Paradigm Shift? . P. K. Kannan Ralph J. Tyser Professor of Marketing Science The Robert H. Smith School of Business University of Maryland. The Distant Past…. An ancient toll booth Porta Borsari , Verona, Italy. The Past….
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The Future of Service:An Extrapolation of the Present or a Paradigm Shift? P. K. Kannan Ralph J. Tyser Professor of Marketing Science The Robert H. Smith School of Business University of Maryland
The Distant Past… An ancient toll booth Porta Borsari, Verona, Italy
Digital Technology Creates “Super-Service” • Technology eliminates service variability • Variability due to technology • Variability due to customer skill-level • Makes service very efficient • A paradigm shift in service levels • Co-production of effort minimal! • Traffic is smooth, congestion minimized, community benefits! (Maglio 2011)
The rise of digital services….. Visual Audio Media Gaming Software/Apps Personalization/Add-on Services Software-as-Service UGC E-Learning E-Health
Success of Technology….not quite uniform • Significant impact on individuals, firms, governments and society • Enormous productivity gains… • In general, much improved outcomes… • Despite infusion of technology, some sectors have not seen significant gains in outcome • Education expenses have been increasing • Healthcare costs have exploded • Expensive government services are the norm • Digital networks and services will come to the rescue..
Personal Services – A network of devices and apps Wearable computing… www.fastcodesign.com
Customization/Personalization Services Networking Apps • Networking of the apps personalizes the suite of service for an individual – apps to talk to each other… • Digital services will allocate “screen space” in as much as a retailer decides the “shelf space”
Renting will become fashionable…. • Enabler is vast digital networks • Airbnb • Uber, Lyft • Software as a Service • Digital Services rather than Software Products • Education as a Digital Service • Tele-medicine • Outcome based measures of success • Using customer as assets – co-creation using digital networks
Institution Government/Business Citizens/Customers Design Input REALM OF SELF-SERVICE Effort Benefit/Value
Citizens/Customers Institution Government/Business Effort CITIZEN SERVICE FOR COMMON GOOD Community Benefit
Citizens/Customers Institution Government/Business Value CITIZENS HELPING OTHER CITIZENS AND FOR COMMON GOOD Design Input Effort Value
Citizens are resources and assets • Defining value based on social outcomes • Building social networks • Building reciprocal relationships
Co-Delivery of Services • Co-delivery is • an active, creative and social process, • based on collaboration between governments and citizens, and/or • between citizens and citizens • that is initiated by the government • to generate value for citizens • through innovative “digital” services • Based on Ref: Prahalad and Ramaswamy (2004) • Ref: www.promisecorp.com/newpathways
Co-Design of Public Services • Citizens participating in the development of a new policy or service • Time-bounded • Citizen groups • Examples • Consulting Canadians • New South Wales Education Department
Co-Production of Public Services • Co-production is a • new way of thinking about public services; • has the potential to deliver a paradigm shift in providing services such as • health, education, policing, etc • to make them more effective, efficient, and more sustainable • Ref: Boyle and Harris (2009)
Big Data to Benefit the Small Guy… • Using the big data to benefit the customers • Processed information to help customers • Health indicators • Nutrition information • Utility consumption • Personalized Financial Services • Visualization services for easy digestion of data • Learning from the aggregate data to aid the individual customer • recommendation services
Necessity for services to be real-time… • Services will need to become more real time • Consider advertising services… • Expanding media and formats • Digital media, social media, print, TV, radio, mobile • Ever expanding number of devices • Desktop, laptop, tablets, smartphones,… • When and where should customers be targeted • Reaction times are in nanoseconds • More algorithmic services • Service quality issues, metrics and measurement
In conclusion… • The changes brought about by digital services • Will be significant and paradigm shifting • Real focus on reducing inefficiencies • Will change the nature of service provision • Will change the nature of service providers • Challenges for firms and governments • Keeping up with digital technologies • Shorter time frame for recouping investments and realizing ROI • Will require new management skills