Science of Service Systems

The basic idea:

A method to select the appropriate management actions in a complex adaptive system based on the degree of certainty and level of agreement on the issue in question.

daviding says: I came to this 2001 page by Brenda Zimmerman, interpreting Ralph Stacey's work, via the presentation on the Constellation Model by Tonya Surman (at the Centre for Social Innovation, Toronto).

Inspired by complexity theory and open source thinking, the Constellation Model provides a framework to help organizations collaborate. The organizing model emphasizes the role of small, self-selecting action teams that operate interdependently, supported by a Stewardship Group. Leadership rotates fluidly among partners, where each partner has the freedom to lead a constellation that matches its profile and skills. The result is a shift from strained partnerships to open and effective collaborations.

This organizing model is a true social innovation. Initially created and refined with the Canadian Partnership for Children's Health and Environment, the Constellation Model has been replicated and adapted to support the work of a dozen groups. Join Tonya Surman, creator of the model, as she explains how the model works and takes on your collaboration challenge!

This is an ideal workshop for groups that are exploring what kind of a collaboration might work for their project or for learners exploring new models of organizing.

Suggested readings:
http://www.lcsi.smu.edu.sg/downloads/MarkSurmanFinalAug-2.pdf
http://www.osbr.ca/ojs/index.php/osbr/article/view/698/666

daviding says: I received a Facebook invitation for this upcoming talk by Tonya Surman, director of the Centre for Social Innovation in Toronto. There's links to the same article (in two forms) at the bottom of the page. The foundations cite Ralph Stacey via Brenda Zimmerman.

There's a video profile of Tonya Surman from TV Ontario at http://www.youtube.com/watch?v=lfA8-vOZV9s .

Conference on Systems Engineering Research

Stevens Institute of Technology and Delft University of Technology in collaboration with the University of Southern California (USC), presents the 8th Annual Conference on Systems Engineering Research (CSER)


Conference Objective

The objective of this conference is to provide practitioners and researchers in academia, industry, and government with a common platform to present, discuss and influence Systems Engineering research, and to enhance the practice of Systems Engineering and Systems Engineering education.
Call for Papers

We invite original research papers addressing any aspect of the Systems Engineering lifecycle. This includes conception, design and architecting, development, modeling and simulation, production, integration, validation, operation and support of these systems. Additional topics include definition of metrics, performance, and improvement methods, assessment and mitigation of risks, definition of critical success factors, and definition of best practices. All papers will be peer reviewed, and if accepted, presented at the conference.

daviding says: I have this conference marked on my calendar. The Nov. 1 paper deadline is tough for me. In addition, I should also be working on my dissertation in the spring ... and that's not on a systems engineering topic.

Customers introduce tremendous variability to that process, but they also complain about any lack of consistency and don't care about the company's profit agenda. Managing customer-introduced variability, the author argues, is a central challenge for service companies. The first step is to diagnose which type of variability is causing mischief: Customers may arrive at different times, request different kinds of service, possess different capabilities, make varying degrees of effort, and have different personal preferences. Should companies accommodate variability or reduce it? Accommodation often involves asking employees to compensate for the variations among customers--a potentially costly solution. Reduction often means offering a limited menu of options, which may drive customers away. Some companies have learned to deal with customer-introduced variability without damaging either their operating environments or customers' service experiences.

The key table ...
Y-axis:
(1) Arrival variability,
(2) Request variability,
(3) Capability variability,
(4) Effort variability,
(5) Subject Preference variability;
Y-axis:
(a) Classic accommodation,
(b) Low-Cost Accommodation,
(c) Classic Reduction,
(d) Uncompromised Reduction

The Royal Society has recently published the findings of a major study on the role of science in services sector innovation. Entitled Hidden Wealth: the contribution of science to service sector innovation , the report highlights the wider significance of science, technology, engineering, and mathematics (STEM) to the services sector, which makes up around three quarters of the UK economy.

Hidden Wealth concludes that STEM is deeply embedded within the UK service sectors and has an extensive impact on service innovation processes, which is often hidden. Although STEM is important in services sector innovation now, it is also likely to play an important part in the future of services, as many services are on the cusp of a transition to more personalised and interconnected systems, which will require significant advances in STEM.

This report from the Royal Society was cited by Irving Wladawsky-Berger at http://blog.irvingwb.com/blog/2009/08/hidden-wealth-science-technology-and-services-innovation-in-the-21st-century.html .

Excerpt:
6.6.6 A systems-based approach to understanding services.

One solution may lie in the wider adoption of systems-based approaches to understanding services. A more systematic approach to studying services should result in better design, management and understanding of services and, at the same time, provide a suitable context in which to integrate disciplines such as social sciences, management science, economics and STEM. These sorts of educational programmes may particularly benefit firms who do not require graduates with deep knowledge in one of the existing disciplines. [p. 61]

However, we note that when this has been attempted in the past, as with systems science and complexity theory -- both of which have existed for several decades and have been widely applied in scientific, engineering and social science contexts -- the tendency has been for people to organise themselves into disciplinary silos, with the result that the desired new interdisciplinary approaches have struggled to impose themselves. [pp. 61-62]

The emerging Service Science, Manufacturing and Engineering (SSME) or 'Service Science' concept is also intended to join up a broad range of disciplines, but is specifically concerned with ensuring that graduates are better equipped for the workplace. Service Science may ultimately help the development of multi-disciplinary capabilities but in this regard SSME programmes seem to have been slow to emerge and only partially successful to date.

A more profitable approach to redesigning academic curricula and delivery (at least as far as services are concerned) may be to focus in on service design, which seeks to understand the delivery of services from a user perspective and to develop better solutions (see Box 4.3 on page 40). Developments such as the Masters course in Service Design, Management and Innovation offered by the University of Manchester Centre for Service Research might provide good models for new courses, and should be closely mon

Many services can be self-provided. An individual user or a user firm can, for example, choose to do its own accounting - choose to self-provide that service - instead of hiring an accounting firm to provide it. Since users can 'serve themselves' in many cases, it is also possible for users to innovate with respect to the services they self-provide. In this paper, we explore the histories of 47 functionally novel and important commercial and retail banking services. We find that, in 85% of these cases, users self-provided the service before any bank offered it. Our empirical findings differ significantly from prevalent producer-centered views of service development. We speculate that the patterns we have observed in the banking industry will be found to be quite general. If so, this will be an important matter: perhaps 75% of GDP in advanced economies today is derived from services. We discuss the implications of our findings for research and practice in service development.

daviding says: Includes the idea of self-service, focusing on banking services.

The research presented in this volume, developed in the EC-funded Project ISCOM (Information Society as a Complex System), takes off from two fundamental premises: -- to guide innovation policies, taking account of the social, economic and geographic dimensions of innovation processes are at least as critical as the science and technology; and -- complex systems science is essential for understanding these dimensions.


Online version (possibly available at http://www.springerlink.com/content/978-1-4020-9662-4


-- Table of contents --


18 Chapters
Front Matter
I-IX

Part 1
Introduction
David Lane, Robert Maxfield, Dwight Read and Sander van der Leeuw
1-7

Part I From Biology to Society
Front Matter
9-9

From Population to Organization Thinking
David Lane, Robert Maxfield, Dwight Read and Sander van der Leeuw
11-42

The Innovation Innovation
Dwight Read, David Lane and Sander van der Leeuw
43-84

The Long-Term Evolution of Social Organization
Sander van der Leeuw, David Lane and Dwight Read
85-116

Biological Metaphors in Economics: Natural Selection and Competition
Andrea Ginzburg
117-152

Innovation in the Context of Networks, Hierarchies, and Cohesion
Douglas R. White
153-194

Part II
Innovation and Urban Systems
Front Matter
195-195

The Organization of Urban Systems
Anne Bretagnolle, Denise Pumain and Cline Vacchiani-Marcuzzo
197-220

The Self Similarity of Human Social Organization and Dynamics in Cities
Luis M.A. Bettencourt, Jose Lobo and Geoffrey B. West
221-236

Innovation Cycles and Urban Dynamics
Denise Pumain, Fabien Paulus and Cline Vacchiani-Marcuzzo
237-260

Part III
Innovation and Market Systems

Front Matter
261-261

Building a New Market System: Effective Action, Redirection and Generative Relationships
David Lane and Robert Maxfield
263-288

Incorporating a New Technology into Agent-Artifact Space: The Case of Control Syst

daviding says: I was thinking about (output) coproduction and (value) cocreation, and came across these proceedings, which includes a short article by Rafael Ramirez and Ulf Mannervick on "Designing value-creating systems".

Essay Archive

Edited by Lucy Kimbell and Victor P. Seidel, collected in this innovative and highly illustrated volume are findings from the designing for services project. Particular focus is on the practices of an emerging discipline of service design grounded in the arts and humanities. Three case studies in which service design companies worked with science and technology-based enterprises are discussed, from a range of academic perspectives.

daviding says: Wisdom and knowledge are sticky to experts. However, the advent of "open content" on academic materials challenges the traditional way in which universities interact with students.

"The Internet disrupts any industry whose core product can be reduced to ones and zeros," says Jose Ferreira, founder and CEO of education startup Knewton. Education, he says, "is the biggest virgin forest out there." Ferreira is among a loose-knit band of education 2.0 architects sharpening their saws for that forest. Their first foray was at MIT in 2001, when the school agreed to put coursework online for free. Today, you can find the full syllabi, lecture notes, class exercises, tests, and some video and audio for every course MIT offers, from physics to art history. This trove has been accessed by 56 million current and prospective students, alumni, professors, and armchair enthusiasts around the world. "The advent of the Web brings the ability to disseminate high-quality materials at almost no cost, leveling the playing field," says Cathy Casserly, a senior partner at the Carnegie Foundation for the Advancement of Teaching, who in her former role at the Hewlett Foundation provided seed funding for MIT's project. "We're changing the culture of how we think about knowledge and how it should be shared and who are the owners of knowledge."

But higher education remains, on the whole, a string quartet. MIT's courseware may be free, yet an MIT degree still costs upward of $189,000. College tuition has gone up more than any other good or service since 1990, and our nation's students and graduates hold a staggering $714 billion in outstanding student-loan debt. Once the world's most educated country, the United States today ranks 10th globally in the percentage of young people with postsecondary degrees. "Colleges have become outrageously expensive, yet there remains a general refusal to acknowledge the implications of new technologies," says Jim Groom, an "instructional technologist" at Virginia's University of Mary Washington and a prominent voice in the blogosphere for blowing up college as we know it. Groom, a chain-smoker with an ever-present five days' growth of

daviding says: Although the title says "price", informal ties reduce the cost of client interactions because the effort to transfer information on complex issues is lower.

... they modeled three features: how firms' prices changed with respect to the number of embedded ties they had with clients; the number of the firm's attorneys who sat on the boards of other corporations; and the status of the firm as perceived by peers.

The greater the proportion of informal relationships and unwritten arrangements a firm enjoyed with clients, the lower the fee the firm typically charged for complex legal work. Such ties promote clearer understanding of client needs and preferences and lessen the need for rigid oversight structures, allowing for more efficient and timely operation, thus requiring less billable time from a firm. Said one partner: "It's no question that trust enters into [pricing]. I mean, it's very rare that you're going to get the big $500 million transactions-I don't see them with a stranger." Said another: "A relationship allows [the client] to be more nimble with our firm; rather than having a formal engagement in a project, she may call a partner she knows directly-so it's very efficient for her."

Besides promoting the flow of private, valuable information between firm and client, network ties can give the firm access to useful information flowing between other parties. In particular, a firm can benefit significantly if its attorneys sit on corporate boards. One attorney described two notable advantages of board membership this way: "You have the benefit of seeing what other law firms are charging if the company that you sit on is using other firms. . . . And you get the benefit of the commentary that your fellow board people have on legal services and what they consider to be important." As a result of this privileged information, firms whose partners sit on corporate boards are able to charge higher rates for both routine and complex legal work.

Law firms perceived to have high social status are able to offer image-enhancing benefits to its clients, since the clients will appear knowledgeable

daviding says: The article recognizes the limitation of government statistics on services. The industry segment isn't exactly the focus of researchers interested in the creative class economy, but it does demonstrate how surrogate measures may be collected.

The Sapporo findings, published in a dry report on changing shopping trends and urban land use this week, show the number of brothels in the Susukino district, one of the three largest red-light areas in the country, has soared more than fourfold to 264 in the past two decades. [....]

This makes the sex trade a rare success story in an economy devastated by the steep decline in global demand for Japanese autos and electronics, drivers of the country's exports, and eroding domestic consumption, which supports a vast service sector.

Services account for the overwhelming part of economic activity in Japan and other modern countries, and they are notoriously difficult to measure precisely.

In Canada, Statistics Canada frequently examines and overhauls the way it measures services in the search for greater accuracy. But Statscan would have a hard time gauging the true economic impact of the sex trade.

It's much easier to measure in Japan, where several sexual acts are allowed in licensed outlets in designated areas, although actual intercourse in those establishments is outlawed.

daviding says: Here's an interesting tidbit on how the social media could be changing the way musical performances are being done. Major concert tours (since the Beatles played Shea Stadium) have taken an industrial approach of mounting the production, and then playing the same thing over and over again. Most jazz players have the facility to drop into different combos, and changing the lineup at each performance makes that date unique. Having a wide variety of performances show up on the Internet drives additional interest, as opposed to hearing exactly the same performance every time. (Antonio Sanchez is a well-respected drummer, who doesn't just play with Pat Metheny).

"I would be committed to one band (usually guitarist Pat Metheny's) most of the time, out of musical preference, or whoever had more work. Now I have to play with four or five different bands in order to keep busy. Before, people toured longer, because the market was different. Now, even big names like Chick Corea, or Pat, or Herbie Hancock, every time they go out, they go out with a different band, because promoters want a different project every single time. Because of YouTube and the Internet, people see so much stuff that when they want to see something live, they want something special."

daviding says: If software engineering is engineering, then we should also think about service engineering as engineering. This article also helps to draw some lines between engineering as applied science, and more theoretical forms of science, both in the domain of services systems and human systems.

Gerald Weinberg once wrote, "If software engineering truly is engineering, then it ought to be able to learn from the evolution of other engineering disciplines." Robert Glass and his colleagues provocatively evaluated how often software engineering literature does this.4 They concluded that the literature relies heavily on software anecdotes and draws very lightly from other engineering fields. Walter Tichy found that fewer than 50% of the published software engineering papers tested their hypotheses, compared to 90% in most other fields.

So software engineering may suffer from our habit of paying too little attention to how other engineers do engineering. In a recent extensive study of practices engineers expect explicitly or tacitly, Riehle found six we do not do well.

Predictable outcomes (principle of least surprise). [....]
Design metrics, including design to tolerances. [....]
Failure tolerance. [....]
Separation of design from implementation. [....]
Reconciliation of conflicting forces and constraints. [....]
Adapting to changing environments. [....]

daviding says: This is an interesting example of decomplexification (in the vocabulary of Tim Allen). Instead of integrating health services into a centralized facilities (i.e. complexifying), having doctors distributed nearer to the homes of patients can reduce costs.

The difference between the era of Marcus Welby MD and today is that the Internet enables easy electronic sharing of patient records ... if the physicians and patients are willing to allow that free flow of information.

The primary-care doctor is gaining new respect in Washington. Battles may be breaking out left and right over the various health-care bills emerging from Congress, but reformers on both sides agree that general practitioners should be given a central role in uniting the fragmented U.S. medical system.

This vision has a name: the "patient-centered medical home." The "home" is the office of a primary-care doctor where patients would go for most of their medical needs. The general practitioner would oversee everything from flu shots to chronic disease management to weight loss, and coordinate care with nurses, pharmacists, and specialists. A 2004 study estimated that if every patient had such a home, the resulting efficiencies might reduce U.S. health-care costs by 5.6%, a savings of $67 billion a year.

[...] advocates say the new concept is designed to help patients, not insurers. It's more like doctoring 1950s-style, when a Marcus Welby figure handled all the family's medical needs. This time it's juiced up with digital technology.

It also represents a politically painless way to streamline a disorganized and wasteful system that chews up a crippling 18% of the U.S. gross domestic product. That burden is felt particularly by private industry, which covers 60% of the nation's insured. Since most businesses try to ferret out waste and disorganization in their own operations, the medical home is a concept they can embrace in good conscience.

One of the biggest advocates is IBM (IBM), which shelled out $1.3 billion last year on health benefits for its U.S. employees and retirees, equal to one month of the company's net income. Dr. Paul H. Grundy, 57, who holds the unusual title of director of health-care transformation for IBM, is a medical-home evangelist who led the company to start the Patient-Centered Primary Care Collaborative, a coalition of some 500 large employers, insurers, consumer groups, and doctors. Part of his goal, he says, is to show that "emp

daviding says: Categorizing problems as P-type, N-type and NP-type (i.e. NP-hard) provides a way for appreciating why managers avoid taking on some challenges. It's better to succeed on an easy problem, than fail on a hard one. (There's a easier-reading version of this article in Rotman Magazine Winter 2009 that seems to have been evolved for publication into Harvard Business Review in January 2009).

[from the introduction]

We develop a model of cognitive choices managers implicitly make among and within problem complexity classes and argue that strategic managers use problem statements from one complexity class with greater regularity than those from other complexity classes to make sense of their predicaments (i.e. to transform 'situations' or 'raw feels' into 'problems' or 'puzzles'). We examine the marginal value to strategic managers of greater 'logical complexity' - parametrized by the marginal value of greater precision of an answer and the computational sophistication of competitors schema - to come up with a computationally precise formulation of 'ecological rationality'.

daviding says: This article published in the Rotman Magazine on "Wicked Problems" is available on the Ideo web site. Designing a system for scale is a practical and interesting challenge.

Growing Influential Networks
Following are three approaches that specifically deal with the idea of humanizing big problems to influence people to change and grow influential networks.
1. Human-Centered Systems: Design for People, Not the System
2. Sticky Systems: Design for Scale
3. Reciprocal Systems: Connect by Sharing

The Five Principles of Systems at Scale
1. Ask how the system feels, not just how it works.
2. Recognize that a good system is often the best influencer.
3. Let the user close the loop.
4. Go micro with the human factors.
5. Start with hope, and take the long view.

daviding says: The web page has a link to a PDF, in which the footnote reads:

"This paper is Chapter 1 of Dialogue Mapping: Building Shared Understanding of Wicked Problems, by Jeff Conklin, Ph.D., Wiley, October 2005."

If the challenge of a wicked problem wasn't enough, communicating a potential solution each new person coming to the problem creates its own issues. Dialogue mapping could provide some assistance in at least reducing the learning curve of the new participant on options, alternatives, paths and considerations already covered.

For a more detailed discussion of wicked problems, see Wicked Problems and Social Complexity, CogNexus Institute's most downloaded white paper.

Problem wickedness demands tools and methods which create shared understanding and shared commitment. Following Horst Rittel's analysis, we have developed "Dialogue Mapping", based on Rittel's Issue Based Information System (IBIS), which provides an elegant way of dealing with the fragmentation around a wicked problem.

Because the group or team's understanding of the wicked problem is evolving, productive movement toward a solution requires powerful mechanisms for getting everyone on the same page. There will be volumes facts, data, studies and reports about a wicked problem, but the shared commitment needed to create durable solution will not live in information or knowledge. Understanding a wicked problem is about collectively making sense of the situation and coming to shared understanding about who wants what.

Dialogue Mapping is such a method, because it is an approach which is rooted in maximizing communication and coherence among diverse stakeholders. Dialogue Mapping -- the process of crafting IBIS maps interactively with a group -- is not a process in the traditional sense: it is a structural augmentation of group communication. It provides a group with an enriched Dialogue environment which both de-emphasizes personal dynamics (e.g. right/wrong or win/loose dynamics) and creates a coherent shared space for crafting and negotiating shared understanding.

daviding says: If the foundation of the system is in entropy rather than equilibrium, we'll need to figure out how exchange-based societies work, and the function of money (as information, in a general theory of systems).

The specific purpose of this paper is to trace the development of entropy-related thought from its thermodynamic origins through its organizational and economic applications to its relationship to money information. That trace reveals that existing entropy measures are of states or changes in states that are caused by energy processes. We propose that entropy may as well be conceived as entropic process. The social emergent specific exchange value provides a metric by which entropic process may be quantified. The analysis connects the traditional state-oriented entropy measures to measures of entropic process in social systems. In doing so, the character of exchange-based societies and the function of money information within them are elaborated.

daviding says: This is the first of three articles in the June 2007 issue of SPAR. As an alternative to coming from a western perspective -- not to say that there aren't differences from the Anglo-American approach in Europe! -- these three chapters would provide significant fodder for discussion on core concepts in systems theory.

This paper compares some key concepts from Buddhism with ideas from different traditions of systems thinking. There appear to be many similarities, suggesting that there is significant potential for dialogue and mutual learning. The similarities also indicate that it may be possible to develop a Buddhist systems methodology to help guide exploration and change within Buddhist organisations.

daviding says: I was struck by a quotation by Khistry in the first pargraph of this article.

In fact, Churchman (1968) reveals toward the end of one of his most popular books: "Indeed, if I were to think of one theme that has been in the back of my mind as I wrote these chapters, it is the shame of deception" (p. 228). Churchman concludes: "The ultimate meaning of the systems approach, therefore, lies in the creation of a theory of deception and a fuller understanding of the ways in which the human being can be deceived about his world and in an interaction between these different viewpoints" (pp. 229-230).

This paper critically examines some important topics of systemic thinking to understand how our perception of problems can be enhanced and how the chances of deception can be mitigated while dealing with real-world problems. To achieve this objective, an attempt is first made to scrutinize some of the key issues of systemic thinking by looking through the lens of Churchman's aphorisms at: (1) the illusion of completeness and closure, (2) the meaning of holism, and (3) the concept of `Interbeing'. A preliminary `agenda for action' is then laid out suggesting ways for increasing our perception and for minimizing the chances of being deceived in dealing with systems problems in practice.