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The original pointer to this report summary is from Jim Spohrer at http://forums.thesrii.org/srii/blog/article?blog.id=main_blog&message.id=191#M191 .

Key messages * There are three primary stakeholder groups that can guide the development of services science: academia, government and industry. Only by investing and working together in a coordinated manner can the maximum promise of services science be realised. * The global recession should sharpen government and industry's focus on services science as they seek solutions to invigorate the western economy, to make business more competitive and to learn from this latest setback. * Services science has the potential to establish a new industry of professionals (compare engineers, lawyers and computer scientists) whose expertise can be drawn upon to benefit the broader services-led economy. * The degree of human intervention required during the lifetime of an IT services contract is too high and is consequently both too expensive to be efficient and too error-prone to be effective. These shortcomings are directly related to the absence of scientific rigour in the design and delivery of these services. * IT is integral to services science, since modern service systems often have IT enablement heavily involved in service delivery. * IT service providers have the potential to benefit from services science by making their offerings more meaningful and resilient in a market that will increasingly demand more efficient service delivery. * Innovation in services delivery is at the heart of the vision for services science. The end goal should be a virtuous circle of innovation that can encourage new business opportunities and, in turn, create further innovation in the delivery of services. * Collaboration, investment and sharing of knowledge are vital to progressing services science research and development. * Significant challenges still need to be overcome to drive adoption of services science, not least of which is the complexity of aligning academic, business and governmental interests at a given moment in time. * Gove

Print ISBN: 9780470382417 Online ISBN: 9780470569627 DOI: 10.1002/9780470569627 Industrial Engineering What you need to know to engineer the global service economy. As customers and service providers create new value through globally interconnected service enterprises, service engineers are finding new opportunities to innovate, design, and manage the service operations and processes of the new service-based economy. Introduction to Service Engineering provides the tools and information a service engineer needs to fulfill this critical new role. The book introduces engineers as well as students to the fundamentals of the theory and practice of service engineering, covering the characteristics of service enterprises, service design and operations, customer service and service quality, web-based services, and innovations in service systems.

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.

At one time, the belief was that services-ranging from healthcare to retail, from banking to education-were the exclusive domain of local providers and were therefore impervious to foreign competition. Because they required direct interaction with customers, service providers needed to be located where their customers were (Bryson et al. 2004). This belief-along with many others associated with service activities requiring direct customer interactions-is no longer true because information technology has fundamentally changed the way many services are now designed and delivered (Karmarkar 2004). In this editorial, we introduce a framework for service managers that shows how advances in technology are continuing to change the way service providers and their customers interact; how both providers and customers access resources and unlock their capabilities in the co-creation of value. We also identify some major challenges confronting today's service managers who are competing in a rapidly changing global knowledge economy. Their success in addressing these challenges requires increasingly sophisticated management techniques that continue to focus on creating value for both direct and indirect customer-provider interactions.

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: 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.

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

SERVICE SCIENCE: RESEARCH AND INNOVATIONS IN THE SERVICE ECONOMY 2011, DOI: 10.1007/978-1-4419-8270-4

SERVICE SCIENCE: RESEARCH AND INNOVATIONS IN THE SERVICE ECONOMY 2010, DOI: 10.1007/978-1-4419-1628-0

SERVICE SCIENCE: RESEARCH AND INNOVATIONS IN THE SERVICE ECONOMY 2011, DOI: 10.1007/978-1-4419-7904-9

UMM is based in UML, which means it's about modeling the information aspects of businesses. This Wikipedia entry seems underdeveloped, so the description should taken with a grain of salt. It does point out that UMM attempts to decouple from implementation technologies such as Web Services and ebXML.

UN/CEFACT's Modeling Methodology, commonly known as UMM is a modeling methodology which is developed by UN/CEFACT - United Nations Center for Trade Facilitation and Electronic Business. Goal of UMM The primary goal of UMM is to caputure business requirements of inter-organizational business processes. These requirements result in a platform independent UMM model. The UMM model can then be used to derive deployment artifacts for the IT systems of the participating business partners. UMM at a glance UMM enables to capture business knowledge independent of the underlying implementation technology, like Web Services or ebXML. The goal is to specify a global choreography of a business collaboration serving as an "agreement" between the participating partners in the respective collaboration. Each business partner derives in turn its local choreography, enabling the configuration of the business partner's system for the use within a service oriented architecture ( SOA).

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: 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: 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: "A manifesto" isn't what I would usually expect from an academic institution.

The need for a fresh approach to U.S. communities is more urgent than ever because of the biggest global economic crisis since the Great Depression. Through examination of the barriers to solving urban problems (and the ways they reinforce each other), this paper offers a new approach to community transformation which calls for leaders to use technology to inform and connect people. We need to convert the social safety net into a social safety network through the creation of smarter communities that are information-rich, interconnected, and able to provide opportunities to all citizens. This process has already begun through such programs as Harlem Children's Zone, Baltimore's CitiStat, Elevate Miami, and others. And they can be replicated. But technology alone is not the answer. Realization of the vision requires leaders to invest in the tools, guide their use, and pave the way for transformation. Perhaps the urgency of the current economic crisis can provide the impetus to overcome resistance to change and turn problems into an opportunity to reduce costs, improve services to communities, and make our cities smarter.

Building on the success of the original INNOV8 in the academic community, INNOV8 v.2 will be available at no cost to businesses and academic institutions for simulations and training. The new version features puzzles and tasks that challenge players to tackle real-world challenges. INNOV8 v.2 delivers a complete redesign of the game, with a new global collaboration feature for players to work with virtual teammates to progress to the next level of the game. In addition, three new game scenarios reflect a new level of intelligence required for future, high-value job opportunities: * 'Green' Supply Chain: Players evaluate a traditional supply chain model and are tasked with reducing a fictional company's carbon footprint. * Efficient Traffic Flow: Players evaluate existing traffic patterns and re-route traffic based on sensors that alert the player to disruptions such as accidents and roadway congestion. * Call Center Customer Service: Using a call center environment, players develop more efficient ways to respond to customers. [....] Most MBA programs are already heavily based on projects that reflect how individuals and teams need to interact in the real world. INNOV8 v.2 takes that a step further by actually allowing students to step into a dynamic business environment. Based on advanced commercial gaming technologies, it allows players to visualize how technology and related business strategies affect an organization's performance. Together, players can map out business processes, identify bottlenecks and explore 'what if' scenarios in an experiential learning environment. [....] INNOV8 v.2 will be available in May 2009. For more information on INNOV8, IBM's Academic Initiative or to access the virtual press kit, pleas visit www.ibm.com/innov8.

daviding says: The main page is at http://www-01.ibm.com/software/solutions/soa/innov8/index.html . I haven't played the game -- I'm not a fan of video games -- so if you want to try 5 to 10 minutes online, I'd be interested in your experience.

The volume of auctions described at Google reflect a change made possible through advances in information technology. The only way that these auctions could be conducted is through the use of information technologies and establishment of business rules.

[....] Googlenomics actually comes in two flavors: macro and micro. The macroeconomic side involves some of the company's seemingly altruistic behavior, which often baffles observers. Why does Google give away products like its browser, its apps, and the Android operating system for mobile phones? Anything that increases Internet use ultimately enriches Google, Varian says. And since using the Web without using Google is like dining at In-N-Out without ordering a hamburger, more eyeballs on the Web lead inexorably to more ad sales for Google. The microeconomics of Google is more complicated. Selling ads doesn't generate only profits; it also generates torrents of data about users' tastes and habits, data that Google then sifts and processes in order to predict future consumer behavior, find ways to improve its products, and sell more ads. This is the heart and soul of Googlenomics. It's a system of constant self-analysis: a data-fueled feedback loop that defines not only Google's future but the future of anyone who does business online. [....] Kamangar and Veach decided to price the slots on the side of the page by means of an auction. Not an eBay-style auction that unfolds over days or minutes as bids are raised or abandoned, but a huge marketplace of virtual auctions in which sealed bids are submitted in advance and winners are determined algorithmically in fractions of a second. Google hoped that millions of small and medium companies would take part in the market, so it was essential that the process be self-service. Advertisers bid on search terms, or keywords, but instead of bidding on the price per impression, they were bidding on a price they were willing to pay each time a user clicked on the ad. (The bid would be accompanied by a budget of how many clicks the advertiser was willing to pay for.) The new system was called AdWords Select, while the ads at the top of the page, with prices still set by humans, was renamed AdWords Premium.

OMG™ and the International Council on Systems Engineering (INCOSE) today announced that they have agreed to work together on the development of OMG's new program to certify Systems Engineers and other practitioners on the OMG Systems Modeling Language (OMG SysML™) standard. SysML is a graphical modeling language used to perform Model-Based Systems Engineering (MBSE) - that is, to specify and design complex systems that may include hardware, information, personnel, and facilities in addition to software. The program, to be called OCSMP™ (OMG-Certified Systems Modeling Professional), will be OMG's fourth certification. OMG, an international, open membership, not-for-profit industry consortium, maintains standards for interoperability, modeling, and process maturity including the Model Driven Architecture® (MDA®) and Unified Modeling Language™ (UML®); in addition, OMG certifies practitioners in many of these standards. INCOSE is a not-for-profit membership organization dedicated to advancing the state of the art and practice of systems engineering, in part through its Certified Systems Engineering Professional (CSEP) certification program.

The hard (in the sense of difficult) part of service science is the social system side. INCOSE and OMG don't really address that. They address the hard (as opposed to soft) systems aspects, with people merely as more parts of an intrinsically engineered system (weapons system, transportation system, etc.). I applaud your diligence with respect to SysML and all that, but I hope your vision of the science of service systems is big enough to include the social side as well.

We introduce the concept of structural analysis of a business enterprise. The practice of enterprise structural analysis amounts to the construction of an enterprise model using business entities defined in an enterprise ontology or enterprise architecture and creating specific views of the enterprise based on relationships among the entities. As we demonstrate through a simple yet illustrative example of a hypothetical coffee shop business, these views can provide many insights and points of analysis. Structural analysis provides an interactive, analytical environment for a user to view an enterprise from multiple perspectives, an approach not unlike On-Line Analytical Processing (OLAP) but for analyzing the qualitative or structural aspects of the enterprise.

daviding says: This article describes business entities, and works concretely through an example with activities, resources and organization in a coffee shop.