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8/3/2019 Blomberg Notes
1/19
Practice-oriented design of products, services andexperiences
Service Science Lecture SeriesUniversity of California, BerkeleyMarch 20, 2007Jeanette BlombergIBM Research
8/3/2019 Blomberg Notes
2/19
2005 IBM Corporation
2 Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Outline
Practice-oriented design: Origins and premises
Shift to focus on services
Layers of IT enabled service design
Experience Design (Midmarket IT Services)
Design of IT Enabled Services (Communication Portal)
Design of back-office IT for services (Solution Definition Manager)
Lessons from participatory design and design in use
Directions in b-2-b service design
8/3/2019 Blomberg Notes
3/19
2005 IBM Corporation
3 Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
OriginsXerox, Palo Alto Research Center Focus on technology (product) designFocus on work practitioners as organizationalactors and not users of technology
PremisesNeither pure work analysis or field testing of designed technologiesFocus on integration of new technologies withexisting practices and technology environmentsUse of case-based prototypes and other representational artifactsEstablish working relations among researchers,work practitioners, designers, developers, andother relevant actors (stakeholders)
Practice-oriented design
8/3/2019 Blomberg Notes
4/19
2005 IBM Corporation
4 Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Design ideas and representational artifacts
Field observations, interviews and analysis
time
Target activities
Technologydirection
Design andpractice insightsfrom previous
projects
Practice-oriented design (of products)
8/3/2019 Blomberg Notes
5/19
2005 IBM Corporation
5 Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
What's different about services?
Deeds, acts, processes or performances(Berry, 1980; and Zeithaml &Bitner, 1996)
Activities provided as asolution to customer problems(Gronroos, 1990)
Intangible and perishable created and usedsimultaneously(Sasser et al., 1978; andFitzsimmons, 2001)
Service providers and clients co-producevalue in and through their interactions withone another
Many services require the participation of thereceiver of the service
hair stylist clientdoctor patientteacher studentIT service provider business client
Relationships matter!
the important distinction is that the relationshiphas become a resource in itself thus the returnshave now more to do with extending the scope,content and process of the relationship. Bryson, Daniels and Warf from Service Worlds
8/3/2019 Blomberg Notes
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2005 IBM Corporation
6 Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Layers of service design
Service experience
Technology that enables theservice (experience)
Back-office technology thatsupports service delivery
Business Partner Network
YourName, Proprietor Your Company,[email protected](123) 456-7890
1234FifthStreet,Suite100Your Town,YS 12345www.ibm.com/local
Business Partner Network
YourName, Proprietor Your Company,[email protected](123) 456-7890
1234FifthStreet,Suite100Your Town,YS 12345www.ibm.com/local
The Portal Vision
Help deskTower
Sales
Deliveryteam
Client
Sales
Manufacturing
Sales
DatabaseTower
SecurityTower
CorporateHeadquarters
W e b P
or t al
Service levelattainment
Delivery teamperformance
Access to accountmanagement team
Manufacturing
Is my businesssupported by myIT investment?
Is my IT serviceprovider doingall theypromised?
Webserver Tower
DevelopHigh-Level
Solution
DevelopProposal
ObtainClient
Approval
Close theSolution
OM: OpportunityManagement
SD: Solution Design6-9 Month Life Cycle
Solution Delivery Fulfillment
S t a r t u p
I m p
l e m e n
t
M a n a g e
C l o s e
M a n a g e
O r d e r
G e n e r a
t e
B i l l i n g
D a
t a
P r e p a r e
I n v o
i c e
DevelopContract
N o
t i c e
I d e n
t i f y
V a
l i d a
t e
Q u a
l i f y
Growth
R F S
SF: Solution Delivery, Fulfillment & GrowthBM: Bid
Portfolio Management
MM: Market Managementand Enablement
DevelopHigh-Level
Solution
DevelopProposal
ObtainClient
Approval
Close theSolution
OM: OpportunityManagement
SD: Solution Design6-9 Month Life Cycle
Solution Delivery Fulfillment
S t a r t u p
I m p
l e m e n
t
M a n a g e
C l o s e
M a n a g e
O r d e r
G e n e r a
t e
B i l l i n g
D a
t a
P r e p a r e
I n v o
i c e
DevelopContract
N o
t i c e
I d e n
t i f y
V a
l i d a
t e
Q u a
l i f y
Growth
R F S
SF: Solution Delivery, Fulfillment & GrowthBM: Bid
Portfolio Management
MM: Market Managementand Enablement
8/3/2019 Blomberg Notes
7/19
2005 IBM Corporation7 Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Responsive
Knowledgeable
Deliver what they sell
Design PointsAccess to real, known peopleFlexibility one size does not fit allMultiple touch points the most appropriate for the problem at handKnow my business and IT environmentReputation and trust developed through history of interaction and local networks
Experience Design:Midmarket customer Local IT provider IBM relationships
Business Partner Network
YourName, Proprietor Your Company,[email protected](123) 456-7890
1234FifthStreet,Suite100Your Town,YS 12345www.ibm.com/local
Business Partner Network
YourName, Proprietor Your Company,[email protected](123) 456-7890
1234FifthStreet,Suite100Your Town,YS 12345www.ibm.com/local
New business models for the delivery IT services tothe Midmarket
The customer experienceshould be one of thecompetitive advantages
8/3/2019 Blomberg Notes
8/19
2005 IBM Corporation8 Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Design of IT enabled services:Communication portal
The Portal Vision
Help deskTower
Sales
Deliveryteam
Client
Sales
Manufacturing
Sales
Database
Tower
Secur ityTower
CorporateHeadquarters
W e b P
or t al
Service levelattainment
Delivery teamperformance
Access to accountmanagement team
Manufacturing
Is my businesssupported bymy IT
investment?
Is my ITserviceprovider doingall theypromised?
Webserver Tower
Study of executivelevel interactionsbetween IToutsourcing Project
Executives andDelivery ProjectExecutives and their client counterparts -CIO, director of technology
8/3/2019 Blomberg Notes
9/19
2005 IBM Corporation9 Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Motivation and goals of the portal project
IT service providers are going to market highlightingtheir portal dashboard capabilities (build trust andhigher levels of credibility, identify problems sooner and solve them faster, execute decisions moreeffectively).
Service providers without a focused customer portal strategy will be left behind as the service provider industry
consolidates and evolves. Herb VanHook, Meta Group
Push to accelerate portal/dashboard offerings to staycompetitive and to leverage portal strategy as a keydifferentiator.Portal dashboard development effort initially focusedon the executive level customer as the end-user (CIO,Director of Technology).
Enrich the interactionsbetween clients and serviceprovider and raise customer satisfaction by providing:
a single servicesmanagement portalinformation transparency
near real-time views onIT performance datavisualization of servicesto clients
a highly secure, resilient andavailable environment for interaction
support for the managementof services contractualagreements across theoffering portfolio
8/3/2019 Blomberg Notes
10/19
2005 IBM Corporation10 Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
What is IT Outsourcing Services?
OutsourcingThe delegation of tasks or
jobs from internal productionto an external entityIn 2003 generated globalrevenues of $298.5 billionGartner Inc .
Distinguished from
Offshoring or the relocation of business processes (includingproduction and manufacturing)
to a lower cost location, usuallyoverseas .
Two main types of outsourcingIT infrastructure (database administrationservices, storage management, disaster recovery and security services, helpdesk.desktop services, etc.)
Business Process (medical transcription,
claims processing, accounting, HR, etc.)Reasons to outsource
Cost reduction
Focus on core competency
Flexibility
Reduce risk
8/3/2019 Blomberg Notes
11/19
2005 IBM Corporation11 Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Findings: Client Delivery Team Interactions
Do you want the CIO to read problem reports fromsupport team? No! It needs to be dressed up. Delivery Project Executive
With regard to the SLAs (Service Level Attainment)and availability information, you want a review processbefore it goes to the customer. We need to get our story together and in some cases the information is
just wrong. You want that level of review before thecustomer sees it. And if you had an outage you want to be able to work the details and get a good story together - what happened, why, whats being done,
when fixed - before the customer sees it if possible. Delivery Project Executive
Contractual document exchanges SLA reporting are oftenaccompanied by face-to-facemeetings or conference callswhere meaning is negotiated,new issues identified, and
problems addressedService delivery teams manageaccess to IT performanceinformation through variousmeans (e.g. delayed reporting,problem solution resolution,proactive analysis, etc.). Theyare reluctant to make unfilteredperformance informationavailable.
8/3/2019 Blomberg Notes
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2005 IBM Corporation12Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Findings: Presenting IT performance data
The SLAs are green month after month, but my employees are complaining about IT service.
Delivery Project Executive
Its frustrating to me that when the SLAs are greenmonth after month, no one pays any attention tothem. You cant see how hard we work to keep the
SLAs green month after month. I wish there was away to make this more visible. Delivery Project Executive
I dont care whose fault it is, when the cashregisters arent working my business suffers. Customer
Service contracts, IT performancemeasures, and reporting formatsare dynamic and evolve
SLA performance measures arebut one indication of the health of an account.
Presentation and analysis of theIT performance data depends onthe focus of interaction.
Emergency response to an acuteIT failure
After the fact Critical Situationevaluation
Capacity planning for the future
Different roles involved inthe interaction depending onthe activity
8/3/2019 Blomberg Notes
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2005 IBM Corporation13Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Findings: IT performance data is not enough
SLA performance recedes intothe background when remainrelatively constant over time.Complete self-service isnt whatmany clients want, but proactiveservice provider who providesclient specific information and
analysis.Want service delivery teams tobe a business partner, butrequires
Access to the clients businesscritical information and LoBmanagersExpertise in the clients businessAbility to coordination acrossmultiple service providers indeveloping business (not IT)metrics
The SLA measures are great, but I dont feel like Imgetting what I signed up for with my service provider. I want you guys to bring your IT expertise to be proactiveand help me with my business problems .
Delivery Project Executive
I dont want the LoB executives to have direct accessto IT performance information. They wouldnt know how to interpret it. And I dont want them talking directly tothe IT delivery teams. They might ask for things that arenot part of our overall IT strategy. Project Executive
8/3/2019 Blomberg Notes
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2005 IBM Corporation14Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Implications for portal design
Portal communication affordances should beintegrated with, for example, face-to-face meetings,telephone interactions, email, hardcopy reports.
Ability to printAbility to download into standard document file formatsUse of portal in face-to-face meetings
Provide access to trending analysis and proactiverecommendations, not just SLA data.Explore ways of leveraging Portal strategy to shiftfocus of delivery team -- client interactions from ITperformance metrics to client business metrics.
The work doesn't stop once all the SLAs are in place,either. The agreements require constant discussionand renegotiation as the needs of the businesschange. E-mail response time and network availability statistics may look great to IT, but the business may actually be seething about a wholly unrelated issue.
CIO Magazine November 1998
Integrate portal with existingmodes of communication
Provide information and(business) analysis not data
Support continued evolution of IT requirements in relation toongoing changes in theclients business.
Develop tools and strategiesto help service delivery teamsand clients manage
information transparency .
8/3/2019 Blomberg Notes
15/19
2005 IBM Corporation15Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Rethinking information transparency
Transparency of meaning cannot be taken as a given
Negotiation and re-interpretation of information is at thecore of meaning making
There is no single, transparent window on servicedelivery performance
Multiple ways of representing performanceinscribed in the toolsbased on information accessiblemotivated by situation at hand
The meaning of information is negotiated in workingand organizational relationshipsNegotiating the meaning of IT performance is theongoing work of client -- service delivery collaborations
Were selling a dream. but
We must deliver an ongoing collaboration!
8/3/2019 Blomberg Notes
16/19
2005 IBM Corporation16Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Design of back-office enablers of IT outsourcing services:Solution Definition Manager
IBMs StrategicOutsourcing business isresponsible for roughly$35b in revenueThe tools used for creating,tracking and managing
outsourcing deals are old,incompatible, slow andawkwardThe business is committedto making the changesnecessary to build theplatform (SOA) on which a
new suite of tools can bebuiltFocus initial efforts onsolution definition
Gain views on the work practice and organizationaldimensions of the engagement solutioning practiceAnalyze engagement solutioning using complex
service system frameworkExamine the business, organizational, and individualpractices of SO engagementIdentify key integration points, information and valueflows, and transformations between the organization,people, and technologyChallenge Engagement Solutioning is owned by
multiple stakeholders and organizations
8/3/2019 Blomberg Notes
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2005 IBM Corporation17Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Designing for participation and ongoing design in useCo-construction of value in service relationships
Participatory Design PrinciplesMutual respect for the different knowledge that allparticipants bring to the interactionOpportunity to learn about each others domain of knowledgeJoint negotiation of project goals, objectives andagendaRecognition that all participants should benefitfrom the interaction although not necessarily in thesame wayFocus on the organizational context in whichparticipation is possible
Development of the tools, processes that enableparticipation (future workshops, case-basedprototypes, design games, envisioning)
Design in UseDifferences between the waysystems are envisioned andhow they are usedPlanning IT change, it seems, has
proven to be as challenging as thechange itself. Rob Kling
In attempts to changeorganizational practices newunderstandings emergeIf you want to understand something, try to change it. KurtLewin
Reciprocal relationshipbetween technology andsocial/organizational change
8/3/2019 Blomberg Notes
18/19
2005 IBM Corporation18Jeanette Blomberg -- IBM Almaden Research Center March 20, 2007
Directions in b-2-b service design
Understand the service provider clientinteractions/relationships (where value iscreated)Recognize the risks of undermining theservice provider client relationship
in self-service and automationin standardization of services
Recognize that innovation occurs in theinteractions between service provider andclient
Design for (ongoing) participation and designin use
IBM ChallengesHow to scale services? (apeople intensive industry)
How to standardizeservices (industrializedservice delivery)
How to develop and useassets in serviceengagements
How to manage theglobalization of servicedelivery?
How to leverage IT toenhance the client experience? (not just reduce costs)
Future workforce (SSME)
8/3/2019 Blomberg Notes
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