Service Systems and Value Modeling from an Appreciative System Perspective

Gil Regev (EPFL, Itecor), Olivier Hayard (Itecor), Alain Wegmann (EPFL)

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Basic Question

!   How do people and organizations value a service?

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Example: iPod and iTunes

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Source: Wikipedia

Source: Wikipedia

Why did my kids buy iPods?

Service System and Value in Service Science

!   Service Systems are interactive configurations of mutual exchange in which value is created collaboratively.

!   Value is “an improvement in system well-being” and is measured in terms of “system’s adaptiveness or ability to fit in its environment.”

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Value in Exchange and Value in Use

!   Value in Exchange !   depends on the customer’s ability to use the product, resell it or

transfer it to others

!   Value in Use !   co-creation of value jointly by the supplier and the customer

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Value and Survival in Service Science

!   “Value depends on the capabilities a system has to survive and accomplish other goals in its environment.”

!   “When value creation is seen from a service systems perspective, the producer–consumer distinction disappears and all participants contribute to the creation of value for themselves and for others.”

!   Source: Vargo, S.L., Maglio, P.P., Akaka, M.A.: On value and value co-creation: A service systems and service logic perspective. European Management Journal 26:3, 145–152, (2008)

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Sir Geoffrey Vickers

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Stability vs. Change

Regulation vs. Goals

Appreciative System

Source: Wikipedia

Vickers’s Appreciative System

!   Readiness to See

!   Readiness to Value

!   Readiness to Act

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Action Judgment

Reality Judgment

Value Judgment

Regulatedprocess

Comparison andgeneration of

correction

output

interpreted statecorrection

input

desired state

!   Observer defines identity (survival) of system

Systems and Survival

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Observer

Norms

Tacit Norms

Entities

Universe of Discourse

Reality

System Processes

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Environment

System

Service Relations (external)

Metabolic Relations (internal)

Example: iPod and iTunes

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Source: Wikipedia

Source: Wikipedia

Why did my kids buy iPods?

iPod Value in Exchange

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Readiness to Value

Readiness to See

Metabolic Relations

iPod Value in Exchange

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Readiness to Value

Readiness to See

Metabolic Relations

iPod Value in Use

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iPod Value in Use

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Future Steps

!   Combine Value in Exchange and Value in Use !   Capiltalize on their combination

!   Model Readiness to Act !   Comparison between alternatives

!   Extend the Readiness to See, Value and Act !   Innovation and creativity

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