Towards a Framework of Influence Factors for Value Co-Creation in Service Systems

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<ol><li> 1. KIT University of the State of Baden-Wrttemberg and National Laboratory of the Helmholtz Association KARLSRUHE SERVICE RESEARCH INSTITUTE (KSRI) www.kit.edu www.ksri.kit.edu Towards a Framework of Influence Factors for Value Co-Creation in Service Systems International Conference on Exploring Service Science 1.5. in Porto Peter Hottum, Axel Kieninger and Peter Brinkhoff | 5th Feb 2015 These slides are based on the IESS 1.5 proceedings paper of the same name and published online under the Creative Commons: http://creativecommons.org/licenses/by-sa/3.0/ </li><li> 2. Karlsruhe Service Research Institute www.ksri.kit.edu 2 Provider Consumer Services are more and more provided in partnerships The current notion of service is characterized by the value co-creation that occurs continuously between two ore more partners. Value Co-creationPartner Partner Shift from one-way and one-time transactions to bilateral continuous relationships between value partners Based on: Hottum &amp; Howahl (2011) Partner Partner Out of these bilateral relations further service systems are arising 05/02/2015 Framework of Influence Factors for Value Co-Creation in Service Systems Peter Hottum </li><li> 3. Karlsruhe Service Research Institute www.ksri.kit.edu 3 Services are more and more provided in partnerships, but In business practice, service contracts are often designed for service quality, and not for co-creation aspects or customer satisfaction. Providers are faced with the problem, that they are not able to estimate the evoked customer satisfaction, because it depends heavily on the customer involvement. It is therefore difficult for a provider to articulate value propositions to its customers, that will meet their requirements and abilities. Framework of Influence Factors for Value Co-Creation in Service Systems Peter Hottum 05/02/2015 We need to establish [] a framework for understanding how service systems operate and interact before we can develop a normative service science for what decision makers of service systems should do. Vargo, Maglio and Akaka (2008) </li><li> 4. Karlsruhe Service Research Institute www.ksri.kit.edu 4 Topics Framework of Influence Factors for Value Co-Creation in Service Systems Peter Hottum 1 2 3 Introduction and Motivation Research discussion Deriving a co-creation framework 4 Reflection of the approach in the light of service science 05/02/2015 5 Conclusion and Outlook </li><li> 5. Karlsruhe Service Research Institute www.ksri.kit.edu 5 There are discrepancies between service science (theory) and daily service business Framework of Influence Factors for Value Co-Creation in Service Systems Peter Hottum 05/02/2015 In service science, the concept of value co-creation3 in service systems1 is widely accepted. How can a framework of influence factors for value co-creation in service systems be derived? In real world In Service Science Service providers and customers define frameworks and safeguards for future service interactions in contracts Service providers and customers build a service system1 These contracts often are based on providers value proposition towards the customer2 Service providers and customers are acting as partners In those contracts a certain service quality and further conditions for the provision are stipulated Providers and customers commonly create (co-create) value3 Sources: 1Spohrer et al. (2007), 2Kwan &amp; Hottum (2014), 3Vargo &amp; Lusch (2004) </li><li> 6. Karlsruhe Service Research Institute www.ksri.kit.edu 6 The essential influences on co-creation can be derived from service science Framework of Influence Factors for Value Co-Creation in Service Systems Peter Hottum 05/02/2015 IP Influence of the provider and his network IC Influence of the customer and his network Influence categories Sources: 1Spohrer et al. (2007), 2 Von Bertalanffy (1972). Service Encounter CustomerService provider In Service Science an organization (service provider) beneficially performs for and with another (service client).1 A service system has a systems exchanging matter with environment, as every living system does.2 SE Influence of the Service Environment </li><li> 7. Karlsruhe Service Research Institute www.ksri.kit.edu 7 The essential influences on co-creation can be derived from service science Framework of Influence Factors for Value Co-Creation in Service Systems Peter Hottum 05/02/2015 IP Influence of the provider and his network IC Influence of the customer and his network Because provider and customer are seen as equal partners from a service system perspective1, the describing attributes should be comparable. While providers operate increasingly interlinked with other partners2, especially end- customers are not always part of further economic systems. Whereas B2B customers are always involved in further ecosystems, end-customers may act on their own. Influence categories Sources: 1Payne et al. (2007), 2 Kwan &amp; Hottum (2014). SE Influence of the Service Environment( ) </li><li> 8. Karlsruhe Service Research Institute www.ksri.kit.edu 8 The essential influences on co-creation can be derived from service science Framework of Influence Factors for Value Co-Creation in Service Systems Peter Hottum 05/02/2015 IP Influence of the provider and his network IC Influence of the customer (and his network) I T I T Information Service Technology Information Service Technology The exchange of information forms the basis of value co-creation. Therefore, we define information as influence factors for IP and IC. Since the exchange of information increasingly depends on information and telecommunication technology (ICT) we introduce Service Technology (as the underlying infrastructure) as factors, accordingly. Influence categories Influence factors SE Influence of the Service Environment </li><li> 9. Karlsruhe Service Research Institute www.ksri.kit.edu 9 The essential influences on co-creation can be derived from service science Framework of Influence Factors for Value Co-Creation in Service Systems Peter Hottum 05/02/2015 IP Influence of the provider and his network IC Influence of the customer (and his network) P R C RI T I T Information Personnel Resources Service Technology Information Cooperation Resources Service Technology Further influence factors could be obtained from the initial service system components people, technology, other internal and external service systems, and shared information.1 Materials of the partners and physical aspects of further service systems are added as resources. As further supporting service systems on the customers side are not mandatory, the providers factor personnel is contrasted with the customers cooperation. Influence categories Influence factors Source: 1Spohrer et al. (2007) . SE Influence of the Service Environment </li><li> 10. Karlsruhe Service Research Institute www.ksri.kit.edu 10 The essential influences on co-creation can be derived from service science Framework of Influence Factors for Value Co-Creation in Service Systems Peter Hottum 05/02/2015 Influence categories Influence factors IP Influence of the provider and his network IC Influence of the customer (and his network) SE Influence of the Service Environment P R C R LI T I T E Rl Information Personnel Resources Service Technology Information Cooperation Resources Service Technology Environment Layout Relationship Service encounter environments are purposeful environments [], spatial layout and functionality of the physical surroundings are particularly important.1 Besides emphasizing environment itself, also layout as an additional influence factor was added to the framework. To complete - the involvement of the customer by the provider and their relationship is important for the value co-creation.2 Sources: 1Bitner (1992), 2Habryn et al. (2010). </li><li> 11. Karlsruhe Service Research Institute www.ksri.kit.edu 11 Reflecting the framework of influence factors for value co- creation in the light of service science Influence of the Provider (IP) (I) Information (P) Personnel (R) Resources (T) Infrastructure Technology Influence of the Customer (IC) (I) Information (C) Cooperation (R) Resources (T) Infrastructure Technology In. of the Service Environment (SE) (E) Environment (L) Layout (Rl) Relationship Framework of Influence Factors for Value Co-Creation in Service Systems Peter Hottum 05/02/2015 Literature I P R T I C R T E L Rl Grnroos (1984) x x Parasuraman et al. (1988) x x x Woodside et al. (1989) x x x Bolton &amp; Drew (1991) x Danaher &amp; Mattsson (1994) x x x x Liljander &amp; Strandvik (1995) x x x x Dabholkar et al. (1996) x x x x De Ruyter et al. (1997) x x x x x Lusch et al. (1992) x x x Brady &amp; Cronin (2001) x x x x Grnroos &amp; Ojasalo (2004) x x x x Johnston &amp; Jones (2004) x x x Fller &amp; Matzler (2008) x x x Lee (2011) x x x x x Yi &amp; Gong (2013) x x x x x Xu &amp; Huang (2013) x x x x x Jaakkola &amp; Alexander (2014) x x x x x x x provider customer analysis based on 18 studies between 1984-2014 using on the review approach by Webster &amp; Watson (2002) service environment </li><li> 12. Karlsruhe Service Research Institute www.ksri.kit.edu 12 Reflecting the framework of influence factors for value co- creation in the light of service science Influence of the Provider (IP) (I) Information (P) Personnel (R) Resources (T) Infrastructure Technology Influence of the Customer (IC) (I) Information (C) Cooperation (R) Resources (T) Infrastructure Technology In. of the Service Environment (SE) (E) Environment (L) Layout (Rl) Relationship Framework of Influence Factors for Value Co-Creation in Service Systems Peter Hottum 05/02/2015 Literature I P R T I C R T E L Rl Grnroos (1984) x x Parasuraman et al. (1988) x x x Woodside et al. (1989) x x x Bolton &amp; Drew (1991) x Danaher &amp; Mattsson (1994) x x x x Liljander &amp; Strandvik (1995) x x x x Dabholkar et al. (1996) x x x x De Ruyter et al. (1997) x x x x x Lusch et al. (1992) x x x Brady &amp; Cronin (2001) x x x x Grnroos &amp; Ojasalo (2004) x x x x Johnston &amp; Jones (2004) x x x Fller &amp; Matzler (2008) x x x Lee (2011) x x x x x Yi &amp; Gong (2013) x x x x x Xu &amp; Huang (2013) x x x x x Jaakkola &amp; Alexander (2014) x x x x x x x service environmentprovider customer analysis based on 18 studies between 1984-2014 using on the review approach by Webster &amp; Watson (2002) </li><li> 13. Karlsruhe Service Research Institute www.ksri.kit.edu 13 Conclusion and Outlook By using insights from service science theory and a literature review, a framework of influence factors for value co-creation could be derived and reflected. The basic structure of the framework with the influence categories and the identified influence factors are generally applicable to service settings with customer contribution. For providers, however, the understanding of those influencing factors, especially of customers abilities and willingness to contribute to value co-creation, are essential to formulate value propositions, which meet customers requirements. The framework could help service practitioners as well as service researchers to identify leading aspects of value co-creation for their specific case. Framework of Influence Factors for Value Co-Creation in Service Systems Peter Hottum 05/02/2015 Thank you for your attention! Peter Hottum Karlsruhe Institute of Technology (KIT) Karlsruhe Service Research Institute (KSRI) Englerstr. 11, D-76131 Karlsruhe, GERMANY Phone: +49 (0) 721 608 45771 Fax: +49 (0) 721 608 45655 Email: peter.hottum@kit.edu </li></ol>

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