Toward a Sign Value Based Service System Design. Service Science Research Center (SSRC) College of Commerce, National Chengchi University, Taiwan

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1 Toward a Sign Value Based Service System Design Soe-Tsyr Daphne Yuan Service Science Research Center (SSRC) College of Commerce, National Chengchi University, Taiwan

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3 More discussion about the standout characteristics of service systems than systematic ways of realizing them Service Science was interpreted as the scientific study of service systems (Qiu, 2008). Service was defined as an open system embodies the interactions characterized by voluntary and reciprocal value creation to increase the productivity, quality or opportunities of innovation (Maglio, 2009). Service systems are value co-production configurations of people, technology, internal and external service systems connected by agreed value propositions and shared information (Spohrer, 2007).

4 Important t capabilities about dynamic configuration of service system entities to realize and fulfill the customer-centric centric values? The competency of service providers to deliver superior value to end customers has to rely on their capabilities of designing, engineering, performing, and managing the dynamic configurations of resources (i.e., service system entities) that can create value (Spohrer, 2009). A top-down way of seeking innovation opportunities. BUT, these capabilities could be exercised only when the service value has been well defined.

5 Design is an outside-in perspective on value development by using certain design approaches (Mager, 2004).. In design thinking, empathy is the effort to see the world through the eyes of others, in terms of understanding the world through their experiences and feeling the world through their emotions (Brown, 2009). A bottom-up way of seeking innovation opportunities.

6 Service system design refers to the whole process of service development considering both system thinking and design thinking.. f Development of value Development of a service system (configuring service system entities to co-create the value)

7 The use of the term value.. There is a growing recognition that providing standout value to customers is influential for business success (Cagan, 2002) (Kim, 2005) Focusing on creating advances in customer-centric value can make competition irrelevant by opening up entirely new markets (Kim, 2005) Service value was defined as the benefits customers perceives as inherent in a service weighed against the cost of the service. (Johnston and Clark, 2001) Customers rely more on the intrinsic aspects ( Zeithaml,1988) An important intrinsic aspect of customer-centric values is sign value (Boztepe, 2007) the value arises from socio-cultural-environmental contexts and is subjective with the socially assigned meaning as the service outcome.

8 (Boztepe, 2007)

9 Imagine if there is a sign value approach to systematically develop the sign value and the service system.. Advancing from the functional value or experience value Signifying prestige relative to others and disrupting others (Baudrillard, 1981, 2006). Systematic ways of developing sign value based services that embody particular socio-cultural- environmental meanings.

10 Challenges. How can the sign value be designed to link the needs of customers and the design of the service with the strategic intentions of service providers? How can the sign value be used to configure the entities of service systems (and hence the components of major service encounters)? How can the sign value help designers and operations managers identify the differences between design and competence and the gap to fill (e.g., re-configuring their operational resources)? How can the sign value be used to assess a service and drive its strategic advantage? How can the sign value help define the role responsibilities among designers, customers and service providers?

11 In this research project, a sign value based service system design approach is devised.. The sign value would serve as a means to concretize the essence of a service. The sign value could drive the development of what and how of service system design. An ICT-enabled approach is proposed for the development of sign value based service systems (what & how). This approach has been partially implemented and applied to an ongoing field project about cluster SMEs innovation in tourism..

12 Ideas behind the sign value based service design approach.

13 An analogy brand image. Dimension of brand knowledge (Kevin Lane Keller, 1993)

14 The ICT-enabled sign value based service system design approach.. Goal imagery creation sign design Goal imagery delivery sign based service system design Cloud based service platform sign value delivery & management Application context -- enhancing the role of SMBs in global tourism industry Empower SMEs to co-create their meaningful services (i.e., services embodying particular imageries) with their customers and collaborators. G = I* P M i t t f l Meaning can propose to users a set of values such as the emotional, psychological, sociocultural or environmental dimensional consumption going beyond the utilitarian perspective of classic economic model.

15 Cloud based service platform (uvoyage) - a B2B2C type of service platform to energize the tourism destinations which are rich in culture, activity and information SMB service providers Facilitated image creation Automatic image modeling Recommendations of alliance partners to create innovative services with unique and attractive images. Other related supporting operation processes & services Tourists Personalize their tour service selections based on their imaginative/emotional inputs. (e.g., a place like paradise) Destination governors Destination attraction and diversity management

16 Goal imagery delivery. Based on the theory integration of SDL, destination images, and metaphor in order to achieve cluster SMEs competitiveness and survivability associated with tourism innovation, growth, and productivity. Four tiers of ICT-enabled methods/models/tools elements SMEs Cluster Health Common Assets Diversity Metric Alliance Network Design & Assessment Computing Metaphor Third Party Services Imagery Modeling Sheltering Operations Context Technology Relationship

17 Image modeling. A vector of emotional adjectives based on the analysis of different data source analysis (actors opinions, behaviors and interactions are tracked and analyzed over time). cheerful free hot refreshing youthful An example of image

18 Figure 12. Concept of mapping emotional words onto colors (Kobayashi, 1992, 2001) Concept of mapping emotional words onto colors (Kobayashi, 1992, 2001)

19 The computing metaphor middleware Analyzing a given goal imagery from a SME service provider would generate the possible partner candidate sets by the aid of metaphor generation process. A comparison analysis is conducted to figure out the gap between what the user wants to be and what it is now. The identified gap can be used to generate a collection of new metaphors. e.g., love is like chocolate as * as vehicle as adj as * These metaphors are analyzed to ensure the metaphors making sense and then each would be mapped to specific business types for possible cooperation.

20 Goal imagery creation. Adopt the design thinking paradigm that fosters a collaborative and iterative style of work to achieve practical, creative resolution of goal imagery. An (iterative) ti sequence of ICT-enabled methods/models/tools elements devised for creating the goal imageries that could motivate SMEs to change their behavior (i.e. engaging imagery-based service innovation) Full story communication Interactive testing Test imagery Assess imagery Goal image evaluation Status quo of FPOD Co-creation types Network types Goal image creation Co-Develop Imagery Enablers having a positive impact on the cycle time Technology People Service Theories/Tools Systems Finance + process + offering + delivery (FPOD) Culture Context Inspire Understand Motivate mini story communication Assured moving Inner intangible level Focus selection disclosure

21 SME SME Emotional Needs a place like paradise SME Destination SMEs allianced to deliver a goal Imagery uvoyage Tourists

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24 Support from a macro system dynamics analysis. When SMEs in a destination have a high level of cooperation through the sign value approach, their knowledge, capabilities, and resources can improve their tourism operant resources (e.g., a new village life journey) Increasing the number of tourism resources would increase the number of unique and attractive destination images. The amount of - tourism resource - The increase in tourism resource Total tourists The number of tourists in a season The number of tourists in the region Average number of tourists in the region <Time> Innovation capabilities of regional tourism SMEs The degree of cooperation in regional tourism SMEs SME startups t The increase unique destination images The number of regional tourism SMEs - - The attraction of unique destination images SMEs bankrupted Positive tour experiences Tourists' satisfaction

25 Support from a field application. This research project uses the Mt. Pillow Recreational Agriculture Area in Ilan County of Taiwan as the initial application case study field to test and refine the ideas of the sign approach. The leisure agriculture operators generally need to raise consumer awareness of their businesses and cultivate stable customer sources. Additionally, the customer sources of SMEs differ with their operating types. Without loss of generality this case study is belied to manifest the comprehensive concerns and varieties for our the targets of cluster SMEs towards service in persuit of service innovation.

26 Attempted contributions. The first attempt to view the sign value as the foundation on which a platform of systematic methods, models, tools and theories in service science can be developed toward systematic service innovation. Differing from existing related, our sign approach would embody the characteristics of being both inside-out-driven driven (i.e., the engineering way) and outside-in-driven (i.e., the design way) together with being scientific in terms of the metrics and measurements used to understand and manage the phenomenon, the context, the process and the outcome. Advancing existing service design & innovation methodologies, our approach considers the value co-creation involving both functional values and emotional values (i.e., sign value), i.e., the systematic thinking of the both types of value propositions. Most of the research issues about the sign value based service design are also addressed within our sign approach. A good realization of the intersection of meaning innovation and technology innovation (Roberto Verganti, 2009)

27 We view. the sign value as the foundation on which a platform of systematic methods, models, tools and theories in service science that could be developed toward systematic service innovation Future works. Continue the development of the goal imagery creation part Investigate the limitations of the sign based service, such as its confined scope of applications, the objective criteria of application feasibility &assessments, etc. Explore its applications in different service sectors (e.g., industries of gourmet or cultural l besides tourism, etc.).

28 ask em if you got em