Introduction to the Minitrack on Smart Service Systems: Analytic, Cognition and Innovation

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A Model for Efficiency-Based Resource Integration in Services

Service processes, such as consulting, require coordinated efforts from the service recipient (client) and the service provider in order to deliver the desired output – a process known as resource integration. Client involvement directly affects the efficiency of service processes, thereby affecting capacity decisions. We present a mathematical model of the resource-integration decision for a service process through which the client and the service provider co-produce resource outputs. This workforce planning model is unique because we include the extent of client involvement as a policy variable and introduce to the resource-planning model efficiency and quality performance measures, which are functions of client involvement. The optimization of resource planning for services produces interesting policy prescriptions due to the presence of a client-modulated efficiency function in the capacity constraint and subjective client value placed on participation in the service process. The primary results of this research are optimal decision rules that provide insights into the optimal levels of client involvement and provider commitment in resource integration

S-D logic research directions and opportunities: the perspective of systems, camplexity and engeneering

To date, several disciplines have broached the systems view of service and the engineering of service systems. Operations research applied to services began with a rather simplistic, macro view of resource integration in the form of data envelopment analysis (DEA), introduced by Charnes, Cooper and Rhodes in 1978 (Banker et al., 1984; Charnes et al., 1994). Micro models of service systems have tended to study the systems’ IT components (Hsu, 2009; Qiu 2009). Engineering, which has always been associated with ‘assembling pieces that work in specific ways’ (Ottino, 2004) and ‘a process of precise composition to achieve a predictable purpose and function’ (Fromm, 2010: 2), has contributed to greater scalability and purposeful control in service systems. However, the agents of the system are usually people whose activities may not easily be controlled by predictable processes and yet are critical aspects of the value-creating system (Ng et al., 2011b). There is need for a new combinative paradigm, such as third-generation activity theory, in which two or more activity systems come into contact, to explore dialogue, exchanging perspectives of multiple actors, resulting in networks or groups of activity systems that are constantly interacting (Marken, 2006; Nardi, 1996, Oliveros et al., 2010). While various systems approaches, such as general systems theory (von Bertalanffy, 1962); open systems theory (Boulding, 1956; Katz and Kahn, 1978); and viable systems approach (Barile, 2008; Beer, 1972; Golinelli, 2010), will not be reviewed here (see Ng et al., 2011a for a systems approach to service science), they share common tenets: boundaries, interfaces, hierarchy, feedback and adaptation to which most systems writers would add emergence, input, output and transformation (Kast and Rosenzweig, 1972). These terms may be used as a basis for a research agenda for the consideration of a service system

Emerging Digital Frontiers for Service Innovation

This paper examines emerging digital frontiers for service innovation that a panel discussed at a workshop on this topic held at the 48th Annual Hawaii International Conference on System Sciences (HICSS). The speakers and participants agreed that that service systems are fundamental for service innovation and value creation. In this context, service systems are related to cognitive systems, smart service systems, and cyber-physical systems and depend on the interconnectedness among system components. The speakers and participants regarded humans as the central entity in all service systems. In addition, data, they saw personal data in particular as key to service systems. They also identified several challenges in the areas of cognitive systems, smart service systems, cyber-physical systems, and human-centered service systems. We hope this workshop report helps in some small way to cultivate the emerging service science discipline and to nurture fruitful discussions on service innovation

OPTIMAL INVENTORY POLICIES FOR THE ONE WAREHOUSE, N-RETAILER SYSTEM

This research examines an inventory system consisting of one warehouse and N identical retailers. It is assumed that each facility in the system operates a continuous review (Q, R) replenishment policy, that all unmet demand is backordered, that the transportation lead times between the warehouse and its supplier and between the warehouse and the retailers are fixed, and that each retailer faces independent, unit Poisson demand. Furthermore, the retailers are identical in terms of lead time, demand rate, lot size, and reorder points. The model of the system which is used in this study is the Deuermeyer-Schwarz model. Within the context of this model, the optimal allocation of safety stock among the warehouse and retailers is determined subject to a constraint on the total amount of safety stock in the system. This optimization is carried out under two different objective functions: fill-rate and expected backorders. The results of this study are general statements about the form of these optimal policies, the characterization of the locus of optimal safety stock positions for all finite values of the constraint as a policy line in the two-dimensional policy space, insights into the effects of safety stocks in this system, and a highly accurate and simple heuristic for computing optimal safety stock positions

Viable service systems and decision making in service management

This paper addresses decision making in the management of complex service systems, highlighting the contribution of the viable systems approach as an interpretative and governance methodology based on systems thinking. In the last few decades, business management has undergone significant changes due to rapid developments in markets. New competitive strategies and technologies have stimulated global discussion about business models and tools (Ghoshal, 2005). The role of relationships has become increasingly relevant in businesses, and researchers as well as industries are shifting their focus to a service-oriented approach, moving from a paradigm of product to one of service (IfM-IBM Cambridge SSME Report, 2008)