Service Systems and Service Innovation: Toward the Theory of Service Systems

Services have been regarded as something intangible, perishable, and heterogeneous so that it is difficult to measure the quality and productivity of them. Services also have long been considered non-productive economic activities. However, considering the recent growth of service industry across the world, it is imperative to study the very nature of service and its systems in the knowledge-based economy from an integrated perspective to improve the quality of life and effective economic development. For this, we in this study will develop a systematic way of understanding the nature service in the knowledge-based economy from a systems’ perspective and build an integrated theory of service systems which facilitates service innovation and improves service productivity. The proposed theory will provide the foundation for designing, producing, delivering, operating, maintaining, monitoring, and improving service systems, which in turn leads to service innovation and thus a sustainable economic growth with providing greater employment opportunities. This study will also provide researchers and companies with the basis for future study and guidelines to further service innovation

Dynamics of Enterprise Architecture in the Korean Public Sector: Transformational Change vs. Transactional Change

Enterprise architecture (EA) is one of the most important tools for implementing e-government effectively and delivering high-quality information technology services to citizens. To develop a robust EA research model with key success factors, we apply the theory of organizational change proposed by Burke and Litwin, using the concepts of transformational and transactional change. The analysis is conducted by using South Korea’s EA project launched in 2003. This study classifies EA implementation in the South Korean public sector into three stages and explains the characteristics of each stage from the organizational change perspective. We raise the issue of EA application level compounded by the problem of diverse EA definitions and discuss the difficulties of EA implementation based on the framework of organizational change. In addition, 20 EA experts are surveyed to confirm the findings of this study. Finally, we propose a new research model for future empirical study based on the presented findings. We believe that this study, as an in-depth review of EA implementation from an organizational change perspective, will benefit EA experts from a practical point of view, as well as academics from a research perspective

Typology of Service Innovation from Service-Dominant Logic Perspective

This study provides a conceptual framework with respect to service innovation, especially from a service-dominant logic (S-D logic) perspective. Even though innovation has been discussed as one of the most critical elements in enhancing the competitiveness of service industry, it was not clear how service innovation should be different from diverse types of existing innovation. The S-D logic provides a novel and valuable theoretical perspective that unifies the conventional literature on innovation. According to this new logic, four types of service innovation are presented based on two dimensions: the degree of co-creation and the degree of networked collaboration. We argue that service innovation can arise by the activity of value co-creation between firm and customer on the first dimension. On the second dimension, the firm needs to enhance their own capabilities for service innovation by applying the resources of all actors including suppliers and customers. Our framework indicates that it is critical for productive service innovation to make customers participate in value creation process and to integrate the dispersed resources held by participants. Examples are discussed with respect to different types of services innovation

Dimensions of Information Systems Outsourcing

Outsourcing has emerged as a key method of managing Information Systems especially since the report about Eastman Kodak and IBM’s outsourcing partnership in 1989 (Loh and Venkatraman 1992b). However, firms have used outside vendors in many different ways (Gantz 1990) so much so that some IS managers believe that any type of involvement of third party vendors can be considered to be outsourcing. Requirements for outsourcing are not uniform and managers have different evaluations and different approaches to the process (Venkatesan 1992; Welch and Nay& 1992; Walker 1988). Motivations for outsourcing are diverse and vary widely across fms

Competitiveness between road and inland water transport: the case of Myanmar

Among different transportation modes, inland water transport is recognized as a low-cost, environmentally friendly way of transporting. The use of this mode in Myanmar encounters many challenges and the chance of promoting this mode of transport comparing to other transport mode like road transport should be explored. Thus the competitiveness of the two modes are investigated from the operators’ cost perspective. The time taken in each mode is also explored. The considerations are taken into account for the recommendations to improve transport performance in terms of time, cost, and reliability especially for inland water transport. Then it attempts to identify the potential and the challenges of respective modes

Transformational and Transactional Factors for the Successful Implementation of Enterprise Architecture in Public Sector

Enterprise architecture (EA) is one of the most important and effective tools for delivering high-quality e-government services to citizens. In this study, we used organizational performance and change theory to determine factors that contribute to the successful implementation of EA. We classified these factors as one of two types: transformation change (TFC) and transactional change (TSC). To identify these factors, we collected survey data from Korean public sectors that have implemented EA for years. Results show that while EA management systems (EAMS) and EA guidelines directly affect EA performance, laws and regulations, and EA organization exert an indirect effect. Further, top management support had both direct and indirect effect on EA performance. Ultimately, the findings produced by this study have implications for government institutions that plan to implement EA

Management of Information Systems Outsourcing: A Bidding Perspective

Outsourcing is the contracting of various information systems\u27 sub- functions by user firms to outside information systems vendors. A critical factor in the outsourcing process is the bidding and vendor selection mechanism. This paper describes the process of outsourcing and identifies the various stages involved. Subsequently, considering that cost reduction is a driving force of outsourcing for user-firms, this paper proposes a bidding mechanism to reduce expected outsourcing costs in the final bidding and vendor selection process. The paper studies outsourcing contracts of routine and repetitive activities such as maintenance and operation of telecommunication networks. A realistic scenario is studied, wherein multiple vendors bid for such contracts and where one vendor has cost and expertise advantages over other vendors and as a result tends to inflate bids. A mixed integer programming model is formulated for a multiple vendor scenario. In general, the results suggest a prescription that calls for the use of carrot and stick policies by the user firm. Subsidies (the carrot) need to be used as incentives for bidders to announce their most competitive bids. In addition, penalties (the stick) have to be levied in order to pressure bidders not to bid high

The Role of Service Level Agreements in Relational Management of Information Technology Outsourcing: An Empirical Study

This study extends the view that formal contracts and relational governance function as complements rather than as substitutes. We investigate how specific characteristics of service level agreements (SLAs) impact relational governance in information technology outsourcing relationships. Eleven contractual elements (categorized into three SLA characteristics: foundation, change, and governance characteristics) are hypothesized to act as complements of three relational governance attributes: relational norms, harmonious conflict resolution, and mutual dependence. Data for the study were collected through a survey of South Korean IT executives. Results of the study support the fundamental proposition of complementarity between formal contracts and relational governance, and indicate that well-structured SLAs have significant positive influence on the various aspects of relational governance in IT outsourcing relationships. However, the study also reveals that change characteristics of SLAs may act as a substitute for relational governance as these characteristics were found to dampen the level of trust and commitment through moderation effects. Overall, the findings support the proposition that well-developed SLAs not only provide a way to measure the service provider’s performance, but also enable effective management of outsourcing engagements through the development of partnership-style relationships with high levels of trust and commitment