2. The Importance of Services Top Ten Nations by Labor Force Size (about 50% of world labor in just 10 nations) A = Agriculture, G = Goods, S = Services 2004 2004 United States . Ref : Emergence of Service Science : James Spohrer Services: Value from enhancing the capabilities of things (customizing, distributing, etc.) and interactions between things. Agriculture: Value from harvesting nature Goods: Value from making products 44 64 33 3 1.4 Germany 30 26 11 63 2.2 Bangladesh 30 20 10 70 2.2 Nigeria 40 70 25 5 2.4 Japan 38 65 23 12 2.5 Russia 20 53 24 23 3.0 Brazil 35 39 16 45 3.9 Indonesia 21 70 27 3 4.8 U.S. 28 23 17 60 17.0 India 191 35 15 50 21.0 China 25 yr % delta S % S % G % A % WW Labor Nation
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4. Outsourcing : The Boom in Services Procurement Perform sales Production Customer service Perform Marketing Manage logistics Develop products Supplier network Customer network I T Services
12. Utility Low High Low High Clarity of Utility Beneficial Impact of Incremental Effort Save a life Implementation of an Immunization program Order Tracking system HR welfare system Advertising Programme Community Welfare Programme Utility Component Effort Price
13. Components Low High Low High Clarity of Features / Specs / Components Beneficial Impact of Incremental Effort Custom Development New Product Development Zero error program Create a work of Fine Art Smart Algorithm ERP Package Implementation “ User Friendly” system Utility Component Effort Price
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15. Big Picture Utility Component X Component Effort X Q’SLA Effort X Effort Price Value Money Utility X Quality Price = = Contract Efficiency Process Efficiency Real Fuzzy Bit
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17. Methodology Functional Specification Program Review Checklist Complexity Determination / Estimate Technical Specification Test Support Unit Test Plan Program Source Code Code Bundle / Demo Unit Test Results Support (optional) Pre-Production Support Remote Team Review Client Review Client Review Remote Team(s) Landed Team Functional Design Estimate Technical Design Deliver Test Support Develop Methodology Component Communication & Coordination (all teams) Technical Design Walkthrough Code Review Client Sign Off Legend Task With Deliverable Task Without Deliverable Optional Service Area Process Checkpoint
So why this workshop. Well,m for one reason the world needs service innovations like never before. In the US alone, the last two hundred years have seen an almost complete reversal in agriculture and services – with manufacturing peaking around WW II. And quickly looking at the top ten nations by size of labor force we see they are just time delayed versions of the US economy. Interestingly, Adam Smith and Karl Marx both agreed one thing – services were a parasite on the rest of the economy. Nevertheless the rise of the information economy and the rise of the service economy have come hand and hand… and so now we ask, since we need service innovations, do we need a service science. I will argue, yes. If we are to understand the connection between innovation and productivity, we need a service science. Innovation is more than technology, it can be business model innovation, organizational culture innovation, process innovation ,and even demand innovation. All of these types of innovation can drive productivity, and a service science, properly defined, will shed light on the causal connection of innovation to productivity. Why service science? Growing dominance of all world economies. Service science may ultimately be about understanding how to boost human-technology productivity via four types of innovation. Source: http://www.nationmaster.com OECD reports