A lunchtime presentation on SSE to my colleagues at the European GNSS Agency (GSA), Prague

1. An Introduction
to
Service Systems Engineering
(SSE)
Marco Lisi
European Space Agency
Chief Technical Advisor of the European GNSS Agency
(marco.lisi@esa.int)
Lunchtime Presentation
GSA, Prague, 23/11/2017 4

2. Summary
• Services are becoming more and more important
in today’s world economy;
• Service-oriented, large and complex systems are
often critical infrastructures of our society;
• The engineering of service systems and
enterprises requires systemic approach, holistic
view, customer focus and life cycle perspective;
• New acquisition and contracting schemes are
also required;
• A service provision perspective requires a
conceptual paradigm shift: moving from
technologies/products to capabilities and
services.
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3. Service Economy: What is it?
3

4. Towards a Knowledge-Based…
4

5. … and Service-Oriented Economy
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6. The Transition to a “Service Economy”

7. From Goods to Services

8. What is really happening?
• On one side our final products get more and more
added value from the knowledge embedded in them
(knowledge provision being essentially a form of
service);
• On the other side, customers need comprehensive
solutions to their problems (not a car to move
around, but a solution to my mobility problems; not
tools but capabilities).
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9. A New, Awkward Word: Servitization…
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10. …and a New Way of Thinking

11. 11
Products vs. Services

12. What do we mean by "service"?
• By the term “service” we mean the guaranteed and
committed delivery of a capability to a community of
potential customers/users;
• Focus on “commitment” (continued over time) and on
“customer satisfaction”;
• “Technical performance” is an essential prerequisite,
but not an objective;
• NOTA BENE: services are not alternative to (or in
competition with) technology and goods production. On
the contrary, advanced, high value-added services need
state-of-the-art technological products and systems to
be provided. Examples:
– Internet
– Wireless communication networks
– Electric power distribution infrastructure
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13. What is a Service System?
• Service (or service-oriented) systems are
systems meant to provide value-added
services through the use of technology
(mainly information and communications
and technologies, ICT);
• A “service system” has been defined as a
dynamic configuration of people,
technology, organizational networks and
shared information (such as languages,
processes, metrics, prices, policies, and
laws) designed to deliver services that
satisfy the needs, wants, or aspirations of
customers.
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14. Characteristics of Service Systems
• Large and complex systems
• Software intensive (several million lines of
code)
• Capability-based rather than product-based
• Organization and governance (human factor)
• Technical performance is a prerequisite for
production and delivery of services, not a
final objective
• In the definition of the Quality of Service
(QoS), requirements related to operations
and logistics, in addition to technical ones,
assume a very high relevance:
Reliability, Availability, Continuity Safety
Flexibility Security
Expandability Resilience
Maintainability Interoperability
14

15. From Products to Systems to Services
15

16. From a System…
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17. …to a Service
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European GNSS Agency (GSA),
Prague
Galileo Service Centre,
Madrid
Galileo System Infrastructure
Galileo
Security
Monitoring
Centre
Galileo ILS Centre,
Transinne
Galileo Reference Centre,
Noordwijk

18. Galileo Development & Acquisition Process
Galileo
System
Assets
(Satellite Constellation, GCC’s,
GCS, GMS, GDDN, etc.)
Galileo System
Requirements
Galileo System
Performance &
Operations
People
(ESA Project Team,
Subco’s, EC, GSA, etc.)
Processes
(Engineering Board, VCB,
CCB, CM, Ops
Procedures, etc.)

19. Galileo Service Provision Process
Galileo
Services
Assets
(Galileo System, GSC, GPEC, etc.)
Galileo
Services
Requirements
Galileo
Services
Provision
People
(EC, GSA, ESA Support,
Member States, Services
Providers, Operators, etc.)
Processes
(Services Validation, KPIs
Monitoring, Security
Monitoring, Helpdesk, etc.)

20. Specifying a Service System
• Functional and technical performance:
 System Requirements Document (SRD)
• Operational requirements and scenarios:
 Concept of Operations (CONOPS) document
• Expected service behavior and non-functional
performance:
 Service Level Agreement (SLA)
• A typical SLA defines Key Performance Indicators (KPI’s)
and Key Quality Indicators (KQI’s), with target values and
target ranges to be achieved over a certain time period.
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21. Evolution of Contracting in Aerospace
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22. 22
The Total Cost of Ownership Iceberg

23. 23
The Total Cost of Ownership Iceberg

24. Service Management
• Service Management is a set of specialized organizational
capabilities for providing value to users/customers in the
form of services;
• These organizational capabilities include all the processes,
methods, functions, roles and activities that Service
Providers uses to enable them to deliver services to their
customers;
• The inputs to Service Management are the resources and
capabilities that represent the assets of the Service
Provider. The outputs are the services that provide value
to users;
• The focus of Service Management is on the service
delivery process which is different from a system
development and acquisition process (focussed on
technology and technical performance);
• From the Service Management viewpoint technologies and
technical performance are means, not final objectives.

25. What is ITIL?
• ITIL (Information Technology Infrastructure
Library) is a public framework (and a “de
facto” standard) that describes Best Practices
in IT Service Management;
• Although originally conceived and developed
for IT-based services, the ITIL methodology
and practices are applicable to the
management of a generic service provision
process;
• The Galileo service provision organization will
have as its main and essential asset what can
be seen as a large and complex ICT system
(network based, computational intensive,
software intensive);
• ITIL could therefore be a good reference for

26. The ITIL Process Model

27. 27
Key Performance Indicators (KPIs)
• KPIs are tools that may be used by an organization (in
our case, a service enterprise) to define, measure,
monitor and track its performance over time toward
the achievement of its goals;
• KPIs must be quantitative and quantifiable;
• KPIs need to be tailored to the specific organization
priorities and performance criteria. So a service
organization, based on a large, complex, high-
technology system infrastructure, will look to KPIs
that measure areas of performance such as
Availability, Continuity, Mean Time to Repair (MTTR),
customer satisfaction indices, etc.;
• KPIs are often of statistical nature: they can be
evaluated over fixed or rolling time periods.

28. The ITIL KPIs Definition

29. 29
A Book and a Park that changed my life

30. "Spirit to Serve" (1/2)
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31. "Spirit to Serve" (2/2)
“Para servir, servir”
Josemaria Escrivá
Founder of Opus Dei

32. Conclusions
• Our economy is more and more depending on
large, strategic and complex service
infrastructures, based on large, strategic and
complex systems, such as EGNOS and Galileo;
• The design of a complex service enterprise requires
a wide range of skills and expertise's, covering
organizational, engineering, social, legal and
contractual aspects;
• The advent of a services economy imposes a
radical conceptual paradigm shift: moving from
technologies/products to capabilities and services;
• The “spirit to serve” (call it “customer focus”, if you
like) is at the basis of all services.
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33. My Vision: The Global SoS’s Infrastructure
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Earth Observation / IoTTelecomms

34. “One is glad to be of service”
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Thank You
Questions?