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ICID Asian Conference in Adelaide, June 2012
Hajime Tanji and Hirohide Kiri
National Institute for Rural Engineering, NARO, Japan
Toshiaki Iida
The University of Tokyo
What is service science?
 In developed countries, industrial structure is moved
to service industry. Production of service is more
important than production of goods.(Innovate
America(2005))
What is service science?
 How to provide good service is key issue of many
industries.
 In many products, price of goods or quality of goods
are not main reason of high sales. The main reason of
high sales may depends on quality of service.
 Service science seeks conditions of client requested
service.
Drinking water system
Service provider
Water company
Supply water as good
Service client
Inhabitants
Facilities are funded,
constructed, owned and
managed by a water
Receive water fee on water volume
company
Irrigation water system?
Service provider
Water company
Supply water as good
Service clients
Farmers
Facilities are funded,
constructed, owned and
managed by a water
Receive water fee on water volume
company
or area
Irrigation water system?
Service provider
Water company
Supply water as good
Service clients
Farmers
Facilities are funded,
constructed, owned and
managed by a water
Receive water fee on water volume
company
or area
What is irrigation service?
 Irrigation benefit, not only water volume but also





utilization value.
Water (as good) is only one component of irrigation
service.
Good irrigation service should increasing benefit of
irrigation.
Irrigation service should replay to any request by
farmers.
Irrigation service should produce new benefit.
Renaut et.al. (2007) says irrigation service is a major
problem second to modernization problem.
What is the purpose of service
science of irrigation?
 Improving quality of irrigation service.
 Improving yields of crops.
 Improving quality of crops.
 Improving working time and quality of water management.
 Decreasing fertilizer input.
 Decreasing the risk of
 On demand service of irrigation.
 Avoiding or minimize draught risk.
 Connecting the value of agricultural products to consumer.
Vergo’s new paradigm; SDL
 In former days, goods and service are considered
opposed terms(GDL: Good Dominant Logic). Many
researchers suggested this scheme is not adequate.
 Vergo (2004,2010) proposed new paradigm (SDL:
Service Dominant Logic)in which good and service are
connected and providers and clients are working
together to create value.
 The authors applied to used two paradigm (GDL and
SDL) to express irrigation service.
SDL for irrigation
Main and
Connecting points (or
secondary canals. boder) of providers
Service provider
Water company
and clients
Supply irrigation service
Co-value creation
Facilities are funded,
constructed, owned and
managed by a water
Water fee is only a
company
part of service cost.
Tertiary canals
and inside field.
Service clients
Farmers
SDL application to four irrigation
schemes
Each scheme has border or connecting point.
Scheme
Aichi
North Yoshinogawa
Inbanuma
Mae Rao
Country
Japan
Japan
Japan
Thailand
Main canal
Japan Water Agency
Water user association Japan Water Agency
Royal Irrigation Department
Border
Border
Secondary canal
Water user association
Farmers
Border
None
Farmers
Border
Tertiary canal
Farmers
Farmers
Farmers
Farmers
Border location
Secondary to tertiary
Main to secondary
Main to tertially
Main to secondary
G-D logic VS. S-D logic regarding
value creation for irrigation service
Vergo’s original paper
Value
driver
Aothors’ application
G-D logic
S-D logic
Value-in-exchange
Value-in-use or value-inValue in water supply
context
Firm, often with input
Creator of
from firms in a supply
value
chain
GDL for irrigation
SDL for Irrigation
Value in water use
Supplier, often with
Supplier, network
Firm, network partners,
input from suppliers in partners (water manager
and customers
the irrigation scheme in farmers) and farmers
Firms embed value in
Process of ‘‘goods’’ or‘‘services’’,
value
value is ‘added’ by
creation enhancing or increasing
attributes
Firms propose value
through market
offerings, customers
continue value-creation
process through use
Purpose of Increase wealth for the
value
firm
Increase adaptability,
survivability, and system
well-being through
Increase wealth for
service (applied
water supplier
knowledge and skills) of
others
Supplier embed value
in water, values is
added by flexibility of
intake
Supplier proposes values
through irrigation water
distribution to secondary
canals, farmers continue
value-creation process
through irrigation water
distribution and water use
at plots
Increase water use
adaptability, survivability,
and system well-being
through water distribution
by farmers
G-D logic
S-D logic
GDL for irrigation
Measurem The amount of nominal
ent of
value, price received in
value
exchange
The adaptability and
survivability of the
beneficiary system
Full cost recovery of
water supply and the The adaptability and
amount of nominal
survivability of water
value, price received in distribution system
exchange
Resources Primarily operand
used
resources
Primarily operant
resources, sometimes
transferred by
embedding them in
operand resourcesgoods
Water as primary
operand resources
Role of
firm
Produce and distribute
value
Propose and co-create
value, provide service
Propose and co-create use
Produce and distribute
of water as value, provide
water
water distribution service
Role of
goods
Canal operation as
Vehicle for operant
vehicles for operand
Units of output, operand
Units of water, delivery
resources, enables
resources of water,
resources that are
resources that are
access to benefits of firm
enables access to benefit
embedded with value
embedded with value
competences
of supplier water
distribution
Co-create value through
the integration of firm
To ‘use up’ value of
Role of
To ‘use up’ or ‘destroy’
provided resources with water created by
customers value created by the firm
other private and public supplier
resources
SDL for Irrigation
Water as primary operand
resources, sometimes
transferred by embedding
them in operation of
distribution system as
operand resources-goods
Co-create value of
irrigation water through
recycle use of water
resources with other
private and public
operators of facilities
Case study
Aichi irrigation scheme
Aichi irrigation scheme
Kiso River
Irrigated area
Paddy and Upland crops
15,000 ha,
Main canal 100 km
Nagoya City
Main crops
Rice, Onion, Butterbur,
Orange, Fig, Tropical
orchid, Carnation etc.
Tomei Expressway
Tokaido Main Line
Tokaido Shinkansen
Ise bay
Mikawa bay
Main canal
Irrigated area
Aichi irrigation scheme
 Constructed in 1961. After 2000, Aichi irrigation




scheme was renewal.
Conveyance efficiency of main canals are 100%.
In near future, total intake volume may decrease 10 20%, which should accomplished by improving
efficiency at tertiary canal levels. Water in tertiary
canals are managed by farmers groups.
How to improve water management by farmers group
is an important issue.
Is there any good rule of water management or water
fee system ?
Aichi irrigation scheme
Main canal
Farm pond
Central control office
Inside field part
Who pays fee for irrigation service?
Co-creation value of irrigation.
Owner
Survice Supplier Paymant for service
Water manager Farmers
Water
Investment Fee
Water Resource
Y
Y
Agency
Main canal
Government
Main canal
Government
WUA
Y
Y
Secondary canal
Farm ponds
Tertiary canal
Inside field part
Government
Farmers group
Farmers group
Farmer
WUA
Farmer group
Farmer group
Farmer
Y
Y
Y
Y
Y
N
N
N
by farmers
Farmers Remarks
Works
Multiporpose
N
use part
Agricuture only
N
use part
N
Y
Y
Y
Payment based on area size
Payment based on area size or
water volume=alternative?
Constraint of water fee system
 Harmonize to “Farmers Investment” and “Farmers
Works” for water management. That is, initial
investment and farmers works based on area should be
considered.
 All farmers can pay water fee by income from crops.
This means even highest water consumption can be
allowed.
 Improving irrigation efficiency can be strongly
promoted.
 Total income by water fee should be keep for
maintaining WUA.
How to improve service quality?
-Proposal of new water fee system Water fee is firstly based on irrigated area.
 To promote improving irrigation efficiency, if farmers save some
volume of irrigation water, he or she can get some cash back of
water fee depends on saved volume. Drought function ?
 For high consumption area, some countermeasure to reduce
irrigation consumption, such as decreasing infiltration by topsoil
brought from another place to mix with the soil, should be
applied by cost of WUA.
 Unit water fee ratio should be adjusted to keep total income to
WUA.
Water Fee
Cash back
Water fee
per
Total fee
par area
volume
Conclusion
 Irrigation service can be expressed by Vergo’s SDL.
 Water fee is only a part of irrigation service cost.
 New allowable irrigation fee system can be proposed based on
SDL.
 References
 Council of Competitiveness (2005) Innovate America: Thriving
in a World of Challenge and Change. National Innovation
Initiative Summit and Report.
 Lusch RF, Vargo, SL, & Tanniru M, (2010) Service, value networks
and learning. Journal of the Academic Marketing Science. 38,1931.
 Renaut, D., Falcon, T, and Wahaji,R. (2007) Modernizing
irrigation management – the MASSCOTE approach. FAO
Irrigation and drainage paper No.63
 Vargo, SL. & Lusch RF. (2004) Evolving to a New Dominant Logic
of Marketing. Journal of Marketing 68, 1-17.