Management Development for Service Business Innovation

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Transcript Management Development for Service Business Innovation

Workshop on Management Development for Service Business Innovation

Rendez: Renewal and Redirection –

New Management Models for Supporting Innovation Implementation

October 30, 2007 at Nokia House, Espoo, Finland This presentation is clearer when viewed as a slide show.

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October Sun Flowers by Bob Owen , from flickr.com

Agenda

09:00 12:00 Welcome and introductions Constructing the pilot curriculum for the Master's degree in International Service Business Management at Stadia Service Innovation Educational Program (Japan) Competence development in corporate settings Discussion: Dimensions for development of managers for the 21st century Theory into practice: refining the Stadia Master's program for its second year of operation Adjourn

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David Ing David Ing Jim Kijima Minna Takala (all) .

Taina Tukiainen Page 2

Purpose

The

nature of business

has changed(?) •services revolution •open innovation networks •knowledge economy •globalization

Training

developed in the

industrial age

of manufacturing products is incomplete?

 Frameworks, methods and/or tools for directing and operating in this new context.

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Focus Question:

What

content

(i.e.

curriculum

experiences

skills development

) should be considered in the development of new

university level programs

for the

businesses

in the

21st century?

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Workshop participants

Stadia / Helsinki University of Professional Education Nokia IBM Tokyo Institute of Technology Hosei University Helsinki University of Technology  Taina Tukiainen, Head of Department of Industrial Management    Minna Takala, Business Improvement Services Minnamaria Miller, Project Manager, Quality Sanna Vähänen, CARE  David Ing, IBM Software Group (Canada), and Ph.D. Student, Helsinki U. of Technology  Ville Peltola, Consultant, Strategic Innovation; and Industrial Sector Lead, Best of Blue (Finland)  Kyoichi (Jim) Kijima, Professor of Decision Systems Sciences  Hiroshi Deguchi, professor of Computational Intelligence and Systems Science  Akira Tokuyasu, professor of Sociology  Mikko Heiskala, SoberIT Page 4

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Constructing the pilot curriculum for the Master's degree in International Service Business Management at Helsinki Polytechnic Stadia

David Ing © David Ing, 2007

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Agenda

A.

B.

C.

D. Context Services-Oriented Textbooks IBM Open Courseware Modules Pilot Design for Stadia in 2006

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Businesses should check their preconceptions on the nature of innovation

Value Relationship Method Economics Industrial age mindset on innovation

Secret weapon perfected to overwhelm Transactional hand-offs Analytical problem-solving Colonial trade + + + +

New nature of innovation

as platform for acceleration learning teams conversations Page 7

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IBM Almaden open courseware modules on SSME: an invitation to do better in instruction

1: Overview of SSME 2: What are Services? 3: Service Systems 4: Considerations for the Management of Services 5: Productivity and Innovation 6: Introduction to Methods 7: SSME Challenges, Frameworks  What is Services Science, Management and Engineering?

 Timeline: beyond 2010   Service sector Service-dominant view (co-creation of value, relationships, service provisioning)  General systems theory, value creation  Service strategy (sense-and-respond), organization (tangible culture), componentization, measures  Productivity paradox, economic measures  Knowledge patterns, method adoption workshops   Research: (see next slide) October 2006 Palisades conference Details at http://www-304.ibm.com/jct09002c/university/scholars/skills/ssme/resources.html

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Five key science and research challenges: an invitation to do better on research frameworks

1: Empirical frameworks needed    How can a scientist quickly do experiments? Test a hypothesis?

What tool allows for improved measurement of service system parameters?

Empirical tools – simulation tools and techniques 2: Analytic framework needed    What type of mathematical models can be constructed?

What analytic tools exist to study and refine mathematical models?

Analytic tools – mathematical tools and techniques 3: Engineering framework needed 4: Theoretical framework needed 5: Multidisciplinary Design framework needed     Design What is the practical payoff from the science?

What tools can help in the construction of new service and solution innovations?

Engineering tools – workbench to assemble standard components, and infrastructure platform to deploy them into practice     What theory allows service systems to be described and explained?

What theory allows the evolution of service systems to be designed and controlled?

What predictions can be made and verified based on the theory?

Theoretical tools – standard terminology, measures, and principles  Multidisciplinary design tools – palette of customizations Page 9

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Textbook #1 considered: (actually, the 2005 5 th edition …, 1.8 lbs. plus CD)

James A. Fitzsimmons and Mona A. Fitzsimmons, Service Management: Operations, Strategy, Information Technology, McGraw-Hill , 2008 (6 th ed)

PART I: Understanding Services Chapter 1: The Role of Services in an Economy Chapter 2: The Nature of Services Chapter 3: Service Strategy PART II: Designing the Service Enterprise Chapter 4: New Service Development Chapter 5: Technology in Services Chapter 6: Service Quality Chapter 7: Process Improvement (DEA supplement) Chapter 8: The Service Encounter Chapter 9: Supporting Facility and Process Flows Chapter 10: Service Facility Location PART III: Managing Service Operations Chapter 11: Managing Capacity and Demand Chapter 12: Managing Waiting Lines Chapter 13: Service Supply Relationships Chapter 14: Growth and Globalization of Services Chapter 15: Managing Projects PART IV: Quantitative Models for Service Management Chapter 16: Capacity Planning and Queuing Models (Simulation) Chapter 17: Forecasting Demand for Services Chapter 18: Managing Facilitating Goods

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Appendices: Areas of a Standard Normal Distribution Uniformly Distributed Random Numbers [0,1] Values of Lq for the M/M/c Queuing Model Equations for Selected Queuing Models Page 10

Textbook #2 considered: (actually, the 2003 5 th edition of …)

Christopher Lovelock and Jochen Wirtz, Service Marketing, People, Technology, Strategy, Prentice-Hall , 2007 (6 th edition), 672 pp

PART 1: UNDERSTANDING SERVICE MARKETS, PRODUCTS, AND CUSTOMERS 1. New Perspectives on Marketing in the Service Economy 2. Customer Behavior in Service Encounters PART 2: BUILDING THE SERVICE MODEL 3. Developing Service Concepts: Core and Supplementary Elements 4. Distributing Services through Physical and Electronic Channels 5. Exploring Business Models: Pricing and Revenue Management 6. Educating Customers and Promoting the Value Proposition 7. Positioning Services in Competitive Markets PART 3: MANAGING THE CUSTOMER INTERFACE 8. Designing and Managing Service Processes 9. Balancing Demand against Productive Capacity 10. Crafting the Service Environment 11. Managing Service Employees for Competitive Advantage PART 4: IMPLEMENTING PROFITABLE SERVICE STRATEGIES 12. Creating Relationships and Building Customer Loyalty 13. Achieving Service Recovery and Obtaining Customer Feedback 14. Improving Service Quality and Productivity 15. Organizing for Change Management and Service Leadership READINGS Wingfield, “In a Dizzying World, One Way to Keep Up: Renting Possessions” Datta and Krishnan, “The Health Travellers” Kimes and Chase, “The Strategic Levers of Yield Management” Thornton, “Fees! Fees! Fees!” Roberts, “Best Practice: Defensive Marketing—How a Strong Incumbent Can Protect Its Position” Heracleous, Wirtz and Johnston, “Kung-Fu Service Development at Singapore Airlines” Gilson and Khandelwal, “Getting More from Call Centers: Used Properly, They Can Be Strategic Assets” Haeckel, Carbone, and Berry, “How to Lead the Customer Experience” Brady, “Why Service Stinks” Berry, Shankar, Parish, Cadwallader, and Dotzel, “Creating New Markets through Service Innovation” Reichheld, “The One Number You Need to Grow” … plus 18 cases!

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Textbook #3 considered:

Valarie Zeithaml, Mary Jo Bitner, Dwayne D. Gremler , Services

Marketing,

Prentice-Hall , 2005 (4 th edition), 736 pp

PART ONE: FOUNDATIONS FOR SERVICES MARKETING Chapter 1. Introduction to Services Chapter 2. Conceptual Framework for the Book: The Gaps Model of Service Quality PART TWO: FOCUS ON THE CUSTOMER Chapter 3. Consumer Behavior in Services Chapter 4. Customer Expectations in Services Chapter 5. Customer Perceptions in Services PART THREE: UNDERSTANDING CUSTOMER REQUIREMENTS Chapter 6. Listening to Customers through Research Chapter 7. Building Customer Relationships Chapter 8. Service Recovery PART FOUR: ALIGNING STRATEGY, SERVICE DESIGN, AND STANDARDS Chapter 9. Service Development and Design Chapter 10. Customer-Defined Service Standards Chapter 11. Physical Evidence and the Servicescape PART FIVE: DELIVERING AND PERFORMING SERVICE Chapter 12. Employees’ Roles in Service Delivery Chapter 13. Customers’ Roles in Service Delivery Chapter 14. Delivering Service through Intermediaries and Electronic Channels Chapter 15. Managing Demand and Capacity PART SIX: MANAGING SERVICE PROMISES Chapter 16. Integrated Services Marketing Communications Chapter 17. Pricing of Services PART SEVEN: OUTCOMES OF SERVICE INVESTMENTS Chapter 18. The Financial and CASES Economic Effect of Services Page 12

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Vision: international service business management, as three dimensions and three threads

Functional dimension  Management (over eng or sci)  Students with work experience  Traditional (e.g. marketing, finance)  Most current business issues Conceptual thread  Readings broad and deep  Most essential ideas and issues in services businesses today  Articles, instead of multiple textbooks Sector dimension  For intuitions on service businesses  Practices and conventional wisdoms  e.g. professionalism in nursing, customer service in restaurants, coordination in courier delivery Cultural anthropological dimension  ICT, open borders  international  Multinational evolution from local  Bridge from local culture (i.e. Finnish) to foreign, (e.g. Indian-style, Chinese-style) Details at http://rendez.org/stadia-isbm-2006-dimensions

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Interpretive thread  Guest lectures from services practitioners (or audio or tv programs)  Cross-cultural challenges, day to day work issues Experiential thread  Apply learning on a research project with a real-life business (maybe employer)  Introductions to research methods  Coaching by course instructors Page 13

The functional, sector and cultural anthropological dimensions were woven into a heavy fall term

1 Service businesses in a global economy 13 Innovation and service management 2 3 4 5 6 7 8 9 10 11 12 The nature of services businesses Customer experience design and the voice of the customer Client management and relationship alignment Business model innovation and strategic development Business process modelling and operations innovation 14 15 16 17 18 Service delivery, collaboration and outsourcing Entrepreneurism, cases in Chinese and Japanese-style business Telecom services and service quality; cases in European style business Technology architecture, cases in information technology services Service supply chains; cases in logistics and transportation services Research methods: pragmatic and constructive designs Research methods: survey and hermeneutic designs 19 20 Ventures; cases in Anglo-American-style business Alliances, cases in Latin-style business Solution design; cases in telecom services Service encounters and capacity management; cases in hospitality services Human capital and communities of practice; cases in health services Service leadership; cases in educational services 21 22 23 Industrial policy, cases in Scandinavian-style business Customer interfaces Sustainability and competitiveness 24 Business networks, strategic balance and governance Details at http://rendez.org/stadia-isbm-2006-sessions Page 14

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Students were to take an active role in co-leading the class, in addition to completing credits and a thesis

Student roles:  Discussion leader(s):  Each student bids to lead session  Read 6 to 8 articles  Prepare slides (e.g. Powerpoint) to structure discussion  Not required to become the ultimate expert on content  Draw on experiences, interpretations and understanding amongst classmates.  Discussion participants:  Read, at least lightly, two articles of interest on the prescribed content.

 Active conversation  Opening lines of questions that may help in preparation of the thesis.

Assignment papers, 5-10 pages  5 credits: Principles: Business in a services economy, and business research methods  5 credits: Customers, business models and innovation  5 credits: Services in an international context  5 credits: Service leadership, organizational development and teamwork  5 credits: Service delivery and technology architectures  5 credits: Strategic management, intra/entrepreneurship, alliances and venturing

Note

: The working language for the class is English, with international students participating.

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Coordination via web site, including multi-user blogs rendez.org

http://rendez.org runs on

Drupal

-- open source software with password protected "Organic Groups".

The domain name is registered to David Ing, and hosted (cheaply!) on an American ISP.

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Educational Program of Design Innovators of Social Service Value

At Tokyo Institute of Technology From April, 2008

Who is K.Jim Kijima?

President 2006-07, The International Society for the Systems Sciences Background  Operational Research  Decision Science  Systems Engineering  Mathematical General Systems Theory Then, moving to more Interdisciplinary field 2007.10.30

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Kyochi Kijima 18

Research Field

A new paradigm “Decision Systems Science” which consists of (1) Systems Modeling to understand and analyze decision making, by putting emphasis on concept of systems, i.e., interactions and emergence  “First formal, then verbal” principle Begin with formal or mathematical modeling to seek deep and rigorous insights/finding as much as possible;  Hypergame modeling of misunderstanding  dramatic modeling of negotiation

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Then, construct conceptual model to catch the features beyond formal modeling 19

Research Field

(2) Hard/Soft Systems Approach to manage a complex decision situation the participants by supporting Soft Systems methodology (SSM) for achieving accommodation Evaluation of process of participatory Decision making and group consensus building 2007.10.30

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Kyochi Kijima 20

Educational Program of Design Innovators of Social Service Value

- A new educational program funded by the Ministry of Education - Will be established at Tokyo Institute of Technology in April, 2008.

- Conducted under the “umbrella” scheme of the ministry called Education and cultivation scheme of Service Innovators 2007.10.30

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Kyochi Kijima 21

Aims of the Program

To educate social service design-innovators, who are able to design, create, evaluate and innovate truely useful social service value so as to feedback fruites of science and technology to the society.

2007.10.30

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Program Status

We will establish the program as a new liberal arts program, by which the students gain such inter-disciplinary ability that they can draw a structured map of human knowledge from the viewpoint of systems science .

Why systems Science? because to investigate service system we are required to identify it as a system in which all the 2007.10.30

Kyochi Kijima elements are related with each other. 23

Service

- Consumed at the same time as produced - Knowledge/intelligence created by science and technology valuable for the society including  Innovative business models  Brand-new public service  Essential features of the social infrastructure such as safe, security, amenity and ability of their implementation 2007.10.30

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Future of Program

After three years,… this should be recognized as an essential literacy educational program for science/technology based graduate students in the 21st century.

2007.10.30

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Kyochi Kijima 25

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Invite d le ctures from industry, gove rnme nt, and overse as

support

- Basics for cre ation of Social se rvice value Graduate - Design of Social se rvice value Design innovators of stude nts - Analysis and e valuation of Social service Åi with Knowledge of value

basis

Human/social science s Åi social se rvice value Inte lligence e nable to de sign, cre ate , e valuate and innovate truely use ful social se rvice Social systems Science s value Åj Expe xted to work as research managers, for inte rnational organizations , or pursue PhD degre e with adaptable inte llectual potential.

Tentative Curriculum: Four Areas

- Communication Skill - Basics for Creation of Social Service Value - Design of Social Service Value - Analysis and Evaluation of Social Service value 2007.10.30

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Tentative Curriculum:

Communication Skill  Short-term overseas exchange scheme  Presentation in English Basics for Creation of Social Service Value  Advanced course in Service Science and Engineering  Systems Science Literacy  Service Innovation (intensive, in English)  Value Structure and Consensus Building  Systems Approach to Symbiosis and Conflict  Kyochi Kijima 28 Value of Environment and International Security (in English)

Tentative Curriculum

Design of Social Service Value  Community Service Simulation (intensive)  Educational Service Contents (intensive)  Service Design of Architects (intensive) Analysis and Evaluation of Social Service Value  Service Requirements Analysis (intensive)  Service Value creation of Small business (intensive) 2007.10.30

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Kyochi Kijima 29