Service network

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A service network is a structure that brings together several entities to deliver a particular service. For instance, one organisation (the buyer) may sub-contract another organisation (the supplier) to deliver after-sales services to a third party (the customer). [1] The buyer may use more than one supplier. Likewise, the supplier may participate in other networks. The rationale for a service network is that each organisation is focusing on what they do best. [2]

Contents

A service network can also be defined as a collection of people and information brought together on the internet to provide a specific service or achieve a common business objective. It is an evolving extension of service systems and applies Enterprise 2.0 technologies, also known as enterprise social software, to enable corporations to leverage the advances of the consumer internet for the benefit of business. In this case, the service network is designed to benefit from the wisdom of crowds and a human's natural tendency and desire to share information, collaborate, and self organize into communities of common interests and objectives. In business, the value of collaboration is clearly recognized, but the ability is often hampered by rigid organizational boundaries and fragmented information systems. A service network enables businesses to realize the benefits of mass collaboration despite the constraints of modern organizational structures and systems.

Internet Global system of connected computer networks

The Internet is the global system of interconnected computer networks that use the Internet protocol suite (TCP/IP) to link devices worldwide. It is a network of networks that consists of private, public, academic, business, and government networks of local to global scope, linked by a broad array of electronic, wireless, and optical networking technologies. The Internet carries a vast range of information resources and services, such as the inter-linked hypertext documents and applications of the World Wide Web (WWW), electronic mail, telephony, and file sharing.

Service (economics) intangible offerings inseparable from their creators labor, which bring utility value to their buyer

In economics, a service is a transaction in which no physical goods are transferred from the seller to the buyer. The benefits of such a service are held to be demonstrated by the buyer's willingness to make the exchange. Public services are those that society as a whole pays for. Using resources, skill, ingenuity, and experience, service providers benefit service consumers. Service is intangible in nature.

A service system is a configuration of technology and organizational networks designed to deliver services that satisfy the needs, wants, or aspirations of customers.

The term service network is increasingly being used within the context of service innovation initiatives that span academia, business, and government. Some examples include:

Service innovation is used to refer to many things. These include but not limited to:

  1. Innovation in services, in service products – new or improved service products. Often this is contrasted with “technological innovation”, though service products can have technological elements. This sense of service innovation is closely related to service design and "new service development".
  2. Innovation in service processes – new or improved ways of designing and producing services. This may include innovation in service delivery systems, though often this will be regarded instead as a service product innovation. Innovation of this sort may be technological, technique- or expertise-based,or a matter of work organization.
  3. Innovation in service firms, organizations, and industries – organizational innovations, as well as service product and process innovations, and the management of innovation processes, within service organizations.

History

The world's economy is shifting rapidly from agriculture and manufacturing to services. When the United States declared independence, 90% of the world's economy was on the farm. [6] Today, the services sector accounts for approximately 80% of the U.S. economy. [7] But unlike traditional disciplines like computer science and engineering, innovation and investment directed towards service innovation had historically not kept pace with its growth.

However, in 2007, momentum and investment in service innovation grew dramatically and the creation and evolution of service networks began in earnest along with many other service initiatives.

Investments in service innovation

Investments in service innovation include, but are not limited to, service networks.

Service science, management, and engineering (SSME) is a term introduced by IBM to describe service science, an interdisciplinary approach to the study, design, and implementation of service systems – complex systems in which specific arrangements of people and technologies take actions that provide value for others. More precisely, SSME has been defined as the application of science, management, and engineering disciplines to tasks that one organization beneficially performs for and with another.

Delivery and usage

Service networks are typically delivered as an online or hosted solution, also referred to as software as a service (SaaS) solutions.

See also

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References

  1. ↑ Wynstra, F., Spring, M., & Schoenherr, T. (Forthcoming). Service Triads: A Research Agenda for Buyer-Supplier-Customer Triads in Business Services. Journal of Operations Management.
  2. ↑ Holcomb, T. R., & Hitt, M. A. (2007). Toward a Model of Strategic Outsourcing. Journal of Operations Management, 25(2), 464-481
  3. ↑ Succeeding through Service Innovation (PDF). Cambridge Service Science, Management and Engineering Symposium. 2007-07-14.
  4. ↑ "The Ingres Service Network".
  5. 1 2 "Openwater Service Networks".
  6. ↑ "Service Systems Engineering". Michigan Technological University.
  7. ↑ "Hillary Clinton's Innovation Agenda".
  8. ↑ "Service Innovation: The Next Big Thing".
  9. ↑ "Missouri State University Introduces New Degree in IT Service Management".

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