Irene C. L. Ng

Outcome‐based service contracts in the defence industry – mitigating the challenges

Purpose – This case study aims to explore the risks and challenges associated with the implementation of outcome‐based contracts (OBCs) in maintenance, repair and overhaul services in the defence industry. It also aims to identify ways to address and reduce them.Design/methodology/approach – The case study approach was used to capture the dynamics of OBCs in B2B service delivery. The challenges and risks were explored using qualitative approaches such as in‐depth interviews, and findings were abstracted through grounded theory. The factors identified from the above findings were structured in a survey and validated using simple descriptive statistics.Findings – This study identified the challenges and risks of implementing OBCs, which include complexity and unpredictability of costs, dependability on customer in delivering the service and cultural change from traditional setting. Although the survey results revealed 11 factors that could mitigate these challenges and risks, the most important factors are ...

Servitization and operations management : a service-dominant logic approach

Purpose – The purpose of this paper is to provide further insight into operations management of the product-service (P-S) transition, known as servitization, and the resulting product service system (PSS) offerings. In exploring the P-S transition, this paper adopts a service-dominant (S-D) logic view of value creation, using it as a lens through which to explore value propositions of the P-S transition and their operations design. Design/methodology/approach – This paper presents an in-depth case study of an original equipment manufacturer of durable capital equipment who, over the last five years, has expanded its offerings to include use- and result-orientated PSS. The research design uses a multi-method approach; employing 28 in-depth qualitative interviews with customers and employees and analysis of texts, documents and secondary data including five years of enterprise resource planning (ERP), call centre and contract data. Findings – The paper identifies ten generic P-S attributes that are abstract...

An integrative framework of value

Originality/value of chapter – This chapter extends existing literature on value through reconciliation of various theoretical literatures in management, marketing, philosophy and economics. Notably, it highlights implicit assumptions in philosophy, chronology and consciousness of value and their potential limitations. It proposes an integrative framework that can be used for understanding the future of marketing and new business models.

Viable Service Systems and Decision Making in Service Management

This paper addresses decision making in the management of complex service systems, highlighting the contribution of the viable systems approach as an interpretative and governance methodology based on systems thinking. In the last few decades, business management has undergone significant changes due to rapid developments in markets. New competitive strategies and technologies have stimulated global discussion about business models and tools (Ghoshal, 2005). The role of relationships has become increasingly relevant in businesses, and researchers as well as industries are shifting their focus to a service-oriented approach, moving from a paradigm of product to one of service (IfM-IBM Cambridge SSME Report, 2008).

Embedding the New Discipline of Service Science

This chapter presents a conceptual discourse for embedding the new discipline of service science. It argues for service science to be free of paradigmatic research influences of existing disciplines, proposing service science as an integrative discipline of engineering, technological and, social sciences for the purpose of value cocreation with customers. The chapter argues that thinking of a service organisation from a systems perspective will complement the traditional reductionist position and that together they will provide a sound foundation for the discipline of service science. The chapter then goes on to put forward a research agenda for service science, considering five salient issues for knowledge production. The argument for service science knowledge production is located alongside disciplinary knowledge of service, in so doing, suggesting that service science is not a logical development within any discipline and that the time is right for it to emerge into a discipline of its own.

S-D Logic Research Directions and Opportunities: The Perspective of Systems, Complexity and Engineering

The need for a systems approach to modelling and understanding service is now well established (Barile, 2009; Barile and Polese, 2009; Golinelli, 2010; Ng et.al.,2011a). Following the construction of Maglio et al. (2009), we view a service system as a network of agents and interactions that integrate resources for value co-creation.To date, several disciplines have broached the systems view of service and the engineering of service systems. However, the agents of the system are usually people whose activities may not easily be controlled by predictable processes and yet are critical aspects of the value-creating system (Ng et al., 2011b). There is need for a new combinative paradigm, such as third-generation activity theory, in which two or more activity systems come into contact, to explore dialogue, exchanging perspectives of multiple actors, resulting in networks or groups of activity systems that are constantly interacting (Marken, 2006; Nardi, 1996; Oliveros et al., 2010).

Operationalising IoT for reverse supply: the development of use-visibility measures

Purpose – Improvement of reverse supply chains requires accurate and timely information about the patterns of consumption. In the consumer context, the ways to generate and access such use-visibility data are in their infancy. The purpose of this study is to demonstrate how the Internet of Things (IoT) may be operationalised in the domestic setting to capture data on a consumer’s use of products and the implications for reverse supply chains. Design/methodology/approach – This study uses an explorative case approach drawing on data from studies of six UK households. “Horizontal” data, which reveals patterns in consumers’ use processes, is generated by combining “vertical” data from multiple sources. Use processes in the homes are mapped using IDEF0 and illustrated with the data. The quantitative data are generated using wireless sensors in the home, and qualitative data are drawn from online calendars, social media, interviews and ethnography. Findings – The study proposes four generic measurement categor...

The three value proposition cycles of equipment-based service

This article contributes to the emerging discipline of service science through an empirical investigation of value propositions as connections between service systems. The starting point for our research is that service science is an interdisciplinary approach to the study, design and implementation of service systems, a service system being considered a dynamic configuration of resources (people, technology, organisations and shared information) that create and deliver value between the provider and the customer through service (IfM and IBM 2008). Specifically, this article investigates value propositions in the context of equipment-based service systems. Our qualitative findings identify three value proposition cycles: Recovery, Availability and Outcome. In so doing, showing that providers offer three distinct propositions of value with three different primary transformations. This research contributes to theory in service systems by identifying value propositions as multiple, simultaneous and iterative connections between provider and customer systems.

Advance Demand and a Critical Analysis of Revenue Management

This paper presents a theoretical framework of advance demand through six propositions. The framework introduces the concept of acquisition and valuation risks and suggests that advance demand distribution is rooted in the trade-off between them. Furthermore, since advance buyers may not consume, firms may be able to re-sell relinquished capacity. The study then proposes how refunds could provide additional revenue to firms. The study further suggests theoretical reasons why and when service firms are able to practise revenue management, suggesting that RM tools such as overbooking and demand forecasting may not be the only tools for higher revenue.

Complex Engineering Service Systems: A Grand Challenge

This chapter examines the contributions made within this book and seeks to add to the development of the framework for complex engineering service systems. Particular focus is placed upon emergent value, which is co-created as customer variety permeates processes.