Abstract

Today, delivery of services is often structured to optimize provider processes and minimize delivery cost. The impact of the resulting delivery quality on the customers is only rarely taken into ac-count. However, its inclusion would open up significant design potential from a “service system engineering” point of view. This is evident, e.g., in industrial maintenance scenarios, where pro-vider costs are frequently minimized, whereas other system-wide costs like failure or consequential costs on the customer side, are neglected. This work proposes the concept of system-oriented service delivery that creates additional value by delivering service such that total system costs (i.e. the sum of delivery and consequential costs) are minimized. Via the introduction of a monetary re-allocation mechanism between individual partic-ipants, any individual disadvantage due to the shift towards system-oriented service delivery can fully be compensated. Therefore, the proposed concept results in a Pareto improvement over to-day’s solutions. Thus, we apply service system thinking to propose a radically new view to design service delivery. While still a number of issues need to be tackled in practice, the notion of system-oriented service delivery will give rise to new business models for providers and more effective solutions overall.

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