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.
Wolff, Clemens; Kühl, Niklas; and Satzger, Gerhard, "SYSTEM-ORIENTED SERVICE DELIVERY: THE APPLICATION OF SERVICE SYSTEM ENGINEERING TO SERVICE DELIVERY" (2018). Research Papers. 128.