Service systems refer to any configuration of people, technology, and internal and external service systems which work together to co-produce value for its users. They are frequently mentioned in the literature regarding service management, operations management, marketing engineering, or service marketing and engineering.
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Proto-service systems were the precursors to service system theory in service management. In particular, these early efforts emphasized customers, independent and empowered employees, service concepts, and an organization as a support system.
Definition
Service systems are dynamic temporal entities composed of three primary components. The first of these is service commitment, which refers to promises made by companies to customers; and the second is service process, which describes its implementation.
The third component is a service value exchange, which involves interactions among actors that produce value for both sides. Through these exchanges, the service system creates mutually beneficial outcomes.
At first, scholars studying service systems emphasized the constituent parts of a service system such as customers and employees (Gronroos 1998) as well as organizational structures and systems, management practices, and physical resources that make up its structure. Over time, however, attention has shifted from these components towards interaction among actors and the co-creation of value; marking an important advancement for service system research in general. This development marks an exciting step forward for service systems studies as part of a wider trend of services research.
Purpose
Service systems are technological and organizational networks designed to deliver services that satisfy customer requirements, and can be found across industries ranging from software to aerospace and defense. Also referred to as product service systems (PSS).
Service Systems research encompasses several approaches. One common angle is value constellations analysis, which looks at service firms as constellations of constituencies that operate within an identifiable space and time.
The network view is another popular approach that sees a service system as an interconnected web of relationships and resources, which connects customers and employees within an organization. Furthermore, this approach highlights how companies utilize IT to track customer issues.
Functions
Customers play an active role in service systems to the extent that they can alter costs and quality of services provided, and value creation processes; their actions affect other customers as well. For instance, an impatient customer at a fast food counter slows service down for those waiting behind him.
Effective service system management demands differentiating between high contact and low contact components of a service system, in order to match compensation systems to operating characteristics. Furthermore, separation of functions helps increase two distinct sets of worker skills and orientations: public relations/interpersonal skills for high contact tasks while technical/analytical expertise for low contact tasks.
Components
Components of a service system encompass both front-stage activities experienced by customers (for instance receptionists and stylists in a hairdressing parlour) as well as behind-the-scenes organizational activity that remains invisible to them (such as staff training). Some service providers deliberately expose some aspects of this backstage operation in an attempt to enhance customers' perceptions of quality service delivery.
One of the key components of any service system is a ticketing system, which enables you to monitor and respond to customers' requests in an efficient manner. It helps ensure each customer enjoys an exceptional and uniform experience, and allows you to measure performance as well as identify areas for improvement.
Implementation
Implementation of a service system involves the deployment and execution of specific plans, such as recovery plans for cities after natural disasters or systems to distribute COVID-19 vaccines amongst the general population.
Properly planned service systems utilize technology and organizational networks that empower even relatively inexperienced employees to perform highly sophisticated tasks quickly, bypassing learning curve delays. Such systems should provide both service provider employees as well as customers with self service options (e.g. library counters or hotel reception desks).
Senior leadership must communicate the purpose and benefits of any new service system with employees in order to ensure its successful implementation. Internal champions may help socialize the system and gain buy-in from others; for optimal success, tailor your communication strategies according to each employee's Reference Profile or behavioral pattern.