The value perspective in the analysis and design of service systems

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Thesis

Reference

The value perspective in the analysis and design of service systems

FRAGKIDIS, Garyfallos

Abstract

The thesis proposes an interdisciplinary framework for service research in information systems that goes beyond the technological concerns and integrates the business concerns about service processes and models and the user's concerns about service usage and value.

Based on this framework, the thesis analyzes further the concept of service value and suggests the value perspective in the analysis and design of service systems. In addition, the thesis analyses the role of the user in service systems and suggests a method for service analysis and design that emphasises on the use of service by the user. The research outcomes can provide several research implications and insights and can inspire various potential uses, especially in research projects that seek to integrate a variety of technologies and services with the purpose to facilitate and enable people in their daily life practices.

FRAGKIDIS, Garyfallos. The value perspective in the analysis and design of service systems . Thèse de doctorat : Univ. Genève, 2016, no. GSEM 38

URN : urn:nbn:ch:unige-893068

DOI : 10.13097/archive-ouverte/unige:89306

Available at:

http://archive-ouverte.unige.ch/unige:89306

Disclaimer: layout of this document may differ from the published version.

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the analysis and design of service systems

THÈSE

présentée à la Faculté d’Economie et de Management de l’Université de Genève

par

Garyfallos Fragkidis

sous la direction de

prof. Dimitri Konstantas

pour l’obtention du grade de

Docteur ès Économie et Management mention Systèmes d’Information

Membres du jury de thèse:

M. Dimitri KONSTANTAS, Professeur M. Bernard Morard, Professeur, président du jury Mme. Giovanna DI MARZO SERUGENDO, Professeur M. Dimitri KOTZINOS, Professeur, Université de Cergy Pontoise,

France

M. Adamantios KOUMPIS, Professeur, Universität Passau, Germany

Thèse no 38

Genève, 1 novembre 2016

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La Faculté d’Economie et de Management, sur préavis du jury, a autorisé l’impression de la présente thèse, sans entendre, par-là, émettre aucune opinion sur les propositions qui s’y trouvent énoncées et qui n’engagent que la responsabilité de leur auteur.

Genève, le 1 novembre 2016

La Doyenne

Maria-Pia VICTORIA FESER

Impression d'après le manuscrit de l'auteur

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Résumé

Le progrès continu des TIC et la ‘digitalisation de la vie’ présentent des défis uniques pour la recherche de services. Alors que les technologies de l'information deviennent omniprésents dans la vie des gens et les services qu'ils fournissent deviennent intégrés dans les pratiques de la vie quotidienne, il y a un besoin croissant pour une meilleure compréhension du rôle des technologies de l'information et de l'utilisation des services dans la vie quotidienne et pour le développement de nouvelles approches pour l'étude, l'analyse et la conception de systèmes de services.

La recherche dans les systèmes d'information qui concerne les systèmes de services insiste traditionnellement sur l'infrastructure technologique et la fonctionnalité de calcul qui est appliquée dans les opérations de service.

Toutefois, ce point de vue sur les systèmes de service est incomplète car elle ne tient pas compte des aspects importants pour l'offre de service, son utilisation et la valeur pour l'utilisateur. Une vision élargie sur les systèmes de services faudrait analyser, à côté de technologies, les modèles d’entreprise pour la production et la diffusion de services et les modèles d'utilisation et de la valeur de services pour l'utilisateur. Une telle vision comprendre l'informatique des services dans le monde réel des entreprises et des personnes et elle peut contribue à l'élaboration d'approches novatrices dans l'étude des systèmes de services.

La thèse vise tout d'abord à l'élaboration d'un cadre de recherche interdisciplinaire qui adopte ce point de vue élargi sur les systèmes de services et intègre la technologie avec les modèles d'entreprise et les préoccupations de l'utilisateur. Sur la base de ce cadre, la thèse analyse le concept de valeur dans les systèmes de services, le rôle de l'utilisateur dans les processus de service, et le point de vue de l'utilisateur dans l'analyse et la conception de service.

La méthodologie de recherche adoptée vise à exploiter la connaissance de la littérature de gestion de service contemporaine pour développer le cadre de recherche interdisciplinaire pour l'étude des systèmes de services. En particulier, elle vise à fournir des réponses aux sujets de recherche clés, tels que la notion de valeur de service, le rôle de l'utilisateur dans les processus de service et la perspective de l'utilisateur dans l'analyse et la conception de service.

Le cadre interdisciplinaire pour l'étude des systèmes de services intègre trois domaines de la recherche sur les services: le domaine de la technologie, le domaine de l'entreprise et le domaine de l'utilisateur. Le cadre étend la recherche des systèmes de services dans d'autres aspects qui se rapportent à l'offre de service, l’utilisation de service et le valeur de service dans le monde réel. Le cadre développe le point de vue de la valeur dans l'analyse et la conception de systèmes de services, en tant que valeur est utilisée comme le concept sous-jacent des phénomènes de services dans les trois domaines et le dénominateur commun des différentes priorités et préoccupations. Le point de vue de la valeur indique que la valeur de service est créé d'une manière progressive le long des phases de développement, de fourniture et de l'utilisation des services, dans les trois domaines respectivement.

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Le concept de valeur de service est analysé de plus et formalisé avec deux modèles conceptuels afin d'améliorer la compréhension et appuyer l'analyse de la valeur de service. Le premier modèle prend une vue globale sur le cadre de recherche et dépeint les concepts et les relations dans des écosystèmes de services. Le second modèle zoome dans le domaine de l'utilisateur et met l'accent sur la perspective de l'utilisateur dans la valeur de service.

Le rôle de l'utilisateur dans les processus de service est analysé à travers la participation de l'utilisateur à des activités conjointes de valeur avec le fournisseur pour le développement de l'offre de service. Nous développons une catégorisation des types de participation des clients dans les processus de conception, de co-production et d'innovation. Cette catégorisation peut soutenir la meilleure compréhension des façons une entreprise peut impliquer les clients dans les processus de service et peut fournir des indications stratégiques pour l’augmentation de la participation des clients.

La perspective de l'utilisateur dans l'analyse et la conception de service insiste sur l'utilisation des services dans les pratiques de la vie de l'utilisateur pour la création de valeur. Cette perspective entraîne à la méthode ‘Utilisateur-Service- Technologie’ pour l'analyse de bout en bout des services dans les trois domaines du cadre interdisciplinaire. La méthode met l'accent sur l'utilisation des services, plutôt que sur les interactions et les échanges entre le fournisseur et l'utilisateur. En outre, la méthode met l'accent sur l'analyse des fonctions de l'utilisateur, qui se déroulent dans le domaine de l'utilisateur, plutôt que sur l'analyse des processus du fournisseur pour le développement des services et de la fourniture.

La thèse apporte une contribution à la recherche de services dans les systèmes d'information dans trois façons particuliers: le progrès de la recherche interdisciplinaire dans les systèmes d'information de service, le développement du point de vue de la valeur dans l'étude des systèmes de services et le développement du point de vue de l'utilisateur dans l'analyse et la conception des systèmes de services.

Les résultats de la recherche inspirent plusieurs idées pour la recherche de services dans les systèmes d'information et plusieurs potentielles d'utilisation.

Particulièrement favorable est les potentielles de recherche qui cherche à intégrer de technologies et de services dans le but de faciliter les gens dans leurs pratiques de la vie quotidienne.

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Abstract

The continuous progress of ICT and the digitalization of life set unique challenges for service research. As information technologies become ubiquitous in the life of people and the services they provide become embedded in the people’s life practices, there is an increasing need for the improved understanding of the role of information technologies and the use of services in people’s life and for the development of novel approaches for the study, the analysis and design of service systems.

Research in information systems regards conventionally service systems as technological infrastructure and computing functionality that is applied in service operations. However, this view on service systems is incomplete because it ignores significant aspects about the service offering, its use and value for the user in the real world. An expanded and real-world view on service systems would require analyzing next to technologies the business models and the service use patterns and service value for the user. Such a view relates the computing/ digital world of services to the real/ physical world of services for businesses and people and can serve to the development of innovative approaches for the study of service systems.

The thesis aims first of all at the development of an interdisciplinary research framework that adopts this expanded view on service systems and integrates the technological with the business and the user’s concerns. Based on this framework, the thesis analyzes further the concept of value in service systems, the role of the user in service processes, and the user’s perspective in service analysis and design.

The adopted research methodology aims to harness knowledge from the contemporary service management literature to develop the interdisciplinary research framework for the study of service systems and to provide answers to the key research topics of the concept of service value, the role of the user in service processes, and the user’s perspective in service analysis and design.

The interdisciplinary framework for the study of service systems integrates three domains of service research: the Technology Domain, the Business Domain and the User Domain. The framework extends service research in information systems with additional aspects about the service offering, its usage and its value in the real world. The framework suggests the value perspective in the analysis and design of service systems, as value is employed as the underlying concept of service phenomena in the three domains and the common denominator of the different priorities and concerns. The value perspective suggests service value is created in a progressive way along the phases of service development, provision and usage respectively in the three domains, through the direct or indirect interaction of technologies, service providers and users.

The concept of service value is further analyzed and formalized with two conceptual models in order to improve understanding and support the analysis of the value aspects of service systems. The first conceptual model takes a global view on the three-domain framework and portrays value-related concepts and relationship in service ecosystems, while the second conceptual model

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zooms in the User Domain and emphasizes on the user’s perspective in service value.

The role of the user in service processes is approached through the user participation in joint value activities with the provider for the development of the service offering. A categorization of the types of customer participation in design, co-production and innovation activities is suggested. This categorization can support the better understanding of the ways a company can involve the user in service processes and can provide strategic insights for the boost of customer participation in joint value activities.

The user’s perspective in service analysis and design emphasizes on the use of service in the life practices of the user. The user’s perspective substantiates the User-Service-Technology method for the end-to-end analysis of services across the three domains of the interdisciplinary framework. The method emphasizes on service usage, rather than on service interactions and exchanges between the provider and the user, and it is driven by the analysis of the user’s functions that take place in the User Domain, rather than the analysis of the provider’s processes for service development and provision.

The thesis makes contribution in service research in information systems in three particular areas: the development of the interdisciplinary research in service information systems, the development of the value perspective in the study of service systems, and the development of the user’s perspective in the analysis and design of service systems.

The research outcomes provide several insights for service research in information systems and can inspire various potential uses. Particularly promising can be the research that seeks to integrate a variety of technologies and services with the purpose to facilitate and enable people in their daily life practices.

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Acknowledgements

I would like to thank wholeheartedly my supervisor, Prof. Dimitri Konstantas, who inspired me, encouraged me and supported me from the beginning to the very end of this thesis. I feel grateful I had the opportunity to collaborate with him. He will always have my high esteem and deep appreciation.

I express my sincere gratitude to the members of the jury for their attention, interest and support. Their precise remarks and insightful notes contributed to the refinement of the outcomes and the substantial improvement of the thesis.

I wish to thank my colleagues for the support they offered me during this period, especially Prof. Dimitri Paschaloudis, a devoted partner and a constant supporter in all my efforts.

I feel obliged to my teachers who educated me and inspired me with their example. An outstanding position is held for Prof. Konstantinos Tarabanis for his trust in me throughout our lasting relationship and his great impact on me.

The thesis is dedicated to my family and especially to the memory of my father.

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Chapter 1. Introduction 1.1 Motivation

Services are the most important part of economic activities in developed countries today and an integral part of the daily practices and experiences of the people (Anderson et al., 2013). ICT and the Internet have become major driving forces for the economic and social transformation in the recent years and have exercised an extraordinary impact on the service sector by accelerating the development of novel service offerings and business models (Gallouj et al., 2015; Ostrom et al., 2015; Spohrer, Dermikan and Krishna, 2011). For instance, some recent technological developments, such as the smart and mobile applications, cloud computing and the Internet of Things, enable ubiquitous service provision and offer opportunities for more personalized and higher value services (Rust and Huang, 2014). The idea of providing offerings and technological resources on demand, as a service, has spread out in various fields and service-based models have dominated in business and in technological developments (Morabito, 2014).

The importance of service research and the need for new service-related knowledge have never been greater (Ostrom et al., 2015). Service has evolved into a key concept for research in information systems, with unique challenges for service management and ample opportunities for service innovations (Rai and Sambamurthy, 2006; Barrett et al., 2015). Nevertheless, innovation in services is less structured and different in general from innovation in the manufacturing and technology sectors (Bitner, Ostrom and Morgan, 2008). This is because service does not follow a typical linear model of transformation of resources, but it refers to an iterative process that involves the customer, quite often as contributor and co-creator, makes use of tacit knowledge and produces customer experiences as outcomes (Chesbrough, 2011).

The rising significance of services and the accelerated rate of economic and social transformation make service innovation a major research challenge (Chesbrough and Spohrer, 2006). Innovation in services require both business and technological understanding, which makes necessary the development of new research methods that integrate the technological and the service/ business dimensions (Goul, Hung and Maglio, 2014). In this realm, service research in information systems has been increased substantially in the last years and coalesces around these two major streams: service management and service engineering (Fielt et al., 2013).

The need for the development of interdisciplinary approaches in service research has been noticed by many scholars. An outstanding place holds the initiative for the development of a ‘service science’ that will pursue the study of service systems and the development of broader service knowledge that will support and boost service innovations (Chesbrough and Spohrer, 2006). Service science highlights the systemic and interdisciplinary nature of service research, especially with concern to service management and service engineering (Spohrer and Kwan, 2009). Service systems connect people, technology and information through value propositions (Spohrer, Gregory and Ren, 2010).

Service science attempts to integrate elements of many disciplines and systems

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around the concept of value co-creation. Hence, service science combines human, business and technological understanding to explain how service systems interact and co-create value (Maglio and Spohrer, 2013).

A similar approach is adopted in the related field of service systems engineering, which aims at the development of knowledge for the design and the development of service systems (Böhmann, Leimeister and Möslein, 2014).

Service systems are conceptualized as socio-technical systems that provide opportunities for collaboration between customers and service providers and enable value co-creation as a means of providing services that are better adapted to the needs of the customers. The development of service innovations requires research approaches that adopt this ‘service thinking’ for the development of the necessary design and engineering knowledge (Böhmann, Leimeister and Möslein, 2014).

Common themes in service science and service systems engineering are the significance of the concept of service value, the role of the customer in the co- creation of value in service systems, the need for interdisciplinary approaches in service research and the need to develop novel theories, research methods and tools for the development of service innovations.

Value or utility is an inherent element in every business offering. The saying of Levitt, that “people don't want to buy a quarter-inch drill, they want a quarter- inch hole”, is classic in the business management literature. In services the concept of value is even more accentuated, as service refers to “the application of specialized competences (knowledge and skills), through deeds, processes, and performances for the benefit of another entity - or the entity itself” (Vargo and Lusch, 2008b). Value creation is a process through which the customer becomes better off in some respect (Grönroos, 2012). Service is embedded in and affects people’s lives and, thereof, has the opportunity and the power to improve (or negatively affect) people’s well-being (Anderson et al., 2013).

Value co-creation is a relatively new term in the literature that is frequently used to denote that the customer is not simply the receiver, consumer or user of service, but an active participant in the creation of value. The contributive role of the customer in value creation is clearly reflected in the above-mentioned definition of service of Vargo and Lusch (2008b). Value co-creation is a key research theme nowadays, especially in the service-related research fields. In service science, value is assumed to be necessarily co-created in service systems as a result of the interactions of multiple entities (Spohrer and Maglio, 2010). Hence, service is described as “a value co-creation phenomenon” and value co-creation is distinguished as “the primary object of study” in service science (Spohrer and Maglio, 2010).

The changing role of the customer is pre-eminent in the service sector. The interaction with the customer is an integral element of the service process (Gronroos 2012), while the customer can also participate in the execution of the service process, taking the role of a ‘partial employee’ (Bitner et al. 1997).

Technology is a key enabler for customer participation and e-services can be seen as a kind of technologically enabled self-service, with the service provider offering an online platform that establishes the collaboration setting with the customer (Rust and Lemon, 2001). Mobile technologies enable ubiquitous

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service provision and enhance the impact and the importance of services in the daily life practices of the people. Today people use extensively information systems and technologies in their personal and social context and not only as employees, interact constantly in their lives with artifacts that have embedded computing capabilities, and use computing capabilities not only to perform tasks, but also to receive enhanced experiences, for instance through applications of augmented reality (Yoo, 2010).

The recent service management literature can provide valuable insights about the concept of service value and the role of the user/ customer in service systems and further opportunities for service research. Outstanding place has the ‘service dominant logic’ (Vargo and Lusch, 2004, 2008), which has been accepted as a potential theoretical foundation for service science (Maglio et al., 2009) and has been referred widely in research papers in the field of service engineering. Service dominant logic promotes the concept of service as an activity that brings benefit to the recipient and, thereof, constitutes the norm for all economic activities, no matter if they deliver tangible or intangible outputs. In addition, it suggests value co-creation is a positive phenomenon, inherent in all service processes, as a result of the direct or indirect interaction of the actors that participate in the service process, including the customer (Vargo and Lusch, 2016). Service operations take place in service ecosystems, a concept that is similar to the concept of service systems in service science (Vargo and Lusch, 2016). An other theoretical approach that can contribute to the requirements of service research in information systems is the ‘customer dominant logic’

(Heinonen et al., 2010; Heinonen and Strandvik, 2015). This approach emphasizes on the role of the customer and his functions for the creation of value through the use of service in his life practices. CD logic shifts the focus from what providers are doing to create services for customers to what customer are doing with services and how they involve the service offerings in their daily life. Hence, the interest is placed on the customer, rather than on the service, the service system or the service provider.

In the business literature we can find a plethora of references to the disruptive impact of the role of the customer in business practices. The role of the customer in the creation of service and service value provides undoubtedly the foundations for the development of very challenging new business ideologies (Zuboff and Maxmin, 2004) that consider the customer as an important source of competitive advantage (Bernapudi and Leone, 2003), which may provoke the re- configuration of the business processes (Normann, 2001) and give rise to new and innovative business models (Storbacka et al., 2012).

Next to the business opportunities that stem from the role of the customer in service systems, the role of ICT in the daily lives of people offers also ample opportunities for technological and service innovations. The ubiquity of information technologies in people’s lives enables people to use digital services

‘anytime, anywhere’ (Leimester, 2014) and expect for more personalized services and experiences (Leimester, Osterle and Alter, 2014). People become

‘digital users’ (Brennner et al., 2014), who operate both on the physical and the digital worlds. The real and the digital worlds get mixed to form cyber-physical environments (Conti et al., 2011) or ‘direal worlds’ (Hess et al., 2014).

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Augmented reality applications can integrate physical and virtual elements to provide new and innovative services (Olsson et al., 2013; Yoo, 2010).

The continuous progress of ICT and the development of new paradigmatic approaches with concern to the role of the user and the concept of service value set several interesting and unique challenges for the future of service research.

The integration of the daily practices and needs of the people, technologies and the natural, social and virtual environments, which form the service context, offer ample opportunities and set unique challenges for the design of service offerings and service systems. Ostrom et al. (2015) discuss the research priorities in the interdisciplinary field of services: the role of technology in service research is recognized as a cross-cutting research priority, while other research priorities include the conceptualization of service processes and service systems, the design and delivery of services, the creation of service value and the analysis of the effect of services on people, firms and the society.

Even though the interdisciplinary research field of service systems has been increased substantially in terms of volume and diversity of topics in the last years and has achieved important advances (Fielt et al., 2013), we are still missing the profound knowledge for the design and the implementation of service systems that adopt the ‘service thinking’ (Böhmann, Leimeister and Möslein, 2014) and take advantage of all these recent technological advances and socio-economic transformations.

A principal challenge is to increase the interdisciplinary nature of service research. The development of interdisciplinary knowledge for the common understanding of the service phenomena and new theories, methods, and tools was a key objective of the initiation of service science (Chesbrough and Spohrer, 2006). However, the development of the interdisciplinary service research field is an arduous and also daunting task, as information sciences and business sciences use different theories, adopt different approaches and goals and have different methods and research traditions (Alter, 2010). As an example, the term ‘service’ has different meanings and interpretations in computer science, in information systems and in business sciences (Baida, Gordijn and Omelayenko, 2004). The repetitive and continuous calls for the development of interdisciplinary research methods for the study of services and service systems recently (e.g. Goul, Hung and Maglio, 2014; Maglio, Kwan and Spohrer, 2015; Böhmann, Leimeister and Möslein, 2014; Ostrom and al., 2015;

Gustafsson et al. 2016) can be seen as a sign that much more efforts are needed in this area.

Many scholars from the field of service management highlight the significant research insights and opportunities that can stem from the focus on the use of service, rather than the provider’s service offering or the operational aspects of service systems. Some recent approaches call to address service research from the viewpoint of the customer (e.g. Heinonen and Strandvik, 2015), to put the user’s life at the epicentre of service research (Corral, 2010), and to develop research approaches that “begin and end with the user” (Gustafsson et al., 2016). Key research questions are the potential roles of the provider in the daily life practices of the user and the design of service offerings and service settings that support the invisible activities and experiences of the customer (Heinonen et

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al., 2010). Gustafsson et al. (2016) highlight the need to address the interactive, contextual, systemic, experiential, and relational nature of services and suggest service research should focus on questions related to how, where, when, and in what way service is provided to the customers.

In a similar way, taking also into account the ubiquity of ICT that people experience today in all areas of their life, some scholars have already begun to reexamine the notion of users in information systems research (Yoo, 2010).

Dermikan et al. (2015) suggest all ICT-enabled service innovations need to be human-centered and focused on value co-creation. Brenner et al. (2014) suggest research about the ‘user, use and utility’ as a new research field that will be devoted to the study of the digital user, the usage behavior and the resulting utility/ value for the user. Key research topics here are related to the development of strategies and business models that take into account the service usage patterns of the users, the analysis of the potential roles of the users in the design and production of the service, the participation of the users in service innovation, the intelligent personalization of services for every specific usage scenario, etc.

In service systems engineering key challenges are the alignment of technical architectures and service architectures that will enable realizing novel value propositions and business models for the collaborative and contextualized value creation, as well as the development of architectures that bridge the gap between the cyber world and the physical world in order to engineer innovative service systems (Böhmann, Leimeister and Möslein, 2014). In addition, the participation of the digital user into the design and development of service systems and the closer alignment of IT with human needs can result in more innovative services with greater value for the user.

With regard to the theoretical foundations of service research, the wide acceptance of the concept of value co-creation in service science and service systems engineering signifies the importance of the concept of service value and the role of the customer/ user in the different functions of service systems.

However, the concept of value co-creation is quite vague and does not help in the analysis and design of service systems, especially when in service science it is considered to occur simply because of the interaction between actors and service systems. A better understanding of the concept of value and the process of value creation is required (Gustafsson et al., 2016). Otherwise, as Gronroos (2011) notes, when a term becomes too broad and tends to be used to describe or explain almost everything in the behavior of the customer and in the relationship with the provider, then it may run the risk of becoming empty of meaning.

The thesis aspires to address some of the above-mentioned challenges of service research in information systems through the use of an interdisciplinary approach that integrates concepts from service science, service engineering and service management. In particular, we focus on the major research issues that stem from the concept of service value, the role of the customer in the creation of service value and the development of the user’s perspective in the analysis and design of service systems. Brenner et al. (2014) codified research in this

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area as the ‘user, usage and utility’ research agenda and suggested it can grow to a new interdisciplinary research field.

1.2 Research scope, rationale and objectives

This thesis is positioned in the interdisciplinary field of service research in information systems (Rai and Subnamurthy, 2006), that is coalesced around two major research streams: service management and service engineering (Fielt et al., 2013). Exceedingly relevant is the research in the fields of service science (Spohrer, Gregory and Ren, 2010), which aims at the better understanding of service systems as collaborative settings for the co-creation of value and the development of service innovations, and service systems engineering (Böhmann, Leimeister and Möslein, 2014), which pursues the development of knowledge for the design and implementation of service systems as socio- technical systems that promote the collaborative and contextualized value creation. In sum, service science and service systems engineering share the same vision (service innovations), objectives (scientific knowledge development and advancement and development of new research approaches, methods and tools) and research orientation (interdisciplinary approaches based on the notion of value co-creation).

The information systems tradition regards service systems as technological infrastructure and computing functionality that is applied in service operations.

This view on service systems is incomplete however, because it ignores significant aspects about the service offering to the user, its use aspects and its value for the user. As a result, it cannot meet certain recent research challenges in service science about the need for human-centered approaches for the study of service systems (Maglio, Kwan and Spohrer, 2015) and in service systems engineering about the analysis of the requirements of the ‘digital user’ (Brennner et al., 2014) and the ‘digitization of life’ (Hess et al., 2014). In addition, certain value-related concepts have been introduced inconsistently and rather ineffectively in service science (Maglio, Kieliszewski and Spohrer, 2010; Vargo and Akaka, 2009; Guarino, 2013), while service systems engineering is acknowledged to suffer from a lack of both general knowledge and adequate modeling approaches for the design of the value aspects in service systems (Böhmann, Leimeister and Möslein, 2014; Böttcher and Fähnrich, 2011). As long as the information systems literature regards the concept of value as a business concern (Baida Gordijn and Omelayenko, 2004), the resulting knowledge gap between business and technological aspects of service systems will be a major obstacle for the development of interdisciplinary approaches in service research (Alter, 2015).

The transformative influence of ICT in the service sector and in the life of the people makes necessary the development of integrative approaches for the study of the roles of customers, providers and technologies for the analysis of service value (Ostrom et al., 2015). This would require as a first step the alignment of technical architectures and service architectures (Böhmann, Leimeister and Möslein, 2014). In addition, emphasis should be put on the role and the concerns of the service user, as it is suggested by the ‘user, usage and utility’ research agenda proposed by Brenner et al. (2014).

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This thesis takes into account the recent research challenges and developments in service research in information systems and seeks the development of new interdisciplinary approaches for the study of service systems that combine the concerns of the providers about technologies and business operations/ models and the users about service usage and value. In this respect, it aims at a research contribution with the proposition of a research framework that integrates the technological, the business and the usage aspects of service systems and promotes research with regard to the key challenges of the ‘user, usage and utility’ research agenda.

The overall research objective of the thesis is the development of an interdisciplinary research framework for the study of service systems. Based on this framework, the thesis will analyze the core concepts of the ‘user, usage and utility’ research agenda, with the particular research objectives referring to the following:

a) The analysis of the concept of value in service systems.

b) The analysis of the role of the user/ customer in service processes.

c) The development of the user’s perspective in the analysis and design of service systems.

The research objectives of the thesis, the research approach and the key research questions that are addressed are presented in table 1.1.

Table 1.1: Research objectives, research approach and key research questions of the thesis

RESEARCH OBJECTIVE

RESEARCH APPROACH KEY RESEARCH QUESTIONS The development of an

interdisciplinary research framework for the study of service systems

We analyze the state of the art to find out interdisciplinary approaches/ frameworks in service research in information systems and identify how they treat the major challenges of the field.

Are there interdisciplinary approaches in the study of service information systems?

What are their characteristics?

Do existing research frameworks go beyond the analysis of the technological domain? Do they include the business concerns? Do they include the basic concepts of the ‘user, usage and utility’

research agenda?

The analysis of the concept of value in service systems.

We investigate the concept of value and the creation of value in service systems as important factors for the better understanding of service systems, the analysis and design of service systems and the development of service innovations.

How is the concept of value portrayed in research in service information systems?

What is the potential of the concept of value to provide an integrative framework for research in service information systems?

How can we formalize the concept of value for the

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analysis and design of service systems?

The analysis of the role of the user/ customer in service processes.

We investigate the

participation of the customer in joint value activities with the provider for the development of the service offering and the

enhancement of its value potential.

In which activities for the development of the service offering does/ can the customer participate?

What is the role of the customer in these activities?

What is the role of the provider?

What are the characteristics of the joint value activities for the development of the service offering?

What are the strategic insights of customer participation in joint value activities for the development of the service offering?

The outline of the user’s perspective in the analysis and design of service systems.

We investigate the user’s perspective in service analysis and design, which refers to what the meaning of service and service value for the user is and how the user integrates and uses a variety of services in his daily life practices.

What is the user’s perspective in service analysis and design?

What are the key concepts and steps in service analysis and design from the user’s perspective?

How can the user’s

perspective be applied in the analysis and design of mobile services?

What are the differences between the user’s

perspective and other analysis and design methods?

1.3 Methodology

Service research in information systems requires interdisciplinary approaches that integrate knowledge about technology, human behavior, design, economics and business strategy in order to provide guidelines how services should be conceived, designed, delivered, and supported (Rai and Subnamurthy, 2006).

Service science distinguishes information science, management, design and engineering as the four components of service research (Spohrer and Kwan, 2009). Böhmann, Leimeister and Möslein (2014) stress the need for knowledge that realizes the ‘service thinking’ with regard to the reference disciplines of the field, which include marketing, innovations, operations, engineering, service computing, organizational theory and psychology/sociology.

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The research approach in this thesis aims to harness knowledge from the contemporary service management literature in order to develop an interdisciplinary research framework for the study of service systems that addresses some major research challenges of the field with concern to the concept of service value, the role of the user and the analysis and design of services from the user’s point of view.

Next we describe briefly some recent epistemological issues regarding the process of theoretical development and the meaning and the significance of theoretical contribution in interdisciplinary research fields. The scientific evolution of business management as an interdisciplinary field that has managed to establish successfully its own theories and research approaches (Corley and Gioia, 2011) can serve as a useful example for the development of similar efforts in service research in information systems. The field of service information systems not only includes business management as a major contributing discipline, but it has also adopted theories, research approaches and methodologies from business management (Mueller and Urbach, 2013).

1.3.1 Research orientation

Theory is a statement of concepts and their interrelationships that shows how and why a phenomenon occurs (Corley and Gioia, 2011). It serves to the description, understanding, explanation and prediction of the phenomena it refers to by answering to the basic questions of what, how, why, who, where, and when something happens (Whetten, 1989). Theory has a critical role in research advancement, as it supports the better understanding, provides a structure of the current research knowledge, allows the accumulation of knowledge, provides a framework for analysis and guides the research efforts (Wacker, 1998). Theory is important for both research activities and professional practice (Van de Ven, 1989), especially in fields that have a strong professional and applied orientation, such as business management and information systems.

Weick (1995) suggests research in business management has certain particularities and resembles to ‘theory approximation’ as a pre-theoretic step that serves to the future development of theories. Taking such particularities into account, certain scholars have suggested alternative theory building approaches that are more appropriate for the field of business management. Weick (1989) suggests ‘disciplined imagination’ as a research approach that is based on the introduction of deliberate diversity (‘imagination’) into the problem statements, thought trials and evaluation criteria, and the consistent (‘disciplined’) application of evaluation criteria to trial-and-error thinking. Corley and Gioia (2011) call for the development of a research orientation towards ‘prescience’, as the process of anticipating and/ or influencing what we need to know in order to deal with coming societal and organizational concerns. Prescience has a practice orientation and draws attention to areas that have relevance for significant organizational and societal issues and problems. It is not simply foresight or trends analysis, but it aims at acting to influence those trends via prospective sense-making through giving meaning to trends and articulating interpretations and actions to cope with the coming demands. Weick (1989), lastly, favors the

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development of ‘middle range theories’ (as opposing to ‘grand theories’) that focus on smaller-scale problems and contain a limited number of assumptions.

Research in business management introduces also alternative considerations for the research validation process and the notion of theoretical contribution.

Weick (1989) postulates formal validation methods can be counter-productive in business management and can sterilize the research process. He suggests theorizing should become a key research task and critical judgment (based on past results and rationality), argumentation, mental experiments, laboratory experiments, or computer simulations can be used as alternative validity testing mechanisms. For Corley and Gioia (2011) theoretical contribution rests largely on the ability to provide original insight into a phenomenon by advancing knowledge in a way that is deemed to have utility or usefulness for some purpose; originality can advance current understanding or provide entirely new perspectives, whereas utility can be scientific or practical. They also suggest theoretical contribution has higher esteem when it stems from the development of new concepts and relationships that provide insights for future research and can change the perspective and the course of actions in the research field, as well as provide significance for practice and offer general sense-making to the wider community (Corley and Gioia, 2011). However, they notice that the theoretical contribution in interdisciplinary fields can sometimes be an ‘elusive concept’, because of the multiplicity of the concerns of the stakeholders and of the research methods that can be applied (Corley and Gioia, 2011).

The importance and the challenges of theory building in the field of information systems are described in Mueller and Urbach (2013). The authors emphasize especially on the importance of theory development for the understanding and explanation of new phenomena, such as the role of ICT in several aspects of people’s daily lives. They conclude the scientists of the field should be prepared to theorize how our society is being reshaped through the prism of the transformative impact of ICT.

With regard to ‘newer approaches’ in research in information systems, next to the traditional approaches shaped by positivism, Galliers and Land (1987) propose the types of ‘subjective/argumentative’ and ‘descriptive/ interpretive’

research. Subjective/argumentative research refers to capturing creative research insights, especially for the study of emerging research issues, based more on opinion and speculation, rather than observation. Descriptive/

interpretive research follows the tradition of phenomenology and recognizes the bias of the researcher in the research outcomes.

Conceptual research is one of the most common research methods in information systems (Mora et al., 2008), while conceptual modeling is fundamental for the analysis and design of information systems (Wand and Weber 2002). Conceptual research refers to the development of new ideas and concepts, or the reinterpretation of existing ones, through the development of logical relationships and interpretation (Wacker, 1998). Conceptual methods build primarily on the description and explanation of research phenomena and provide more interpretative results than a formally rational research method (Meredith et al., 1989). There are several types of conceptual research, which produce conceptual models (conceptual description, taxonomies/ typologies,

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and philosophical conceptualization) and conceptual frameworks (conceptual induction, conceptual deduction, and conceptual systems), with the later having increased explanatory power (Meredith et al., 1989). The process of conceptual development includes at a minimum the development of the key elements of the theory, an initial explanation of their interdependence, and the general limitations and conditions under which the theoretical framework can be expected to operate (Lynham, 2002).

Frameworks have a critical role in the development of scientific research and especially in theory building. A framework provides a structure for research and scientific analysis and facilitates the efficient development of the research field.

Theoretical or conceptual frameworks are used to provide an initial understanding and explanation of the nature and dynamics of the research issue, introduce new conceptualizations and establish new research relationships in order to provide future research directions. The development of conceptual frameworks is fundamental to all theory-building research (Lynham, 2002). Conceptual frameworks take place at a pre-theoretic level, represent a first step toward theory development and support theory building (Lynham, 2002;

Meredith et al., 1989). For instance, the foundational premises of SD logic are described by its authors (Vargo and Lusch, 2016) as a theoretical framework that can provide guidelines for future service research, the outcomes of which can lead gradually to the development of a new theory of the market.

Classification frameworks are used to organize the existing knowledge, support the better understanding of the research field, provide analytical guidelines and enable comparison of different research outcomes and positioning with respect to previous research outcomes. For instance, Ostrom et al. (2015) provide a framework of the key research themes and the research priorities in services;

Gustafsson et al. (2016) provide a framework of the types of multidisciplinary research and how these different forms result in various types of theoretical advancement and development.

Systems analysts and designers use conceptual modeling to develop a shared understanding among all stakeholders and represent, communicate and validate the contents, capabilities and constraints of information systems (March and Allen, 2014). Mora et al. (2008) describe conceptual design as a research method for the analysis and design of societal, organizational and technological systems.

1.3.2 Research methodology

The thesis follows the principles of conceptual research with the aim of making theoretical contribution in service research in information systems. The lack of existing interdisciplinary theories in this research field and the expressed need for the development of new, interdisciplinary research methods makes necessary the development of a proper conceptual background that will serve as the basis for the development of new theories, approaches and methods.

Conceptual analysis can support in this effort with the development of new ideas and concepts or the examination of the existing ones. In conventional theory building approaches, conceptual research is usually an initial part of the theory development process, providing the conceptual basis for theory development. In business management and in social sciences in general, conceptual and

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theoretic contributions have their own merit, as they allow the enrichment of the research domain with additional concepts and fresh ideas (e.g. Weick, 1989).

It is widely recognized that the literature of service management can provide the theoretical foundations for the study of service systems. The thesis takes an interdisciplinary approach that combines the research requirements for the analysis and design of information service systems with the background knowledge of the recent service management literature in order to cross-fertilize the research field and develop new concepts and perspectives for the analysis and design of service systems.

The development of the thesis takes the following procedure:

a) setting the initial motivation, the research scope and the research objectives (chapter 1),

b) reviewing the state of the art (chapter 2),

c) developing an interdisciplinary approach for the study of service systems (chapter 3) and analyzing specific topics that refer to the concept of service value (chapter 4), the role of the user in service processes (chapter 5) and the perspective of the user in service analysis and design (chapter 6), and

d) discussing the research outcomes, the implications and the potential uses (chapter 7).

The research methodology is depicted in table 1.2.

Thus far we overviewed the recent developments in the interdisciplinary area of service research in information systems in order to develop a general understanding and identify the recent research trends and the major challenges in this area. Hence, we recognized the necessity for the development of interdisciplinary approaches for the study of service systems and distinguished the significance of the concept of service value, the role of the user and the analysis of service usage. Based on this, we defined the scope and the research objectives and decided for the research methodology.

Conceptual analysis requires a deep understanding of the research domain in order to choose the right concepts, analyze their content and relationships, and recognize limitations and knowledge gaps. In general, a new conceptual framework is based on the existing literature and needs to be connected to the existing literature in order to be regarded as meaningful and a novel contribution.

For this we review the state of the art in service research in information systems with concern to the major research streams and the key issues of the thesis. In addition, we examine the field of service management, aiming to distinguish the key theoretical approaches and research frameworks and the key concepts and relationships they propose that can support the objectives of the thesis.

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Table 1.2: Research Methodology

STAGE RESEARCH ACTIVITY RESEARCH OBJECTIVE 1 Motivation, research scope

and objectives

Development of general understanding Analysis of the general research themes Identification of the research challenges Definition of the research topic and objectives Designation of the research methodology 2 Review of the state of the

art

Deep understanding of the domain knowledge Juxtaposition and critical analysis of the domain know-ledge

Designation of the relevant theories/

frameworks and the key research variables 3 Theoretical and conceptual

development Development of a framework for the study of service systems

Conceptual development of the idea of service value

Conceptual development of the role of the customer in joint value activities in service systems

Conceptual development of the user’s

perspective in the analysis of service systems

4 Evaluation Case study analysis

Rational argumentation Scenario development

Regarding the theoretical and conceptual development, we develop at the beginning an interdisciplinary research framework that integrates the technological, the business and the user’s concerns in service systems and proposes the value perspective in the analysis and design of service systems.

This framework is supplemented with two conceptual models about the notion of value in service systems. We focus on the relationship between the customer and the provider in order to outline a categorization of the different types of customer participation in joint value activities with the provider. Next we zoom in the activities of the digital user and develop the user’s perspective on service analysis and design.

The evaluation process is based on the use of examples, case studies, scenarios and argumentation based on the results of the existing literature. In particular, the interdisciplinary research framework is compared to the conceptual background of the OASIS SOA Reference Architecture Foundations.

The value perspective in the analysis and design of service systems is justified according to the premises of the literature of service science and service systems engineering and it is further examined in the two conceptual models of service value. The categorization of the types of customer participation in joint

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value activities is evaluated with the use of a case study. The user’s perspective in service analysis and design is explained with the use of a scenario about the daily life activities of the individual.

1.4 Intended research contribution

The intended contribution of the thesis refers to the development of an interdisciplinary approach for the study of service systems that integrates the technological concerns for the implementation of service systems with the business concerns for the operation of business models and the delivery of services and the user’s concerns for the use of services in the life practices and the creation of personal value. For this, the thesis aims at the clarification of existing concepts and ideas and the enrichment of the research domain with new perspectives, concepts and models for the study of service systems.

Based on the proposed interdisciplinary approach for the study of service systems, the thesis examines specific topics that are major research challenges today in service research in information systems. Brenner et al. (2014) codified these major research challenges as the ‘user, usage and utility’ research agenda. The thesis adopts the key priorities set by the ‘user, usage and utility’

research agenda as guidelines for the development of specific research activities and objectives. In particular the thesis analyzes the research potential of the concept of service value, investigates the role of the user in service processes for both the production and the consumption of service offerings, and explores the user’s perspective in the analysis and design of services.

The thesis pursues the cross-fertilization of the research field by introducing the most recent research accomplishments from the field of service management and enables the exploitation of the dominant theoretical concepts and ideas of the service management literature. Next to SD logic (Vargo and Lusch, 2008;

2016), which is widely accepted in service science and service systems engineering as the most prominent theoretical background for the study of the business-related aspects of service phenomena, we investigate additional and new approaches that can provide alternative insights. The customer dominant logic (Heinonen and Strandvik, 2015), unprecedented in the literature of service information systems, emphasizes on the effects of service in the everyday life practices of the users and can support the development of alternative, user- oriented and usage-centered approaches in the analysis of service value and service systems. The service logic (Gronroos and Voima, 2013), rarely discussed in the literature of service information systems, focuses on the relationship between the service provider and the customer and can provide managerial implications and practical insights. We suggest this enlarged theoretical background, which enables the analysis of service systems at different levels (the ecosystemic, the managerial and the service usage) and from different perspectives (by adding the user’s perspective next to the business and the technological perspective), can provide the appropriate theoretical background for service research and knowledge advancement in information systems.

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1.5 Structure of the thesis

The thesis is comprised of eight chapters. In the introductory chapter we present the motivation for the thesis, the scope and the overall and particular objectives of the research, the research methodology and the expected overall contribution.

In chapter two we provide a review of the state of the art with regard to the major research issues in this thesis in the areas of service research in information systems and in business management and marketing. In the third chapter we develop a framework for the study of service systems that is based on the concept of service value. In chapter four we develop two conceptual models that depict a global/ ecosystemic perspective and the user’s perspective on service value. In chapter five we provide a categorization of the different types of customer participation in joint value activities for the development of the business offering. In chapter six we elaborate on the user’s perspective on service value and provide the User-Service-Technology model for the analysis and design of services. Chapter seven discusses the research outcomes and implications, as well as the insights and potential uses of the research outcomes. Chapter eight provides the conclusions, the overall contribution of the thesis, as well as the research limitations and opportunities for future research.

Figure 1.1: Structure of the Thesis

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Chapter 2. State of the art analysis

2.1 State of the art in service information systems

In this chapter we analyze briefly the state of the art in service information systems with respect to the objectives and the major research topics of the thesis. At the beginning we overview the different approaches about the concept of service in research in information systems. We proceed with the analysis of the key concepts, the current state of research and the challenges that arise in the fields of service science and service system engineering, which are two major research streams in the area of service research in information systems.

We analyze the concept of service value in research in service information systems and identify the research challenges and limitations. We review approaches and issues about the analysis and design of service systems, especially with concern to the user’s perspective in the analysis and design process. The chapter ends with an overview of the characteristics of mobile services as an area that favors the development of the user’s perspective in the analysis and design of service systems.

2.1.1 The concept of service in information systems

The concept of service has evolved into a key concept in information systems research (Rai and Subnamurthy, 2006). But different scientific communities use the terms ‘service’ with different meanings and interpretations. In general, business scientists regard services as business activities and as business offerings to the customers, while computer scientists regard services as software components (e.g. Web services). Baida, Gordijn and Omelayenko (2004) analyze the different perspectives of the term in business, in information systems and in computer science, and they propose some clarifications. They suggest that ‘service’ refers to business services as regarded in business management, i.e. business activities that bring some benefit to the customer; ‘e- service refers to an electronic and online service or to business functionalities that are delivered online; ‘web service’ refers to the software components that can be invoked over the Internet to execute specific processes and tasks.

Cardoso, Voigt and Winkler (2008) provide a similar distinction and explanation.

Preist (2004) uses the terms ‘concrete service’ and ‘abstract service’ to make the distinction between a business service that provides value to the customer and the required capability to provide it, respectively. The concrete service has a direct economic meaning, while the abstract service is the capacity to perform something of value, in the context of some domain of application. In a similar way, Giron et al. (2010) discuss about ‘software-enabled internet services’ as e- services that are used by users in their life practices and ‘software-based internet services’ as computing services that support the operation of service systems.

In information systems, the term e-service combines elements from both the business and the software perspective and is described as business functionality that is delivered through electronic media (Baida, Gordijn and Omelayenko, 2004). The emphasis is on the modeling and the formalization of the actual service and value that is exchanged with the customer. Rust and Lemon (2001)

The value perspective in the analysis and design of service systems

Thesis

Reference