Workshop on
Management Development for
Service Business Innovation
Rendez: Renewal and Redirection –
New Management Models for Supporting Innovation
Implementation
October 30, 2007
at Nokia House, Espoo, Finland
This presentation is clearer when viewed as a slide show.
October Sun Flowers by Bob Owen, from flickr.com
© Taina Tukiainen, Minna Takala and David Ing, 2007
rendez.org
Agenda
09:00
12:00
Welcome and introductions
David Ing
Constructing the pilot curriculum for the
Master's degree in International Service
Business Management at Stadia
David Ing
Service Innovation Educational Program
(Japan)
Jim Kijima
Competence development in corporate
settings
Minna
Takala
Discussion: Dimensions for development of
managers for the 21st century
(all)
Theory into practice: refining the Stadia
Master's program for its second year of
operation
Taina
Tukiainen
Adjourn
.
Page 2
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Purpose
The nature of business
has changed(?)
•services revolution
•open innovation networks
•knowledge economy
•globalization
Training developed in the
industrial age of manufacturing
products is incomplete?
 Frameworks, methods and/or
tools for directing and
operating in this new context.
Focus Question:
What content
(i.e. curriculum,
experiences,
skills development)
should be
considered in the
development of
new universitylevel programs for
the businesses in
the 21st century?
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Workshop participants
Stadia / Helsinki University of
Professional Education
 Taina Tukiainen, Head of Department of Industrial
Management
Nokia
 Minna Takala, Business Improvement Services
 Minnamaria Miller, Project Manager, Quality
 Sanna Vähänen, CARE
IBM
 David Ing, IBM Software Group (Canada), and
Ph.D. Student, Helsinki U. of Technology
 Ville Peltola, Consultant, Strategic Innovation; and
Industrial Sector Lead, Best of Blue (Finland)
Tokyo Institute of Technology
 Kyoichi (Jim) Kijima, Professor of Decision
Systems Sciences
 Hiroshi Deguchi, professor of Computational
Intelligence and Systems Science
Hosei University
 Akira Tokuyasu, professor of Sociology
Helsinki University of
Technology
 Mikko Heiskala, SoberIT
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Constructing the pilot curriculum for the
Master's degree in
International Service Business Management
at Helsinki Polytechnic Stadia
David Ing
© David Ing, 2007
rendez.org
Agenda
A.
Context
B.
Services-Oriented Textbooks
C.
IBM Open Courseware Modules
D.
Pilot Design for Stadia in 2006
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Businesses should check their
preconceptions on the nature of innovation
Value
Relationship
Method
Economics
Industrial age
mindset on
innovation
Secret weapon
perfected to
overwhelm
Transactional
hand-offs
Analytical
problem-solving
Colonial trade
+
+
+
+
New nature of
innovation
Open standards
as platform for
acceleration
Collaborative
learning teams
Multi-disciplinary
conversations
Global talent
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IBM Almaden open courseware modules on SSME:
an invitation to do better in instruction
1: Overview of SSME
 What is Services Science, Management and
Engineering?
 Timeline: beyond 2010
2: What are Services?
 Service sector
 Service-dominant view (co-creation of value,
relationships, service provisioning)
3: Service Systems
 General systems theory, value creation
4: Considerations for the
Management of Services
 Service strategy (sense-and-respond), organization
(tangible culture), componentization, measures
5: Productivity and Innovation
 Productivity paradox, economic measures
6: Introduction to Methods
 Knowledge patterns, method adoption workshops
7: SSME Challenges,
Frameworks
 Research: (see next slide)
 October 2006 Palisades conference
Details at http://www-304.ibm.com/jct09002c/university/scholars/skills/ssme/resources.html
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Five key science and research challenges:
an invitation to do better on research frameworks
1: Empirical
frameworks needed
 How can a scientist quickly do experiments? Test a hypothesis?
 What tool allows for improved measurement of service system parameters?
 Empirical tools – simulation tools and techniques
2: Analytic framework
needed
 What type of mathematical models can be constructed?
 What analytic tools exist to study and refine mathematical models?
 Analytic tools – mathematical tools and techniques
3: Engineering
framework needed




Design
What is the practical payoff from the science?
What tools can help in the construction of new service and solution innovations?
Engineering tools – workbench to assemble standard components, and infrastructure
platform to deploy them into practice
4: Theoretical
framework needed




What theory allows service systems to be described and explained?
What theory allows the evolution of service systems to be designed and controlled?
What predictions can be made and verified based on the theory?
Theoretical tools – standard terminology, measures, and principles
5: Multidisciplinary
Design framework
needed
 Multidisciplinary design tools – palette of customizations
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Textbook #1 considered: (actually, the 2005 5th edition …, 1.8 lbs. plus CD)
James A. Fitzsimmons and Mona A. Fitzsimmons, Service Management:
Operations, Strategy, Information Technology, McGraw-Hill, 2008 (6th ed)
PART I: Understanding Services
Chapter 1: The Role of Services in an Economy
Chapter 2: The Nature of Services
Chapter 3: Service Strategy
PART II: Designing the Service Enterprise
Chapter 4: New Service Development
Chapter 5: Technology in Services
Chapter 6: Service Quality
Chapter 7: Process Improvement (DEA supplement)
Chapter 8: The Service Encounter
Chapter 9: Supporting Facility and Process Flows
Chapter 10: Service Facility Location
PART III: Managing Service Operations
Chapter 11: Managing Capacity and Demand
Chapter 12: Managing Waiting Lines
Chapter 13: Service Supply Relationships
Chapter 14: Growth and Globalization of Services
Chapter 15: Managing Projects
PART IV: Quantitative Models for Service Management
Chapter 16: Capacity Planning and Queuing Models (Simulation)
Chapter 17: Forecasting Demand for Services
Chapter 18: Managing Facilitating Goods
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Appendices:
Areas of a Standard Normal Distribution
Uniformly Distributed Random Numbers [0,1]
Values of Lq for the M/M/c Queuing Model
Equations for Selected Queuing Models
Page 10
Textbook #2 considered: (actually, the 2003 5th edition of …)
Christopher Lovelock and Jochen Wirtz, Service Marketing, People,
Technology, Strategy, Prentice-Hall, 2007 (6th edition), 672 pp
PART 1: UNDERSTANDING SERVICE MARKETS, PRODUCTS, AND
CUSTOMERS
1. New Perspectives on Marketing in the Service Economy
2. Customer Behavior in Service Encounters
PART 2: BUILDING THE SERVICE MODEL
3. Developing Service Concepts: Core and Supplementary Elements
4. Distributing Services through Physical and Electronic Channels
5. Exploring Business Models: Pricing and Revenue Management
6. Educating Customers and Promoting the Value Proposition
7. Positioning Services in Competitive Markets
PART 3: MANAGING THE CUSTOMER INTERFACE
8. Designing and Managing Service Processes
9. Balancing Demand against Productive Capacity
10. Crafting the Service Environment
11. Managing Service Employees for Competitive Advantage
PART 4: IMPLEMENTING PROFITABLE SERVICE STRATEGIES
12. Creating Relationships and Building Customer Loyalty
13. Achieving Service Recovery and Obtaining Customer Feedback
14. Improving Service Quality and Productivity
15. Organizing for Change Management and Service Leadership
READINGS
Wingfield, “In a Dizzying World, One Way to Keep Up:
Renting Possessions”
Datta and Krishnan, “The Health Travellers”
Kimes and Chase, “The Strategic Levers of Yield
Management”
Thornton, “Fees! Fees! Fees!”
Roberts, “Best Practice: Defensive Marketing—How a
Strong Incumbent Can Protect Its Position”
Heracleous, Wirtz and Johnston, “Kung-Fu Service
Development at Singapore Airlines”
Gilson and Khandelwal, “Getting More from Call Centers:
Used Properly, They Can Be Strategic Assets”
Haeckel, Carbone, and Berry, “How to Lead the Customer
Experience”
Brady, “Why Service Stinks”
Berry, Shankar, Parish, Cadwallader, and Dotzel,
“Creating New Markets through Service Innovation”
Reichheld, “The One Number You Need to Grow”
… plus 18 cases!
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Textbook #3 considered:
Valarie Zeithaml, Mary Jo Bitner, Dwayne D. Gremler , Services
Marketing, Prentice-Hall, 2005 (4th edition), 736 pp
PART ONE: FOUNDATIONS FOR SERVICES MARKETING
Chapter 1. Introduction to Services
Chapter 2. Conceptual Framework for the Book: The Gaps Model of Service Quality
PART TWO: FOCUS ON THE CUSTOMER
Chapter 3. Consumer Behavior in Services
Chapter 4. Customer Expectations in Services
Chapter 5. Customer Perceptions in Services
PART THREE: UNDERSTANDING CUSTOMER REQUIREMENTS
PART SIX: MANAGING SERVICE
Chapter 6. Listening to Customers through Research
PROMISES
Chapter 7. Building Customer Relationships
Chapter 16. Integrated Services
Chapter 8. Service Recovery
Marketing
PART FOUR: ALIGNING STRATEGY, SERVICE DESIGN, AND STANDARDS
Communications
Chapter 9. Service Development and Design
Chapter 17. Pricing of Services
Chapter 10. Customer-Defined Service Standards
PART SEVEN: OUTCOMES OF
Chapter 11. Physical Evidence and the Servicescape
SERVICE
PART FIVE: DELIVERING AND PERFORMING SERVICE
INVESTMENTS
Chapter 12. Employees’ Roles in Service Delivery
Chapter 18. The Financial and
Chapter 13. Customers’ Roles in Service Delivery
Economic Effect of
Chapter 14. Delivering Service through Intermediaries and Electronic Channels
Services
Chapter 15. Managing Demand and Capacity
CASES
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Vision: international service business management,
as three dimensions and three threads
Functional dimension
Conceptual thread
 Management (over eng or sci)
 Students with work experience
 Traditional (e.g. marketing, finance)
 Most current business issues
 Readings broad and deep
 Most essential ideas and issues in
services businesses today
 Articles, instead of multiple textbooks
Sector dimension
Interpretive thread
 For intuitions on service businesses
 Practices and conventional wisdoms
 e.g. professionalism in nursing,
customer service in restaurants,
coordination in courier delivery
 Guest lectures from services
practitioners (or audio or tv
programs)
 Cross-cultural challenges, day to
day work issues
Cultural anthropological dimension
Experiential thread
 ICT, open borders  international
 Multinational evolution from local
 Bridge from local culture (i.e. Finnish) to
foreign, (e.g. Indian-style, Chinese-style)
 Apply learning on a research project
with a real-life business (maybe
employer)
 Introductions to research methods
 Coaching by course instructors
Details at http://rendez.org/stadia-isbm-2006-dimensions
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The functional, sector and cultural anthropological
dimensions were woven into a heavy fall term
1
Service businesses in a global economy
13
Innovation and service management
2
The nature of services businesses
14
Service delivery, collaboration and outsourcing
3
Customer experience design and the voice of
the customer
15
Entrepreneurism, cases in Chinese and
Japanese-style business
4
Client management and relationship alignment
16
5
Business model innovation and strategic
development
Telecom services and service quality; cases in
European style business
17
Business process modelling and operations
innovation
Technology architecture, cases in information
technology services
18
Research methods: pragmatic and constructive
designs
Service supply chains; cases in logistics and
transportation services
19
Research methods: survey and hermeneutic
designs
Ventures; cases in Anglo-American-style
business
20
Alliances, cases in Latin-style business
Solution design; cases in telecom services
21
Service encounters and capacity management;
cases in hospitality services
Industrial policy, cases in Scandinavian-style
business
22
Customer interfaces
23
Sustainability and competitiveness
24
Business networks, strategic balance and
governance
6
7
8
9
10
11
Human capital and communities of practice;
cases in health services
12
Service leadership; cases in educational
services
Details at http://rendez.org/stadia-isbm-2006-sessions Page 14
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Students were to take an active role in co-leading the
class, in addition to completing credits and a thesis
Student roles:
 Discussion leader(s):
Discussion participants:
 Read, at least lightly, two articles of
interest on the prescribed content.
 Active conversation
 Opening lines of questions that may
help in preparation of the thesis.
Note: The working language for the class is English, with international students participating.
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Master's thesis
30 credits
 Each student bids to lead session
 Read 6 to 8 articles
 Prepare slides (e.g. Powerpoint) to
structure discussion
 Not required to become the ultimate
expert on content
 Draw on experiences, interpretations
and understanding amongst
classmates.
Assignment papers, 5-10 pages
 5 credits: Principles: Business in
a services economy, and
business research methods
 5 credits: Customers, business
models and innovation
 5 credits: Services in an
international context
 5 credits: Service leadership,
organizational development
and teamwork
 5 credits: Service delivery and
technology architectures
 5 credits: Strategic management,
intra/entrepreneurship,
alliances and venturing
Page 15
Coordination via web site, including multi-user blogs
http://rendez.org runs on Drupal -- open source software with
password protected "Organic Groups".
The domain name is registered to David Ing, and hosted
(cheaply!) on an American ISP.
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Educational Program of
Design Innovators of Social
Service Value
At Tokyo Institute of Technology
From April, 2008
rendez.org
Who is K.Jim Kijima?
President 2006-07, The International Society
for the Systems Sciences
Background
Operational Research
Decision Science
Systems Engineering
Mathematical General Systems Theory
Then, moving to more Interdisciplinary field
2007.10.30
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Kyochi Kijima
18
Research Field
A new paradigm “Decision Systems Science”
which consists of
(1) Systems Modeling to understand and
analyze decision making, by putting
emphasis on concept of systems, i.e.,
interactions and emergence
“First formal, then verbal” principle
Begin with formal or mathematical modeling to
seek deep and rigorous insights/finding as
much as possible;
 Hypergame modeling of misunderstanding
 dramatic modeling of negotiation
Kyochi Kijima model to catch the
Then, construct conceptual
2007.10.30
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19
Research Field
(2) Hard/Soft Systems Approach to manage a
complex decision situation by supporting
the participants
Soft Systems methodology (SSM) for
achieving accommodation
Evaluation of process of participatory
Decision making and group consensus
building
2007.10.30
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Kyochi Kijima
20
Educational Program of
Design Innovators of Social Service Value
- A new educational program funded by the Ministry
of Education
- Will be established at Tokyo Institute of Technology
in April, 2008.
- Conducted under the “umbrella” scheme of the
ministry called
Education and cultivation scheme of Service
Innovators
2007.10.30
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Kyochi Kijima
21
Aims of the Program
To educate social service design-innovators,
who are able to design, create, evaluate and
innovate truely useful social service value
so as to feedback fruites of science and
technology to the society.
2007.10.30
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Kyochi Kijima
22
Program Status
We will establish the program as a new liberal arts
program,
by which the students gain such inter-disciplinary
ability that they can draw a structured map of
human knowledge from the viewpoint of systems
science.
Why systems Science?
because to investigate service system we are
required to identify it as a system in which all the
2007.10.30
Kyochi Kijima
23
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elements are related with each other.
Service
- Consumed at the same time as produced
- Knowledge/intelligence created by science and
technology valuable for the society including
Innovative business models
Brand-new public service
Essential features of the social infrastructure such
as safe, security, amenity and ability of their
implementation
2007.10.30
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Kyochi Kijima
24
Future of Program
After three years,…
this should be recognized as an essential
literacy educational program for
science/technology based graduate
students in the 21st century.
2007.10.30
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Kyochi Kijima
25
Invited lectures from industry, government,
and overseas
support
Graduate
students
- Basics for creation of Social service value
- Design ofSocial service value
- Analysis and evaluation of Social service
value
Åiwith Knowledge of
Science and TechnologyÅj
basis
Human/social sciences
Social systems Sciences
Design innovators of
social service value
ÅiIntelligence enable to design,
create, evaluate and innovate
truely useful social service
valueÅj
Expextedto work as research managers, for
international organizations, or pursue PhD
degree with adaptable intellectual potential.
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Tentative Curriculum:
Four Areas
- Communication Skill
- Basics for Creation of Social Service Value
- Design of Social Service Value
- Analysis and Evaluation of Social Service
value
2007.10.30
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Kyochi Kijima
27
Tentative Curriculum:
Communication Skill
Short-term overseas exchange scheme
Presentation in English
Basics for Creation of Social Service Value
Advanced course in Service Science and
Engineering
Systems Science Literacy
Service Innovation (intensive, in English)
Value Structure and Consensus Building
Systems Approach to Symbiosis and Conflict
2007.10.30
Kijima
28
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Value of EnvironmentKyochi
and
International Security (in
Tentative Curriculum
Design of Social Service Value
Community Service Simulation (intensive)
Educational Service Contents (intensive)
Service Design of Architects (intensive)
Analysis and Evaluation of Social Service Value
Service Requirements Analysis (intensive)
Service Value creation of Small business
(intensive)
2007.10.30
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Kyochi Kijima
29
Leading
Excellence 6
A Nomination Program Focusing
on Business and E2E Quality
Autumn 2007
Leading
TEKNILLINEN KORKEAKOULU Koulutuskeskus Dipoli
HELSINKI UNIVERSITY OF TECHNOLOGY http://www.dipoli.tkk.fi
Learning objectives
•
RENEWAL
– Broaden the perspective of business understanding and quality thinking
•
SHAPING
– Challenging current ways of working
– Introducing new ways of knowledge creation
•
GROWTH
– Understanding the quality challenges
in new markets and technologies
Leading
TEKNILLINEN KORKEAKOULU Koulutuskeskus Dipoli
HELSINKI UNIVERSITY OF TECHNOLOGY http://www.dipoli.tkk.fi
The training is based on the end-to-end thinking
•
•
From customer requirements to the user experience
Themes are selected to support implementations of
Nokia strategies
Requirements, feedback and metrics: speed, accuracy, granularity, customer focus
Care
Suppliers
R&D
Product
Definition &
Design
Sourcing& Operations&
Procurement Logistics
Sales&
Marketing
Distributi
on
Customer
Consumer
Solution
partners
Leading
TEKNILLINEN KORKEAKOULU Koulutuskeskus Dipoli
HELSINKI UNIVERSITY OF TECHNOLOGY http://www.dipoli.tkk.fi
Theme 1
Customer and business understanding
Objectives
• To develop clear understanding of customers, consumers and markets
and what is Nokia’s role in the global, dynamic business eco-system
•
Nokia business environment
•
Consumer identification and
segmentation
•
Customer relationship
management – the quality
perspective
•
From subcontracting to
partnership
•
Supplier relationship management
Leading
TEKNILLINEN KORKEAKOULU Koulutuskeskus Dipoli
HELSINKI UNIVERSITY OF TECHNOLOGY http://www.dipoli.tkk.fi
Theme 2
Operational excellence for end-to-end operations
Objectives
• Reliable, transparent and applicable data; integrated IT systems
• Selection of right methods and measures for right purposes
Process management approach
Application of quality methods
Assessment and measures
SW and service quality
Cost of poor quality
Leading
TEKNILLINEN KORKEAKOULU Koulutuskeskus Dipoli
HELSINKI UNIVERSITY OF TECHNOLOGY http://www.dipoli.tkk.fi
Theme 3
Future role for quality manager
Objectives
• To develop one’s team leadership and facilitation skills
• Cross unit and company collaboration
• Future opportunities for quality manager
•
Leadership by influence
•
Change management
•
Supporting innovation and creativity
•
Facilitation
•
Efficient project working
Leading
TEKNILLINEN KORKEAKOULU Koulutuskeskus Dipoli
HELSINKI UNIVERSITY OF TECHNOLOGY http://www.dipoli.tkk.fi
Structure of the Program
Leading
TEKNILLINEN KORKEAKOULU Koulutuskeskus Dipoli
HELSINKI UNIVERSITY OF TECHNOLOGY http://www.dipoli.tkk.fi
Learning solution approach
Methods
Examples
Presurvey
Preliminary information about participants competences,
experience & expectations
Test
Belbin – team survey
Case studies / examples
Examples presented by visitors from other companies,
or in case studies
Lectures by professors
Expert presentations
Presentations by practitioners
Presentation by Nokia personnel
Books & articles
Selected readings: books, articles & white papers
Workshops
Facilitation workshops (focus on method & content)
Real projects & presentation
Selected projects with coaches from Nokia
Discussion
Group work
Summaries by selected observations
Leading
TEKNILLINEN KORKEAKOULU Koulutuskeskus Dipoli
HELSINKI UNIVERSITY OF TECHNOLOGY http://www.dipoli.tkk.fi
Dimensions for development of managers
for the 21st century
Group discussion
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Methods for learning / teaching














Wikis & blogs
Coaching
Real projects
Presentations
Visiting processionals
Open course ware (IBM)
Articles
Books
Simulations
Creative methods
Facilitated workshops
English language
Selling services….
Exercises/ & videos & comments
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Possible Content
 Multi disciplinary
 Global
 Ying-Yang / product – service
complementary
 Service industry sectors
 Service innovation
 Service operations
 Customer feedback
 Service system
 Value of services
 Self-service
 Marketing
 System thinking
 Complex adaptive systems
 Open source
 EDW & analysis – enterprise data
warehouse
 Internet “standards” ISO, ITIL
 SW
 Web 2.0
 Introduction to service methods
 Productivity
 Performance measures
 Feedback
 Collaborative
 Open
 Strategy
 Business models
 Organization
 Motivation
 Mindset
 Culture (anthropology)
 Culture (art, music)
 Culture (organizational)
 Communities of practice
 Social systems
 Stakeholders
 Relationships
 Lifecycle view
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Theory into practice:
refining the Stadia Master's program for
its second year of operation
Taina Tukiainen
© Taina Tukiainen, 2007
rendez.org
Workshop on
Management Development for
Service Business Innovation
Rendez: Renewal and Redirection –
New Management Models for Supporting Innovation
Implementation
October 30, 2007
at Nokia House, Espoo, Finland
rendez.org