Most executives want good service but are constrained by their assumptions about the causes of bad service and the barriers and costs of improvement. Many of these assumptions are dead wrong. The minute management starts questioning their assumptions and asking questions, the logjam can be broken and innovation and improvement ensue.

Decisions in service operations are complex since they involve various interdependent decision-makers agents) at different hierarchical levels, ranging from customer representatives over account managers to top executives. We formulate a three-level maintenance service problem as a stochastic decision-making model, with an account manager, supervisor, and worker at each of the three levels. The proposed incentive mechanism aligns the interests of lower level agents with the goals of the top agent. The agents’ strategic interactions are analyzed game-theoretically and results show that a Pareto-efficient Nash equilibrium can be attained given certain organizational properties. Furthermore, we show that local information can be sufficient for organization-wide optimal decisions. In a final step, the three-level model is generalized for multi-level, i.e., multi-organizational-scale, systems.

The continuous growth of health care services expenses urges U.S. government to take actions. The adoption of Information Technology, and especially RFID (Radio Frequency IDentification) allow hospitals to re-engineer their processes in order to reduce costs, maintaining the same level of service to the patients. Information technology represents a core element of the service itself; therefore a scientific driven service design approach is believed to improve the adoption rate of RFID in hospitals. The main goal of the present study is to propose an RFID based service platform for hospitals, which is consistent with a service science driven design approach. A survey of 33 California based hospitals has been used to identify the user requirements of the hospitals. Later, a business process re-engineering for hospitals is proposed. Firstly the different actors involved in the health care services, along with their relationships in terms of information flows, are identified. This leads us to identify the various operations in a hospital setting that have a potential to be streamlined by introducing RFID technology. Having introduced these operations, we theorize a customizable RFID service, which can be implemented sequentially by each hospital according to its individual conditions such that it suits them most.

Contemporary information systems (IS) products and services must fulfill the needs of consumers that are more widely scattered than traditional organizational end-users. New ways to incorporate these wide-audience end-users in the IS development are required. The lead-user method used in new product development is a promising approach to tackle this problem. However, the finding and recruiting of the lead-users has been found very burdensome for the firms. We propose lead-users to be found and recruited from virtual communities. This paper provides a conceptual framework that makes use of the Internet’s possibilities – not only in recruiting the lead users - but also when collaborating with them utilizing distributed Group Support Systems. Finally, we report on our preliminary field tests, discuss the implications of our work and conclude.

Cloud software service is a modality for providing computer facilities and deploying software via the Internet. The concept combines Cloud Computing and Software-as-a-Service (SaaS). Cloud computing represents a contextual shift in how computers are provisioned and accessed. Software-as-a-service is an architectural continuum that represents a democratization of access to software, computing platforms, and data through network effects, and the monetization of its value to customers and end users. One of the defining characteristics of cloud software service is the transfer of control from the client domain to the service provider. Another is that the client benefits from economy of scale on the part of the provider. There are many different examples of cloud software service, and this paper seeks to combine the salient elements into a composite picture of the subject matter.

We introduce the concept of structural analysis of a business enterprise. The practice of enterprise structural analysis amounts to the construction of an enterprise model using business entities defined in an enterprise ontology or enterprise architecture and creating specific views of the enterprise based on relationships among the entities. As we demonstrate through a simple yet illustrative example of a hypothetical coffee shop business, these views can provide many insights and points of analysis. Structural analysis provides an interactive, analytical environment for a user to view an enterprise from multiple perspectives, an approach not unlike On-Line Analytical Processing (OLAP) but for analyzing the qualitative or structural aspects of the enterprise.

In a recent article in this Journal, S. Vargo, the service-dominant logic theorist, makes the unarguable claim that “What is needed is a true science of service (Vargo and Akaka, Service Science, 2009, p. 39, emphasis in original). To constitute a true science of service, services research must use valid measures. The sine qua non requirement for a valid measure is content validity, which comprises item-content validity and answer-scale validity (see Rossiter, International Journal of Research in Marketing, 2002, and C-OAR-SE Construct Measurement for the Social Sciences, Springer, forthcoming). The present article begins by criticizing the content validity of E-S-QUAL (Parasuraman, Zeithaml, and Malhotra 2005), the principal academic measure of e-retailer service quality, which is probably the most important construct in contemporary services research. Rossiter’s (2002) C-OAR-SE construct measurement theory is then applied to develop a new and more valid measure, called ER-SERVCOMPSQUAL. This new measure seeks potential customers’ and current customers’ judgments about the quality of the components of e-retail service (thus ensuring high item-content validity), which are rated in terms of behavioral answer categories (which have high answer-scale validity). The new measure clearly shows e-retail managers where to make improvements in their service quality.

The shift in many industrial economies from manufacturing to service may have implications for the extant understanding of value creation. Service-dominant logic (SDL) poses a new paradigm for understanding the basis of economic exchange and argues that service is a true basis for understanding value creation. This service-centered perspective, as opposed to a goods-centered perspective, argues that market exchange actually is the process of parties using their specialized operant knowledge for mutual benefit, and focuses on how providers and customers interact, in order to co-create value. Using the SDL paradigm, this paper examines service-oriented entrepreneurship, where new business opportunities can be identified from the value co-creation perspective that may have been otherwise unnoticed by the goods-centered view. Propositions are developed using literature on SDL and entrepreneurship. Next, secondary cases from four companies are offered which support linkages between SDL and: (1) the identification of entrepreneurial opportunities, (2) a lifetime view of products/services, (3) redefining the role of the customer, (4) the alignment of information and goals between firms and their customers, and (5) the dynamic recombination of actors in the value creation system. Finally, the paper includes discussion and conclusion sections.

We present an open systems model that describes the processes and systems whose cumulative effects shape the human side of service delivery. The human side of service delivery, we believe, has received less attention in the service science literature than the more technical side. The open systems view of consumer service organizations focuses on input, throughput, and output stages. The creation and maintenance of a service climate is the key issue for throughput management practices in the model, such climate being partially dependent on employee and customer attributes as input and in turn linking to the output of the firm in the form of customer satisfaction and profits. A shared service climate across the subsystems of organizations—all subsystems (e.g., information technology, finance, HR, marketing) for all organizational members regardless of rank or position (e.g., executives, front-line supervisors, staff who serve service delivery people, and service delivery people themselves) is seen as the key to managing the complexities of the human side of service delivery if the firm is to be competitive in the marketplace.

Customers deserve better service than most service organizations are prepared or willing to provide them. This article describes the historical trends leading relentlessly to liberating service customers. The 21st century is portrayed as the customer century where respecting and trusting customers, serving the unserved and under served, and improving overall service levels become paramount. The implications for customer co-creation are explored. Technology enabled customer co-creation is also examined. Finally, the customer perspective is presented as the appropriate and necessary perspective for the service sector to adopt as customers are liberated or they liberate themselves.