Saadia Aslam

13015092004

The Service System is the Basic Abstraction of Service Science

With the passage of time, industrial revolution came with many powerful abstractions. We move
from the work abstraction in nineteenth century, bits and binary digit abstraction in twentieth and
now in twenty-first century a new abstraction regarding thinking is evolving and developing that
is service system. Service hold for the the application of resources for the benefits of other,
Today many industrial sectors, and multinational companies are thinking about it and they are
developing these departments because it co-relates the values. The main perspective of this paper
is to get to know about the new service system understanding, innovation in it and S-D (System
Dominant) Logic. He also challenges the traditional view regarding the service system.
The paper strongly challenged the wrong perception economist regarding the service system. In
nineteenth century Adam smith rule of productive and unproductive people when he tried to
increase his nation wealth. Worldview of economist is wrong. They just articulated industry in
productive and unproductive sectors. However recently the growth in what they called service
sector reflected in GDP, developed countries invest 70 to 80% of their GDP in service sector.
Traditional worldview of economist depends on G-D (Goods Dominant) logic. It is more
products oriented and divides in tangible (good) and intangible (services). While in S-D logic
thinking is to make the static resources useful that need some action are operand resources and
the so called intangible that are capable of creating value are operant resources. In S-D logic
value is always co-related and done with mutual collaboration.
In S-D logic services are provided to obtain reciprocal services or sometime it involves the goods
too. As S-D logic is service based and thus it needed a robust and generalized understanding to
change the economist G-D logic. The first thing is to eliminate the difference between the
producer and consumer. In S-D logic service system have very critical role, it can be in form
people, business and technology. Service systems actually the interacting entities, with their
competencies and skills we use the resources in a well defined way. These resources are of two
kinds, physical and conceptual. For co-created valued services, service systems had to interact
with other service systems. These interactions are very valued ones and named as service
interactions. These service interactions proceed in three steps 1st is proposal 2nd is agreement and

Saadia Aslam

13015092004

3rd is realization. These three steps needed to be completed to gain its values. Proposal can be
accepted and rejected and accepted proposal can be failed in the process of realization.
All service systems have a beginning, history and end. These can be formal with legal
implications and informal too. But not all service systems interactions qualified as service
interactions. A service interaction may or may not conclude up to realization step. It all depended
on the values of both Interacting parties. Some interactions are welcomed and some or not as
they involve legal solutions or third party interactions like government agencies. And after the
interaction proposal agreed by both interacting parties, there is possible clash between parties on
realization of co-created values. For example if the client was not satisfied with the service
provider competency level or skill, he can cancel the agreement and will refer to sit again on new
terms and conditions. Even if service provider seems to face problem from the client side he can
challenge the agreement. So service system always mutual co-relation and created co-created
values that is favorable for both interacting parties. Service systems stability depends on the
trend of ratio of R- realized outcomes to all other outcomes. The ISPAR model Interact-ServePropose-Agree-Realize enables us to see world as the population of interacting service systems
for their own mutual co-creation values. It clarifies that how great Varity of entities can be
unified by this single abstraction. The challenges for service systems are that by which they cocreated values and how they handle dispute and resolved them.
It is very important to understand the basic foundations of service system to make real
advantage from it. As service system is the usage of resources for the benefits of others and that
also ultimately help to grow or value the resources at their own too. Due to this service system is
called and open system as it is capable of improving the state of other system by sharing and
using its resources and along with this it is capable to of improving its own state too. Because of
this we called service system as dynamic configuration of resources and it also includes both
operant and operand resources. The system is also resource by itself. An individual person is
identified as atomic service system, so when we collect a combination of such atomic service
systems then it become a composite service system that can operate its resources for the other
party improvement. But it is not necessary that all compositions of service systems should be
service systems too. For example collection of building contractors is just building resource,

Saadia Aslam

13015092004

there should an operant resource that can operate these resources and can provide proposal to
other party for agreement and realization.
Todays implications for service systems are that how to operate operant and operand resources,
the nature of atomic service systems and methods and mechanism of service system change. But
it is really strange that how such a small abstraction unified a variety of thing in this. Service
system abstraction is underdeveloped and there is still need to work a lot on this.

Saadia Aslam

13015092004

Fundamentals of Service Science

Service systems are value co-creation of configurations of people, technology, and organization
and shared information. These are four major categories of resources. Service science is the
study of service systems and innovations in service systems. To make progress S-D logic is the
right perspective to improve service systems and methodology. Service is the application of
resources for the benefit of others. Service innovation was poorly understood. It explained the
origins of growth of service systems, solve fundamental problem like how to invest and produce
unique service professionals for service systems.
There are varieties of entities like physical resources (people), organizations, business,
mechanical technology, information technology, marketing, human resource and business
strategy accumulating knowledge relevant to understanding of service systems. In organization
based, service systems are there to improve systems, rules and incentives to create effective
group of individuals that can work for the growth of the organization. By doing this it will
ultimately increase the organization output. S-D logic provides the right perspective we can
develop right vocabulary, system and configurations.
Here it is mentioned as an example that how IBM they improved their service systems, by
moving from manufacturing dominant logic to service dominant logic. IBM invested a lot on
resources; deploy consultation, practitioners and technologies to help client transform business.
Increasing competencies is the key to improvement and innovations.
.