Service-Dominant Business Engineering: From Strategy to Service Orchestration

Transcription

1 Service-Dominant Business Engineering: From Strategy to Service Orchestration Oktay Turetken, Paul Grefen School of Industrial Engineering Internet of Things (2IMN15), TU/e, 07.Dec.2015 Outline Context Framework Components Application in Practice Conclusion & Outlook

2 The Context Internet of Things (2IMN15), TU/e, 07.Dec.2015 The largest taxi company owns no vehicles! FACEBOOK The most popular media owner creates no content! The most valuable retailer has no inventory! The largest accommodation provider owns no real-estate! twitter WhatsApp. * Googwin,

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4 Service-Dominant Business Markets are refocusing from assets to services. The business value is NOT in owning an asset. It is in using the services offered by the asset. What matters to a customer is the added value. This added value is a service-based solution (called a value-in-use), not an asset. Companies are organizing into agile networks Customers demand complete solutions, not fragments of individual services. Excel where you lead, have others do the rest. Added value is realized in co-production between a network of service providers and the customer. Servitization & networking create organizations with complexity and agility Services change faster than assets. Customer orientation. Mass customization. Short life cycles. Fluid market conditions.

5 Value in Use Service- Dominant Business Business Agility Business Networks Framework Internet of Things (2IMN15), TU/e, 07.Dec.2015

6 BASE/X Business Agility through Service Engineering in a Cross-Organizational Setting The WHAT: Business Goal Engineering The HOW: Business Operations Engineering S BM SC BS SD business strategy SD business models Service compositions Business services S BM SC BS The what of business exists in two forms: 1.The stable part (identity): Business Strategy 2.The agile part (offerings): Business Models

7 S BM SC BS The how of business exists in two forms: 1.The stable part (capabilities): Business Services 2.The agile part (combinations): Service Compositions strategic design S BM SC BS Complexity is handled by strategic design. Resulting in modular business services.

8 S BM SC Tactic design BS Agility is handled by tactic design. Resulting in fast, flexible business support. Strategic Design Loop: Evolutionary alignment of identity and capabilities Tactical Design Loop: Revolutionary conception of market offerings S BM SC BS Confrontation of Goals: Alignment of identity and market offerings Confrontation Of Means: Alignment of required and available capabilities

9 Components Internet of Things (2IMN15), TU/e, 07.Dec.2015 Service Dominant Business Strategy S BM SC BS SD business strategy SD business models Service compositions Business services

10 Running scenario: TraXP Offer a seamless, complete travel experience to various customer groups Base that on advanced customer profiles that record preferences Use a broad spectrum of travel services that can be flexibly combined TraXP Execute the combinations in a highly networked, real-time fashion

11 Partner Partner Partner Partner Cust omer Partner Partner Partner Customer Any individual traveller, business or private Value-in-Use Experience Seamless Travel Experience one-shot and guided Interactions Profile maintenance Trip requirements Travel instructions Core Services Travel configuration, optimization, execution Core Partners Transport, accomm., inform. provider Service Eco-System Focal Organization TraXP Enriching Services Social networking, insurance, communic., cost claiming Enriching Partners Social network, insurance firm, comm. & docum. handler Collaboration Management Core Relationships Multiple relations; transactional; income sharing fixed or variable rates Enriching Relationships Single relation; relational; Visibility/goodwill sharing; Fixed-rate income sharing

12 Service Dominant Business Services S BM SC BS SD business strategy SD business models Service compositions Business services Interface business service execution creates state change in value-in-use SLA QoS Par 1 QoS Par N Business Capability Business Resource Business Resource Business Service service world asset world

13 BS Profiling Booking Optimizing Manage Personal Profile Book Flight Book Hotel Optimize Transport Manage Corporate Profile Book Car Book Package Holiday Optimize Location Generating Insuring Socializing Travel Guide Expense Claim Assess Risk Send Personal Notification Post on LinkedIn Experience Report Virtual Trip Insure Post on Twitter Post on Facebook core service commodity service Internal if not externally available with right SLA Always internal with full QoS management differentiating service Always external Preferably internal with light QoS management enriching service

14 BS Profiling Booking Optimizing Manage Personal Profile Book Flight Book Hotel Optimize Transport Manage Corporate Profile Book Car Book Package Holiday Optimize Location Generating Insuring Socializing Travel Guide Expense Claim Assess Risk Send Personal Notification Post on LinkedIn Experience Report Virtual Trip Insure Post on Twitter Post on Facebook external Service Dominant Business Model S BM SC BS SD business strategy SD business models Service compositions Business services

15 Service Dominant Business Model Radar The value-in-use: what is the added value for the customer? cost/benefit coproduction activity value proposition co-created value in use Who is the customer? Service Dominant Business Model Radar cost/benefit What are the elements that parties in the network contribute to the value-inuse? coproduction activity value proposition co-created value in use

16 Service Dominant Business Model Radar Which activities must be performed by the network in collaboration to realize the value-in-use? cost/benefit coproduction activity value proposition co-created value in use Service Dominant Business Model Radar What are the costs/benefits for each (financial and non-financial) and does this lead to a viable business network? cost/benefit coproduction activity value proposition co-created value in use

17 cost/benefit coproduction activity Advertiser create content content value proposition Customized Advertising visibility presence view pages User create pages Google c/b cpa vp ViU /F c/b cpa vp ViU /I c/b cpa vp ViU /C c/b cpa vp ViU /X

18 cost/benefit coproduction activity value prop. seamless travel experience /F seamless travel experience /X

19 Service Compositions S BM SC BS SD business strategy SD business models Service compositions Business services BS Profiling Booking Optimizing Manage Personal Profile Book Flight Book Hotel Optimize Transport Manage Corporate Profile Book Car Book Package Holiday Optimize Location Generating Insuring Socializing Travel Guide Expense Claim Assess Risk Send Personal Notification Post on LinkedIn Experience Report Virtual Trip Insure Post on Twitter Post on Facebook

20 SC /X Profiling Booking Optimizing Insuring Manage Personal Profile Book Flight Book Hotel Optimize Transport Assess Risk BS Manage Corporate Profile Book Car Optimize Location Insure Generating Socializing Travel Guide Expense Claim Personal Notification Start Assess Risk Optimize Location Book Flight Manage Personal Profile Insure Optimize Transport A Book Hotel A Book Car Travel Guide 1 Personal Notification 1 Expense Claim Stop

21 Operations Pyramid Business Pyramid Platform Pyramid Operations Pyramid Business Pyramid

22 An Application in Practice Project DITCM-RA: Dutch Mobility Reference Architecture Internet of Things (2IMN15), TU/e, 07.Dec.2015 Using SDB Engineering in the Mobility Arena Some recent projects that we were involved: DITCM-RA: Development of a Dutch Reference Architecture for ITS PPA-BM: The design of service-dominant business model blueprints for event traffic management in Amsterdam South-East. ConMob: Awareness Initiative: Agile Business Models for the Dutch Mobility Sector. BestFact-BM & GetService: FP7 projects - Exploration of Service-Dominant Business Models in Multi-Party Logistics Scenarios

23 Mobility Architectures at work Initiatives: Shockwave Traffic Jams A58 ITS Corridor Praktijkproef Amsterdam (PPA) DITCM 1.0 Converge MOBiNET VRUITS Etc. Connection through a common denominator NL Mobility Reference Architecture

24 Applying Business Engineering Identify services (use-cases) from selected projects Application Area Application Category Service Traffic flow I2V/V2I/I2I Traffic Information Service with Floating Car Data collection Cooperative/ Connected Connected/ Cooperative Traffic flow I2V Shockwave Damping Cooperative Safety/Tr. flow I2V Road Works Warning Cooperative Safety V2V Emergency Brake Light Warning Cooperative Comfort I2V Intermodal Route Planner Connected Environmental I2V Green Light Optimal Speed Advise Cooperative Environmental I2V Green Light Optimal Speed Advise Connected Env./Comfort I2V Smart Parking Assistant Connected Comfort I2V Pay How You Drive Connected Develop Business models for these service-solutions Practical settings for the BM design sessions

25 Practical settings for the BM design sessions Business Models: Examples Traffic Information Service with Floating Car Data collection Shockwave Damping Road Works Warning

26 Ref. Achitecture Aggregation Level 0 Road Operator Service Provider other ITS system End User VRU Vehicle driver Ref. Achitecture Aggregation Level 1 Support Central Roadside Vehicle Traveler/VRU

27 From Business Models to Architecture Traffic Information Service with Floating Car Data collection From Business Models to Architecture Traffic Information Service with Floating Car Data collection Business Process Model

28 From Business Models to Architecture Traffic Information Service with Floating Car Data collection From Business Models to Architecture Business Process Model Ref. Architecture - Agg.Level2 Support Service Provider Back-Office (SP BO) Traffic Inf. System (TIS) Traffic Mng. System (TMS) Central Roadside Unit (RSI or RIS) Roadside Vehicle On- Board Unit (OBU) Vehicle Traveler/VRU

29 From Business Models to Architecture Business Models Business Process Models Architecture Support Governance Test & certification Management Security & credentials Management Operational Management Central Service Provider Back-Office (SP BO) Data Provider Back-Office (DP BO) Communication Provider Back- Office (CP BO) Traffic Management System (TMS) Traffic Information System (TIS) Service Provider Exchange System (SPES) Roadside System Roadside (RS) Roadside Unit (RSU or RIS) Roadside VRU Localization System (R-VLS) Vehicle Vehicle Platfom (VEE) Vehicle On-Board Unit (OBU) Remote Vehicle OBU (R-OBU) Vehicle VRU Localization System (V-VLS) Traveller/ VRU Personal Information Device VRU-OBU Remote VRU-OBU VRU Transponder (VRU-T) Conclusions & Outlook Internet of Things (2IMN15), TU/e, 07.Dec.2015

30 Substantial practical experience in SD business modeling E.g. logistics, mobility, document services BASE/X technique is well received Brings new insights into traditional domains Prototyping-level industry experience in SD service catalogs Translation of service compositions into business processes Mapping BASE/X to enterprise architectures

31 Outlook New basic research directions Algorithmically mapping business models to service compositions and business processes (application of Subject-Oriented BPM) Evaluating viability of business models (quantitative analysis of costs and benefits through QoS specs of business services) Continuation of applicative research Mobility domain (mobility solutions) Logistics domain (multi/synchro-modal transport) Healthcare For more information: THANK YOU! Service-Dominant Business Engineering: From Strategy to Service Orchestration Oktay Turetken, Paul Grefen O. Turetken, P. Grefen (2015) Awareness Initiative for Agile Business Models in the Dutch Mobility Sector. Technical Report by Connecting Mobility and TUe. Marcel van Sambeek, et al. (TNO) and O. Turetken et al. (TU/e) (2015) Towards an Architecture for Cooperative-Intelligent Transport System (C-ITS) Applications in the Netherlands, Technical Report by DITCM Innovations and TUe. P. Grefen, O. Turetken, K. Traganos, A. den Hollander, R. Eshuis (2015) Creating Agility in Traffic Management by Collaborative Service-Dominant Business Engineering. 16th IFIP Working Conf. on Virtual Enterprises (PRO-VE 2015), Pg Springer. K. Traganos, P. Grefen, A. den Hollander, O. Turetken, R. Eshuis (2015) Business model prototyping for intelligent transport systems: a service-dominant approach. Technical Report by DITCM Innovations and TUe. P. Grefen (2015) Service-Dominant Business Engineering with BASE/X: Business Modeling Handbook.