BUS4 118S-01 - SERVICE SYSTEMS MANAGEMENT
Fall 2009

Tuesday 15:00-17:45 BBC 320 Code 45584

Professor Stephen K. Kwan
Management Information Systems

Office: BT 251  Telephone: (408) 924-3514
URL: http://www.cob.sjsu.edu/kwan_s
E-Mail: kwan_s@cob.sjsu.edu
Office Hours: (on Campus) Tuesday 12:00-15:00 or by appointment
Course
Description:		 The course is designed to introduce students to service systems (customer, service provider, service experience) in a variety of enterprise and service industry settings. The economics of service systems in the context of the firm, industry & sector, US and world economy will be discussed. Students will learn about the management of service systems and their design, operations, information technology, performance measurement, marketing, supply chain and quality assurance.

Course
Objectives:
  1. To study "breakthrough" services in order to understand the operations of successful service firms that can be benchmarks for future management practice.
  2. To develop an understanding of the "state of the art" of service management thinking including service systems and the service system worldview in order to develop a service mindset.
  3. To develop an awareness of the opportunities that information technology can have for enhancing service firms' competitiveness.
  4. To appreciate the organizational significance of managing the service encounter to achieve internal and external customer satisfaction.
  5. Understand new service development from both a product and process perspective.
  6. To gain an appreciation of the complexities associated with implementing change.
  7. To understand the dimensions of service growth and expansion both domestically and internationally.
  8. To appreciate the entrepreneurial opportunities in services.
Prerequisites: BUS4 110, 111, 112 and 110W
 
Required
Texts:		 Jams A. Fitzsimmons and Mona J. Fitzsimmons, Service Management: Operations, Strategy, Information Technology, 6th Edition, McGraw-Hill Irwin, 2008, ISBN: 978-0-07-337783-4 (with student CD).


 
Recommended
Reference:
James Teboul, Service is Front Stage: Positioning Services for Value Advantage, Palgrave MacMillan, 2006, ISBN: 13:978-0-230-00660-7. (available on Amazon.com)

Spohrer, J., Kwan, S.K. "Service Science, Management, Engineering, and Design (SSMED): Outline & References"
An annotated list of references available online at: http://www.cob.sjsu.edu/ssme/refmenu.htm

Haskett, J.L., W.E. Sasser, and L.A. Schlesinger, The Service Profit Chain, The Fress Press, New York, 1997. (available on Amazon.com)

University
Rules and
Policies:
The students are responsible for adhering to all University and College rules for adding classes, dropping classes, academic behavior and conduct. Students are encouraged to talk, consult, work and learn together on their assignments and projects. But each student is expected to turn in his/her own independent work when required. From the Office of Student Conduct and Ethical Development: "Your own commitment to learning, as evidenced by your enrollment at San José State University, and the University’s Academic Integrity Policy requires you to be honest in all your academic course work. Faculty members are required to report all infractions to the Office of Student Conduct and Ethical Development. The policy on academic integrity can be found at http://sa.sjsu.edu/student_conduct."
 
American with
Disability Act:
Campus policy in compliance with the Americans with Disabilities Act: "If you need course adaptations or accommodations because of a disability, or if you need special arrangements in case the building must be evacuated, please make an appointment with me as soon as possible, or see me during office hours. Presidential Directive 97-03 requires that students with disabilities requesting accommodations must register with DRC to establish a record of their disability."
 
Class
Procedures:		 It is recommended that the required text in use be brought to class. In addition to the texts, web-based materials and handouts will be supplied. Class time will be devoted to demonstrations of problems, as well as lectures. Questions in class are encouraged both to clarify and explore concepts being presented. Written questions (on paper or by E-mail) are accepted and the answers will be either in writing or discussed in class. Students are expected to have prepared the assigned materials before coming to class. They are expected to participate and contribute to the class discussions (particularly, during assignment discussions). Office hours may also be used to raise and explore questions of interest to students. Some class time and office hours will be devoted to consultation with individuals and the teams about their projects. In-class exams procedures are to be announced. Materials covered in the exams are cumulative. All written assignments to be turned in will be graded on correctness, contents, language and format.
 
Homework
and
projects:		 Take home assignments and projects will be given and be turned in for grading. Some projects will be undertaken by teams of multiple persons. Each member of the team will be evaluated by the instructor and other team member as to his/her participation and contribution to the overall quality and completion of the project. If a student's participation and/or contribution to a project is deficient, the student will receive a project grade which could be significantly less than other members of the team.
 
Grading
Criteria:		 (in percentage of course grade)
Team
Written Case Analysis (1) 10
Facilitate Case Discussion (2) 10
Project20
(An opportunity of working with a foreign
university will be discussed in class)
Individual
Written Case Analysis (2) 20
Mid Term Exam15
Final Exam15
Class Participation10
-----
100
Course
Outline:		 Subject to change (indicated by ). This page will be updated periodically throughout the semester.
Students are expected to read and prepare the assigned chapters from the text before each class.
Some PowerPoint slides supplied with the text are enhanced with additional notes and materials. These files will have names ending with "SK". FYI items are marked as : [...]
Week Date
Topics Text
Chapters		 Links
1
 8/25
Course Introduction
Introdction to Service Science, Management and Engineering (SSME)
The Role of Services in an Economy
Help Wanted: "T-Shaped" Skills to meet 21st Century Needs
Links for the Chapter:
1 IntroSSME
Chap001SK
Misc01
2 9/1
The Nature of Services
Case: Village Volvo class discussion
Case: Xpresso Lube classs discussion
Video: The Service System Design Matrix
Links for the Chapter:
2 Chap002SK
3 9/8
Service Strategy
Prepare for discussion: An Evolutionary Framework for Service Systems (with accompanying figures)
Case: United Commercial Bank and El Banco written analysis due + class discussion
Case: Alamo Drafthouse faciliated class discussion
Links for the Chapter:
Alamo Drafthousehttp://www.alamodrafthouse.com
Southwest Airlineshttp://www.southwest.com/
Club Medhttp://www.clubmed.com/
USAAhttp://www.usaa.com
United Commercial Bankhttp://www.ibankunited.com
Bank of Italy in San Josehttp://www.historysanjose.org/...
El Banco El Banco de Nuestra Comunidad
Article in Atlanta Business Chronicle
Article in Business Service Industry
3 Framework
Figures
Chap003
The Competitive
Forces Model
Sabre Case
Data
Information
4 9/15
New Service Development
Case: 100 Yen Sushi House written analysis due + class discussion Group 4
Case: Commuter Cleaning facilitated class discussion Group 3
Links for the Chapter:
105 Yen Sushi Bar
Service Sector R&Dhttp://www.oecd.org/home
On-line garage salehttp://www.craigslist.com
Shouldice Hospitalhttp://www.shouldice.com/
Custom Golf Equipmenthttp://www.golfsmith.com/
4 Chap004SK

Notes on Design
Clarification
of some terms

5 9/22
Faculty Furlough Day - No Class

6 9/29
Technology in Services
Some Internet Maps and Links:
Historical Topological Maps
History of the Internet (an animation with a European flavor).

Definition of E-Commerce

Case: Amazon.com written analysis due + class discussion Group 2
Case: Evoluation of B2C E-Commerce in Japan facilitated class discussion Group 3

Links for the Chapter:
7-Elevenwww.7-eleven.com
7-Eleven in Japanhttp://www.sej.co.jp/english/index.html
Market Makerhttp://www.eBay.com/
Online Retailerhttp://www.amazon.com/
Business Informationhttp://www.hoovers.com/free/
Stock Tradinghttp://us.etrade.com/e/t/home
Radio Frequency Identificationhttp://en.wikipedia.org/wiki/RFID
Customer Satisfaction Indexhttp://www.theacsi.org
Produce Yourself (eCommerce - goods vs. services)
Professor Rappa's eCommerce sitehttp://digitalenterprise.org/
ACLU Privacy Videohttp://www.aclu.org/pizza/images/screen.swf
5 Chap005
Dimensions of ECommerce
E-Services
E-Business Models
SCM ERP CRM
7 10/6
Service Quality
Case: Clean Sweep, Inc. class discussion (led by instructor)
  • Chapter 6 - slides 6.7+, SERVQUAL
  • ** Notes on Xbar Chart and Six Sigma **
  • Stores Counts Seconds
  • Net Promoter Score
  • Different Worlds

Case: The Complaint Letter facilitated class discussion Group 1

Links for the Chapter:

Customer Service Champs
6 Chap006SK
Service Quality Gap
Clean Sweep Xbar Template
8 10/13
Mid Term Examination

9 10/20
 Process Improvement
Case: Mega Bytes Restaurant written analysis due + class discussion Group 6
Case: Mid-Atlantic Bus Lines class discussion Group 6
Links for the Chapter: 		7
Chap007
Chapter Supplement Not Covered
10 10/27
The Service Encounter
Case: Amy's Ice Cream written analysis due
Case: Enterprise Rent-A-Car facilitated class discussion Group 1
 		8
11 11/3
Supporting Facility and Process Flows
Case: Central Market written analysis due
Case: Health Maintenance Organization (A) facilitated class discussion Group 5 		9
12 11/10
Attending Conference - No Class - Will Make Up

13 11/17
Service Facility Location
Managing Capacity and Demand
Case: Gateway International Airport written analysis due
Case: The Yield Management Analysis facilitated class discussion Group 5 		10,11
14 11/24
Managing Waiting Lines and Simulation of Service Systems
Case: Thrifty Car Rental facilitated class discussion Group 2 		12
15 12/1
Service Supply Relationship 13
16 12/8
Growth and Globalization of Services 14
17 12/10
Thursday 14:45-17:00 In-Class Final Exam


PROJECT (An opportunity of working with a foreign university will be discussed in class)
  1. A study of the competitive environment of a service industry (sector).
  2. After presenting the big picture of the competitive environment of the service, then focus on an area (or areas) that you want to study (reduce to a manageable scope). A focus could be a geographical region (e.g., the Bay Area) or a segment of the sector (e.g., premium coffee outlets).
  3. Identify the evolutionary and revolutionary factors that you see would be affecting the growth and well-being of this service area. This part should be a look-forward for two to three years. We discussed factors such as continuous improvement, disruptions, leap-frog, adoption of new technology, changes in the environment, customer tastes, etc. See more examples and discussion in the Kwan/Min paper.
  4. Present a picture of what you think the competitive environment and what some specifics of the service systems will be like for this service area 2-3 years from now and justify your rationale.
  5. Deliverables: A 20-25 min. in-class presentation and a written report of the project due final exam time.
Possible Team Project Topics
  1. Food and Essentials Supply/Shopping in the Future
  2. Airline Service in the Future
  3. Educational Institution as a Service System in the Future
  4. Fast Food/Restaurant in the Future
  5. Information Technology Services Mangement in the Future
  6. E-Commerce in the Future
  7. Health Care Service Systems in the Future
  8. Parcel Delivery Systems in the Future

CASE METHOD (Class Participation)
The case method is used throughout the course. Study questions on each assigned case are listed in the text. These questions should serve as a starting point with additional insights being welcomed. All class members are expected to have read the case and reflected upon the assigned questions. Furthermore, class members are encouraged to apply concepts from the assigned readings to their analysis of the case.

Active participation is expected throughout the entire class with thoughtful contributions to advance the quality of the discussion. Please note that the frequency (i.e., the quantity) of your interventions in class is not a key criterion for effective class participation. The classroom should be considered a laboratory in which you can test your ability to convince your peers of the correctness of your approach to complex problems and of your ability to achieve the desired results through the use of that approach. Criteria that are useful in measuring effective class participation include:

  1. Is the participant a good listener?
  2. Are the points that are made relevant to the discussion? Are they linked to the comments of others?
  3. Do comments show evidence of applying the concepts from the readings to the analysis of the case?
  4. Is there a willingness to test new ideas, or are all comments "safe" (e.g., repetition of case facts without analysis and conclusions)?
  5. Do comments clarify or build upon the important aspects of earlier comments and lead to a clearer statement of the concepts being covered and the problems being addressed?
An important element of this class is teamwork. You are encouraged to form your own team (2 students). Each team will be responsible for facilitating one case discussion and preparing one written case assignment. Written case assignments will be made to guarantee that at least one team has prepared a written analysis of the case under discussion.

WRITTEN ANALYSIS OF CASES
Your team will be asked to select one case for written analysis during the course. Individuals will select their own two cases for written analysis (different from the one analysed as a team member). The analysis will address the case questions and be limited to five pages, printed double-spaced, plus exhibits. I will be grading your papers with particular attention being paid to your application of course reading material and concepts to the case analysis. Written papers are due at the start of class.

  1. Papers should be printed, double-spaced, with normal margins. The name of the case should be on the first page of the text with your names, date, and course number. An executive summary is not required nor expected.
  2. The page limit for each paper is five pages of text, plus exhibits. Note that these are maximum limits. Papers should be concise and coherent.
  3. Exhibits should contain specific types of analyses (application of a framework, table of comparisons, cost analysis, competitive features, etc.) and information (web page of firm) that supports and is relevant, but would be too detailed for the body of the paper.
  4. Please proofread/spell check your paper before turning it in. Papers for this course should be of the same quality that you would provide to the management of the business.

FACILITATING CASE DISCUSSION
Your team will be asked to select one case to lead the class in its analysis. Facilitating a case discussion is not presenting a complete analysis of the case but rather leading the class in the case analysis. This requires the team to stimulate interest and draw out insights and ideas from the class creating active participation of class members who are expected to have read the case and thought about the assigned questions. Often the case discussion begins with a brief overview of the firm. Discussions of the assigned questions are facilitated using an outline or bullet form with inputs provided by the students. As a group we will try to build a complete analysis of the situation and address the problems arising in the case applying the framework presented in the readings for the session. At the conclusion of the case discussion, the instructor will summarize the take-aways for the session.

Criteria for measuring the effectiveness of leading a case discussion include:

  1. Ability to stimulate interest among your classmates.
  2. Ability to relate the concepts from the readings to the issues in the specific situation.
  3. How well the discussion generated insights and ideas from the participants.
  4. How effectively the team led the discussion.
  5. Was the analysis complete?
Provide me with a PowerPoint file of your facilitation outline by e-mail the day before the class session and I will prepare handout notes for the class.