BUS4 118S-02 - SERVICE SYSTEMS MANAGEMENT
Fall 2011

Monday 6:00-8:45pm BBC 103 Code 43181

Professor Stephen K. Kwan
Service Science, Management Information Systems

Office: BT 251  Telephone: (408) 924-3514
URL: http://www.cob.sjsu.edu/kwan_s
E-Mail: stephen.kwan@sjsu.edu
Office Hours: (on Campus) Monday 3:00-5:45pm 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 111, 112 and 110W
 
Required
Texts
:
[F] James A. Fitzsimmons and Mona J. Fitzsimmons, Service Management: Operations, Strategy, Information Technology, 7th Edition, McGraw-Hill Irwin, 2008, ISBN: 978-0-07-340335-9 (with premium contents).


 
Recommended
Reference
:
Henry Chesbrough, Open Service Innovation, Jossey-Bass, 2011,
ISBN: 978-0-470-90574-6. Available at Amazon.com.

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

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

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 & Facilitate Discussion (1) 15
Project30
Individual
Written Case Analysis (2) 20
Mid Term Exam15
Final Exam15
Class Participation5
-----
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
8/29
Course Introduction
Introduction to Service Science, Management, Engineering, and Design (SSMED)
The Role of Services in an Economy
Help Wanted: "T-Shaped" Skills to meet 21st Century Needs

Links for the Chapter:
SJSU SSME Program http://www.sjsu.edu/ssme
IBM Service Science, Management, and Engineering http://www.ibm.com/university/ssme
Non-Manufacturing ISM Report on Business http://www.ism.ws/pubs/ismmag/
Employment in Services by Country http://www.bls.gov/fls/flscomparelf.htm
Fortune 500 2006 http://money.cnn.com/magazines/fortune/fortune500/full_list/
North America Industry Classification System (NAICS) http://www.census.gov/epcd/www/naics.html
Organization for Economic Co-Operation and Development http://www.oecd.org/home/...
Service Economy (Wikipedia) http://en.wikipedia.org/wiki/Service_economy
Service System (Wikipedia) http://en.wikipedia.org/wiki/Service_system
F1 IntroSSME
Updated 8/27/2011

Chap001SK
Misc01

2 9/5

Labor Day - No Class



3 9/12
The Nature of Services
Case: Village Volvo class discussion
Case: Xpresso Lube classs discussion
Video: The Service System Design Matrix

Links for the Chapter:

Additional References:
  1. Vargo, S. L. and Lusch, R. F. (2004) "The Four Service Marketing Mysths: Remnants of a goods-Based, Manufacturing Model", Journal of Service Research, 6 (4), 324-335.
  2. Vargo, S. L. and Lusch, R. F. (2004) "Evolving to a New Dominant Logic for Marketing", Journal of Marketing, 68 (1), 1 – 17.
  3. Vargo, S. L. and Lusch, R. F. (2008a) "Service-Dominant Logic: Continuing the Evolution", Journal of the Academy of Marketing Science, 36 (1), 1-10.
Foundational Premises (FP) of Service-Dominant Logic
F2 Chap002

Nature Of
Services

Simple Queue

Definition of E-Commerce

4 9/19
Guest Lecture by Professor Michael Merz
  • Vargo, S. L. and Lusch, R. F. (2004) "The Four Service Marketing Mysths: Remnants of a goods-Based, Manufacturing Model", Journal of Service Research, 6 (4), 324-335.
  • Vargo, S. L. and Lusch, R. F. (2004) "Evolving to a New Dominant Logic for Marketing", Journal of Marketing, 68 (1), 1 – 17.


  • 5 9/26
    Service Strategy
    Prepare for discussion: An Evolutionary Framework for Service Systems (with accompanying figures)
    Case: United Commercial Bank and El Banco
    Case: Alamo Drafthouse

    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
    F3 Framework
    Figures
    Chap003
    The Competitive
    Forces Model

    Sabre Case
    Data
    Information

    6 10/3
    New Service Development
    Case: 100 Yen Sushi House (Group 1)
    Case: Commuter Cleaning (Group 2)
    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/
    F4 Chap004SK
    Notes on Design
    Clarification
    of some terms
    7 10/10
    Technology in Services
    Case: Amazon.com (Group 3)
    Case: Evoluation of B2C E-Commerce in Japan (Group 4)

    Links for the Chapter:
    7-Eleven www.7-eleven.com
    7-Eleven in Japan http://www.sej.co.jp/english/index.html
    Market Maker http://www.eBay.com/
    Online Retailer http://www.amazon.com/
    Business Information http://www.hoovers.com/free/
    Stock Trading http://us.etrade.com/e/t/home
    Radio Frequency Identification http://en.wikipedia.org/wiki/RFID
    Customer Satisfaction Index http://www.theacsi.org
    Produce Yourself (eCommerce - goods vs. services)
    Professor Rappa's eCommerce site http://digitalenterprise.org/
    ACLU Privacy Video http://www.aclu.org/pizza/images/screen.swf
    F5 Chap005
    Definition of
    E-Commerce

    E-Services
    8 10/17
    Service Quality
    Case: Alpha Services class discussion (instructor)
    Solution    
    • Chapter 6 - slides 6.7+, SERVQUAL
    • ** Notes on Xbar Chart and Six Sigma **
    • Stores Counts Seconds
    • Net Promoter Score
    • Different Worlds

    Links for the Chapter:
    One professor's interesting thoughts on Poka-Yoke http://facultyweb.berry.edu/jgrout//pokayoke.html
    Quality Function Deployment Institute http://www.qfdi.org/
    The Juran Institute http://juran.com/
    ISO 9000 http://www.9000world.com
    ISO/IEC Guide 76:2008
    Development of Service Standards
    http://www.iso.org/iso/iso_catalogue/....
    Customer Satisfaction Index http://www.theacsi.org
    F6 Chap006
    Service Quality Gap
    Alpha Services Xbar Template

    9 10/24
    Mid Term Examination
    Project Discussion and Innovation Exercise


    10 10/31
    Process Improvement
    Case: Mega Bytes Restaurant (Group 1)
    Case: Mid-Atlantic Bus Lines
    Links for the Chapter:
    Parasuraman, A., V. A. Zeithmal, A. Malhotra, "E-S-Qual - A Multiple-Item Scale for Assessing Electronic Service Quality", Journal of Service Research, Feb 2005, v.7, no.3 , p.213-233.
    The Deming Institute http://deming.org/
    Baldrige National Quality Award http://baldrige.nist.gov/
    Six-Sigma http://www.isixsigma.com
    Data Envelopment Analysis http://www.emp.pdx.edu/dea/wvedea.html
    F8
    Chap008

    11 11/7
    The Service Encounter
    Case: Amy's Ice Cream (Group 2)
    Case: Enterprise Rent-A-Car (Group 3)
    Links for the Chapter:
    The Walt Disney Company http://home.disney.go.com/
    Amy's Ice Cream http://www.amysicecream.com
    Enterprise Rent-A-Car http://www.enterprise.com
    F9 Chap009

    12 11/14
    Managing Capacity and Demand
    Managing Waiting Lines
    Yield Management Game (Group 4)
    F11,F12,
    F16
    Chap011
    Chap012
    Chap016
    Queues
    Queueing Formulae
    Application Examples
    13 11/21
    Service Supply Relationship
    Globalization of Services - Trade in Services

    Constructing Effective Value Propositions for Stakeholders in Service System Networks

    Final Exam Case Study

    F13,F14
    14 11/28 Forecasting Demand for Services
    Managing Service Inventory
    F17,F18
    15 12/5
    WebEx Session - Project Discussion

    16 12/12

    1715-1930 - Final Examination and Project Presentations




    PROJECT
    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.