The Era of New Services

This chapter is dedicated to the important role of services in various sectors. It discusses different types of services and highlights the evolution of the service industry, focusing on its increasing contribution to the GDP of major economies. This signifies a trend toward a service-centric economic model. The concept of Service-Dominant Logic (S-D Logic) is introduced, which redefines the traditional understanding of services. The chapter emphasizes that services are universally present and explains their significance in improving customer experiences and driving innovation.

This chapter addresses the complexities of managing service systems, emphasizing the need for advanced methodologies to handle the emergence and nonlinear relationships characteristic of such systems. To tackle the inherent uncertainties in service systems, especially those involving human interaction, the chapter proposes to employ systems engineering tools like complex adaptive systems and multi-agent simulation. A multi-dimensional continuum approach for service innovation is also raised. This comprehensive approach, combining systems engineering with AI and a continuum perspective, presents a forward-looking vision for managing and innovating in complex service environments.

This chapter explores the dynamics of service innovation, emphasizing the significance of network-centric approaches in product and service development across four key dimensions: low-cost networks, cross-organization networks, high-efficiency networks, and the combination of online and offline channels. It underscores the critical role of strategic collaborations, technological integration, and innovative networking in enhancing service delivery, customer engagement, and overall market competitiveness.

This chapter emphasizes the strategic utilization of information as an asset in service industries, highlighting its role in enhancing business operations and market expansion. Focusing on the innovative use of customer data, it illustrates how companies like UPS and Amazon have transformed their business models. Additionally, it discusses the concept of resource sharing, exemplified by the success of Airbnb and Didi in the sharing economy. The chapter concludes that effective information and resource management can lead to significant innovation and growth in the service sector.

As the S-D Logic tells us, the most important purpose of any service is to satisfy people’s needs.

This chapter discusses the “Satisfaction Mirror” concept in service industries, emphasizing the relationship between employee and customer satisfaction. It highlights that employee contentment directly influences customer experiences, using Haidilao and ZTO Express as examples of effective employee management. It also explores interactive behaviors as a core element in service innovation, focusing on creating positive interactions between staff and customers. Additionally, the chapter examines the role of organizational culture in enhancing service quality, using Southwest Airlines as a case study. In conclusion, nurturing a positive work environment and fostering strong employee engagement is essential for delivering exceptional customer service and driving service innovation.

This chapter examines the role of design in service innovation, distinguishing it from art by its focus on broad human needs and practical application. It highlights the significance of design thinking in shaping future services, drawing inspiration from examples like Disneyland and Amazon Echo. The discussion revolves around three key aspects of service design: original experience, redesign, and diversification. Original experience discusses human desires to connect with nature and history, while redesign focuses on reinterpreting familiar concepts in novel ways. Diversification emphasizes providing varied and integrated experiences to cater to a wide range of consumer preferences. Successful service design demands a deep understanding of human needs and a blend of innovation with tradition, offering a richer and more diverse service experience.

This chapter explores the vital role of differentiation in service competition, highlighting its evolution from a symbol of status in historical societies to a modern strategy for addressing individual consumer needs. It underscores the importance of personalization and the integration of technology like IoT and Big Data in service provision. The chapter also addresses the challenge of heterogeneity in service delivery and the importance of fairness in service management. Key trends in service differentiation are explored, including value delivery, moral and social responsibility, and detail-oriented design. The chapter concludes with the critical role of technology-enhanced service encounters, suggesting that the future of service innovation lies in the synergy between human and machine interaction.

This chapter introduces the SERVINO Methods, a novel approach to service innovation that combines design thinking, Systems Engineering, and the traditional Theory of Inventive Problem Solving (TRIZ). Focusing on reorganizing a company’s resources for new or improved services, these methods offer a comprehensive toolkit for addressing the broad spectrum of challenges in service innovation, from business models to tangible products and continuous improvement. The chapter highlights the core principles and applications of the SERVINO Methods, demonstrating their potential in driving efficient and creative service-oriented solutions.

This chapter introduces a parallel service management framework for complex service systems, inspired by Professor Fei-Yue Wang’s Parallel Control and Management Mechanism, addressing the challenge of integrating human factors in service management. Central to this approach is the understanding of the customer, by incorporating the complexities of customer behaviors, characteristics, and motivations. This approach not only enriches Service Science by integrating behavioral science and environmental impacts but also enhances decision-making in service management and fosters personalized service innovations based on a deeper understanding of customer needs.

This chapter discusses the evolution of customer expectations in the service sector, focusing on the shift from traditional factors like price-performance, convenience, and variety to more experiential aspects such as curiosity, fun, and emotional connection. Furthermore, it addresses the challenge of overwhelming choice, suggesting that services which simplify decision-making are increasingly valued. The concept of multifunctional spaces is introduced, exemplifying how integrating various services into a single location can enhance customer experience. Additionally, the role of service innovation is emphasized in driving “rural vitalization” and supporting the construction of “new infrastructures”, ultimately contributing to a better quality of life.