Thursday, January 22, 2009

Service system-2

Service system designers or architects often seek to exploit an economic complementarily or network effect to rapidly grow and scale up the service. For example, credit cards usage is part of a service system in which the more people and businesses that use and accept the credit cards, the more value the credit cards have to the provider and all stakeholders in the service system. Service system innovation often requires integrating technology innovation, business model (or value proposition) innovation, social-organizational innovation, and demand (new customer wants, needs, aspirations) innovation.

For example, a national service system may be designed with policies that enable more citizens (the customers of the nation) to become an entrepreneur, and thereby create more innovation and wealth for the nation. Service systems may include payment mechanisms for selecting a level of service to be provided (upfront or one time payment) or payment based on downstream value sharing or taxation derived from customers who received the benefit of the service (downstream or ongoing payment). Payments may also be in the form of credit (creative arts) or other types of intangible value (see anthropological theories of value and theory of value).

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