Service system

Another definition for service system[1] states that a service system consists of elements (e.g., people, facilities, tools, and computer programs) that have a structure (i.e., an organization), a behavior (possibly described as a business process), and a purpose (or goal).

"Properly designed service technology systems allow relatively inexperienced people to perform very sophisticated tasks quickly—vaulting them over normal learning curve delays."

Examples: "Domino's Pizza ... industrial engineering and food science research automated the making of a pizza to as near a science as possible, eliminating much of the drudgery in such tasks, yet ensuring higher quality and uniformity.

Then, finding that its store managers were still spending fifteen to twenty hours per week on paperwork, Domino's introduced NCR "mini-tower" systems at its stores to handle all of the ordering, payroll, marketing, cash flow, inventory, and work control functions ... Federal Express ... Its DADS (computer aided delivery) and COSMOS II(automated tracking) systems give FedEx maximum responsiveness."

Usages from Cook, Goh, and Chung (1999) Service Typologies: A State of the Art Survey.

Global service organizations must also appreciate and understand local customers, laws, and culture to successfully operate internationally."

Marketing, operations, and global environment considerations have significant implications for the design of a service system.

"Stated alternatively, service-dominant logic offers opportunity for the organization to focus on selling a flow of service.

It could charge per cubic foot of climate maintained on a monthly or annual basis and/or through a payment plan involving gain sharing, in which costs are reduced as system performance rises, thus benefiting financially both the firm and the customer.

A seller entering into such an arrangement has an incentive to look at everything about the building that will influence heating and cooling costs."

Marketing, operations, and global environment considerations have significant implications for the design of a service system.

Three criteria used to classify service systems include: Properly designed service systems employ technology or organizational networks that can allow relatively inexperienced people to perform very sophisticated tasks quickly—vaulting them over normal learning curve delays.

Service systems range from an individual person equipped with tools of the trade (e.g., architect, entrepreneur) to a portion of a government agency or business (e.g., branch office of a post office or bank) to complete multinational corporations and their information systems (e.g., Domino's Pizza, Federal Express).