Transcript Document

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© E. Gummesson 2008
22nd Service Conference and Workshop
University of Westminster
London, November 2008
HOW ARE
SERVICE-DOMINANT LOGIC,
SERVICE SCIENCE &
MANY-TO-MANY MARKETING
RELATED?
Professor Evert Gummesson
Stockholms University School of Business, Sweden
© E. Gummesson 2008
[email protected]
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GUIDELINES FOR SCIENTIFIC RESEARCH
OPEN SOURCE CODE
[MASS]COLLABORATION
CONTINUOUS IMPROVEMENTS
Let theory emerge both through own reflection and
in dialogue with others.
Don’t debate -- create constructive dialogue!
Don’t ”test” theory! Either erase its weak points through
incremental improvements or offer a quantum
leap, a new paradigm.
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The word system is derived from the Greek systema,
meaning “a whole composed of many parts”.
Complexity, from the Latin verb complecti meaning ”to twine
together” and the noun complexus meaning network.
Context, from Latin contexere, “to join together”.
Complexity, including networks and systems thinking, has
started a natural science family, complexity theory. Its
members embrace complexity instead of shunning it.
Complexity theory family members are network theory,
quantum physics, chaos theory, autopoiesis (self-organizing
systems), fractal geometry, string theory, and more.
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Networks
Many-to-Many Marketing
Service-Dominant Logic
S-D Logic
Service Science
THESE APPROACHES FULFIL MY DEMAND FOR AN OPEN SOURCE CODE,
[MASS]COLLABORATION, AND CONTINUOUS IMPROVEMENTS.
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SERVICE-DOMINANT LOGIC
S-D LOGIC
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Recent references:
Vargo, S. L. and Lusch, R. F. (2008), “Service-dominant logic: continuing
the evolution”, Journal of the Academy of Marketing Science, Vol. 36 No
1, pp.1-10.
Vargo, S. L. and Lusch, R. F. (2008), “Why ‘service’?” Journal of the
Academy of Marketing Science, Vol. 36 No 1, pp.25-38.
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FOUNDATIONAL PREMISES (FPs)
FP1
Service is the fundamental basis of exchange
The application of operant resources (knowledge and skills), “service,”as defined in S-D
logic, is the basis for all exchange. Service is exchanged for service
FP2
Indirect exchange masks the fundamental basis of exchange
Because service is provided through complex combinations of goods, money, and
institutions, the service basis of exchange is not always apparent
FP3
Goods are a distribution mechanism for service provision
Goods (both durable and non-durable) derive their value through use – the service they
provide
FP4
Operant resources are the fundamental source of competitive advantage
The comparative ability to cause desired change drives competition
FP5
All economies are service economies
Service (singular) is only now becoming more apparent with increased specialization and
outsourcing
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FP6
The customer is always a cocreator of value
Implies value creation is interactional
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FP7
The enterprise cannot deliver value, but only offer value propositions
Enterprises can offer their applied resources for value creation and collaboratively (interactively)
create value following acceptance of value propositions, but can not create and/or deliver value
independently
FP8
A service-centered view is inherently customer oriented and relational
Because service is defined in terms of customer-determined benefit and co-created it is
inherently customer oriented and relational
FP9
All social and economic actors are resource integrators
Implies the context of value creation is networks of networks (resource integrators)
FP10
Value is always uniquely and phenomenologically determined by the beneficiary
Value is idiosyncratic, experiential, contextual, and meaning laden
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SUMMARY: KEY POINTS
Service, not services as opposed to goods
There is no service sector, no manufacturing sector and no
agricultural sector when seen through the customer eyeglasses
The service sector is a ghost!
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Agriculture
Service
Example:
a restaurant
Service
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Manufacturing
A restaurant is dependent on the factory (kitchen)
and the food (from the agricultural and manufacturing
sectors).
The only sector it can do without and still feed people
is the service sector. And yet it is classified as belonging
to the service sector!
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Companies offer value propositions
Customers are responsible for value actualization
Customers are co-creators and resources
The ultimate in co-creation
of value: the IKEA Car.
Comes with screwdriver in a
flat package. Unbeatable price.
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There is a network involved beyond just supplier and customer
Traditional American
marketing management
and marketing mix
Relationship marketing
CRM
One-to-one marketing
Many-to-many marketing
Customer centric
Centered on one party
Relationship centric
Centered on two parties
Network centric
Centered on many parties
Customer
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Customer
Supplier
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SERVICE SCIENCE
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The ultimate goal of service science
“…is to apply scientific understanding to advance our ability to design, improve,
and scale service systems for business and societal purposes…”
“… service-dominant logic may be the philosophical foundation of service
science, and the service system may be its basic theoretical construct.”
Source: Maglio, P.P. and Spohrer, J., (2008), “Fundamentals of service science”, Journal of the
Academy of Marketing Science, Vol. 36 No.1, p. 20.
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IBM contribution to complexity theory
Benoît B. Mandelbrot (born 1924)
is the father of fractal geometry. Worked
at the IBM Thomas J. Watson Research
Center in Yorktown Heights, New York
from 1955 to1987.
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Mandelbrot extended the
scope of geometry from the
circle, square and the
triangle...
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...to non-smooth and complex parts of the real world:
A fractal is an irregular geometric
object that is self-similar to its
substructure at any level of
refinement.
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Natural fractals include the
shapes of mountains, costlines
and river basins; the structure
of plants, blood vessels and
lungs; the clustering of
galaxies.
Man-made fractals include
companies, management,
service, and stock market
prices, but also music, painting,
and architecture.
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MANY-TO-MANY MARKETING
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My definition:
“Many-to-many marketing
describes, analyzes and utilizes
the network properties of marketing.”
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Everything we do in marketing and management is rooted in
interaction in
networks of
relationships
TOGETHER THEY FORM UNIQUE
MANY-TO-MANY MARKETING
SITUATIONS
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Madelene, daughter in the city
Electrolux
Dagmar, 85, neighbor
Retailer
Ingrid & Gunnar,
neighbors
Laila, Sverker,
Linnea & Fredrik,
neighbors
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WE & OUR
FREEZER
Transport
company
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Madelene, daughter in the city
Electrolux
Dagmar, 85,
neighbor
Ingrid & Gunnar,
neighbors
Laila, Sverker,
Linnea & Daniel,
neighbors
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Retailer
WE
OUR FREEZER
Transport
company
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Planning the next Olympics – who’s going to get it?
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Chinese art and entertainment and...
... Steven Spielberg bringing
Hollywood to Beijing
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Beijing Olympics Creates Job
Opportunities In China and Asia
The media, advertising and public relations
sectors in China and Asia (Singapore, Hong
Kong, Japan) are looking for more talents to
fill in positions as the Beijing Olympic
Games is drawing near. International and
local (China) sponsors are looking ways to
maximize their sponsorship dollars in the
Games. Advertisers are also more
interested in online and mobile medium now
as compared to the previous Olympic
games. These activities have in turn drive a
need for qualified talents.
Much of this growth is driven by the demand
for Olympics-related marketing and publicity
projects, which are now moving into the
implementation phase.
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Not just a shoe –
a scientific sports
product
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Function, fashion and
glamor
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Preparing at an early age
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The Olympics form a
HUGE
HUUGE
HUUUGE
service system of
networks of networks!
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Network theory:
both methodology
and a theory of life
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“Networks are
the fundamental
stuff of which new
organizations are
and will be made.”
Source: Castells, Manuel,
The Rise of the Network Society.
Oxford, UK: Blackwells, 1996,
p. 168
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Albert-László Barabási, Professor of Physics, in
Linked: The New Science of Networks (2002)
underscores network applications to markets:
“…understanding network effects becomes the
key to survival in a rapidly evolving new economy.”
(p. 200)
“In reality, a market is nothing but a
directed network.”
(p. 208)
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Networks of life:
network of interactions
between proteins in
baker’s yeast
Source: Buchanan, Mark (2003), Small World. London: Phoenix, p. 144.
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Air Canada
Air China
Air New Zealand
Adria
ANA All Nippon Airways
19 FULL
PARTNERS
3 REGIONAL
PARTNERS
Blue 1
Asiana Airlines
Croatia Airlines
Austrian
bmi british midland
Star Alliance
LOT Polish Airlines
Lufthansa
11 SPECIAL
SAS PARTNERS
SAS Scandianvian Airlines
Shanghai Airlines
air Baltic
Air China
air greenland
Air One
Atlantic Airways
Cimber Air
City Airline
Estonian Air
Qantas
Skyways
Wideroe
Singapore Airlines
South African Airways
Spanair
SWISS
THE STAR ALLIANCE,
FEBRUARY 2008
TAP Portugal
Thai
United
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US Airways
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Advantages of a network approach.
It can accomodate:
Complexity
Context
Change
Non-linearity
Both parts & the whole
Both structure & process
Both tech & human aspects
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C
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P
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X
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T
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A SAMPLE OF
CONCEPTS AND
ISSUES FROM
NETWORK THEORY:
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* Nodes and links
* Hubs
* Random networks
* Planned networks
* Clusters
* Connectors
* Preferential attachment
* Rich gets richer
* Fitness
* Fit-get-rich
* Winner-takes-all
* Scale-free networks
* Power laws
* Phase transition
* Robustness, error tolerance
* Cascading failure
* Tipping points
* Thresholds
* Spreading rates
* Self-organizing
* Six degrees of separation
* What is the Internet, really?
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A SAMPLE OF
CONCEPTS AND
ISSUES FROM
NETWORK THEORY:
© E. Gummesson 2008
* Nodes and links
* Hubs
* Random networks
* Planned networks
* Clusters
* Connectors
* Preferential attachment
* Rich gets richer
* Fitness
* Fit-get-rich
* Winner-takes-all
* Scale-free networks
* Power laws
* Phase transition
* Robustness, error tolerance
* Cascading failure
* Tipping points
* Thresholds
* Spreading rates
* Self-organizing
* Six degrees of separation
* What is the Internet, really?
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OVERLOAD?
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To become excellent researchers and educators, marketing scholars should:
recognize complexity and deal with it
learn network theory and other methods that address complexity
understand the real roles of suppliers and customers
get out of the box of conventional marketing thinking
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© E. Gummesson 2008
Publications 2000-2008 (selected)
On service, relationships and networks
Gummesson, E. (2002), ”Relationship Marketing in the New Economy”. Journal of
Relationship Marketing, vol. 1, no. 1, pp. 37-57.
Gummesson, E. (2002), ”Relationship Marketing and a New Economy: It’s Time
for De-Programming”. Journal of Services Marketing, vol. 16, no. 7, pp. 585-589.
Gummesson, E. (2003), ”Relationship marketing: It all happens here and now!”
Commentary, Marketing Theory, vol. 3. no.1, pp.167-169.
Gummesson, E. (2004), ”Return on Relationships (ROR): The Value of Relationship
Marketing and CRM in Business-to-Business Contexts”. Journal of Business and
Industrial Marketing, vol. 19, no. 2, pp. 136-148.
Gummesson, E. (2004), ”Service Provision Calls for Partners Instead of Parties.”
Commentary, Journal of Marketing, vol. 68, no. 1, pp. 20-21.
Lovelock, C. and Gummesson, E. (2004), ”Whither Services Marketing? In Search
of a Paradigm and Fresh Perspectives,” Journal of Service Research, vol. 7, no.1,
pp. 20-41.
Gummesson, E. (2004), Many-to-Many Marketing, Liber, Malmö, Sweden,
244 pp; test edition in English will be available in 2008.
Gummesson, E. (2004), “From One-to-One to Many-To-Many Marketing.” Plenary
Session Presentation at the QUIS 9 Symposium, Karlstad University, Sweden,
June 15-18, 2004. Published in Edvardsson, Bo et al., eds., Proceedings from
the QUIS 9 Symposium, Karlstad, Sweden: Karlstad University, pp.16-25.
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Gummesson, E. (2006), “After Relationship Marketing, CRM and One-to-One:
Many-to-Many Networks,” Finanza Marketing e Produzione, no.1, pp. 138-144.
Gummesson, E. (2006), “Many-to-many marketing as grand theory: A Nordic School
contribution.” In Lusch, Robert F. and Vargo, Stephen L. (Eds.), Toward a ServiceDominant Logic of Marketing: Dialog, Debate, and Directions. New York: M.E.
Sharpe.
von Friedrichs Grängsjö, Yvonne and Gummesson, E. (2006), “Hotel Networks
and Social Capital in Destination Marketing,” Service Industry Management,
Vol. 17, No.1, pp. 58-75.
Gummesson, E. (2006), ”Customer-to-Customer Interaction in Service
Development: A Many-to-Many Approach”. In Edvardsson, B. et al. (Eds.),
Involving Customers in New Service Development. Imperial College Press.
Gummesson, E. (2006), “Relationship Marketing: From CRM and One-to-One to
Many-to-Many Networks.” In Lagrosen, S. and Svensson, G. (Eds.), Marketing:
Broadening the Horizons. Lund, Sweden: Studentlitteratur.
Gummesson, E. (2006), “Implementing the marketing concept: from service and
value to lean consumption.” Marketing Theory, vol. 6, no. 3, pp. 291-293.
Gummesson, E. (2007), “Exit Services Marketing – Enter Service Marketing”.
Journal of Customer Behaviour, Vol. 6, No. 2, pp.113-141.
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Gummesson, E. (2008), “Quality, service-dominant logic and many-to-many
marketing.” The TQM Journal, 20 (2), pp.143-153.
Gummesson, E. (2008), “Extending the New Dominant Logic: From Customer
Centricity to Balanced Centricity.” Commentary for Special Issue of The Journal
of the Academy of Marketing Science (JAMS) on the New Dominant Logic,
36 (1), pp.15-17.
Gummesson, E. (2008), “Customer centricity: reality or a wild goose chase?”,
European Business Reveiew, 20 (4), pp. 315-330.
Gummesson, E (2008), Total Relationship Marketing. Oxford: Elsevier/ButterworthHeinemann. (revised 3rd edition).
Gummesson, E. and Polese, F. (2009), “B2B is not an island”, The Journal of
Business & Industrial Marketing (forthcoming).
On theory generation and research methodology
Gummesson, E. (2000), Qualitative Methods in Management Research, Sage,
Thousand Oaks, CA (revised second edition).
Gummesson, E. (2001), ”Are Current Research Approaches in Marketing Leading
Us Astray?”, Marketing Theory, Vol. 1, No.1, pp.27-48.
Gummesson, E. (2002), ”Practical Value of Adequate Marketing Management
Theory.” Europan Journal of Marketing, Vol. 36, No. 3, pp. 325-349. (Also in
Buber, R., Gadner, J. and Richards, L. (Eds.), Applying Qualitative Methods to
Marketing Mangement Research, Palgrave, Basingstoke, UK.)
© E. Gummesson 2008
Gummesson, E. (2003), “All research is interpretive!”, Journal of Business &
Industrial Marketing, Vol. 18, No. 6/7, pp. 482-492.
Gummesson, E. (2004), ”Qualitative research in marketing: roadmap for a
wilderness of complexity and unpredictability”, European Journal of Marketing,
Vol. 39, No.3/4, pp. 309-327.
Perry, C. and Gummesson, E. (2004), ”Action research in marketing”. Commentary,
European Journal of Marketing, Vol. 38, No. 3/4. pp. 310-320.
Gummesson, E. (2006), “Qualitative Research in Management: Addressing
Complexity, Context and Persona,” Management Decision, vol. 44, no. 2,
(Spring), pp. 167-179.
Gummesson, E. (2007), ”Case Study Research,” in Gustavsson, B., ed,.
The Principles of Knowledge Creation Methods, Cheltenham, UK:
Edward Elgar.
Gummesson, E. (2007), ”Case Studies.” In Dictionary of Management Research,
Sage, London.
Gummesson, E. (2007), “Access to reality: observations on observational methods,
Qualitative Market Research, Vol. 10, No. 2, pp.130-134.
Gummesson, E. (2007), “Case study research and network theory: Birds of a
feather”, Qualitative Research in Organizations and Management, Vol. 2,
No. 3, pp.226-248.
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