space legal symposium_2015_lisi

From Systems to Services: Challenges for Service Systems Engineering

Dr. ing. Marco Lisi European Space Agency

18/02/2015 1

Summary • Services are becoming more and more important in

today’s world economy; • Service-oriented, large and complex systems are often

critical infrastructures of our society; • The engineering of service systems and enterprises

requires systemic approach, holistic view, customer focus and life cycle perspective;

• New acquisition and contracting schemes are also required;

• A service provision perspective requires a conceptual paradigm shift: moving from technologies/products to capabilities and services.

18/02/2015 2 M. Lisi - International Legal Symposium

Towards a Knowledge-Based…


… and Service-Oriented Economy


What is really happening?

• On one side our final products get more and more added value from the knowledge embedded in them (providing knowledge being a primary form of service);

• On the other side, customers need comprehensive solutions to their problems (not a car to move around, but a solution to my mobility problems; not tools but capabilities).


What do we mean by "service"? • By the term “service” we mean the guaranteed and

committed delivery of a capability to a community of potential customers/users;

• Focus on “commitment” (continued over time) and on “customer satisfaction”;

• “Technical performance” is an essential prerequisite, but not an objective;

• NOTA BENE: services are not alternative to (or in competition with) technology and goods production. On the contrary, advanced, high value-added services need state-of-the-art technological products and systems to be provided. Examples: – Internet –Wireless communication networks –Electric power distribution infrastructure


What is a Service System?

• Service (or service-oriented) systems are systems meant to provide value-added services through the use of technology (mainly information and communications and technologies, ICT);

• A “service system” has been defined as a dynamic configuration of people, technology, organizational networks and shared information (such as languages, processes, metrics, prices, policies, and laws) designed to deliver services that satisfy the needs, wants, or aspirations of customers.


Characteristics of Service Systems • Large and complex systems • Software intensive (several million lines of code) • Capability-based rather than product-based • Organization and governance (human factor) • Technical performance is a prerequisite for production and

delivery of services, not a final objective • In the definition of the Quality of Service (QoS), requirements

related to operations and logistics, in addition to technical ones, assume a very high relevance:

Reliability, Availability, Continuity Safety Flexibility Security Expandability Resilience Maintainability Interoperability

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Service-Oriented Systems/Infrastructures

Examples of complex systems supporting services for civil applications include: global satellite navigation systems air traffic control systems railway control systems space systems such as the International Space Station or space

transportation and exploration vehicles Satcom systems for fixed and mobile communications, and TV

broadcasting surveillance, Earth observation and Homeland security systems electric power distribution systems telecommunication systems complex computer networks, including Internet.


Specifying a Service System

• Functional and technical performance: System Requirements Document (SRD)

• Operational requirements and scenarios: Concept of Operations (CONOPS) document

• Expected service behavior and non-functional performance: Service Level Agreement (SLA)

• A typical SLA defines Key Performance Indicators (KPI’s) and Key Quality Indicators (KQI’s), with target values and target ranges to be achieved over a certain time period.


New Procurement Approach

• Current systems engineering, project management and acquisition practices still rely on their historical hardware engineering and acquisition legacy;

• Product-oriented, fixed-price, build-to-specification contracts give the illusion of a delivery within the allocated budget, but usually result in cost and schedule overruns;

• Many projects have difficulties integrating hardware, software and human factor aspects;

• Many projects fail to capture (and optimize) in their acquisition processes the multifaceted aspects of the systems they try to realize.


Life Cycle Multiple Perspectives


Through-Life Capability Management

• Through-Life Capability Management (TLCM) is an approach to the acquisition and in-service management of a capability over its entire life-cycle, from cradle to grave

• TLCM means evaluating a capability not just in the terms of a single piece of equipment, but as a complete system or “system of systems”

• TLCM recognizes the value of concurrent engineering, being aware that the initial purchase cost (and risk) of a system is only a small fraction of the total cost of procurement

• The adoption of a TLCM approach implies the evaluation of all the costs involved in the utilization of a capability over its entire life-cycle, a.k.a. Total Cost of Ownership.


Total Cost of Ownership

• Operators, including government establishments and commercial entities, are emphasizing reduced total cost of ownership of large and complex space systems;

• The Total Cost of Ownership (TCO) approach asks for cost trade-off’s throughout the total life cycle;

• An optimum balance must be found between non-recurring (CAPEX) development and integration costs and operating (OPEX) costs;

• Scalable architectures, design for reliability/ maintainability/supportability, interface standardization (physical and protocol levels) and SOA (Service-Oriented Architecture) technologies are promising “best practices” to achieve the total cost of ownership reduction goal.


The Total Cost of Ownership Iceberg


Evolution of Contracting in Aerospace


TRADITIONAL (one contract for

system followed by one contract for spares & repairs)

SPARES INCLUSIVE

CONTRACTING FOR

AVAILABILITY

CONTRACTING FOR

CAPABILITY

This a true “Service Contract”

From Products to Systems to Services


From Products…


…to Systems…


…to Services


European GNSS Agency (GSA), Prague

Galileo Service Centre, Madrid

Early Services Task Force

Galileo System Infrastructure

Galileo Security

Monitoring Centre

Galileo System Development & Acquisition Process


Galileo System

Assets (Satellite Constellation, GCC’s,

GCS, GMS, GDDN, etc.)

Galileo System Requirements

Galileo System Performance &

Operations

People (ESA Project Team, Subco’s,

EC, GSA, etc.)

Processes (Engineering Board, VCB, CCB, CM, Ops Procedures,

etc.)

Galileo Service Provision Process


Galileo Services

Assets (Galileo System, GSC, GPEC, etc.)

Galileo Services Requirements

Galileo Services Provision

People (EC, GSA, ESA Support,

Member States, Services Providers, Operators, etc.)

Processes (Services Validation, KPIs

Monitoring, Security Monitoring, Helpdesk, etc.)

Current Galileo Governance


Galileo Service Organization


GSA

OS EU Citizens

PRS EU States

CS Providers

SAR Cospas-Sarsat

ESA

External Entities

External Entities

Operator(s)

Galileo System

Service Operatore

EC Technical Support

Galileo Service Value Chain


System Development &

Procurement

ESA/Industry

Service Operations & Logistics

Service

Operator

Full Service Provision

GSA

EC, Member States, Cospas-Sarsat, Downstream

Industry

USERS

• System design authority

• Design changes • System evolution • System

Engineering Support

• Operations • Logistics • Service

Engineering • GDDN • Configuration

Management • Performance

Reporting

• O/A Service Management

• Security Management & Operations

• Users Relationship Management

• Legal Affairs and IPRs

• Independent Performance Monitoring

• Market Development

• European Commission (all services)

• Member States (PRS)

• Cospas-Sarsat (SAR Service)

• Commercial Service Providers

• Applications Providers

• Receiver Manufacturers

Galileo Open Service Business Model


Galileo PRS Business Model


GSA(Service

Operator)

Economic flow

Product/service flow

EC EUtaxpayers

Member States

PRS

Mission

Mission

Government Bodies

Service

mgm

t&

support

Galileo infrastructureESA

Equipment manufacturers

(satellite, ground

segment, etc.)

Equipment manufacturers

(receivers, networks,

etc.)

"Spirit to Serve"


Conclusions • Our economy is more and more depending on large, strategic

and complex service infrastructures, based on large, strategic and complex systems;

• The design of a complex service enterprise requires a wide range of skills and expertise's, covering organizational, engineering, social, legal and contractual aspects;

• The acquisition and contracting strategy in the Aerospace & Defense sector is evolving towards service and capability oriented schemes;

• The advent of a services economy imposes a radical conceptual paradigm shift, still rather difficult to metabolize in a mostly engineering-minded environment: moving from technologies/products to capabilities and services;

• The “spirit to serve” (call it “customer focus”, if you like) is at the basis of all services.



THANK YOU

QUESTIONS ?