whitepaper 'servicialisation - introduction' v04.03.01

2015

Paul G. Huppertz

servicEvolution

12.07.2015

Servicialisation – reliable& cost-efficient service providing management

Servicialisation – seamless & reliable, effective & cost-efficient service providing management

Paul G. Huppertz, servicEvolution Introduction to Servicialisation Page 1 of 11

Servicialisation – Word & Term

The word ‘Servicialisation’ has been newly created in the year 2009 for clearly differentiating between routinely fab-

ricating material goods in great quantities and routinely rendering services in great quantities. The word ‘industrial-

isation’ is derived from the Latin word ‘industria’ – ‘effort, fervour, hustle, antsiness’ so that it stays open for which

results the effort is brought in. Nevertheless, newly created in the 18th century, the term ‘industrialisation’1 mostly is

assigned to efforts for making many goods of the same type by using machines and/or automats.

Meanwhile, the word ‘Servicialisation’ is intentionally based on the word ‘Service’ so that its main topic is clear from

the first. The term ‘Servicialisation’ is related to all elements and measures that concern effectuating and rendering

Services of any kind in any context and environment for certain addressees and/or beneficiaries.

Furthermore, in comparison and in delimitation to the term ‘industry’ that refers to the secondary sector of the

economy2, the newly created term ‘Servistry’ is assigned to the tertiary sector of the economy3. Thus, the rather in-

consistent term ‘service industry’ is avoided as it refers to making material items whilst any and every Service as

such is immaterial.

Last, but not least, the neologism ‘Servuction’ has been integrated according to the path-breaking thought4

This thought points up that

preconditions and boundary conditions,

locations and environments,

roles and accountabilities,

activators and addressees,

models and methods,

processes and results

of making goods (= production) are entirely different from those of rendering Services (= Servuction).

1 s. Wikipedia entry ‚Industrialisation‘ - https://en.wikipedia.org/wiki/Industrialisation

2 s. Wikipedia entry ‚Secondary sector of the economy‘ - https://en.wikipedia.org/wiki/Secondary_sector_of_the_economy

3 s. Wikipedia entray ‚Tertiary sector oft he economy‘ - https://en.wikipedia.org/wiki/Tertiary_sector_of_the_economy

4 s. article 'Le service et sa servuction' from Pierre Eiglier, IAE (Institut d'Administration des Entreprises, Marseille & Aix-en-Provence)

„Production, c'est faire des choses. Servuction, c'est rendre des services.“

„Production is making goods. Servuction is rendering services."

[Pierre Eiglier & Eric Langeard]

Figure 1: Servicialisation - creation and translation

https://en.wikipedia.org/wiki/Industrialisation

https://en.wikipedia.org/wiki/Secondary_sector_of_the_economy

https://en.wikipedia.org/wiki/Tertiary_sector_of_the_economy



Generally, the term ‘Servicialisation’ is assigned to the following topics and contents

Service Terminology with conclusive and mutually consistent definitions of service terms

Service Taxonomy comprising criteria for classifying service types and classes of service (contribution) types

Serviciology, i.e. the well-founded and comprehensive science and teaching about service

Service Providing Model with the main roles involved in rendering and consuming services

Service Providers, i.e. organisations that are accountable for service rendering

Service Marketing, i.e. presenting of and advertising for service providing offering

Service Providing with

o its basics and preconditions

o its roles and responsibilities

o its activators and addressees

o its approaches and methods

o its phases and processes

o its means and measures

o its outputs and outcomes

All this reveals that the term “Service Management” is an oxymoron like ‘black sun’, i.e. a self-contradictory and

meaningless term for the following reasons:

A Service per se cannot be managed in any way or manner as any and every service as such is intangible and

immaterial, insubstantial and perishable

Any Service is effectuated from scratch only on the explicit service trigger of an authorised Service Consum-

er and rendered explicitly to this triggering Service Consumer.

Any explicitly triggered and reliably rendered Service is simultaneously consumed by the triggering Service

Consumer for efficiently executing his upcoming activity. The latter was his motive for explicitly triggering

such a Service even if he is not aware of this.

The term “Service Management” is misleading in many regards as well as causing several misconceptions and loss-

generating misunderstandings, confusing irritations and wrong conclusions. For generally avoiding all these negative

effects, this term is always substituted by the term ‘Service Providing Management’ (= Servuction Management) as

only Service Providing can be managed, i.e. seamlessly effectuating and reliably rendering explicitly triggered, singu-

lar and unique Services. The latter is the core task of any accountable Service Provider, either an internal organisa-

tional unit in an enterprise or an independent company.



Servicialisation – Principles & Transfer

Although making goods is entirely different from rendering services, the main principles of industrialisation, namely

standardisation of proceedings and results

rationalisation of division of labour and of portions of labour

automation of generating results

optimisation of generating results,

have been abstracted from production and transferred to servuction as main principles of servicialisation.

Meanwhile have been comprehensively considered the inevitable and unalterable service characteristics, mainly

intangibility as a service neither can be touched nor can be handled

immateriality as a service does not consist of any matter or solid

insubstantiality as a service neither has any physical nor has any logical substance

perishability as a service is simultaneously consumed by the triggering service consumer.

Furthermore the peculiarities and necessities of Service Rendering have been allowed for, in particular

uniqueness and realtimeliness

irrepeatability and irreversibility

integrating the Service Consumer into the servuction environment and the Servuction Process

triggering by an authorized Service Consumer who hands over his Service Object

taking over the Service Consumer’s Service Object into the Servuction Environment

effectuating the service-specific benefit to the Service Consumer’s Service Object

simultaneous Service Rendering & Service Consuming

Extegrating the triggering Service Consumer and his Service Object from the Servuction Process and the Ser-

vuction Environment

All this makes clear that each Service

is explicitly triggered only by an authorized Service Consumer

is effectuated from scratch in the course of a singular and unique Service Transaction

is rendered explicitly to the triggering Service Consumer, but to nobody else

is simultaneously consumed by the triggering Service Consumer.

Figure 2: Transferring main principles from industrialisation to servicialisation



Servicialisation – Introduction & Explanation

A Service Provider of an enterprise is accountable for ensuring reliable and cost-efficient service providing manage-

ment for the business process relevant service types. This necessitates that this organisational unit ensures that each

explicitly triggered, singular and unique service is seamlessly and reliably rendered explicitly to the triggering Service

Consumer (employee in a business unit). By simultaneously consuming the reliably rendered service, the latter can

efficiently execute his upcoming business activity creating business value in so doing in the realm of the commission-

ing Servuction Customer.

The Service Consumer is

the single and sole activator and addressee of any service rendering

the critical success factor for each singular service rendering and for each service-based value creating.

Even more, the Service Consumer is mission critical

for the commissioning Servuction Customer because he creates value in his realm by efficiently executing his

upcoming business activities

for the commissioned and thus accountable Service Provider because he explicitly triggers and simultane-

ously consumes singular services for efficiently executing his upcoming business activities.

For the accountable Service Provider, it is paramount profoundly understanding that each explicitly triggered service

must be effectuated from scratch exclusively for and rendered explicitly to the triggering Service Consumer in the

course of a singular and unique service transaction. An authorized Service Consumer initiates such a service transac-

tion by explicitly triggering a singular service and by handing over his service object to the servuction environment

and/or to the custody and control of the accountable Service Provider. In the course of the respective service trans-

action the status of this service object must be purposefully changed so that its final status satisfies the current exi-

gencies and expectations of the Service Consumer (= service output). Based on the properly changed status of his

service object (= service output), the triggering Service Consumer can efficiently execute his upcoming activity (= ser-

vice outcome). That’s why he has explicitly triggered a service of this type, even if he was not aware of this.

A Servuction Customer has commissioned an accountable Service Provider afore with rendering services of the re-

spective service type to authorized Service Consumers in his realm whenever one of them explicitly triggers such a

service. The commissioning Servuction Customer appoints the authorized Service Consumers in his realm, either im-

plicitly or explicitly, and he himself as a person can be one of them. After the respective billing period the Servuction

Customer pays to the Service Provider all the services Service Consumers in his realm have triggered and consumed.

Figure 3: Service Transaction from explicit service trigger to Service Consumer extegration



The accountable Service Provider on his part will commission distinct internal and external Service Feeders with feeding required Service Contribution Types for aggregating and rendering the triggered target services. For ensur-ing this, the Service Provider will efficiently orchestrate and providently conduct all commissioned Service Feeders in the context of its service feeding network.

Generally, there are 4 main roles in the generic and complete service providing model (= servuction model):

Service Consumer who explicitly triggers and simultaneously consumes singular services

Servuction Customer who commissions service providing and pays consumed services

Service Provider that offers service providing and ensures rendering of singular services

Service Feeder that reliably effectuates and instantaneously feeds service contributions

From the perspective and perception of addressed and/or authorized Service Consumers, a truly and truthfully ac-

countable Service Provider will precisely and succinctly identify the required service types. Based on the complete

and consistent definition of the term ‘service’, this can be achieved by means of the 3 generic service identifiers, in

particular by means of the 3 constitutive identifiers of the service type, namely

1. Service Consumer whom to a singular service must be reliably rendered on his explicit service trigger

2. Service Object which to the service-specific benefit must be effectuated

3. Service-specific Benefit that must be effectuated to the service consumer’s service object

Figure 4: Service Providing Model with 4 main roles and their main spheres

Figure 5: Service Definition and 3 generic Service Identifiers



Generally, there are only 4 categories of service objects, namely

life and limb of the triggering service consumer

goods and chattels of the triggering service consumer

rights and claims of the triggering service consumer

data and documents of the triggering service consumer

These generic service object categories can be used as the primary criteria for demarcating service types from each

other and for classifying them. Thus, it’s rather easy and catchy grouping the different service types and putting all

the respective services in a proper and understandable order. This helps all parties involved better organising and

coordinating all aspects of service providing.

Comprehensively allowing for the inevitable and unalterable service characteristics, the generic and consistent defi-

nition of the term ‘service’ above reveals that benefits are the essence, the quiddity, the constitutive traits of any

service type and of every singular service as illustrated in figure 6.

Furthermore, the service-specific benefit is

the primary and/or most important service identifier of the 3 generic service identifiers

effectuated to his service object exclusively for the triggering Service Consumer

simultaneously consumed by a triggering service consumer.

Figure 6: Four Service Object Categories and examples

Figure 7: Benefit and its importance for services



As a consequence, the service-specific benefit of a precisely identified service type is the connector between its iden-

tification and its specification. The description of the benefit is copied from the service identification to sub attribute

01 ‘primary benefit’ of service attribute 01 ‘Service Consumer Benefits’ of the service specification template. By

means of this plain and straight step, the most important element of the service type is transferred to the descrip-

tion of service providing quality where it becomes the starting point and the reference for the service specification.

From this primary benefit as well as from the exigencies and expectations of addressed and/or authorized Service

Consumers, secondary, tertiary, … benefits are derived and succinctly described in further sub attributes in their

terms and wording. With 5 to 8 sub attributes, the ‘Service Consumer Benefits’ are properly and completely speci-

fied in the identical service attribute 01.

The practical values of the service attributes 02 to 11 are specified according to the exigencies and expectations of

addressed Service Consumers as well as in their terms and wording, data and times so that they can verify every val-

ue and adjust it if necessary. Altogether, the required service providing quality (= servuction quality) of the identi-

fied service type is completely and concisely specified in the attributes 01 to 11 so that the accountable service pro-

vider can set the price in the identical service attribute 12 ‘Service Providing Price’.

As soon as addressed and/or authorized Service Consumers and commissioning Servuction Customers have con-

firmed and approved a complete and concise service level specification for a precisely identified service type, the

accountable Service Provider will insert this specification into its service catalogue where it represents one of its

practical and binding service providing offerings (= servuction offerings). If necessary, each service specification can

easily be changed by adjusting the respective attribute values according the changed exigencies and expectations of

addressed Service Consumers.

Figure 8: Service-specific benefit as connector between identification and specification

Figure 9: Service Specification based on the 12 standard service attributes



The table below reveals that the complete and concise service specification based on the 12 standard service attrib-utes relies on the precise and succinct service identification by means of the 3 generic service identifiers that, on its own turn, is traceably derived from the generic and consistent definition of the term ‘service’ that comprehensively allows for the inevitable and unalterable service characteristics.

This service definition is the cornerstone of the service terminology with conclusive and mutually consistent defini-

tions of service terms and their synonyms. The service terminology on its turn is the robust and resilient foundation

for all models and methods of reliable and cost-efficient service providing management.

As explained and illustrated in figure 10, within this methodology the Service Consumers are taken center stage.

1. Service Identifying: In this initial phase, the Service Provider precisely and succinctly identifies each business

process relevant and/or required service type by means of its 3 constitutive Service Identifiers from the per-

spective and perception of addressed and/or authorized Service Consumers.

2. Service Specifying: In the second phase, the Service Provider completely and concisely specifies for each

precisely identified service type the required service providing quality based on the 12 Standard Service At-

tributes according to the exigencies and expectations of addressed Service Consumers as well as in their

terms and wording.

Figure 11: Methodology for reliable and cost-efficient service providing management

Figure 10: Layers from service definition to service specification



3. Service Composing: Then, the Service Provider continuously composes the providing of each concisely speci-

fied service type by deriving from its specification the Service Map with the Service Contributions types re-

quired for aggregating a triggered service and the Service Screenplay with the service transaction for aggre-

gating an explicitly triggered service of this type. The Service Specification, the Service Map and the Service

Screenplay form the Service Concept for the respective service type.

4. Service Orchestrating: The Service Provider analyses all the Service Concepts for efficiently orchestrating and

stringently commissioning internal and external Service Feeders with feeding the required Service Contribu-

tion types. The accountable Service Provider orchestrates and conducts all the commissioned Service Feed-

ers in the context of its Service Feeding Network.

5. Service Cataloguing: The Service Provider compiles all confirmed and approved Service Level Specifications

in the Service Catalogue for presenting its practical and binding Service Providing Offerings.

6. Service Committing: For commissioning service providing, a Servuction Customer copies the selected Ser-

vice Level Specification for a required service type from the respective Service Catalogue entry to the tem-

plate for Service Providing Agreements (SPA). Then, he sets Service Attribute 04 ‘Service Consumer Count’ to

the number of authorized Service Consumers in his realm. Furthermore, he adds to the appendix of the SPA

draft a list with identifying data for the authorized Service Consumers. Finally, he sends his SPA draft to the

accountable Service Provider so that it can commit service rendering accordingly by signing the draft.

7. Service Concerting: In this phase, the accountable Service Provider must master the service triathlon by

a. purposefully establishing and actively keeping up Service Providing Readiness for all authorised Ser-

vice Consumers and for all committed service types

b. actively keeping up and dynamically adjusting the Service Providing Capacities for all committed

service types according to the Service Triggering Rate of all authorized Service Consumers

c. instantaneously effectuating each explicitly triggered, singular and unique ICTility service excusively

for the triggering Service Consumer and rendering it explicitly to this triggering Service Consumer.

8. Service Billing: The accountable Service Provider bills to the commissioning Service Customer the number of

all the single services authorized Service Consumers have triggered and consumed in the reference period.

The price for billing the consumed services is taken from attribute 12 ‘Service Providing Price’ in the service

specification in the nucleus of the Service Providing Agreement (SPA).

Figure 12: Service Triathlon with its 3 phases



For each business process relevant service type, the accountable Service Provider must master the service trilemma

that spans between

service providing quality that satisfies the exigencies and expectations of triggering Service Consumers so that

they can consume a singular service of this type for efficiently executing one of their upcoming activities

service providing price that is affordable and profitable for commissioning Service Customers

service providing costs that are paying for the accountable Service Provider

Altogether, there are 3 separate and self-contained management areas and/or layers that are based on each other

as illustrated in figure 13.

Business Process Management in the primary market and/or business area of the respective enterprise, e.g.

customer relationship management with primary customers, order processing management, production

planning and management, is prepared from the management teams of the primary business units in the

enterprise and it is performed from other employees in the same business unit.

Service Providing Management that must be properly aligned with Business Process Management in the

course of the Business-to-Service-Alignment by creating the Service Catalogue that contains practical and

binding service providing offerings for the business process relevant service types.

System Operations Management comprises the planing and procuring, installing and configuring, activating

and operating, monitoring and managing, administrating and maintaining of service providing automats (=

servuction automats) in the form of service-relevant technial systems.

Figure 13: The service trilemma with its elements

Figure 14: The generic management layers - self-contained and based on each other



For ensuring reliable and cost-efficient Service Providing Management (= Servuction Management) for the business

process relevant service types, the accountable Service Provider of the enterprise must take center stage the

authorised Service Consumers who are mission critical as they explicitly trigger and simultaneously consume

singular and unique services for efficiently executing their upcoming business activities creating business value in so

doing in the realm of the commissioning Servuction Customers, e.g. group managers or deparment heads.

A truly and truthfully accountable Service Provider will take center stage the authorized Service Consumers by

prudently composing and providently conducting Service Providing Management for the business process relevant

service types it has

precisely identified from the perspective and perception of addressed and/or authorised Service Consumers

concisely specified according to the exigencies and expectations of authorised Service Consumers

by creating the Service Catalogue in the course of the Business-to-Service-Alignment. In the same phase, the Service

Provider will derive a proper Service Providing Strategy (= Servuction Strategy) from the Business Strategy of the

enterprise and develop a well-founded and stringent Service Providing Governance with adequate rules and

regulations for safely and securely rendering services whilst being compliant with all relevant requirements.

Figure 15: Service Consumer - mission critical role of service rendering and value creating

Figure 16: Combination of "Plan - Build - Run Technical Systems" with "Compose - Commit - Conduct Service Providing"

whitepaper 'servicialisation - introduction' v04.03.01

Services

word service

service service provid

term servicialisation

word servicialisation

service types

servicialisation word

service et

servicialisation reliable