The document proposes an ontological foundation for service-dominant logic based on a literature review and conceptual modeling. It develops a class diagram ontology of key concepts in service-dominant logic including actors, services, value co-creation, resources, and contexts. The ontology is intended to clarify concepts, resolve inconsistencies, and establish a common vocabulary for multidisciplinary collaboration in service science. Future work could expand the foundational ontology and develop domain-specific ontologies to further conceptualize service-dominant logic.
Towards an ontological foundation of service dominant logic
1. Towards an Ontological Foundation
of Service Dominant Logic
Garyfallos Fragidis
Technological Education Institute of Serres,
Greece
Konstantinos Tarabanis
University of Macedonia, Greece
2. ► Service systems and value co-creation are recognized
as the two most fundamental concepts of service
science
● “value co-creation is the primary object of study in service
systems”
● “service science is the study of value co-creation phenomena”
Spohrer, J., Maglio, 2010; Maglio, Kieliszewski, and Spohrer, 2010
► Service-Dominant (S-D) logic is recognized as “one of
the corner stones of service science” and “the
philosophical foundation of service science”
Spohrer, J., Maglio, 2010
► Service science was acknowledged to be inconsistent
in applying the principles of S-D logic
Maglio, Kieliszewski, and Spohrer, 2010
Vargo and Akaka, 2009; Vargo, Lusch and Akaka, 2010
3. ► The slow development of service science
► The concepts of value, value creation and value co-
creation, remain still unclear and vague.
● “Value co-creation is the basic action that take place in the
interaction between service systems”.
● Value co-creation provides a balanced approach and an
integrated perspective on the creation of value for the
business firm an the customer alike.
► A lack of alignment between business and IT
approaches in service science
● Service science and S-D logic function at different levels of
analysis and for different purposes
4. Purpose
► Support the deeper understanding of S-D logic and
its key concepts (e.g. service, value co-creation, etc.)
● Provide a common framework of concepts and relations
● Move beyond a lexicon
● Contribute in the resolution of inconsistencies and
misunderstandings
► Contribute in the establishment of S-D logic as the
foundational theory of service science
● Contribute in the assimilation of the concepts of S-D logic
► Contribute in the improved communication of experts
from different areas in the multidisciplinary field of
service science.
5. Literature Review
► Approaches that set conceptual foundations of
service systems
● Ferrario, R., Guarino, N.: Towards an Ontological Foundation for Services Science.
● Alter, S.: Service system fundamentals: Work system, value chain, and life cycle.
● Stanicek, Z., Winkler, M.: Service Systems through the Prism of Conceptual
Modeling.
● O'Sullivan, J.: Towards a Precise Understanding of Service Properties.
► Approaches that aim at the business modeling of
service systems
● Poels, G.: A Conceptual Model of Service Exchange in Service-Dominant Logic.
● Weigand, et al.: Value-Based Service Modeling and Design: Toward a Unified View
of Services.
● Andersson et al.: Towards a Reference Ontology for Business Models.
● Baida, Z.: Serviguration
● De Kinderen, S., Gordijn, J.: E3service.
● Scheithauer: Business Service Description Methodology for Service Ecosystems.
● Sorathia, V., et. al: Towards a Unifying Process Framework for Services
Knowledge Management.
6. Literature Review
► Relationship to service science/ S-D logic
● Most of them refer to service science (as a research trend)
● Only two refer to S-D logic
● Only three are based on input from service science and/ or S-D
logic
► The origin of the concept of service
● Input from the business management or the economics literature
● a) service as an event, b) service as a process, c) service as a
resource
► Customer- orientation
► Co-production and/or value co-creation
● Included only in two
7. Methodology
► We stay with the concepts of S-D logic
● 10 FP
● Lexicon
● The whole literature of S-D logic (by Vargo and/ or Lusch)
► Development of an ontological representation of S-D
logic
● as a class diagram
● at a generic level
8. Key concepts
► Actor: a generalization of Customer and Provider
► Service: a generalization of Direct Service and Indirect Service
► Value Co-creation: a generalization of Co-production
Integration and Customisation
► Value: a generalization of Knowledge and Experience
► Resource: a generalization of Operant Resource and Operand
Resource
► Context: a generalization of Situational Context and
Idiosyncratic Context.
11. Actor
► It is a general term used to address
to the entities that participate in the
value co-creation process
► Other options (suboptimal):
● FP9: “all economic and social actors
are resource integrators”.
● In service science the basic entities
are the service systems
► Customer and Provider are the two
key roles played by Actors in value
co-creation processes.
● Provider: provides Service
● Customer: the beneficiary Actor that
receives the Service provided.
● The Customer may receive and
integrate Service from many
Providers and supplements them
with proprietary resources.
● The customer inherits all the
attributes of an Actor
12. Service & Resource
► Resource: any kind of input used
by Actors in value co-creation
processes
● Operant Resource & Operand
Resource.
► Service: the application of
specialized competences
(knowledge and skills) for the
benefit of another entity or the
entity itself.
● A process of applying
Resources.
● “Recourcing”: the activity of
rendering resources into a
specific benefit (the way that
value creation occurs)
● Direct Service & Indirect Service
● Self-service
13. Value Co-creation
► Value Co-creation: the service-based collaboration of at least
one Provider, who provides Service, and at least one Customer,
who integrates and complements it with proprietary Service, for
the co-creation of value.
● network relationships
● service ecosystem
► Value Co-creation is a
general concept that can
be actualized in many
different ways.
● Co-production
● Customization
● Integration
14. Value
► Value: the output of the Value Co-
creation process.
● Value is related to the customer
(“value is always uniquely and
phenomenologically determined by
the beneficiary”- FP10);
● “Value-in-use” & “value-in-context”
● Value is determined “contextually
and idiosyncratically” by the
customer.
● Value affects also the Provider
(“service is the fundamental basis of
exchange” – FP1), namely that
“service is exchanged for service”.
feedback (direct and indirect).
► Knowledge: learning opportunities
for the improvement of Resources.
► Experience: a basic way that the
Customer perceives Value.
► Context: the general conditions that exist for the co-creation of value
● Situational Context: spatial, temporal, social and relational dimensions.
● Idiosyncratic Context: personal needs and traits of the Customer
15. Benefits from the ontological
representation of S-D logic
► The logical analysis of S-D logic:
● provides insights
● clarifies concepts
● singles out inconsistencies
► Interpretation & improvement of S-D logic
► A basis for transdisciplinary communication
► A vocabulary and modeling constructs for the
development of “service-based” information systems
(or “value-cocreation” information systems)
17. Service and Value Co-creation
► Value Co-creation becomes the result of the direct application
of Resources from the Actors
● It is compliant with S-D logic
● It is compliant with Service Science
18. Concepts not included
► Exchange (FP1 & FP2)
► Competitive advantage (FP4)
► Value proposition (FP7)
► Solution, dialogue, reciprocity/ interactivity, value-in-
use, value-creation network and service ecosystem
(possible entries to the S-D logic lexicon).
19. Concepts not included - exchange
► Exchange is a competing concept to Value Co-
creation
● Exchange is included in the Value Co-creation process, with
the meaning of contribution of service and resources
► Alternative modeling options
● Replace Value Co-creation with Exchange
● Add Exchange in the model
20. Concepts not included
► Exchange (FP1 & FP2)
► Competitive advantage (FP4)
► Value proposition (FP7)
► Solution, dialogue, reciprocity/ interactivity, value-in-
use, value-creation network and service ecosystem
(possible entries to the S-D logic lexicon).
21. Problems & limitations
► The interpretation of S-D logic
● Subjective interpretation, especially when the concepts are
vague and the meaning/ implications unclear.
• E.g. “service is exchanged for service”
• “Value is always uniquely and phenomenologically determined
by the beneficiary”
● Stay with the general concepts, rather than emphasize on
the specific words
► The ontological form (why an ontology?)
● Informal vs. formal ontology
● Generic vs. specific ontologies
22. Future research
► The elaboration of the foundational ontology of S-D logic with
additional concepts, relationships and rules (for example with
regard to the types and respective processes of value co-
creation, the types of value for the customer and the provider,
the contextual parameters, etc.)
► The elaboration of the foundational ontology of S-D logic with
partial aspects aspects (e.g. business aspect, customer
aspects, etc.).
► Merging concepts between S-D logic and service science.
Perhaps the development of a common/ integrated ontology.
► The development of specific ontologies for some business
domains or business models.
► The formalization of the ontology.
► The building of consensus.
23. Questions & comments
Thank you!
Gary Fragidis
Technological Education Institute of Serres
62124 Serres, Greece
E-mail: garyf@teiser.gr
tel.: +30 23 21049310