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IS4224Service systems|
Assignment 1|
White Paper for Service System Architecture, Processes and Workflows in the Hotel Sector| |

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Table of Contents
1. Introduction2
2. Service Systems in Hotels3
3. Models of Service System Architecture4
3.1 Value Constellation4
3.2 Service-Profit Chain5
4. Service System Processes and Workflows6
5. Challenges of Structuring Service Systems9
5.1 Legacy Systems9
5.2 Addressing New Demands10
6. Conclusion10
References11
Appendix A14

1. Introduction
As economies shift away from manufacturing towards a service-oriented environment, there is a growing demand from consumers for better service. The perishable nature of services and the rise of consumer demand imply that service providers need to work in parallel with other service providers and end consumers in order to co-create customer value. Such a scenario is prevalent in the hospitality industry and in particular the hotel sector, where provisions of services are customer-centric, immersive and interactive.

According to the Singapore Tourism Board, total receipts from the hotel industry reached $1.1 billion in the first half of the year 2012, showing a 6.6% y-o-y growth (Rikvin.com, 2012). A report from Singapore Business Review in 2012 reported that, tourism, especially the hotel industry, is an important contributor to Singapore’s economy and continues to enjoy growth in 2012, despite the economic slowdown.

Given the boost of tourism and the emergence of co-creation as a service provision, service providers seek to revise and optimize their operations to maintain a competitive advantage in the hotel sector. Service providers need to tailor services to the needs of customers, and exceed their expectations. Today, service domains and interactions are vastly more complex. This gave rise to the emergence of service systems that fulfill such functions.

This Paper highlights concepts in the design, architecture and workflow of service systems in the hotel sector. In particular, the architectural concept will be presented to showcase the different models that can be adopted by service systems. The Paper will first establish an understanding of service systems and the benefits of service system structuring to the hotel sector. Next, the Paper will provide an overview of the underlying architecture depicting models by which service systems rely on, including the workflow and processes involved. Finally, this Paper presents the pitfalls and challenges that could emerge during and after transitions to a fully integrated service system. This Paper will help to establish fundamental concepts in understanding the rising importance of service systems. 2. Service Systems in Hotels

A service system is a complex system in which specific arrangements of people and technologies undertake actions that provide value to others (Service Science, Management and Engineering, 2011). Each entity in a service system can be as small as a single person and can be as large as the world economy. Interactions among entities add value towards the service system it belongs to, in which each action performed can allow other entities to add further value to the service system before finally reaching the target consumer.

The co-creation effect among the entities in a service system results in the formation of a network, whereby a service provider could also be the customer of another service provider. In this network, all service providers share a collective aim to provide services to the final customer. Benefit is generated when one party in question “takes action, apply resources, and work with others in mutually beneficial ways” (S. L. Vargo, 2008).

Examining the structure and workflows of service systems would bring about both tangible and intangible benefits when such are inducted into service architectures present in...
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