Skip to main content
Log in

Value network analysis for complex service systems: a case study on Taiwan’s mobile application services

  • Theoretical article
  • Published:
Service Business Aims and scope Submit manuscript

Abstract

This paper aims to develop a service value network analysis approach based on system dynamics (SD) for analyzing the feedback structures that causes dynamic behavior of service value networks for value co-creation. The proposed approach defines the network objectives, identifies network actors and their interactions, builds SD models, conducts model tests, and evaluates possible policies that can be used to enhance the overall network performance. A case study of Taiwan’s mobile application services is used to illustrate the developed methodology. The developed methodology can help managers represent complex interactions and feedback structures of the service systems for value co-creation. In addition, decision makers can use the models to evaluate alternative scenarios for better understanding the system behavior that can improve the policy design and evaluation. Finally, we recommend that the case company should sense the market development of mobile application services continuously and improve its service quality on both user and developer sides relentlessly for sustaining its market growth.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8
Fig. 9
Fig. 10
Fig. 11
Fig. 12
Fig. 13
Fig. 14

Similar content being viewed by others

References

  • AdMob (2010) Mobile metrics app usage survey. AdMob Company. http://www.wired.com/images_blogs/gadgetlab/2010/02/admob-mobile-metrics-jan-10.pdf. Accessed Dec 2011

  • Badinelli R, Barile S, Ng I, Polese F, Saviano M, Di Nauta P (2012) Viable service systems and decision making in service management. J Serv Manag 23(4):498–526

    Article  Google Scholar 

  • Barlas Y (1996) Formal aspects of model validity and validation in system dynamics. Syst Dyn Rev 12(3):183–210

    Article  Google Scholar 

  • Basole RC, Rouse WB (2008) Complexity of service value networks: conceptualization and empirical investigation. IBM Syst J 47(1):53–70

    Article  Google Scholar 

  • Bass FM (1969) A new product growth model for consumer durables. Manag Sci 15:215–227

    Article  Google Scholar 

  • Briscoe G, Keränen K, Parry G (2012) Understanding complex service systems through different lenses: an overview. Eur Manag J 30(5):418–426

    Article  Google Scholar 

  • Caswell NS, Nikolaou C, Sairamesh J, Bitsaki M, Koutras GD, Iacovidis G (2008) Estimating value in service systems: a case study of a repair service system. IBM Syst J 47(1):87–100

    Google Scholar 

  • Chen P-T, Cheng JZ (2010) Unlocking the promise of mobile value-added services by applying new collaborative business models. Technol Forecast Soc Change 77(4):678–693

    Article  Google Scholar 

  • Chung SH, Jung DC, Yoon SN, Lee D (2010) A dynamic forecasting model for nursing manpower requirements in the medical service industry. Serv Bus 4(3–4):225–236

    Article  Google Scholar 

  • Cuadrado F, Duenas JC (2012) Mobile application stores: success factors, existing approaches, and future developments. IEEE Commun Mag 50(11):160–167

    Article  Google Scholar 

  • Erman B, Inan A, Nagarajan R, Uzunalioglu H (2011) Mobile applications discovery: a subscriber-centric approach. Bell Labs Tech J 15(4):135–148

    Article  Google Scholar 

  • FarEastone (2010) The development status of FarEastone S-Mart. http://www.digitimes.com.tw/tw/dt/n/shwnws.asp?CnlID=10&Cat=&Cat1=&id=202013. Accessed Dec 2011

  • Feijóo C, Maghiros I, Abadie F, Gómez-Barroso J-L (2009) Exploring a heterogeneous and fragmented digital ecosystem: mobile content. Telemat Inform 26(3):282–292

    Article  Google Scholar 

  • Fernandez Z, Usero B (2007) The erosion of pioneer advantage in the European mobile telecommunications industry. Serv Bus 1(3):195–210

    Article  Google Scholar 

  • Forrester JW (1987) Lessons from system dynamics modeling. Syst Dyn Rev 3(2):136–149

    Article  Google Scholar 

  • Forrester JW (1994) System dynamics, systems thinking, and soft OR. Syst Dyn Rev 10(2–3):245–256

    Article  Google Scholar 

  • Forrester JW (2007) System dynamics—a personal view of the first fifty years. Syst Dyn Rev 23(2–3):345–358

    Article  Google Scholar 

  • Forrester JW, Senge PM (1980) Tests for building confidence in system dynamics models. In: Legasto AA, Forrester JW, Lyneis JM (eds) System dynamics. North-Holland, Amsterdam

    Google Scholar 

  • Ghezzi A, Renga F, Cortimiglia M (2009) Value networks: scenarios on the mobile content market configuration. Paper presented at the 2009 eighth international conference on mobile business

  • Gonçalves V (2010) How about an App Store? Enablers and constraints in platform strategies for mobile network operators. Paper presented at the ninth international conference on mobile business and ninth global mobility roundtable (ICMB–GMR), Athens, 13–15 June

  • Gordijn J, Akkermans H (2001) Designing and evaluating E-business models. IEEE Intell Syst 16(4):11–17

    Article  Google Scholar 

  • Gruber H, Verboven F (2001) The evolution of markets under entry and standards regulation—the case of global mobile telecommunications. Int J Ind Organ 19(7):1189–1212

    Article  Google Scholar 

  • Holzer A, Ondrus J (2010) Mobile application market: a developer’s perspective. Telemat Inform 28(1):22–31

    Article  Google Scholar 

  • Hong SJ, Thong JYL, Moon JY, Tam KY (2008) Understanding the behavior of mobile data services consumers. Inf Syst Front 10(4):431–445

    Article  Google Scholar 

  • Hsieh JK, Hsieh YC (2013) Appealing to Internet-based freelance developers in smartphone application marketplaces. Int J Inf Manag 33(2):308–317

    Article  Google Scholar 

  • Institute of Information Industry (2011) Updated overview of the development of Taiwan’s mobile applications market in 2011. http://www.find.org.tw/find/home.aspx?page=many&id=286. Accessed Dec 2011

  • Karikoski J, Heikkinen M, Hammainen H (2009) Scenario analysis and system dynamics in new emerging technology research: case mobile peer-to-peer content distribution. In: AP2PS ‘09. First international conference on advances in P2P systems, 11–16 Oct 2009, pp 60–65

  • Katz ML, Shapiro C (1985) Network externalities, competition, and compatibility. Am Econ Rev 75(3):424–440

    Google Scholar 

  • Kieliszewski CA, Maglio PP, Cefkin M (2012) On modeling value constellations to understand complex service system interactions. Eur Manag J 30(5):438–450

    Article  Google Scholar 

  • Kim B (2012) The diffusion of mobile data services and applications: exploring the role of habit and its antecedents. Telecommun Policy 36(1):69–81

    Article  Google Scholar 

  • Kim C, Lee H (2012) A database-centred approach to the development of new mobile service concepts. Int J Mobile Commun 10(3):248–264

    Article  Google Scholar 

  • Kim J, Park Y, Kim C, Lee H (2014) Mobile application service networks: Apple’s App Store. Serv Bus 8:1–27

    Article  Google Scholar 

  • Kimbler K (2010) App store strategies for service providers. Paper presented at the 14th international conference on intelligence in next generation networks (ICIN), Berlin, 11–14 Oct

  • Lieberman M, Montgomery D (1988) First-mover advantages. Strateg Manag J 9(S1):41–58

    Article  Google Scholar 

  • Lieberman MB, Montgomery DB (1998) First-mover (dis)advantages: retrospective and link with the resource-based view. Strateg Manag J 19:1111–1125

    Article  Google Scholar 

  • Liu C, Zhu Q, Holroyd KA, Seng EK (2011) Status and trends of mobile-health applications for iOS devices: a developer’s perspective. J Syst Softw 84(11):2022–2033

    Article  Google Scholar 

  • Lusch RF, Vargo SL, Wessels G (2008) Toward a conceptual foundation for service science: contributions from service-dominant logic. IBM Syst J 47(1):5–13

    Article  Google Scholar 

  • Lusch RF, Vargo SL, Tanniru M (2010) Service, value networks and learning. J Acad Mark Sci 38(1):19–31

    Article  Google Scholar 

  • Maglio PP, Spohrer J (2013) A service science perspective on business model innovation. Ind Mark Manag 42(5):665–670

    Article  Google Scholar 

  • Mahajan V, Muller E, Bass FM (1995) Diffusion of new products: empirical generalizations and managerial uses. Mark Sci 14(3 supplement):G79–G88

    Article  Google Scholar 

  • Mancuso P (2012) Regulation and efficiency in transition: the case of telecommunications in Italy. Int J Prod Econ 135(2):762–770

    Article  Google Scholar 

  • Moussa S, Touzani M (2010) A literature review of service research since 1993. J Serv Sci 2(2):173–212

    Article  Google Scholar 

  • Müller RM, Kijl B, Martens JKJ (2011) A comparison of inter-organizational business models of mobile app stores: there is more than open vs. closed. J Theo Appl Electron Commer Res 6(2):63–76

    Google Scholar 

  • Ng ICL, Maull R, Yip N (2009) Outcome-based contracts as a driver for systems thinking and service-dominant logic in service science: evidence from the defense industry. Eur Manag J 27(6):377–387

    Google Scholar 

  • Oliva R, Sterman JD, Giese M (2003) Limits to growth in the new economy: exploring the “Get Big Fast” strategy in e-commerce. Syst Dyn Rev 19(2):83–117

    Article  Google Scholar 

  • Ostrom AL, Bitner MJ, Brown SW, Burkhard KA, Goul M, Smith-Daniels V, Demirkan H, Rabinovich E (2010) Moving forward and making a difference: research priorities for the science of service. J Serv Res 13(1):4–36

    Article  Google Scholar 

  • Pagani M, Fine CH (2008) Value network dynamics in 3G–4G wireless communications: a systems thinking approach to strategic value assessment. J Bus Res 61(11):1102–1112

    Article  Google Scholar 

  • Park Y, Geum Y, Lee H (2012) Toward integration of products and services: taxonomy and typology. J Eng Tech Manag 29(4):528–545

    Article  Google Scholar 

  • Peppard J, Rylander A (2006) From value chain to value network: insights for mobile operators. Eur Manag J 24(2–3):128–141

    Article  Google Scholar 

  • Perks H, Gruber T, Edvardsson B (2012) Co-creation in radical service innovation: a systematic analysis of microlevel processes. J Prod Innov Manag 29(6):935–951

    Article  Google Scholar 

  • Pil FK, Holweg M (2006) Evolving from value chain to value grid. MIT Sloan Manag Rev 47(4):72–79

    Google Scholar 

  • Pousttchi K, Hufenbach Y (2011) Value creation in the mobile market—a reference model for the role(s) of the future mobile network operator. Bus Inf Syst Eng 3(5):299–311

    Article  Google Scholar 

  • Qiu RG (2009) Computational thinking of service systems: dynamics and adaptiveness modeling. Serv Sci 1(1):42–45

    Google Scholar 

  • Raivio Y, Luukkainen S (2011) Mobile networks as a two-sided platform: case open Telco. J Theo Appl Electron Commer Res 6(2):77–89

    Google Scholar 

  • Rao B, Jimenez B (2011) A comparative analysis of digital innovation ecosystems. Paper presented at the Proceedings of PICMET ‘11: technology management in the energy smart world (PICMET), July 31–Aug 4

  • Son C, Geum Y, Park Y (2013) How to identify the trends of services: GTM–TT service map. Expert Syst Appl 40(8):2956–2965

    Article  Google Scholar 

  • Spohrer J, Maglio PP (2008) The emergence of service science: toward systematic service innovations to accelerate co-creation of value. Prod Oper Manag 17(3):238–246

    Article  Google Scholar 

  • Spohrer J, Maglio PP, Bailey J, Gruhl D (2007) Steps toward a science of service systems. Computer 40(1):71–77

    Article  Google Scholar 

  • Spohrer J, Vargo SL, Caswell N, Maglio PP (2008) The service system is the basic abstraction of service science. In: Proceedings of the 41st annual Hawaii international conference on system sciences, Waikoloa, Hawaii, USA, 7–10 Jan 2008, pp 104–104

  • Sterman J (2000) Business dynamics: systems thinking and modeling for a complex world. Irwin/McGraw-Hill, New York

    Google Scholar 

  • Sterman JD, Henderson R, Beinhocker ED, Newman LI (2007) Getting big too fast: strategic dynamics with increasing returns and bounded rationality. Manag Sci 53(4):683–696

    Article  Google Scholar 

  • Tan W-C, Haas PJ, Mak RL, Kieliszewski CA, Selinger PG, Maglio PP, Glissman S, Cefkin M, Li Y (2012) Splash: a platform for analysis and simulation of health. Paper presented at the proceedings of the 2nd ACM SIGHIT international health informatics symposium, Miami, Florida, USA

  • Tian CH, Ray BK, Lee J, Cao R, Ding W (2008) BEAM: a framework for business ecosystem analysis and modeling. IBM Syst J 47(1):101–114

    Google Scholar 

  • Vargo SL, Lusch RF (2004) Evolving to a new dominant logic for marketing. J Mark 68:1–17

    Google Scholar 

  • Vargo SL, Lusch RF (2008) Service-dominant logic: continuing the evolution. J Acad Mark Sci 36(1):1–10

    Google Scholar 

  • Vargo SL, Maglio PP, Akaka MA (2008) On value and value co-creation: a service systems and service logic perspective. Eur Manag J 26(3):145–152

    Google Scholar 

  • VisionMobile (2013) Developer’s tools: the foundation of the App economy. VisionMobile, Athens

    Google Scholar 

  • Wang W, Cheong F (2006) Modeling and simulating mobile phone users in China. In: SimTecT 2006: simulation: challenges and opportunities for a complex and networked world, Melbourne, Australia, 29 May–1 June 2006. Simulation Industry Association of Australia

  • West J, Mace M (2010) Browsing as the killer app: explaining the rapid success of Apple’s iPhone. Telecommun Policy 34(5–6):270–286

    Article  Google Scholar 

  • Yan Z, Liu CH, Niemi V, Yu GL (2013) Exploring the impact of trust information visualization on mobile application usage. Pers Ubiquit Comput 17(6):1295–1313

    Article  Google Scholar 

  • Zhang X, Chen RQ (2008) Examining the mechanism of the value co-creation with customers. Int J Prod Econ 116(2):242–250

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Juite Wang.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Wang, J., Lai, JY. & Hsiao, LC. Value network analysis for complex service systems: a case study on Taiwan’s mobile application services. Serv Bus 9, 381–407 (2015). https://doi.org/10.1007/s11628-014-0237-y

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11628-014-0237-y

Keywords

Navigation