Service Dominated architecture

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The Service Dominated Architecture ( SDA ) enables customer-centered solutions through real-time capability, data-based customer understanding based on interactions as well as the integration and connection of external capabilities / resources via platforms in the sense of a "resource integrator" (compare the premises of the service-dominated logic (SD Logic)) . As an architecture, SDA is part of a corporate strategy and the IT strategy derived from it, which is concretized and implemented via a corporate architecture . Enterprise architecture in this context is understood as the organizing logic for business processes and IT infrastructure and conceptualizes the requirements regarding integration and standardization for the implementation of the operating model. It thus explicitly represents the long-term perspective on processes, systems and technologies of a company. The SDA operationalizes a service-dominated IT strategy and supports the implementation of the necessary capabilities of a service platform.

Origin and basic idea

The basic idea of ​​the SDA is based on the assumption that a service perspective in general and SD Logic in particular is an inspiring and promising approach to mastering the challenges of digital transformation . Thus, the premises of SD Logic are to be transferred to an architecture in order to make them available as concrete requirements for the design and implementation of service platforms. The basic assumption of the SDA is that the digital transformation is essentially a service transformation. The SDA also faces the challenge that in the future companies will have to increasingly develop web-based, modular applications in order to reach customers via the strategically important customer interfaces (smartphones, tablets, etc.). Another motivation is based on the strategically important ability in the digital age to quickly and flexibly contribute to or via existing platforms as part of value propositions in the form of service systems. The SDA provides a concept or a draft (blueprint) for the architecture of service platforms, with the aim of continuously arranging and integrating the most diverse processes and other resources for creating customer-centered solutions in real time. It also enables interaction with customers, the integration of external platforms and the use of existing services and data.

The SDA has been further developed since 2016 as part of a joint venture founded (SDA SE Open Industry Solutions). The SDA is based on the idea of ​​Markus Warg (Professor for Leadership, Service Design and Risk Management at the Wedel University of Applied Sciences and Head of the Institute for Service Design, Hamburg) from 2015.

Basic assumptions and premises

The SDA offers a solution space and a practice-oriented reference framework for a service platform that breaks down the abstract premises of SD Logic into four specific, implementable subsystems and concretizes them as necessary IT competencies and IT skills. The starting point is the SD Logic as "[...] a reformulated approach to economic exchange relationships", which puts services in the focus of consideration. SDA supports IT management in developing competencies and skills derived from SD Logic, e.g. B. Real-time, creating customer experiences, high service quality, resource integration, mobilizing resources, co-creation, customer interaction, integrating external resources, (omnichannel etc.) in the company in order to make them available for digital service-oriented business models. In this way, sustainable strategic decisions as well as operational measures and investments for the concrete implementation and execution of digital strategies and business initiatives in the company are supported. The SDA is based on the existing IT or application landscape of an organization and expands it with new capabilities in terms of customer interaction, flexibility and agility (e.g. by using approaches such as the customer engagement system, two-speed IT, Modularization) without increasing the complexity of the future IT landscape.

Concepts of the SDA: structure and structure

The SDA translates the premises of SD Logic into concrete IT artifacts. The SDA concept consists of four sub-elements, three service systems and a further component called the “data lake”. The data lake is required to introduce new data analytics skills in the company.

System of Operant Resources

Operant resources are (according to SD Logic) knowledge and skills. Operant resources create competitive advantages in the market. They form the foundation of the SDA. The System of Operant Resources organizes and makes the existing human, technical, organizational or relationship-driven resources of a company available for the other systems. The purpose of this subsystem is to mobilize and condense the previously rigid resources of the legacy IT for further use. These resources are then available for modular solutions tailored to the customer process.

System of Interaction

Interactions are a fundamental concept of SD Logic and thus a constituent element of SDA in order to implement service platforms. The System of Interaction provides the necessary capabilities to realize the core interaction, which represents the nucleus of platform concepts. The concept includes both interactions with customers and business partners or, from an abstract point of view, with the resources provided by other service systems. The System of Interaction creates the prerequisites for an interactive and uniform customer experience (Customer Engagement System). To this end, all communication channels are designed uniformly and integrated into the SDA.

System of Participation

In order to create unique and valuable customer experiences, the integration of further partners is often useful. The SDA enables the integration of third parties in the System of Participation in order to gain access to external resources and skills for the creation of the service (in the sense of co-creation or integration of operants (knowledge and skills) and operands (physical objects, goods) To be able to use resources according to SD Logic). The system of participation provides the necessary functionality for allocation, connection and access to resources.

Data lake

Valuable customer experiences can only be generated on the basis of detailed knowledge of customer needs. To do this, the first step is to mobilize the context-relevant data already available in the company and to merge or integrate it along the customer process. For comprehensive and timely use, they must be fully available as dispositive data. The SDA enables the step-by-step construction of dispositive databases, which can then be analyzed and used independently of operational operations.

Relevance and importance of the SDA for practice

The SDA provides a frame of reference for making targeted strategic decisions regarding future IT capabilities and thus planning specific investments in the IT landscape. The SDA encapsulates the skills and competencies required for digital transformation in insurance companies and represents a solution approach to introduce and develop the necessary solution competencies in the company on a sustainable basis.

Building on the competencies and capabilities of the existing IT infrastructure and IT systems, established companies are enabled to introduce the necessary new competencies and skills for the digital transformation of the company. The existing IT landscape (especially legacy systems) represents a competitive disadvantage for established companies. The reason is the predominance of monolithic structures, which, due to the connections between the individual systems, usually leads to a very complex and inflexible application and system landscape Has. New skills in data analysis achieve a deeper understanding of customer needs. In this way, customer relationships can be sustainably established and maintained. Information is analyzed and aggregated into in-depth knowledge in order to be used specifically to improve customer interactions and to support the customer process. This makes it possible, in line with SD Logic, to continuously improve existing services in a customer-centered manner or to inspire customers in the future through service innovations (for example through real-time solutions). The technical implementation of the SDA reflects requirements for the implementation of distributed web-based modular applications. Furthermore, as already mentioned, skills and competencies derived from SD Logic are implemented. Modern IT architectures consistently rely on modularization concepts (such as microservices , service-oriented architecture (SOA)) and open standards. They form the basis for the design and implementation of platforms and associated capabilities; The first priority is the ability to act as a resource integrator. The foundation of these architectures consists of reusable technical services. In this way, previously closed, rather inflexible systems are transformed into dynamic open systems. This enables new innovative value propositions. New digital business models can be implemented that are consistently based on the premises of the service-dominated logic. As a result, new types of customer interactions and consistent, valuable customer experiences can be realized that make the difference in the digital age.

New digital communication channels (such as smartphones, tablets, chats, etc.) offer companies the opportunity to achieve a new, previously unattained quality of customer proximity. Measures to implement the digital transformation must therefore target the customer interface. At the same time, it is important to assert this against competitors. For this, the SDA provides the necessary skills, such as innovative and flexible data management, which forms the basis for understanding future customer needs and developing attractive individual value propositions and creating valuable customer experiences. This assumes that the necessary solution competencies are built up and maintained in the company. This is the only way companies can meet customer expectations in the digital age and develop attractive value propositions.

The concept of the “data lake” forms the basis for this in order to achieve fast information access. Reactions in real time are the focus here. The ability to react in real time to events (life events) in the customer process creates positive customer experiences, improves customer relationships, inspires customers and thus binds them to the company in the long term. The ability to act as a reliable partner to the customer and to provide the necessary resources and integrate them into customer interactions is an important step in mastering the digital transformation. Companies that have this ability will in the future assert the customer interface against competitors (data control points). Companies without this ability will lose their traditional position in the value chain and become mere suppliers (without direct customer contact or customer interaction). In the digital age, competitors are just a click away. In combination, automated tests, fast software updates and significant efficiency gains in the creation of technical solutions are achieved. The SDA therefore relies on interaction, flexibility and speed (referred to as "Systems of Engagement") and propagates the use of modern paradigms, modularization concepts and architectures (such as microservices, SOA) for the design and implementation of digital solutions. At the same time, the advantages of stability from the legacy world are incorporated into the solution design ("Systems of Record"). The SDA makes the company's collective knowledge available in the “System of Operant Resources” (a subsystem or concept derived from SD Logic) for value creation activities and digital business initiatives.

Relevance and importance of the SDA for current and future research

In addition to the relevance for practice with regard to the challenges of digital transformation, the SDA approach shows relevance in the area of ​​research that deals with digital transformation and the changes in the role and organization of IT in companies. The SDA makes an important scientific contribution to the development and implementation of service systems in the context of service science. In the meantime, a network of research institutions and scientists has been set up, which aims to further develop the SDA scientifically. The network is scientifically developing the SDA concept in order to generalize the approach and transfer it to other industries. Another focus of the research is currently focused on the further development of the SDA as a reference framework and design framework for the development and concrete implementation of service platforms. The SDA as a research subject utilizes scientific contributions in the field of service innovations and SD Logic. Relevant research approaches can be found in the field of service science and service systems. The SDA also reflects the conceptualization of service innovations in co-creation, platform and service ecosystem, an interesting and promising way and approach to master the challenges of digital transformation. Current research creates a link to relevant trends and developments (for example new modularization approaches such as microservices). Furthermore, the focus of research work is on the integration of research disciplines and contributions from the field of digitization and digital transformation, enterprise architecture management, as well as service innovation, etc.

Individual evidence

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