ISS 2020 Vision Future of Service Management | Page 62

5.2.4 Service actors
An increasingly complex global business-operating environment characterized by greater
industry convergence means that competition is increasing, as is hyper-specialization.
The number of service actors required to deliver a service to an end-user is growing. This
requires that organizations identify the right collaboration model for service delivery as well
as a means for ensuring alignment and engagement among the partners’ employees. The
ability to maintain service standards without falling into a low-cost/margin trap in such an
environment is more important than ever, as the duration of business cycles are reduced
with aggressive competition coming from emerging regions and adjacent industries. 78 It is
no longer enough to be best in class in a region or country – leading service providers must
aspire to be world class. They will have to develop anticipatory thinking and agility to quickly
seize opportunities and to integrate new partners as they emerge. This requires that service
providers actively seek out other winners in their respective category with whom to partner
in order to truly create value-added experiences for end-users.
As businesses enter an era of complex, global hyper-competition, “firms have realized that it
is no longer possible for them to gain and maintain competitiveness in the global market on
their own. 78 Involving other firms via outsourcing has been a useful strategic tool to leverage
globally dispersed resources, as it provides advantages in cost, capability and many other
aspects compared to doing it alone.” 79
As outlined by interviewed subject-matter experts, “the trend right now is that you should
use partners and networks and you should not try to do everything by yourself – do what you
are best at and use the help of others when it comes to managing the experience of users.” 80
They continue to explain the importance of effectively managing relationships, stating that
some service providers “will have less direct control over the delivery of service and really
need to do much better in managing network partners to make sure that they are really
performing according to the service-business-model that the core company has adapted.” 80
Value chains are transforming into more intricate value networks that are based on more
symbolic relationships among service actors. Service actors refer to those directly or indirectly
involved in the provision and consumption of a service – the suppliers, partners, employees
and customers (both private consumers and employees as end-users in B2B, B2C and B2B2C
contexts) of service providers. This also includes a number of intermediaries and platform
coordinators who are responsible for facilitating network interactions and managing network
infrastructure (e.g. digital IT platforms, professional networks, etc.).
78 ISS World Services, ISS 2020 Vision: Future of Outsourcing and Perspectives for Facility Management, White Book, 2015.
79 Li, S., et al, The Role of Sustainability Orientation in Outsourcing: Antecedents, Practices, and Outcomes, Journal of Manage-
ment and Sustainability, 2014.
80 Grönroos, C., ISS 2020 Vision: Future of Service Management, 2016.
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