An Introductionto

Service Systems Engineering (SSE)

Marco LisiEuropean Space Agency

Chief Technical Advisor of the European GNSS Agency(marco.lisi@esa.int)

Lunchtime PresentationGSA, Prague, 23/11/2017 4

Summary

• Services are becoming more and more important in today’s world economy;

• Service-oriented, large and complex systems are often critical infrastructures of our society;

• The engineering of service systems and enterprises requires systemic approach, holistic view, customer focus and life cycle perspective;

• New acquisition and contracting schemes are also required;

• A service provision perspective requires a conceptual paradigm shift: moving from technologies/products to capabilities and services.

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Service Economy: What is it?

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Towards a Knowledge-Based…

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… and Service-Oriented Economy

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The Transition to a “Service Economy”

From Goods to Services

What is really happening?

• On one side our final products get more and more added value from the knowledge embedded in them (knowledge provision being essentially a form of service);

• On the other side, customers need comprehensive solutions to their problems (not a car to move around, but a solution to my mobility problems; not tools but capabilities).

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A New, Awkward Word: Servitization…

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…and a New Way of Thinking

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Products vs. Services

What do we mean by "service"?

• By the term “service” we mean the guaranteed and committed delivery of a capability to a community of potential customers/users;

• Focus on “commitment” (continued over time) and on “customer satisfaction”;

• “Technical performance” is an essential prerequisite, but not an objective;

• NOTA BENE: services are not alternative to (or in competition with) technology and goods production. On the contrary, advanced, high value-added services need state-of-the-art technological products and systems to be provided. Examples:– Internet– Wireless communication networks– Electric power distribution infrastructure

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What is a Service System?

• Service (or service-oriented) systems are systems meant to provide value-added services through the use of technology (mainly information and communications and technologies, ICT);

• A “service system” has been defined as a dynamic configuration of people, technology, organizational networks and shared information (such as languages, processes, metrics, prices, policies, and laws) designed to deliver services that satisfy the needs, wants, or aspirations of customers.

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Characteristics of Service Systems• Large and complex systems• Software intensive (several million lines of

code) • Capability-based rather than product-based • Organization and governance (human factor)• Technical performance is a prerequisite for

production and delivery of services, not a final objective

• In the definition of the Quality of Service (QoS), requirements related to operations and logistics, in addition to technical ones, assume a very high relevance:

Reliability, Availability, Continuity SafetyFlexibility SecurityExpandability ResilienceMaintainability Interoperability

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From Products to Systems to Services

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From a System…

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…to a Service

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European GNSS Agency (GSA),Prague

Galileo Service Centre, Madrid

Galileo System Infrastructure

Galileo Security

Monitoring Centre

Galileo ILS Centre, Transinne

Galileo Reference Centre, Noordwijk

Galileo Development & Acquisition Process

GalileoSystem

Assets(Satellite Constellation, GCC’s,

GCS, GMS, GDDN, etc.)

Galileo System Requirements

Galileo System Performance &

Operations

People(ESA Project Team,

Subco’s, EC, GSA, etc.)

Processes(Engineering Board, VCB,

CCB, CM, Ops Procedures, etc.)

Galileo Service Provision Process

GalileoServices

Assets(Galileo System, GSC, GPEC, etc.)

Galileo Services

Requirements

Galileo Services Provision

People(EC, GSA, ESA Support, Member States, Services Providers, Operators, etc.)

Processes(Services Validation, KPIs

Monitoring, Security Monitoring, Helpdesk, etc.)

Specifying a Service System

• Functional and technical performance: System Requirements Document (SRD)

• Operational requirements and scenarios: Concept of Operations (CONOPS) document

• Expected service behavior and non-functional performance: Service Level Agreement (SLA)

• A typical SLA defines Key Performance Indicators (KPI’s) and Key Quality Indicators (KQI’s), with target values and target ranges to be achieved over a certain time period.

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Evolution of Contracting in Aerospace

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The Total Cost of Ownership Iceberg

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The Total Cost of Ownership Iceberg

Service Management• Service Management is a set of specialized organizational

capabilities for providing value to users/customers in the form of services;

• These organizational capabilities include all the processes, methods, functions, roles and activities that Service Providers uses to enable them to deliver services to their customers;

• The inputs to Service Management are the resources and capabilities that represent the assets of the Service Provider. The outputs are the services that provide value to users;

• The focus of Service Management is on the service delivery process which is different from a system development and acquisition process (focussed on technology and technical performance);

• From the Service Management viewpoint technologies and technical performance are means, not final objectives.

What is ITIL?• ITIL (Information Technology Infrastructure

Library) is a public framework (and a “de facto” standard) that describes Best Practices in IT Service Management;

• Although originally conceived and developed for IT-based services, the ITIL methodology and practices are applicable to the management of a generic service provision process;

• The Galileo service provision organization will have as its main and essential asset what can be seen as a large and complex ICT system (network based, computational intensive, software intensive);

• ITIL could therefore be a good reference for

The ITIL Process Model

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Key Performance Indicators (KPIs)

• KPIs are tools that may be used by an organization (in our case, a service enterprise) to define, measure, monitor and track its performance over time toward the achievement of its goals;

• KPIs must be quantitative and quantifiable; • KPIs need to be tailored to the specific organization

priorities and performance criteria. So a service organization, based on a large, complex, high-technology system infrastructure, will look to KPIs that measure areas of performance such as Availability, Continuity, Mean Time to Repair (MTTR), customer satisfaction indices, etc.;

• KPIs are often of statistical nature: they can be evaluated over fixed or rolling time periods.

The ITIL KPIs Definition

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A Book and a Park that changed my life

"Spirit to Serve" (1/2)

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"Spirit to Serve" (2/2)

“Para servir, servir” Josemaria Escrivá

Founder of Opus Dei

Conclusions

• Our economy is more and more depending on large, strategic and complex service infrastructures, based on large, strategic and complex systems, such as EGNOS and Galileo;

• The design of a complex service enterprise requires a wide range of skills and expertise's, covering organizational, engineering, social, legal and contractual aspects;

• The advent of a services economy imposes a radical conceptual paradigm shift: moving from technologies/products to capabilities and services;

• The “spirit to serve” (call it “customer focus”, if you like) is at the basis of all services.

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My Vision: The Global SoS’s Infrastructure

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Earth Observation / IoTTelecomms

“One is glad to be of service”

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Thank You

Questions?