Most of us live in a service-dominant economy, yet we still think about services in goods-dominant terms that emerged from the industrial revolution. An example of goods-dominant thinking is the strict division between demand and supply. With services, value is co-created in a complex, unpredictable and therefore emergent interaction between provider and consumer.
When service organizations are designed around goods-dominant logic, both consumers and suppliers of services suffer from poor interoperability between the parts of their ‘service systems’, such as processes and tooling. A fundamental rethink is needed. The Taking Service Forward (TSF) creative commons initiative has embraced modern service-dominant thinking and is developing a ‘service architecture’ called the Adaptive Service Model© (ASM). ASM’s terminology gives a better insight into the components of ‘service’, and by way of an introduction to the model, the main components are listed and defined below.