Service Value Networks: Unleashing the Combinatorial Power of Service Mashups

Abstract

The long tail phenomenon has been heavily discussed in recent years. What has been neglected so far is its striking relevance for electronic services. Whereas consumers expectations about information goods are often vague and transient, their requirements are pronounced and specific when it comes to the functional and non-functional characteristics of electronic services. Moreover, modular services can be combined and configured into service mashups that have the potential to meet complex consumer requirements. In this vein, the long tail phenomenon can be leveraged into a new dimension – the long valley, where every service exerts positive network externalities on the remaining services, thereby spurring an increase in supply and demand. The combinatorics of constructible service mashups are enabled by universally accessible service orchestration platforms known as Service Value Networks (SVNs). This article shall not only pave the way for a rising research area on a new business trend, but will also help business actors to harness the opportunities opened up by SVNs.

Keywords: Long Tail, Service Economy, Mash Up, Service Value Network, Smart Business Network

JEL Classification: O32, O33, L86, M21