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Service Models in the Public Sector Cover
Open Access
|Dec 2024

Figures & Tables

Table 1

Methodical Approach.

STEPOBJECTIVEEXAMPLE
Deductive analysisUse the Business Model Navigator, which includes service models, as a reference point and analyze the applicability of these models in the public sector.“Hidden revenue” eliminated, “Crowdfunding” included on the list of service models in public administrations.
Inductive analysisIdentify additional real-life public sector service models by exploring the existing literature and examining real-world examples.“Taxpayers’ money” included as additional service model in the public sector.
Expert discussionsEvaluate service models through discussions with practitioners and academics to identify weaknesses and drive improvements.Edit wording in “Outsourcing” service model.
ClusteringConduct a comparative analysis of service models to identify, describe, and cluster the roles of government in public service delivery then report back and discuss them with the expert group.Government in its role as “activator.”
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Figure 1

Roles of the government in service models.

Table 2

Activator Service Models.

SERVICE MODELMODE OF OPERATIONLITERATURE EXAMPLE & ILLUSTRATIVE CASES
Contracting OutThe government mandates that a service provider deliver a specific public service directly to users.Literature example:
  • Blomqvist and Winblad (2022)

Illustrative cases:
  • NYC Plaza Program

  • Street lighting in Bulgaria

CrowdsourcingThe government involves a large number of external actors in value creation, innovation processes, or the generation of knowledge.Literature example:Illustrative cases:
  • Australian Parliament open data offering

  • Bogotà’s participatory online crowdsourcing platform

Developer PlatformThe government or a third party provides digital modules on a platform that other communities can use in developing their own applications.Literature example:
  • Janssen and Estevez (2013)

Illustrative cases:
  • The multi-governmental initiative GovStack

  • eGovernment platform Mobile Age of the European Union

Fractional OwnershipThe government shares ownership of an infrastructure that generates public value with individual private parties who may also be users of the public service.Literature example:
Goedkoop and Devine-Wright (2016)
Illustrative cases:
  • Shared ownership of solar panels in England

  • Middelgrunden wind turbines in Denmark

Government as a PlatformCreation of network effects among both the providers and buyers of services. This creates a motivation to use the platform.Literature example:
Jung et al. (2019)
Illustrative cases:
  • NHS Jobs platform in the UK

  • eCitizen platform in Kenya

OrchestratorThe government coordinates the interaction of different groups of actors in such a way that public value is created.Literature example:
Shaw et al. (2019)
Illustrative cases:
  • Sharing City Seoul project in South Korea

  • Organ transplant system in Spain

Self-ServiceThe government lets citizens perform certain public tasks themselves.Literature example:
Paulin (2013)
Illustrative cases:
  • Green sponsorships in Bonn

  • Neighborhood patrol program in Phoenix

Table 3

Yield Shaper Service Models.

SERVICE MODELMODE OF OPERATIONLITERATURE EXAMPLE & ILLUSTRATIVE CASES
AuctionSpecial public services are sold at auction to the highest bidder. The model leverages customers’ willingness to pay for prestige objects.Literature example:
Chow (2020)
Illustrative cases:
  • License plate auction in Hongkong

  • Auction platform for old cars in Australia

CrowdfundingThe creation of a service is financed by contributions from the community of potential users. The crowd can organize itself as a private company with ownership participation, but the model can also take more informal forms.Literature example:
Lee et al. (2016)
Illustrative cases:
  • Pedestrian bridge in Rotterdam

  • Renewable energy investments in Scotland

Flat RateThe government levies a tax on a service, but this is defined as fixed irrespective of the quantity purchased.Literature example:
Ehtasham (2022)
Illustrative cases:
  • Refuse collection fees in Singapore

  • Passes for swimming pools in Canada

Leverage Customer DataThe government generates data from a service that it then makes available for other services or to the public.Literature example:
Kim et al. (2014)
Illustrative cases:
  • Provision of social and economic data for business startups in Mexico

  • COVID-19 payments in Denmark

Revenue SharingCollaborative creation of a public service leads to revenue that is shared among the different actors.Literature example:
Wang and Liu (2015)
Illustrative cases:
  • Free public Wi-Fi in Kansas City

  • Expansion of the superhighway in Pakistan

Sell Your NetworkThe government is part of a larger (exclusive) network and sells this advantage.Literature example:
Carrera (2014)
Illustrative cases:
  • Golden passport scheme in Malta

  • E-Residency in Estonia

Taxpayers‘ MoneyThe government provides a public service, which is financed by taxpayers’ money. This is free of charge for the beneficiary.Literature example:
Mules (1998)
Illustrative cases:
  • Urban parks in Beijing City

  • Primary education in Mexico

Trash-to-CashThe government provides itself with a source of income from the waste of its citizens or from its own waste.Literature example:
Kabirifar et al. (2020)
Illustrative cases:
  • Waste heat and energy in Berlin

  • Recycling from road construction in Australia

User paysThe government charges a fee for extraordinary burdens caused by an actor.Literature example:
Luppi et al. (2012)
Illustrative cases:
  • Motorway tolls in Europe

  • Polluter pays principle

Table 4

Funder Service Models.

SERVICE MODELMODE OF OPERATIONLITERATURE EXAMPLE & ILLUSTRATIVE CASES
GuaranteesThe government enables the private party to raise capital at a low cost by guaranteeing the full loan or a portion of the loan.Literature example:
Bradshaw (2002)
Illustrative cases:
  • COVID-19 credit guarantee scheme in Ireland

  • Small business loan guarantees in California

Payment by ResultsThe government pays the service provider based on the impact the service has.Literature example:
Janus and Keijzer (2015)
Illustrative cases:
  • Energy performance contracts in Boston

  • Results-based aid

Seed MoneyThe government provides start-up funding to a public service that subsequently becomes self-sustaining.Literature example:
Bakos (1997)
Illustrative cases:
  • Revolving water fund in Madhya Pradesh

  • Care support points in Bavaria

Start-Up LoansThe government provides a private party with a (free) loan to set up a service, which must be repaid if the service is successful.Literature example:
Kratzer and Kato (2013)Illustrative cases:
  • Empowerment loans in Tanzania

  • Solar power production in Sri Lanka

SubsidiesThe government supports the private fulfillment of tasks with cash benefits. These can be investment or operating contributions.Literature example:
Zhang et al. (2022)
Illustrative cases:
  • Euro-tickets in Germany

  • Nationwide internet connection in Ireland

VouchersThe government supports persons by contributions to the consumption of necessary services.Literature example:
Bahta and Musara (2022)
Illustrative cases:
  • Food vouchers during COVID-19 in South Africa

  • Intercantonal contributions for free choice of study location in Switzerland

WaiversThe government promotes a specific task by waiving or reducing taxes or fees.Literature example:
Damuri and Atje (2012)
Illustrative cases:
  • Housing and development public rentals scheme in Singapore

  • Renewable energy tax incentives in Indonesia

Table 5

Guardian of Public Goods Service Models.

SERVICE MODELMODE OF OPERATIONLITERATURE EXAMPLE & ILLUSTRATIVE CASES
ConcessionsThe government grants the private sector the right to extract a natural resource and charge third parties for the cost of producing the service.Literature example:
Örnberg and Ólafsdóttir (2008)
Illustrative cases:
  • Alcohol sales monopoly in Iceland

  • Mineral extraction in India

PermitsThe government grants or denies permits for activities that involve emissions for society.Literature example:
Ono (2002)
Illustrative cases:
  • Work permits in Bangladesh

  • Street music in Dublin, Ireland

LicensesA license allows an actor to use a licensor’s intellectual property for commercial purposes.Literature example:
Lee (2016)
Illustrative cases:
  • Open government licenses in Canada

  • UK data service in England

RegistratorThe government runs a register that clarifies relations, rights, and duties.Literature example:
Yadav et al. (2022)
Illustrative cases:
  • Digital land register in Hong Kong

  • Trade register entries in the Isle of Man

RegulatorThe government regulates access to a network and competition in an area characterized by natural monopolies.Literature example:
Moran (2002)
Illustrative cases:
  • Regulatory Offiice for Network Industries in Slovakia

  • Railway safety regulators in South Africa

SanctionsThe government punishes behavior that does not comply with the law.Literature example:
Zahnow et al. (2022)
Illustrative cases:
  • Speeding fines in Switzerland

  • Architecture for reintergration in the Netherlands

Table 6

Performance Designer Service Models.

SERVICE MODELMODE OF OPERATIONLITERATURE EXAMPLE & ILLUSTRATIVE CASES
Rent Instead of BuyThe government grants a paid, temporary right of use for part of its property. The user is effectively a tenant but has extensive rights of use.Literature example:
Hoppe and Thimm (2018)
Illustrative cases:
  • Bike rental system in Constance

  • Community use of schools initiative in Ontario

Add-onThe basic service is financed by the government, but additional services can be used for a fee.Literature example:
Gilson et al. (1995)
Illustrative cases:
  • Extracurricular support through “Club Engage” in South Africa

  • Snow removal on private property in Solothurn

BarterThe government exchanges goods, services, or rights with third parties without money being involved.Literature example:
Waters and Williams (2011)
Illustrative cases:
  • Twitter labels for government account

  • Allmend corporation in Switzerland

DigitizationThe government provides (formerly analogous) services in digital form.Literature example:
Lindgren et al. (2019)
Illustrative cases:
  • Digitization plan in New Zealand

  • Digital payment systems in Liberia

Experience SellingThe government provides emotional value to a “natural” offering through clever labeling.Literature example:
Buurma (2001)
Illustrative cases:
  • Roger Federer promotes Corona measures in Switzerland

  • Highway sponsorship in the US

Label the LevelThe government offers different quality levels of a service and sells them at different prices with easily understandable names.Literature example:
Cutler (2002)
Illustrative cases:
  • Fees for the post office in Tanzania

  • Train travel in France

Lock-InTechnical measures or penalties are used to keep switching costs high so that users do not switch providers.Literature example:
Vink et al. (2019)
Illustrative cases:
  • Transfer between universities in Switzerland

  • Loss of citizenship in the Netherlands

Mass PersonalizationPersonal configuration of standard modules creates individualized solutions for individual citizens or companies.Literature example:
Ibrahim (2013)
Illustrative cases:
  • Pre-filled tax documents in India

  • MyGovNL in the Netherlands

Object Self-ServiceObjects order materials autonomously.Literature example:
Ayele et al. (2020)
Illustrative cases:
  • Waste collection in Barcelona

  • Proactive bridge monitoring in Norway

Open SourceThe government provides data or source code for its applications so that third parties can further refine and improve them.Literature example:
Kalampokis et al. (2011)
Illustrative cases:
  • Chicago data portal in the US

  • Digital testbed framework in Estonia

OutsourcingThe government is responsible for performance but purchases input from suppliers.Literature example:
Tahir and Wang (2019)
Illustrative cases:
  • EduApp4Syria in Norway

  • Intelligencec agencies using AWS in the US

Sell Your ServicesGovernment sells services in a commercial way to third parties (public or private customers).Literature example:
(Guenduez et al., 2023)
Illustrative cases:
  • KSD Schaffhausen in Switzerland

  • GovCloud in Denmark

Sensor as a ServiceThe government supplies sensors to the private sector to provide services to the public.Literature example:
García et al. (2020)
Illustrative cases:
  • Irrigation system in Barcelona

  • Parking in Tržič in Slovenia

Shop-in-ShopIn addition to the core offering, the government (or a leased-in actor) offers other services in the same infrastructure.Literature example:
Askim et al. (2011)
Illustrative cases:
  • One-stop stores in Australia

  • Post coffee in Fujian, China

Solution Performance DesignerThe government organizes on the principle of “one face to the customer,” combined with a comprehensive service package in specific situations.Literature example:
Ladychenko and Tunitska (2019)
Illustrative cases:
  • “Single window” for import of goods in Ukraine

  • Point of single contact in Austria

StandbyThe government ensures that a particular service is available to beneficiaries when needed.Literature example:
Perry and Lindell (2003)
Illustrative cases:
  • The HyperSport responder in Dubai

  • Medical care at –70°C in Antarctica

DOI: https://doi.org/10.5334/ssas.222 | Journal eISSN: 2632-9255
Language: English
Submitted on: Oct 18, 2024
Accepted on: Nov 13, 2024
Published on: Dec 31, 2024
Published by: Ubiquity Press
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year

© 2024 Kuno Schedler, Ali Asker Guenduez, published by Ubiquity Press
This work is licensed under the Creative Commons Attribution 4.0 License.