Service Value Networks:Unleashing the Combinatorial Power of Service Mashups

The long tail phenomenon has been heavily discussed in recentyears. What has been neglected so far is its striking relevance forelectronic services. Whereas consumers expectations about informationgoods are often vague and transient, their requirements are pronouncedand specific when it comes to the functional and non-functionalcharacteristics of electronic services. Moreover, modular services canbe combined and configured into service mashups that meet virtuallyevery conceivable consumer requirement. In this vein, the long tailphenomenon can be leveraged into a new dimension – the long valley,where every service exerts positive network externalities on the remainingservices, thereby spurring an increase in supply and demand.The combinatorics of constructible service mashups are enabled byuniversally accessible service orchestration platforms known as ServiceValue Networks (SVNs). This article shall not only pave the wayfor a rising research area on a new business trend, but will also helpbusiness actors to harness the opportunities opened up by SVNs.