The world has been moving towards “service-led” economies: In many developed countries, services already account for more than 70% of the gross domestic product. In order to design, engineer, and manage services, traditional “goods-oriented” business models are often inappropriate. At the same time, the rapid development of information and communication technology (ICT) pushes “servitization” and the economic importance of digital services and, therefore, drives competition: Increased interaction and individualization options open up new dimensions of “value co-creation” between providers and customers; dynamic and scalable service value networks replace static value chains; services can instantly be delivered anywhere across the globe.

Building on a systematic categorization of different types of services and on the general notion of “value co-creation”, we cover concepts and foundations for engineering and managing ICT-based digital services, allowing for further specialization in other KSRI/IISM courses at the Master level. Topics in this course include an introduction to services and human-centered design, as well as an introduction to AI-based services, smart services & IoT, and quantum services. Additionally, essential concepts for the design of AI-based services are covered, such as transparency, fairness, and human-AI complementarity in services. Finally, the lecture provides an outlook on digital services in the context of sustainability. Besides those contents, the lecture entails case studies, hands-on exercises, and guest lectures that will illustrate the relevance of digital services in today’s world.

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