Managing Service System Requirements for Korean Medical Tourism Jaeung Lee 1 , Vijayan Sugumaran 1, 2+ and Sooyong Park 1 1 Department of Service System Management and Engineering, Sogang Business School, Sogang University, Seoul, Korea 2 Department of Decision & Information Sciences, Oakland University, Rochester, MI, U.S.A Abstract. In order to keep pace with the changing environment and business requirements, organizations are focusing on services. Service requirements management is one of the core activities in developing service systems such as medical tourism service system. To identify proper requirements, business requirements and business change factors should be correctly analyzed since the ultimate aim of a medical service system is to meet the needs of its stakeholders. Moreover, appropriate service requirements should be elicited from both the service providers and service consumers. In this paper, we propose a service requirements management method for value co-creation among the stakeholders for a medical tourism service system. Keywords: Value Co-Creation, KANO Model, AHP, Service Requirements Management, Customer Feedback, Medical Tourism Service System. 1. Introduction To deal with the fast changing environment, businesses are interested in service based systems to stay competitive. Many organizations, including the ones in medical services, are focusing on service dominant logic [4] [15]. The main focus of service dominant logic is “value co-creation through activities between service provider and service consumer” [13]. To provide the expected value to customers, medical services should meet their expectations. Hence, the requirements for medical tourism service system should be in sync with what customers want from the medical tourism service system. Therefore, it is important to not only collect the right requirements from customers but also include the service provider’s requirements in designing service systems. A service identification process with value co-creation has been discussed by Lee et al. [11]. However, this approach has some limitations in that the .value analysis process needs further development. The value co-creation process requires a suitable methodology to elicit and manage requirements appropriately. Hence, in this research, we develop an approach for requirements management for the medical tourism service system based on existing literature for value analysis. Bayraktaroglu and Ozgen [2] and Yanlai et al. [16] have used the KANO model and Analytic Hierarchy Process (AHP) for eliciting requirements. However, they have not incorporated the value co-creation aspect their approach. In addition, they have dealt with only simple applications such as library service and automatic dishwasher. In our research, we integrate existing methods for value co-creation in the service requirements management process and apply it to the medical tourism service system. Thus, the objectives of this research are to: a) develop a framework for the service requirements management using KANO Model and AHP for value co-creation, and b) apply this framework to the medical tourism service system to demonstrate the proof of concept. The contributions of this research are the integrated service requirements management process, especially, the value co-creation part using the KANO model and AHP. In addition, + Corresponding author. Tel.: +1 248 370 2831; fax: +1 248 370 4275. E-mail address: sugumara@oakland.edu. 33 2011 International Conference on Advancements in Information Technology With workshop of ICBMG 2011 IPCSIT vol.20 (2011) © (2011) IACSIT Press, Singapore