A service network is a structure that brings together several entities to deliver a particular service. For instance, one organisation (the buyer) may sub-contract another organisation (the supplier) to deliver after-sales services to a third party (the customer).[1] The buyer may use more than one supplier. Likewise, the supplier may participate in other networks. The rationale for a service network is that each organisation is focusing on what they do best.[2]
A service network can also be defined as a collection of people and information brought together on the internet to provide a specific service or achieve a common business objective. It is an evolving extension of service systems and applies Enterprise 2.0 technologies, also known as enterprise social software, to enable corporations to leverage the advances of the consumer internet for the benefit of business. In this case, the service network is designed to benefit from the wisdom of crowds and a human's natural tendency and desire to share information, collaborate, and self organize into communities of common interests and objectives. In business, the value of collaboration is clearly recognized, but the ability is often hampered by rigid organizational boundaries and fragmented information systems. A service network enables businesses to realize the benefits of mass collaboration despite the constraints of modern organizational structures and systems.