In business model innovation (BMI) for servitization, it is essential for manufacturer to identify a set of specific (non)monetary and (in)tangible value attributes (Prior, 2013), that specify the valuable features of product, service, parts of delivery process and even business relationship. Such understanding of customer value serves as the basis for further design of the new product-service system and how it can be created and delivered (Frankenberger et al., 2013). However, developing understanding about customer value becomes one of the main challenges for manufacturers trying to servitize (Martinez et al., 2010; Mathieu, 2001) due to several reasons. Firstly, manufacturers and their customers perceive what is valuable differently (Lindgreen et al., 2012). Secondly, intangible nature of servitized value propositions makes it difficult for manufacturers to change their traditionally product-focused transactional models into the ones providing long-term relationship-based product-service offerings (Vladimirova et al., 2011). Finally, there is lack of tools and procedure guidance on how manufacturers can approach customer value identification in B2B context in practice, especially its intangible part (Keränen & Jalkala, 2013) that goes beyond straightforward financial value.
Service design has already been suggested as a potential enabler to support manufactures in “how” to practically approach servitization transformation (e.g., Sangiorgi et al., 2012; Thurston & Cawood, 2011) due to its human-centred, creative, iterative approach to the creation of new services (Blomkvist, Holmlid, & Segelström 2010). In this paper we study how service design tools can facilitate understanding customer value in BMI for servitization. We use several empirical cases with manufacturers that are in the initial phase of BMI for servitization (Simonchik et al., 2015; Val et al., 2013). In these cases, we study how the use of selected service design visualization tools (Maps, Narratives, Images & Flows) through co-creation workshops helps manufacturers to (i) identify tangible and intangible value attributes (e.g. product quality, service flexibility etc. and (ii) use them further in designing new product-service systems.
Preliminary case analysis shows that service design tools help participants think beyond their products, providing a broader perspective of the complete value proposition throughout the whole customer experience including products, services, processes of delivery and relationships. The understanding of how the customer will potentially interact with the future value proposition lays the groundwork for the design of new product-service systems. The cases also show that service design visualization tools provide the ability to experiment with how to create and deliver specific tangible and intangible value attributes in a quick and easy way through mapping and prototyping. With this paper we hope to contribute to manufacturer’s efforts in increasing their service orientation in BMI for servitization. Results of this study have implications for managers at manufacturer’s side putting effort to overcome among others such challenges of servitization as changing the product-centred perspective of own employees (Löfberg, 2014).
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OmniaScience , 2016. 29-32 p.
Service Design Tools, Customer Value, Business Model Innovation, Service Design Tools, Customer Value, Servitization
4th International Conference on Business Servitization (ICBS 2015), Universidad Rey Juan Carlos, Madrid, Spain, November 19-20, 2015