Service value networks: Into practice

Abstract

Modeling a business to match its customer perceived (and customer desired) outcomes, remains an on-going task. This paper considers shows how a service value networks (SVNs) approach may be engaged to model, and deliver, understanding of the front-end business and its direct engagement with its immediate (or front-end) customers. These front-end customers may be either: (1) its off-line, in-store customers — engaging directly with the business sales staff (or representative), or (2) its on-line, virtual customers — engaging with the business via internet or remote access. In this situation, both the business, and the customer draw upon their respective viewpoints, and both sides influence the interaction. External to these business and customer influences are additional factors that capture the immediate and broader global effects — termed environmental effects. These three business-customer engagement areas of influence are captured by a SVN SEM approach.

Without a business-customer encounter of some kind the likelihood of a services business, and a prospecting customer, successfully engaging in an exchange process is reduced. This exchange may be a physical, and/or services exchange, and/or an information and/or ideas exchange. To the business, this encounter is, in effect, a trade, and as a result, the business targets acquiring an economic exchange that will ultimately deliver a net positive economic outcome. To the customer, external and internal information feeds, servicing, perceived value, and satisfaction, are key encounter drivers. SVNs offers a new way to understand the business-customer encounter, and to then utilize this acquired knowledge to either: (1) build a strategic management model, or (2) reengineer its business networks, and to then create a re-positioned, more customer-aligned business operation — one that is capable of delivering win — win, competitive business-customer solutions.