Engineering Services: Unpacking Value Exchange

Abstract

The aim of this chapter is to unpack the concept of value, exploring what it means in a practical setting of engineering services (servitisation) using the service staircase. It consists of two sections. In the first section we will explore firms that are able to create value through services. The second section will create an insight into how the customer can create value through services created for them. Industrial firms are shifting their product-oriented strategies to services with the principal aim to expand their growth and market portfolios. For the customer it can be advantageous to take on advanced services from the service provider, and it will reduce his risk base and reduce costs for optimisation projects. The outcome would be for the customer to focus on its core business. The baseline of working together is to act as network partners instead of suppliers and build relationships instead of transactions. Overall, both the customer and the service provider have the ability to create and capture value through servitised offerings.