How to Add Service Value to the Business?
We live in a service economy and society. They permeate the life of the individual and the daily life of society, determine the level of the quality of life and social development, and today constitute the main factor of well-being with a growing trend.
This dimension of services places them in a preeminent position in social interaction and in the economic exchange of society; they contribute two-thirds of the Gross Domestic Product (GDP) of the economic activity of nations, regardless of their level of development. They constitute the largest source of job creation globally and are increasingly consolidating their trend of greater development and social and economic growth.
With this perspective, both organizations and businesses on a global scale are mobilized in unison, driven by constant changes in the dynamics of users/consumers, competition, and markets in the quest to nurture their value chain and strengthen sustainability of one´s proposal by adding or developing the service.
Servitization as a strategic innovative model responds to this organizational and business challenge, placing the company’s management in the position of investigating the comprehensiveness of the value chain to identify and estimate factors and service business opportunities, determining potential profits, and considering contingencies to minimize in terms of costs and risks.
The potential beneficiary of this work, such as managers, executives, professionals, entrepreneurs, and university professors as well as students who want to know, how to acquire new skills, refresh, or update knowledge on the subject, will find in this work an orientation tool, brief and practical, of the fundamentals and approaches necessary for the analysis, adoption, and implementation of a servitization strategy.
The work is structured in five chapters with their respective application dynamics that incorporate the reader’s own experiences and experiences on the subject. An extract as a referential reading of the issues is discussed. The set of own and added terms on the topics covered is defined and contained in the “Terminology” section at the end of the last chapter. Likewise, the references used occupy a separate place and are structured in a general way and the specific ones corresponding to each chapter.
Chapter 1: The Service Value Chain establishes, through Servilogy,1 a cutting-edge holistic vision and the corresponding theoretical foundation of the service ecosystem as the foundation of the servitization initiative. Chapter 2: Servitization: An Assessment Holistic Perspective describes the structure and the integral valuation process for the adoption of a servitization strategy.
Chapter 3: Service Compliance Management focuses on the delivery process, experience, verification, and results of carrying out the service, by describing a connection pattern between the service code of the company’s value proposition, the measurement of the delivery (instruments and indicators), and the assurance of the contracted obligation, in accordance with the company’s manifest commitment to its user.
Chapter 4 on Dynamic Capabilities outlines the skills for the provision and management of services and establishes their differentiating character in relation to the skills required for manufacturing activities. Socioemotional capacities that also turn out to be keys to success and merit their identification, consolidation, or development in manufacturing contexts.
The final chapter Innovation and Sustainability develops from the servitization perspective as an innovative business model, two concepts associated with the survival or stability of a company in the market over time: competition and permanence. It shows two schemes to carry out these processes within the framework of the design and continuous renewal of a competitive and continuously growing business model.
1 Study of the principles, concepts, approaches, methods, and instruments of service from the perspective of human action as a reasoned and deliberative behavior.