Customer value driven service business development: Outcomes from the Fleet Asset Management Project

Toni Ahonen, Markku Reunanen, Ville Ojanen

Research output: Book/ReportReport

Abstract

Transformation in many companies from goods-dominant logic towards service-dominant logic has continued, and the present difficult economic situation in many companies has actually strengthened this motivation to develop new service businesses in addition to developing existing product-service solutions. The aim of this publication is to enhance the understanding of the industrial service business, with a focus on aspects deemed important in creating new successful business: the success factors and risks of a service provider, collaborative relationships and networking, information management in maintenance services and the customer value of services. In the new service development process, there are numerous success factors to be considered in different phases. Our research has revealed some factors assessed high by industrial firms. We have found that, in addition to a profound understanding of the customers' production and business processes, the ability to build trust and a fast reaction to the changing client needs among other things are crucial for successful service development and implementation. Collaborating more effectively with the customer has also been widely recognized as a prerequisite of successful service business. Our research contributes to this field, especially to the business scenarios of networked maintenance by exploring the forms of collaboration in a service provider-customer relationship. New, more collaborative, ways of working in a networked maintenance environment are needed and we propose a maintenance community model as a management framework for these environments. Information management and communication solutions for the purposes of complex maintenance networks are still underdeveloped. We propose ICT solutions that support the collaboration and information exchange in the network and at the same time allow individual members to operate effectively and independently on the terms of the nature of their business environment and related dynamics. One challenge to systematic service innovation is the multidisciplinary nature of services integrating across technology, business, social, and client (demand) innovations. In many firms the success of selling and service provisions rests with a few individuals able to identify the customers' expectations and needs and to find appropriate solutions ad hoc. Despite the centrality of customer value to marketing, there is a lack of common systematic methods at organizational level for customer negotiations and composing service offerings based on customer value. This has also inhibited efficient utilization of existing customer data and gathering new relevant information. We propose a process for analyzing customer value when new services are created or for complementing the service offering, also when the customer specific benefits expected from the services are assessed.
Original languageEnglish
Place of PublicationEspoo
PublisherVTT Technical Research Centre of Finland
Number of pages154
ISBN (Print)978-951-38-7417-9
Publication statusPublished - 2010
MoE publication typeD4 Published development or research report or study

Publication series

SeriesVTT Publications
Number749

Fingerprint

Business development
Customer value
Asset management
Service business
Success factors
Information management
New services
Service provider
Business process
Service innovation
Marketing
Organizational level
Production process
Service development
Innovation
Ad hoc
Customer needs
Customer expectations
Service provision
Scenarios

Keywords

  • service business
  • customer value
  • asset management
  • maintenance

Cite this

Ahonen, T., Reunanen, M., & Ojanen, V. (2010). Customer value driven service business development: Outcomes from the Fleet Asset Management Project. Espoo: VTT Technical Research Centre of Finland. VTT Publications, No. 749
Ahonen, Toni ; Reunanen, Markku ; Ojanen, Ville. / Customer value driven service business development : Outcomes from the Fleet Asset Management Project. Espoo : VTT Technical Research Centre of Finland, 2010. 154 p. (VTT Publications; No. 749).
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Ahonen, T, Reunanen, M & Ojanen, V 2010, Customer value driven service business development: Outcomes from the Fleet Asset Management Project. VTT Publications, no. 749, VTT Technical Research Centre of Finland, Espoo.

Customer value driven service business development : Outcomes from the Fleet Asset Management Project. / Ahonen, Toni; Reunanen, Markku; Ojanen, Ville.

Espoo : VTT Technical Research Centre of Finland, 2010. 154 p. (VTT Publications; No. 749).

Research output: Book/ReportReport

TY - BOOK

T1 - Customer value driven service business development

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AU - Reunanen, Markku

AU - Ojanen, Ville

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N2 - Transformation in many companies from goods-dominant logic towards service-dominant logic has continued, and the present difficult economic situation in many companies has actually strengthened this motivation to develop new service businesses in addition to developing existing product-service solutions. The aim of this publication is to enhance the understanding of the industrial service business, with a focus on aspects deemed important in creating new successful business: the success factors and risks of a service provider, collaborative relationships and networking, information management in maintenance services and the customer value of services. In the new service development process, there are numerous success factors to be considered in different phases. Our research has revealed some factors assessed high by industrial firms. We have found that, in addition to a profound understanding of the customers' production and business processes, the ability to build trust and a fast reaction to the changing client needs among other things are crucial for successful service development and implementation. Collaborating more effectively with the customer has also been widely recognized as a prerequisite of successful service business. Our research contributes to this field, especially to the business scenarios of networked maintenance by exploring the forms of collaboration in a service provider-customer relationship. New, more collaborative, ways of working in a networked maintenance environment are needed and we propose a maintenance community model as a management framework for these environments. Information management and communication solutions for the purposes of complex maintenance networks are still underdeveloped. We propose ICT solutions that support the collaboration and information exchange in the network and at the same time allow individual members to operate effectively and independently on the terms of the nature of their business environment and related dynamics. One challenge to systematic service innovation is the multidisciplinary nature of services integrating across technology, business, social, and client (demand) innovations. In many firms the success of selling and service provisions rests with a few individuals able to identify the customers' expectations and needs and to find appropriate solutions ad hoc. Despite the centrality of customer value to marketing, there is a lack of common systematic methods at organizational level for customer negotiations and composing service offerings based on customer value. This has also inhibited efficient utilization of existing customer data and gathering new relevant information. We propose a process for analyzing customer value when new services are created or for complementing the service offering, also when the customer specific benefits expected from the services are assessed.

AB - Transformation in many companies from goods-dominant logic towards service-dominant logic has continued, and the present difficult economic situation in many companies has actually strengthened this motivation to develop new service businesses in addition to developing existing product-service solutions. The aim of this publication is to enhance the understanding of the industrial service business, with a focus on aspects deemed important in creating new successful business: the success factors and risks of a service provider, collaborative relationships and networking, information management in maintenance services and the customer value of services. In the new service development process, there are numerous success factors to be considered in different phases. Our research has revealed some factors assessed high by industrial firms. We have found that, in addition to a profound understanding of the customers' production and business processes, the ability to build trust and a fast reaction to the changing client needs among other things are crucial for successful service development and implementation. Collaborating more effectively with the customer has also been widely recognized as a prerequisite of successful service business. Our research contributes to this field, especially to the business scenarios of networked maintenance by exploring the forms of collaboration in a service provider-customer relationship. New, more collaborative, ways of working in a networked maintenance environment are needed and we propose a maintenance community model as a management framework for these environments. Information management and communication solutions for the purposes of complex maintenance networks are still underdeveloped. We propose ICT solutions that support the collaboration and information exchange in the network and at the same time allow individual members to operate effectively and independently on the terms of the nature of their business environment and related dynamics. One challenge to systematic service innovation is the multidisciplinary nature of services integrating across technology, business, social, and client (demand) innovations. In many firms the success of selling and service provisions rests with a few individuals able to identify the customers' expectations and needs and to find appropriate solutions ad hoc. Despite the centrality of customer value to marketing, there is a lack of common systematic methods at organizational level for customer negotiations and composing service offerings based on customer value. This has also inhibited efficient utilization of existing customer data and gathering new relevant information. We propose a process for analyzing customer value when new services are created or for complementing the service offering, also when the customer specific benefits expected from the services are assessed.

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KW - customer value

KW - asset management

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Ahonen T, Reunanen M, Ojanen V. Customer value driven service business development: Outcomes from the Fleet Asset Management Project. Espoo: VTT Technical Research Centre of Finland, 2010. 154 p. (VTT Publications; No. 749).