Getting a grip of customer value creation in developing industrial services

This paper discusses how to make business out of services by better understanding their effects on customer value creation. The focus of the paper is on industrial services offered by machine manufacturing companies. In this paper, we firstly identify the potential value creation logics beyond Porterian value chain and related justification. Secondly, we present an approach and a tool for formalising how a service supports customer value creation. Thirdly, we illustrate through a tool, how a service can be specified based on how it supports customer value creation. The approach adopts the different views concerning value creation that the customer stakeholders may have to the very same service. The outcomes of the formalisation are basis for sales argumentation and pricing, and a starting point for specifying service processes. The paper is based on a research project supported by three industry cases and on industry-lead roundtable work. The cases and round table participants represent medium and large companies in machine manufacturing industry.