Abstract
In service-dominant (S-D) logicvalue is viewed as being co-created between companies, customers, and other actors within a service system. In order to understand how service systems maintain their viability and competitiveness, two fundamental questions should be addressed: “how is value created for and with the customers in service systems?” and, “how is the value captured by the service provider in service systems?”. The first question deals with “value creation” while the second addresses “value capture”in the “service value equation”. The extant research mainly focuses on the service design from the value creation perspective. Thereby, there has been little discussion about suppliers’ value capture and its trade off with value created for and with service customers. In this paper, adapting a holistic perspective, weintroduce a modeling framework that can assist in the understanding and the analysis of value creation and capture and their interplay in service systems. We illustrate the applicability of our framework by conducting a descriptive case study of the value creation and capture in Amazon service system in the period between 1997-2001.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Freel, M.: Patterns of technological innovation in knowledge intensive business services. Industry and Innovation 13, 335–358 (2006)
Tether, B.S., Hipp, C.: Knowledge intensive, technical and other services: patterns of competitiveness and innovation compared. Technology Analysis and Strategic Management 14, 163–182 (2002)
Vargo, S.L., Lusch, R.F.: Evolving to a new dominant logic for marketing. Journal of marketing 68, 1–17 (2004)
Vargo, S.L., Lusch, R.F.: Service-dominant logic: continuing the evolution. Journal of the Academy of Marketing Science 36, 1–10 (2008)
Gronroos, C., Ravald, A.: Service as business logic: implications for value creation and marketing. Journal of Service Management 22, 5–22 (2011)
Vargo, S.L., Maglio, P.P., Akaka, M.A.: On value and value co-creation: A service systems and service logic perspective. European Management Journal 26, 145 (2008)
Gordijn, J., Akkermans, J.: Value-based requirements engineering: Exploring innovative e-commerce ideas. Requirements Engineering 8, 114–134 (2003)
Weigand, H., Johannesson, P., Andersson, B., Bergholtz, M.: Value-based service modeling and design: Toward a unified view of services, pp. 410–424 (2009)
Johannesson, P., Andersson, B., Bergholtz, M., Weigand, H.: Enterprise modelling for value based service analysis. The Practice of Enterprise Modeling, 153–167 (2009)
Bowman, C., Ambrosini, V.: Value creation versus value capture: towards a coherent definition of value in strategy. British Journal of Management 11 (2000)
Pitelis, C.N.: The co-evolution of organizational value capture, value creation and sustainable advantage. Organization Studies 30, 1115 (2009)
Ritala, P., Andreeva, T., Kosonen, M., Blomqvist, K.: A Problem-Solving Typology of Service Business. Electronic Journal of Knowledge Management 9 (2011)
Pijpers, V., Gordijn, J.: e3 forces: Understanding Strategies of Networked e3 Value Constellations by Analyzing Environmental Forces. In: Krogstie, J., Opdahl, A.L., Sindre, G. (eds.) CAiSE 2007 and WES 2007. LNCS, vol. 4495, pp. 188–202. Springer, Heidelberg (2007), http://dx.doi.org/10.1007/978-3-540-72988-4_14
Yu, E.S.K.: Towards modelling and reasoning support for early-phase requirements engineering. In: Proceedings of the Third IEEE International Symposium on Requirements Engineering(1997)
Weigand, H.: Value encounters – modeling and analyzing co-creation of value. In: Godart, C., Gronau, N., Sharma, S., Canals, G. (eds.) I3E 2009. IFIP AICT, vol. 305, pp. 51–64. Springer, Heidelberg (2009)
Osterwalder, A., Pigneur, Y.: Business model generation: A handbook for visionaries, game changers, and challengers. Wiley (2010)
Yin, R.K.: Case study research: Design and methods, vol. 5. Sage Publications, Inc., (2009)
Stake, R.E.: The art of case study research. Sage Publications, Inc. (1995)
Amazon.com Investor Relations: Annual Reports and Proxies (2011), http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsannua l
Amazon Media Room: News Releases (2011), http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-news
Afuah, A., Tucci, C.L.: Internet business models and strategies: Text and cases. McGraw-Hill Higher Education (2002)
Spector, R.: Amazon. com: Get big fast: Harper Paperbacks 92002)
Kalpanik, S., Zheng, C.: Zheng, Inside the Giant Machine - An Amazon.com Story: Center of Artificial Imagination, Inc., 2nd edn (2011)
Applegate, L.: Amazon. com: 1994-2000, Case#: 9-801-194, Harvard Business School (2002)
Applegate, L.M.: Amazon. com: The Brink of Bankruptcy, Case#: 9-809, Harvard Business School (2008)
Heck, E., Vervest, P.: Smart business networks: how the network wins. Communications of the ACM 50, 28–37 (2007)
Ambrosini, V., Bowman, C., Collier, N.: Using teaching case studies for management research. Strategic Organization 8, 206 (2010)
Brandenburger, A.M., Stuart Jr., H.W.: Value based Business Strategy. Journal of Economics & Management Strategy 5, 5–24 (1996)
Kotler, P.: Marketing management, millennium ed (2000)
Pynnonen, M., Ritala, P., Hallikas, J.: The new meaning of customer value: a systemic perspective. Journal of Business Strategy 32, 51–57 (2011)
Norman, R., Ramirez, R.: From Value Chain to Value Constellation. Harvard Business Review 71, 65–77 (1993)
Barney, J.: Firm resources and sustained competitive advantage. Journal of Management 17, 99 (1991)
Teece, D.J.: Dynamic capabilities and strategic management: organizing for innovation and growth. Oxford University Press, USA (2009)
Kothandaraman, P., Wilson, D.T.: The Future of Competition: Value-Creating Networks. Industrial Marketing Management 30, 379–389 (2001)
Moller, K., Svahn, S.: Role of Knowledge in Value Creation in Business Nets*. Journal of Management Studies 43, 985–1007 (2006)
Clulow, V., Barry, C., Gerstman, J.: The resource-based view and value: the customer-based view of the firm. Journal of European Industrial Training 31, 19–35 (2007)
Masten, S.E., Meehan, J.W., Snyder, E.A.: The costs of organization. Journal of Law, Economics, and Organization 7, 1 (1991)
Blomqvist, K., Kylaheiko, K., Virolainen, V.M.: Filling a gap in traditional transaction cost economics: Towards transaction benefits-based analysis. International Journal of Production Economics 79, 1–14 (2002)
Grant, R.M.: Toward a knowledge-based theory of the firm. Strategic Management Journal 17, 109–122 (1996)
Cousins, P.D., Spekman, R.: Strategic supply and the management of inter-and intra-organisational relationships. Journal of Purchasing and Supply Management 9, 19–29 (2003)
Carson, R.T., Flores, N.E., Martin, K.M., Wright, J.L.: Contingent valuation and revealed preference methodologies: comparing the estimates for quasi-public goods. Land Economics, 80–99 (1996)
de Kinderen, S., Gordijn, J.: E 3 Service: A Model-Based Approach for Generating Needs-driven E-Service Bundles in a Networked Enterprise. In: Proceedings of the 16th European Conference on Information Systems (ECIS), Galway, Ireland (2008)
Clausing, D., Hauser, J.R.: The house of quality. Harvard Business Review 66, 63–73 (1988)
Kim, W.C., Mauborgne, R.: Blue ocean strategy. If You Read Nothing Else on Strategy, Read Thesebest-Selling Articles, 71 (2004)
Kim, W.C., Mauborgne, R.E.: Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant. Harvard Business Press (2005)
Regev, G., Hayard, O., Wegmann, A.: Service Systems and Value Modeling from an Appreciative System Perspective. In: 2nd International Conference on Exploring Services Sciences, Geneva, Switzerland, pp. 146–157 (2011)
Golnam, A., Regev, G., Ramboz, J., Laparde, P., Wegmann, A.: Systemic Service Design: Alaigning Value with Implementation. In: 1st International Conference on Exploring Services Sciences, Geneva, Switzerland, pp. 150–164 (2010)
Golnam, A., Regev, G., Ramboz, J., Laprade, P., Wegmann, A.: Aligning Value and Implementation in Service Design - A Systemic Approach. International Journal of Service Science, Management, Engineering, and Technology, IJSSMET (2011)
Wegmann, A.: On the Systemic Enterprise Architecture Methodology (SEAM). In: Proceedings of International Conference on Enterprise Information Systems. Citeseer, Angers (2003)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2012 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Golnam, A., Ritala, P., Viswanathan, V., Wegmann, A. (2012). Modeling Value Creation and Capture in Service Systems. In: Snene, M. (eds) Exploring Services Science. IESS 2012. Lecture Notes in Business Information Processing, vol 103. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-28227-0_12
Download citation
DOI: https://doi.org/10.1007/978-3-642-28227-0_12
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-28226-3
Online ISBN: 978-3-642-28227-0
eBook Packages: Computer ScienceComputer Science (R0)