Module 3 – Service Logic in my industry

This week´s assignment:
Blog reflection: In your second blog reflection, we want you to continue to reflect upon your industry. What is the ‘value in-exchange’ in your industry and what would be the ‘value in-use’. How does value co-creation in your industry go about? For your help and inspiration, relate to the concepts introduced in the videos and the literature. You could name the blog post “Value co-creation in the XXX industry”, or any other title you deem appropriate.

 

Value co-creation in the heavy commercial vehicle industry

Let´s start with the two definitions according to Christian Grönroos:

“Value in exchange”: is determined by the price paid by the user at the time of purchase. It is embedded in the resource (product, core service, information) and exist at a singular point in time.  

“Value-in-use” : the value emerging for or created by a customer (user) as a utility during usage. It unfolds during usage and evolves over time as the usage process continues.

If we look at creation of “Value in exchange” in the heavy commercial vehicle industry, this is done by us as heavy vehicle suppliers during the whole “sales to delivery process” (“suppliers sphere”, including research & development, purchase, manufacturing, delivery etc.).  The actual “Value in exchange” happens when the company sell a vehicle/service/transport solution to the customer.

The “Value-in-use” creations (“customer sphere”) will happen when the customers are using the vehicles/services provided by the heavy vehicles suppliers to fulfil the different transport missions (transport of goods or people).
Here “Value-in-use” evolves over time and it´s important for the suppliers to have a very well functioning after sales service business (after sales network, spare parts availability etc.), this to be able to keep satisfying the customers after the actual sale is done.

When it comes to “Value co-creation”, this is getting more and more important.
The industry for commercial vehicles has changed. Customers that traditionally have bought only a vehicle  are now demanding more and more services packages and service solutions connected to their actual vehicle purchase. We talk more and more about service- and transport solutions instead of products.

There is a need of knowing the customer and the customers customer to be able to deliver the right product- and service offers.

In our company we enter into a partnership with the customer and work together to find the best solution that enables the customer to achieve profitability. Doing so also creates profitable business for us as a company.