A service-dominant logic for banking services

2012 ◽  
pp. 81-93
Author(s):  
Vincenzo Formisano ◽  
Giuseppe Russo ◽  
Rosa Lombardi
Keyword(s):  
Value Creation ◽  
Global Economy ◽  
Economic Value ◽  
Decisive Role ◽  
Theory And Practice ◽  
New Paradigm ◽  
Service Dominant Logic ◽  
Banking Services ◽  
Dominant Logic

In the current competitive scenario, services now pervade all business activities, involving every production system and every organization. The emerging importance of services and their decisive role, compared to goods, in every business transaction in the global economy encourages scholars, professionals and business experts to engage in research models, paradigms and theories to better describe the new processes of value creation. This paper aims to analyze the applicability of the theoretical Service-Dominant Logic model to the field of local banking services, therefore, to interpret the concepts within a sector, that is, banking, in which the service component is increasingly becoming more strategic. The article briefly reviews the main features of the evolution of the process of banking services to represent their current evolutionary foundations in the light of the new paradigm of the S-D Logic. The paper combines theory and practice, with the help of a case study, appropriately selected for analysis. To conclude, the analysis shows that the theoretical approach of the Service-Dominant Logic improves the performance of the bank analyzed in economic terms (increased economic value created) as well as in terms of services offerred to customers with improved interactions, relationships and loyalty.

scholarly journals VALUE BASED MANAGEMENT AT SIEMENS – THE CLASSIC EXAMPLE REMAINS

2020 ◽  
Vol 10 (2) ◽  
pp. 32-50
Author(s):  
Diana Claudia Cozmiuc ◽  
◽  
Ioan Petrișor ◽  
Keyword(s):  
Value Creation ◽  
Economic Value ◽  
Large Body ◽  
Value Added ◽  
Theory And Practice ◽  
Economic Value Added ◽  
Value Drivers ◽  
Business Context ◽  
Value Based Management

The main objective of this paper is to check if value-based management in its classic design, 1980-2000, still works in the practice of one of its most prominent cases, Siemens. The paper also aims to describe value-based management in Siemens’ practice 1998-2020. This should enable a comparison between theory and practice the paper targets. The research methodology is case study: literature review, empirical data analysis, conclusions based on comparison. The case study is exploratory and descriptive. The article relies on secondary evidence about Siemens during 1998-2020, selects the evidence that pertains to value-based management and constructs the Siemens case example. The article is based on a large body of evidence, where the statements about value-based management are chosen based on their relationship to key words such as value, value drivers, value creation. The results may be the confirmation or denial of classic value-based management. The conclusion is that managing for Economic Value Added still works in the current business context. Other findings are Siemens’ driver tree during 1998-2020 in thorough description.

Co-creation and higher order customer engagement in hospitality and tourism services

2016 ◽  
Vol 28 (2) ◽  
pp. 222-245 ◽  
Author(s):  
Prakash K. Chathoth ◽  
Gerardo R. Ungson ◽  
Robert J. Harrington ◽  
Eric S.W. Chan
Keyword(s):  
Value Creation ◽  
Higher Order ◽  
Customer Engagement ◽  
Service Dominant Logic ◽  
Content Type ◽  
Dominant Logic ◽  
Ex Post ◽  
Ex Ante ◽  
Experiential Value

Purpose – This paper aims to present a review of the literature associated with co-creation and higher-order customer engagement concepts and poses critical questions related to the current state of research. Additionally, the paper presents a framework for customer engagement and co-creation with relevance to hospitality transactions. Design/methodology/approach – Earlier research on co-production, co-creation, consumer engagement and service-dominant logic are discussed and synthesized. Based on this synthesis, links and contrasts of these varying research streams are presented providing an articulation of key characteristics of each and how these might be applied within a hospitality context. Findings – Modalities in service transactions vary among traditional production, co-production and co-creation based on changes in attitudes, enabling technologies and the logic or ideology supporting the change. Transaction characteristics vary among manufacturing, quasi-manufacturing and services based on several key categories including differences in boundary conditions, enablers, success requirements, sustainability requirements, the dominant logic used and key barriers/vulnerabilities. When creating experiential value for consumers, firms should consider several aspects ex-ante, in-situ and ex-post of the change and during the change process. Research limitations/implications – Firms need to move toward higher-order customer engagement using co-creative modalities to enhance value creation. Current practices in the hotel industry may not in their entirety support this notion. Ex-ante, in-situ and ex-post considerations for creating experiential value need to be used as part of a checklist of questions for firms to pose in order to move toward managing customer experiences using the service-dominant logic as part of the firm’s orientation toward its market. This would give it the required thrust to create superior engagement platforms that use co-creative modalities while addressing the barriers to higher-order customer engagement as identified in the literature. Originality/value – The hospitality and tourism literature on co-creation and higher-order customer engagement is still in its infancy. A synthesis of these early studies provides support for the need for future research on co-creation that more clearly articulates the modality firms could use to move toward co-creation. This paper develops a dynamic framework using characteristics of co-creation that integrate the various stages of value creation (i.e. input, throughput and output).

Exploring Value Creation Through Application Programming Interfaces

2020 ◽  
pp. 295-316
Author(s):  
Joshua Ofoeda
Keyword(s):  
Value Creation ◽  
Global Economy ◽  
Service Providers ◽  
Digital Platforms ◽  
Value Network ◽  
Application Programming Interfaces ◽  
Competitive Prices ◽  
Application Programming ◽  
Programming Interfaces

Digital platforms continue to contribute to the global economy by enabling new forms of value creation. Whereas the Information Systems literature is dominated by digital platform research, less is said about Application Programming Interfaces (APIs), the engine behind digital platforms. More so, there is a dearth in the literature on how developing economy firms create value through API integration. To address these research gaps, the author conducted a case study on DigMob (Pseudonym), a digital firm that focuses on the sale of indigenous African music to understand how it created value through API integration. Based on Amit and Zott's value creation model, the findings suggest that DigMob's value creation occurs on a broader value network comprising suppliers (e.g., payment service providers) and customers. For instance, DigMob generated value through the API-enabled platform by ensuring that music lovers purchase their preferred songs at competitive prices. DigMob has also been able to increase their revenue and brand image. Similarly, musicians have been able to rake substantial amounts of money through the sales of their music on the platform.

Siemens' Value-Driver Tree in Digitalization

2021 ◽  
pp. 197-220
Author(s):  
Cozmiuc Claudia Diana
Keyword(s):  
Value Creation ◽  
Business Models ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Sufficient Data ◽  
Product Lifecycle ◽  
Open Networks ◽  
Start Ups

This chapter is a descriptive and explicative case study about value creation at Siemens in an uncertain and in a certain environment. Siemens has implemented economic value-added-based management since 1998. The empirical data analysis highlights value creation at Siemens at the beginning of the innovation lifecycle, when the environment is uncertain, and at the end of the innovation lifecycle, when contracts are signed, and the environment becomes predictable. Innovation is first placed in open networks, in which start-ups are essential, to which venture capital is allocated using business models. This is the ideation stage of the product lifecycle, when competitive advantage, the essence of value creation in both theory and the Siemens example, is created. Innovation matures, and Siemens closes contracts with customers about existing customer offerings. These contracts are managed as projects and funded with equity and debt. This is the stage when sufficient data exists to plan economic value added, the focus of Siemens' corporate governance.

Service-Dominant Logic and Nonprofit Organizations: A Value Creation Perspective

2019 ◽  
pp. 1-19 ◽  
Author(s):  
Renata Klafke ◽  
Flávio Von Der Osten ◽  
Simone R. Didonet ◽  
Ana Maria M. Toaldo
Keyword(s):  
Nonprofit Organizations ◽  
Value Creation ◽  
Service Dominant Logic ◽  
Dominant Logic ◽  
A Value

The Effect of Value-Creation on Consumer-Based Destination Brand Equity

2016 ◽  
Vol 56 (8) ◽  
pp. 1011-1031 ◽  
Author(s):  
Dolores María Frías Jamilena ◽  
Ana Isabel Polo Peña ◽  
Miguel Ángel Rodríguez Molina
Keyword(s):  
Brand Equity ◽  
Value Creation ◽  
Competitive Strategies ◽  
Service Dominant Logic ◽  
Dominant Logic ◽  
Tourist Destinations ◽  
Destination Brand

The present work examines the competitive strategies of tourist destinations and proposes that value-creation among tourists during their entire experience of a destination (before, during, and after their stay) is an antecedent of increased destination brand equity. This value-creation is conceptualized and measured from the service-dominant logic perspective. The research objective is achieved by (a) identifying the dimensions of customer-based destination brand equity and tourist value-creation; (b) validating the scales generated for the measurement of both variables; and (c) proposing a model that captures the antecedent effect of value-creation on customer-based destination brand equity. The findings reveal that value-creation is an antecedent by which the customer perceives greater destination brand equity. The results of the study make a contribution to the specialized literature on tourism and service-dominant logic and offer interesting implications for the professional domain.

The service revolution and its marketing implications: service logic vs service-dominant logic

2014 ◽  
Vol 24 (3) ◽  
pp. 206-229 ◽  
Author(s):  
Christian Grönroos ◽  
Johanna Gummerus
Keyword(s):  
Value Creation ◽  
Service Dominant Logic ◽  
Content Type ◽  
Dominant Logic ◽  
Value Propositions ◽  
Managerial Implications ◽  
Service Logic ◽  
Conceptual Paper ◽  
Managerial Level ◽  
Service Perspective

Purpose – The purpose of this conceptual paper is to analyse the implications generated by a service perspective. Design/methodology/approach – A conceptual analysis of two approaches to understanding service perspectives, service logic (SL) and service-dominant logic (SDL), reveals direct and indirect marketing implications. Findings – The SDL is based on a metaphorical view of co-creation and value co-creation, in which the firm, customers and other actors participate in the process that leads to value for customers. The approach is firm-driven; the service provider drives value creation. The managerial implications are not service perspective-based, and co-creation may be imprisoned by its metaphor. In contrast, SL takes an analytical approach, with co-creation concepts that can significantly reinvent marketing from a service perspective. Value gets created in customer processes, and value creation is customer driven. Ten managerial SL principles derived from these analyses offer theoretical and practical conclusions with the potential to reinvent marketing. Research limitations/implications – The SDL can direct researchers’ and managers’ views towards complex value-generation processes. The SL can analyse this process on a managerial level, to derive customer-centric, service perspective-based opportunities to reinvent marketing. Practical implications – The analysis and principles help marketing break free from offering only value propositions and become an organisation-wide responsibility. Firms must organise service-influenced marketing and create a customer focus among all employees, beyond conventional marketing. Originality/value – A service perspective on business has key managerial implications and enables researchers and managers to find new, customer-centric, service-influenced marketing approaches.

scholarly journals Towards A Value-Dominant Logic of Marketing

2019 ◽  
Vol 7 (3) ◽  
Author(s):  
Hunter Hastings ◽  
Fernando Antonio Monteiro Christoph D´´´Andrea ◽  
Per Bylund
Keyword(s):  
Value Creation ◽  
Market Process ◽  
Service Dominant Logic ◽  
Dominant Logic ◽  
A Value ◽  
Subjective Value ◽  
The Individual

Inspired by Vargo & Lusch’s Service-Dominant Logic (SDL) and relying on the Austrian School’s individualism and subjectivism, we use knowledge from economics to better support the discussion of the primary topic of Marketing: that of value creation. Specifically, we draft a Value-Dominant Logic. We provide ten foundational premises stemming from the recognition that value is subjective and, consequently, cannot be created by entrepreneurs or firms. Entrepreneurs and firms propose value, but subjective value can only be perceived, created and thus experienced in the individual consumer’s mind. By adopting the perspective that logically follows from this understanding, the disciplines of management and marketing will be better able to narrow the uncertainties of the market process, and entrepreneurs can make better decisions about how to help consumers overcome felt uneasiness by adopting their proposed solutions.

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