Graduation assignment
Amersfoort, 16-07-2014
Development of service design toolbox for valuation
Background
Organisational level
Most organisations are organized and managed from a product driven perspective. They developed
steering mechanisms and performance indicators that measure efficiency and units of output. Many of
these organisations realise that they should shift their attention from products to solutions (or
outcomes) for their clients. This implies the need to develop new value propositions or services, but
they lack instruments to valuate new service proposals.
Proposition level
Many service concepts have no direct revenue model, but they create value somewhere else in the
organisation, for instance by lowering customer churn or improving the appreciation for the brand. It’s
often hard to quantify this contribution and therefore hard to determine how much investment costs
and production costs are sensible. A related problem is that many of the value propositions or services
that are subsequently developed, deliver benefits or monetary value in the future or in other places of
the process than the actual service that is delivered: for instance by saving money on maintenance later
on or by creating savings in logistics and handling costs. This type of propositions focus on Total Cost of
Ownership rather than on the nominal cost of the product or service itself. A problem of these kind of
propositions is that they are hard to quantify and subsequently hard to sell. Ideate wants to understand
better how we can valuate these TCO concepts.
Assignment
Design a toolbox that Ideate can integrate in it’s working processes, for quantifying the value of service
concepts that create Total Cost of Ownership benefits to the client of the service provider. This toolbox
supports Ideate (and it’s clients) in different stages of the service innovation process to valuate service
concepts; to create business cases of TCO related services. This toolbox can contain models, workshops,
canvasses, calculation tools etc. Ideate will provide cases and contact to client companies that are
working on these issues and will provide active support and guidance. The projects main will focus will
be on TCO (service) concepts, but it might be interesting to see if we can apply the findings to the
mirrored problem of determining the value of service concepts that generate revenues indirectly.
Ideate
Ideate is a small and ambitious service innovation agency based in Amersfoort. We designs services for
companies like: AEGON, Bristol Myers Squibb, Enexis, Manutan, Mediq, RIVM, Scania, Wavin. We are
committed to the ambition to create services that really make a difference in the lives of the customers
of our customers. By doing so we want to help our clients to stay relevant to their customers and
contribute to their commercial success. With a staff of four we are a small agency that gives you the
opportunity to be closely involved in all activities of our agency.
If you are tempted, but want to know more or want to apply for the project, please call
Onno van der Veen, 06-4224 0338 or e-mail: [email protected]
Bestandsnaam, 13-7-2017
Kleine Koppel 16 | 3812PH Amersfoort
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