Engineering, Sales, and Delivery of Modular Value Bundles – A Framework for Configurative Modeling

Becker, Jörg; Beverungen, Daniel; Knackstedt, Ralf; Stein, Armin

Abstract

The increasing dominance of the service sector (OECD, 2005) further amplifies the need for traditional physical goods suppliers to develop and provide integrated value bundles for their customers. Often, the value of such an integrated solution – consisting of product and service components – is (perceived) higher than the added value of the separate product and service components. From the customer's point of view outcomes of value bundles can be tangible and/or intangible (Vargo/Lusch, 2004). While customers are supposed to perceive the delivered value proposition as an inseparable solution, manufacturers and service providers need to coordinate their distinct products, services, business processes, and resources in order to effectively and efficiently deliver an integrated value proposition. Therefore, service systems require executing traditional manufacturing processes, which aim at providing physical goods of value for customers, as well as service processes, which due to their very nature are conducted in cooperation with the customer (Sampson/Froehle, 2006; Fitzsimmons/ Fitzsimmons, 2001; Tuli et al., 2007).

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