Service Systems for Value Co-Creation

Abstract

Abstract Service systems for value co-creation are gaining prominence within certain industries such as healthcare (with greater customer empowerment in their treatment), mobile telecommunication and the internet (with user generated content), and education (with self-study courses). Some argue that this is the world we are moving towards, a world in which the customer and their resources are a partner in the processes and practices of the firm (Prahalad and Ramaswamy 2000). As a result, the management of the customer as a co-creator presents itself as a major challenge in the design and management of service systems. Through a review and comparative analysis of three widely published cases considered to be service systems for co-created outcomes, Chapter 11 addresses the question of what challenges this presents. Six challenges of a service system for value co-creation are identified; the determination challenge; measurement challenge; revenue challenge; context challenge; resource challenge; and skills challenge.

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