High Human Value Design

High Human Value Design

DOI: 10.4018/978-1-7998-1550-1.ch003

Abstract

Meaningful customer value is the first dimension indicated in the business reinvention methodology framework. Chapter 3 provides a sequence of key components and their underlying concepts that altogether furnish a systematic and empathetic way to create meaningful customer value (i.e., new wellbeing value). These components and concepts are intertwined with service thinking, design thinking, abductive thinking, and business thinking; their respective practices could be iteratively conducted toward creating a higher human value design.
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Foundational Theories And Basic Concepts

Service-Dominant Logic

Service-dominant logic is the first necessary mindset required for creating meaningful customer value in the era of service and experience economy. Vargo and Lusch (2004, 2008) believe that the structure of the consumer market has evolved from product-based to service-based. Changes in consumer behavior have increased the importance of service value and competitive strategy. Thus, the consumer market is more service-oriented since the tangible, physical products have been surpassed. The focus of consumer market development lies in transforming the traditional goods-dominant logic (GDL) into the service-dominant logic (SDL), where the SDL is considered an evolutionary process of the consumer market.

SDL stresses that services are a process rather than an output unit; the focus thus lies in operant resources (i.e., intangible assets of specialized skills and knowledge that use operand resources to produce effects) rather than operand resources (i.e., tangible assets that are the factors of production, such as raw materials, natural resources, or machinery) emphasized in GDL. The value of service from the SDL perspective lies in the collaboration between the provider and customer rather than on the creation and the delivery process from the provider to the customer as is the case in GDLs (Vargo & Lusch, 2004, 2008).

There are ten foundational premises (FPs) for SDL insights. (Vargo and Lusch, 2004, 2008). First, services are the basis for all transactions (FP1), and thus involve the application of operant resources, such as knowledge and skills (FP2). Next, tangible physical products are considered a sale medium provided by the services (FP3). From the perspective of the GDL, goods produced by a business can create value, and customers are the users of the value of those goods. However, SDL takes a different perspective. SDL stresses resource integration (FP9) and the creation of value (FP6) where the customer is considered an operant rather than an operand resource. SDL also implies a process-oriented logic. The emphasis is on generating value-in-use rather than the traditional value-in-exchange viewpoints. Therefore, SDL stresses that each value is unique and determined by the beneficiary (FP10). When the business is able to integrate operant and operand resources, the environment can, in turn, produce value. This signifies the existence of a variety of transactional relationships (FP8). The business is unable to control value, but it can provide the orientation of the value (FP7).

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