RETHINKING VALUE: A VALUE-CENTRIC MODEL OF PRODUCT, SERVICE AND BUSINESS DEVELOPMENT
DS 68-3: Proceedings of the 18th International Conference on Engineering Design (ICED 11), Impacting Society through Engineering Design, Vol. 3: Design Organisation and Management, Lyngby/Copenhagen, Denmark, 15.-19.08.2011
Editor: Culley, S.J.; Hicks, B.J.; McAloone, T.C.; Howard, T.J. & Cantemessa, M.
Author: Randmaa, Merili; Mougaard, Krestine; Howard, Thomas James; McAloone, Tim C.
Section: Design Organisation and Management
Globalization and information technologies have made the economical landscape more transparent and customers smarter, more demanding and networked. Companies can see these changes as a threat to their business or as an opportunity to differentiate in the market and be a Prime Mover, by re-thinking customer value within the value system. This article shows how the term “value” is understood in different contexts and fields of economy, to see if these definitions can be merged, in order to understand the concept of value in broader way. The authors argue through literature review and example cases that seeing value from multi-disciplinary viewpoint opens up some unused opportunities for the companies to overcome barriers within a value system, design integrated products and services, work more effectively, co-create value with customers, make use of word-of-mouth promotion and achieve long-term relationships with customers. A new concept for re-thinking the value system is proposed and its main potentials to improve firms’ performance are described.