This document summarizes a study on how manufacturing firms can apply a service business logic to support customer value creation. The study consisted of qualitative case research through interviews at a pulp and paper company's service division. Key findings include that adopting a service logic through close customer relationships, effective dialogue, and continuous development can generate value for the firm in new business knowledge and additional sales. For manufacturing firms to fully realize these benefits, there must be a common understanding of service as co-creating customer value, while recognizing customers may define value differently at a tactical level.

1. Tracing a service business logic in manufacturing firms
Nina Löfberg
nina.lofberg@kau.se

2. Servitization
How to create mutual value?
Service logic + manufacturing?
Service business logic

3. Service business logic
Value-in-use
(e.g. Normann & Ramirez 1993; Ravald & Grönroos 1996; Wikström, 1996; Vargo & Lusch 2004; Grönroos 2006, 2008)
Value facilitator (Goods business logic)
Value co-creator (Service business logic)
Role of service provider: (Grönroos 2008, 2011)
•Know the customers’ activities and processes (e.g. Grönroos 2008)
•Create platforms for direct firm- customer interaction (e.g. Grönroos & Voima 2013; Ballantyne 2004)
•Focus on knowledge and skills (e.g. Vargo & Lusch 2008)

4. The focus of the study is…
…on applying service business logic;
•how a manufacturing firm could support the customer’s value creation and, to some extent,
•how the service actions generate value for the firm.

5. Method
•Qualitative case study
•Pulp and paper industry
•Service division
•Twelve interviews (e.g. general manager, sales manager, product manager, salesmen, service staff member)

6. Applied dimensions of service business logic
•A common understanding of service
•Close customer relationships
•Effective customer dialogue
•A proactive mindset
•An acknowledgment of service
•Continuous service development

7. Relations between applied and conceptual dimensions
Create platforms for direct firm-customer interaction
Focus on knowledge and skills
Know the customers’ activities and processes
Close customer relationships
Effective customer dialogue
Continuous service development
A common understanding of service Close customer relationships Effective customer dialogue A proactive mindset An acknowledgment of service Continuous service development
A common understanding of service
Effective customer dialogue
A proactive mindset
An acknowledgment of service
Continuous service development

8. Value for the firm
•A common understanding of service
•Effective customer dialogue
•Continuous service development
New business knowledge
•Close customer relationships
•A proactive mindset
Additional sales
•An acknowledgment of service
Profit from the service

9. Conclusions
•Applying a service business logic could enhance value generation opportunities for the firm
•A common understanding of service is fundamental
–Should be based on problem solving and co-creation of customer value
–However, need to adapt to customer’s view on value creation; tactical level is enough
•An acknowledgment of service proved important
–Was facilitated through separation