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Develop the offerings

Type II (shared services unit) | Type III (external service provider) | From value chains to value networks | Service systems | Fundamental aspects of strategy | The Four Ps of strategy | Strategy as a perspective | Asset specificity | Strategy as a pattern | Understand the opportunities |


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Market space

A market space is defined by a set of business outcomes, which can be facilitated by a service. The opportunity to facilitate those outcomes defines a market space. The following are examples of business outcomes that can be the bases of one or more market spaces.

Each of the conditions is related to one or more categories of customer assets, such as people, infrastructure, information, accounts receivables and purchase orders, and can then be linked to the services that make them possible. Each condition can be met through multiple ways (Figure 4.7). Customer s will prefer the one that means lower costs and risk s. Service providers create these conditions through the services they deliver and thereby provide support for customers to achieve specific business outcomes.

Figure 4.7 Market spaces are defined by the outcomes that customers desire

A market space therefore represents a set of opportunities for service provider s to deliver value to a customer’s business through one or more services. This approach has definite value for service providers in building strong relationships with customers. Customer s often express dissatisfaction with a service provider even when terms and conditions of service level agreement s (SLAs) are fulfilled. Often it is not clear how services create value for customers. Service s are often defined in the terms of resource s made available for use by customers. Service definitions lack clarity on the context in which such resources are useful, and the business outcomes that justify the expense of a service from a customer’s perspective. This problem leads to poor designs, ineffective operation and lacklustre performance in service contract s. Service improvements are difficult when it is not clear where improvements are truly required. Customers can understand and appreciate improvements only within the context of their own business asset s, performances and outcomes. A proper definition of services takes into account the context in which customers perceive value from the services.


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