Value and systems perspectives in combining human and automated services: commentary on "seven challenges to combining human and automated service"
Ng, Irene C. L.. (2010) Value and systems perspectives in combining human and automated services: commentary on "seven challenges to combining human and automated service". Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l'Administration, Vol.27 (No.1). pp. 81-84. ISSN 0825-0383Full text not available from this repository.
Official URL: http://dx.doi.org/10.1002/cjas.141
The article “Seven Challenges to Combining Human
and Automated Service” (Messinger, Li, Stroulia, Galletta, Ge, & Choi, 2009) in the last issue of CJAS is an
admirable effort to build on the knowledge required for
service organizations in the modern economy. Taking a
value and systems perspective, my purpose for the
current commentary is to offer some reﬂ ections on each
of the seven challenges, to acknowledge strengths in
organization and content of this article, and also to
suggest additional related issues to help service organizations better meet the seven challenges noted in this article.
To put things in context, it is useful to begin by
considering the deﬁ nition of “value.” The traditional
understanding of value is that of exchange value that
underpins the traditional customer-producer relationships, where each party exchanges one kind of value for another (Bagozzi, 1975). Today, the discussion of value has veered away from this understanding to the concept of value-in-use (Schneider & Bowen, 1995; Vargo & Lusch, 2004, 2008), evaluated by the customer rather
than the currency for the transfer of ownership of a particular good. As Marx described it, value refers to “value only in use, and is realized only in the process of consumption” (Marx, 2001, p. 88). Based on such an understanding, all value is therefore co-created (Vargo &
Lusch, 2004, 2008) and co-creation is the realization of
the ﬁrm’s value proposition, be that a good (e.g., a car)
or an activity (e.g., repair). This realization of value by
the customer means that the value derived by the customer is the combinational outcome of the ﬁrm’s proposition (car, repair, etc.) and the customer’s realization of it (consumption) with both parties expending their own resources to achieve the outcomes at a time and place (context) appropriate from the customer’s point of view (Ballantyne & Varey, 2006). Hence, a ﬁrm’s product offerings, be they goods or activities, are merely value unrealized, that is, a “store of potential value” (Ballantyne & Varey, p. 344), until the customer realizes it through co-creation and gains the beneﬁt. This can be thought of as customer experience (Payne, Storbacka, & Pennie Frow, 2008) but it must be understood that co-creation is situated at the point of consumption and customer experience is an emergent outcome of it. This is in contrast to co-production, where the customers assist the ﬁrm in achieving a better value proposition (e.g., users helping Toyota or Apple design a better car or computer).
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
T Technology > TA Engineering (General). Civil engineering (General)
|Divisions:||Faculty of Science > WMG (Formerly the Warwick Manufacturing Group)|
|Journal or Publication Title:||Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l'Administration|
|Publisher:||John Wiley & Sons Ltd.|
|Number of Pages:||4|
|Page Range:||pp. 81-84|
|Access rights to Published version:||Restricted or Subscription Access|
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