Rethinking Service Companies’ Business Logic: Do We Need a Customer-Dominant Logic as a Guideline?

Purpose –This paper explores and expands the roles of customers and companies in creating value by introducing a new a customer-based approach to service. The customer’s logic is examined as being the foundation of a customer-based marketing and business logic. Design/methodology/approach – The authors argue that both goods-dominant logics and service-dominant logics are provider-dominant. Contrasting the customer-dominant logic with provider-dominant logics, the paper examines the creation of service value from the perspectives of value-in-use, the customer’s own context, and the customer’s experience of service. Findings –Moving from a provider-dominant logic to a customer-dominant logic uncovered five major challenges to service marketers: Company involvement, company control in co-creation, visibility of value creation, locus of customer experience, and character of customer experience. Research limitations/implications – The paper is exploratory. It presents and discusses a conceptual model and suggests implications for research and practice. Practical implications –Awareness of the mechanisms of customer logic will provide businesses with new perspectives on the role of the company in their customer’s lives. We propose that understanding the customer’s logic should represent the starting-point for the marketer’s business logic. Originality/value – The paper increases the understanding of how the customer’s logic underpins the customer-dominant business logic. By exploring consequences of applying a customer-dominant logic, we suggest further directions for theoretical and empirical research.

Re-Conceptualizing Value-Creation From Industrial Business Logic to Service Business Logic

There is an urgent interest in marketing to move away from neo-classical value definitions suggesting that value creation is a process of exchanging goods for money. In the present paper, value creation is conceptualized as an integration of two distinct, yet closely coupled processes. First, actors co-create what this paper calls an underlying basis of value. This is done by interactively re-configuring resources. By relating and combining resources, activity sets, and risks across actor boundaries in novel ways actors create joint productivity gains – a concept very similar to density (Normann, 2001). Second, actors engage in a process of signification and evaluation. Signification implies co-constructing the meaning and worth of joint productivity gains co-created through interactive resource re-configuration, as well as sharing those gains through a pricing mechanism as value to involved actors. The conceptual framework highlights an all-important dynamics associated with ´value creation´ and ´value´ - a dynamics the paper claims has eluded past marketing research. The paper argues that the framework presented here is appropriate for the interactive service perspective, where value and value creation are not objectively given, but depend on the power of involved actors´ socially constructed frames to mobilize resources across actor boundaries in ways that ´enhance system well-being´ (Vargo et al., 2008). The paper contributes to research on Service Logic, Service-Dominant Logic, and Service Science.

Towards Service Logic: The Unique Contribution of Value Co-Creation

The underpinning logic of value co-creation in service logic is analysed. It is observed that three of the ten foundational premises of the so-called service-dominant logic are problematic and do not support an understanding of value-co-creation and creation that is meaningful for theoretical development and decision making in business and marketing practice. Without a thorough understanding of the interaction concept, the locus and nature of value co-creation cannot be identified. Based on the analysis in the present article it is observed that a unique contribution of a service perspective on business (service logic) is not that customers always are co-creators of value, but that under certain circumstances the service provider gets opportunities to co-create value together with its customers. Finally, the three problematic premises are reformulated accordingly.

What Can A Service Logic Offer Marketing Theory

The goods-dominated marketing model has major shortcomings as a guiding marketing theory. Its marketing mix approach is mainly geared towards buying and does not include consumption as an integral part of marketing theory. Although it is during the process of consuming goods and services that value is generated for customers and the foundation for repeat purchasing and customer relationships are laid, this process is left outside the scope of marketing. The focus in service marketing is not on a product but on interactions in service encounters. Consumption has become an integral part of a holistic marketing model. Other than standardized goods-based value propositions can be better understood when taking a servicebased approach. It is concluded that marketing based on a goods logic is but a special case of marketing based on a service logic and applicable only in certain contexts with standardized products.

Marketing and the Logic of Service: Value Facilitation, Value Creation and Co-creation, and Their Marketing Implications

The discussion of a service-dominant logic has made the findings of decades of service marketing research a topic of interest for marketing at large. Some fundamental aspects of the logic such as value creation and its marketing implications are more complex than they have been treated as so far and need to be further developed to serve marketing theory and practice well. Following the analysis in the present article it is argued that although customers are co-producers in service processes, according to the value-in-use notion adopted in the contemporary marketing and management literature they are fundamentally the creators of value for themselves. Furthermore, it is concluded that although by providing goods and services as input resources into customers’ consumption and value-generating processes firms are fundamentally value facilitators, interactions with customers that exist or can be created enable firms to engage themselves with their customers’ processes and thereby they become co-creators of value with their customers. As marketing implications it is observed that 1) the goal of marketing is to support customers’ value creation, 2) following a service logic and due to the existence of interactions where the firm’s and the customer’s processes merge into an integrated joint value creation process, the firm is not restricted to making value propositions only, but can directly and actively influence the customer’s value fulfilment as well and extend its marketing process to include activities during customer-firm interactions, and 3) although all goods and services are consumed as service, customers’ purchasing decisions can be expected to be dependant of whether they have the skills and interest to use a resource, such as a good, as service or want to buy extended market offerings including process-related elements. Finally, the analysis concludes with five service logic theses.

Towards Service Logic: The Unique Contribution of Value Co-Creation

The underpinning logic of value co-creation in service logic is analysed. It is observed that three of the ten foundational premises of the so-called service-dominant logic are problematic and do not support an understanding of value-co-creation and creation that is meaningful for theoretical development and decision making in business and marketing practice. Without a thorough understanding of the interaction concept, the locus and nature of value co-creation cannot be identified. Based on the analysis in the present article it is observed that a unique contribution of a service perspective on business (service logic) is not that customers always are co-creators of value, but that under certain circumstances the service provider gets opportunities to co-create value together with its customers. Finally, the three problematic premises are reformulated accordingly.

A Cellular Array for Multivalued Logic Functions

An algebraic generalization of the well-known binary q-function array to a multivalued q-function array is presented. It is possible to associate tree-structure realizations for binary q-functions and multivalued q-functions. Synthesis of multivalued functions using this array is very simple

Making Sense of Value and Value Co-Creation in Service Logic

In order to further develop the logic of service, value creation, value co-creation and value have to be formally and rigorously defined, so that the nature, content and locus of value and the roles of service providers and customers in value creation can be unambiguously assessed. In the present article, following the underpinning logic of value-in-use, it is demonstrated that in order to achieve this, value creation is best defined as the customer’s creation of value-in-use. The analysis shows that the firm’s and customer’s processes and activities can be divided into a provider sphere, closed for the customer, and a customer sphere, closed for the firm. Value creation occurs in the customer sphere, whereas firms in the provider sphere facilitate value creation by producing resources and processes which represent potential value or expected value-in use for their customers. By getting access to the closed customer sphere, firms can create a joint value sphere and engage in customers’ value creation as co-creators of value with them. This approach establishes a theoretically sound foundation for understanding value creation in service logic, and enables meaningful managerial implications, for example as to what is required for co-creation of value, and also further theoretical elaborations.

A new Fuzzy-LOGIC based Model for Chlorophyll-a in Pulicat Lagoon, India

Coastal lagoons are complex ecosystems exhibiting a high degree of non-linearity in the distribution and exchange of nutrients dissolved in the water column due to their spatio-temporal characteristics. This factor has a direct influence on the concentrations of chlorophyll-a, an indicator of the primary productivity in the water bodies as lakes and lagoons. Moreover the seasonal variability in the characteristics of large-scale basins further contributes to the uncertainties in the data on the physico-chemical and biological characteristics of the lagoons. Considering the above, modelling the distributions of the nutrients with respect to the chlorophyll-concentrations, hence requires an effective approach which will appropriately account for the non-linearity of the ecosystem as well as the uncertainties in the available data. In the present investigation, fuzzy logic was used to develop a new model of the primary production for Pulicat lagoon, Southeast coast of India. Multiple regression analysis revealed that the concentrations of chlorophyll-a in the lagoon was highly influenced by the dissolved concentrations of nitrate, nitrites and phosphorous to different extents over different seasons and years. A high degree of agreement was obtained between the actual field values and those predicted by the new fuzzy model (d = 0.881 to 0.788) for the years 2005 and 2006, illustrating the efficiency of the model in predicting the values of chlorophyll-a in the lagoon.

Adaptive Keeper Design for Dynamic Logic Circuits Using Rate Sensing Technique

The increasing variability in device leakage has made the design of keepers for wide OR structures a challenging task. The conventional feedback keepers (CONV) can no longer improve the performance of wide dynamic gates for the future technologies. In this paper, we propose an adaptive keeper technique called rate sensing keeper (RSK) that enables faster switching and tracks the variation across different process corners. It can switch upto 1.9x faster (for 20 legs) than CONV and can scale upto 32 legs as against 20 legs for CONV in a 130-nm 1.2-V process. The delay tracking is within 8% across the different process corners. We demonstrate the circuit operation of RSK using a 32 x 8 register file implemented in an industrial 130-nm 1.2-V CMOS process. The performance of individual dynamic logic gates are also evaluated on chip for various keeper techniques. We show that the RSK technique gives superior performance compared to the other alternatives such as Conditional Keeper (CKP) and current mirror-based keeper (LCR).

A survey of indian logic from the point of view of computer science

Indian logic has a long history. It somewhat covers the domains of two of the six schools (darsanas) of Indian philosophy, namely, Nyaya and Vaisesika. The generally accepted definition of Indian logic over the ages is the science which ascertains valid knowledge either by means of six senses or by means of the five members of the syllogism. In other words, perception and inference constitute the subject matter of logic. The science of logic evolved in India through three ages: the ancient, the medieval and the modern, spanning almost thirty centuries. Advances in Computer Science, in particular, in Artificial Intelligence have got researchers in these areas interested in the basic problems of language, logic and cognition in the past three decades. In the 1980s, Artificial Intelligence has evolved into knowledge-based and intelligent system design, and the knowledge base and inference engine have become standard subsystems of an intelligent system. One of the important issues in the design of such systems is knowledge acquisition from humans who are experts in a branch of learning (such as medicine or law) and transferring that knowledge to a computing system. The second important issue in such systems is the validation of the knowledge base of the system i.e. ensuring that the knowledge is complete and consistent. It is in this context that comparative study of Indian logic with recent theories of logic, language and knowledge engineering will help the computer scientist understand the deeper implications of the terms and concepts he is currently using and attempting to develop.

Automatic verification of distributed logic specifications

Formal specification is vital to the development of distributed real-time systems as these systems are inherently complex and safety-critical. It is widely acknowledged that formal specification and automatic analysis of specifications can significantly increase system reliability. Although a number of specification techniques for real-time systems have been reported in the literature, most of these formalisms do not adequately address to the constraints that the aspects of 'distribution' and 'real-time' impose on specifications. Further, an automatic verification tool is necessary to reduce human errors in the reasoning process. In this regard, this paper is an attempt towards the development of a novel executable specification language for distributed real-time systems. First, we give a precise characterization of the syntax and semantics of DL. Subsequently, we discuss the problems of model checking, automatic verification of satisfiability of DL specifications, and testing conformance of event traces with DL specifications. Effective solutions to these problems are presented as extensions to the classical first-order tableau algorithm. The use of the proposed framework is illustrated by specifying a sample problem.

Combinatorial logic synthesis using technology directed decomposition

The aim of logic synthesis is to produce circuits which satisfy the given boolean function while meeting timing constraints and requiring the minimum silicon area. Logic synthesis involves two steps namely logic decomposition and technology mapping. Existing methods treat the two as separate operation. The traditional approach is to minimize the number of literals without considering the target technology during the decomposition phase. The decomposed expressions are then mapped on to the target technology to optimize the area, Timing optimization is carried out subsequently, A new approach which treats logic decomposition and technology maping as a single operation is presented. The logic decomposition is based on the parameters of the target technology. The area and timing optimization is carried out during logic decomposition phase itself. Results using MCNC circuits are presented to show that this method produces circuits which are 38% faster while requiring 14% increase in area.