2.6.1 Functions 20
2.6.2 Processes 20
2.6.3 Specialization and coordination across the lifecycle 20
3.1 Value creation 21
3.1.1 Mind the gap 21
3.1.2 Marketing mindset 21
3.1.3 Framing the value of services 21
3.1.4 Communicating utility 22
3.1.4.1 In terms of outcomes supported 22
3.1.4.2 In terms of ownership costs and risks avoided 22
3.1.5 Communicating warranty 22
3.1.5.1 Availability 22
3.1.5.2 Capacity 22
3.1.5.3 Continuity 22
3.1.5.4 Security 22
3.1.6 Combined effect of utility and warranty 23
3.2 Service assets 24
3.2.1 Resources and capabilities 24
3.2.2 Business units and service units 24
3.2.2.1 The business unit 24
3.2.2.2 The service unit 24
3.3 Service provider types 26
3.3.1 Type I (internal service provider) 26
3.3.2 Type II (shared services unit) 26
3.3.3 Type III (external service provider) 26
3.3.4 How do customers choose between types? 27
3.3.5 The relative advantage of incumbency 27
3.4 Service structures 28
3.4.1 From value chains to value networks 28
3.4.2 Service systems 29
3.5 Service strategy fundamentals 30
3.5.1 Fundamental aspects of strategy 30
3.5.1.1 Government and non-profit organizations 31
3.5.2 The Four Ps of strategy 31
3.5.3 Strategy as a perspective 32
3.5.4 Strategy as a position 32
3.5.4.1 Variety-based positioning 32
3.5.4.2 Needs-based positioning 32
3.5.4.3 Access-based positioning 32
3.5.5 Strategy as a plan 33
3.5.6 Strategy as a pattern 33
4 Service strategy 35
4.1 Define the market 35
4.1.1 Services and strategy 35
4.1.2 Understand the customer 35
4.1.3 Understand the opportunities 35
4.1.4 Classify and visualize 37
4.2 Develop the offerings 39
4.2.1 Market space 39