Value driven approach for Services Design

A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer.  It involves application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself in real world. In economics, service is an intangible and insubstantial commodity and the value of service is expected to be self-evident.  We can see that as providers of services, there is difficulty in understanding value experienced by consumers and as consumers of services we need to bank on our experience; use trial and errors to find a high quality service provider. There is even lesser clarity on service delivery process that assures value and various aspects of service that creates value to users. We propose a value driven approach for services design based on value creation system that exists amongst service providers and customers as a way to address this situation. We propose a theoretical framework based on value co-creation by cluster of stakeholders who are involved in the service delivery and consumption process as an approach to design services.  We illustrate our approach and theoretical framework that we adopt in this paper