Service value modeling: A systematic method to unveil the business value of industry solutions

Abstract

There is a growing demand in the business-to-business environment for solutions that cater for specific industry needs as opposed to those for generic purposes. In response, technology vendors have gradually shifted their focus to industry solutions. More often than not, however, industry solutions are highly technical and complex, making it difficult for vendors to articulate the business impact and, as such, for customers to justify the investment. Although existing work provides a set of relevant building blocks for value modeling, they are yet to form an integrated approach. In recognizing the gap, this paper proposes Service Value Modeling (SVM), a systematic, step-wise method to connect industry solutions with business outcomes through the use of customer-specific business architecture. The SVM method is illustrated by two practical examples to show how exactly an industry solution affects the customer's operations and makes a positive impact on its performance. It was found that, with SVM, technology vendors are more likely to gain competitive advantage in both sales and delivery stages. © 2014 IEEE.