Service Quotient Of A Firm

Before we embark on “Service Innovation” projects , we need make a  quantitatively and qualitatively assessment of what we need to do.  Its helpful to understand this block diagram.  In a goods dominated world what we have is a firm transforms the inputs to produce units of outputs and push them to consumers.

In a service dominated world we do have manufacturing world as it was ever before. In addition we also have “Service” machinery added to the transformation process that gets activated after the “Sale of Good”has been completed.

Though above is a broad general concept, it can have a few variations.   In some cases the good itself may be provided free but actual monetization may occur through service process. For example the BP monitor device maker can offer the device for free but monetization may accrue through his participation through a “Telemedicine Platform” business owner.

In some cases the good itself may seem to be not so tangible like electricity, gas, digital entertainment content. Some firms may offer only intangible goods (services) like banking or telecommunication.  However, the same concepts apply.

So in a service dominated world, the quantitative and qualitative assessment of “Service Capabilities” can be calculated as “Service Quotient”