Transitioning from a goods-dominant to a service-dominant logic: Visualising the value proposition of Rolls-Royce

Abstract

Purpose: This paper presents a visualisation of the firm’s offering from a Service-Dominant Logic (S-DLogic) perspective. The case of Rolls-Royce is presented as an avenue through which to explore an alternative view of the firm’s value proposition, a visualisation informed by S-DLogic that could aid organisations in their transition from G-DLogic to S-DLogic. Design/methodology/approach: Through integration of an operations management approach in process mapping and design and simulation with choice modelling in B2B marketing this paper operationalises some of the key aspects of S-DLogic, most notably focusing on the constructs of value and resources. This is explored through a single case; Rolls-Royce which provides access to a rich source of internal and customer data. Findings: The study finds that the S-DLogic visualisation of the firm’s value proposition in equipment-based service consists of its contribution to 11 value-creating activities towards value-in-use. The visualisation depicts both the highest possible bundle of benefits for the customer along with the resources and their costs associated with delivering those bundles. When brought together these enable the identification of the optimal bundle of value-creating activities from both customer and firms’ perspective. Practical implications: Our study suggests that the visualisation of the S-DLogic-informed value-creating service system can assist the firm in their transition from G-DLogic to S-DLogic through changing mindsets and interrogating existing boundaries and legacy knowledge in manufacturing. Originality/value: This paper provides empirical evidence of the difference between a G-DLogic and S-DLogic view of the firm’s value proposition. In so doing, extending existing literature on S-DLogic by contributing to a methodological and empirical gap. Notably, it makes abstract concepts of S-DLogic concrete, providing a pathway for future empirical work and begins the process of systematising a methodology in S-DLogic.

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