Operations management and marketing professionals often take different views of how to leverage the power of the customer. The traditional view of producing goods or services naturally causes different business units to respond to their own performance incentives. Taking a different approach that reflects

a truly customer value-driven system for designing goods and services can increase collaboration between marketing and operations personnel. One approach, service-dominant logic, can help maintain focus on the customer and foster innovation as business units view the customer as an integral part of the product/service value chain.

Service-dominant logic (SDL) proposes that all business can be seen as service businesses. If all businesses can be seen as service businesses, and if those businesses operate through service systems, a deep understanding of service systems might lead to deeper fundamental understandings of services and marketing. For example, SDL does not view “goods” and “services” as discreet offerings, but rather as opportunities to provide servicing and experiencing with customer input. Operations managers and work system participants should be concerned with both value for the customer and efficiency. Operations management professionals can use the framework to shift product/service design methods to greater focus on the customer experience, as well as enhance collaboration with marketing professionals.

Best practices:

• Gain a deep understanding of customers’ priorities
• Involve the customer from the beginning in design
• Broaden the view of product/service innovation
• Improve your ability to ask the right questions
• Understand the importance of behavioral skills for enhancing the customer experience