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Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/17079

Title: Price to win through value modelling for service offering
Authors: Newnes, Linda B.
Goh, Yee M.
Lee, Benjamin D.
Binder, William R.
Paredis, Christiaan J.J.
Keywords: Product service systems
Price to win
Value modelling
Subjective probability
Expert elicitation
Issue Date: 2014
Publisher: Orkestra-Basque Institute of Competitiveness and Deusto Business School
Citation: NEWNES, L.B. ... et al, 2014. Price to win through value modelling for service offering. Presented at: The 3rd International Business Servitization Conference, 13th-14th November 2014, Bilbao, Spain.
Abstract: a contract to deliver product service systems, and make a profit. Design/methodology/approach: Industrial case studies are used as the test bed. Combinations of subjective probability and value modelling have been used in this research. Findings: Current approaches to determine the price to win for a product oriented service contract have mainly focussed on the cost of the physical asset and its’ specification. There is little research, where the ‘value’ of the tangible and intangible aspects of a product service system to the customer is considered. The proposed approach provides the decision-maker with information on the value of their/and their competitors offering, assisting in selecting the price to bid for the service contract. Practical implications: Our approach can be used by industry to model the key value drivers for their customers and provide information on the probability of winning and probability of making a profit. This research provides a step-by-step approach for identifying uncertainties eliciting the value of the service being offered to the customer and modelling these to estimate the probability of winning. Social implications: This research provides practical guidance to decision makers and bid teams. Originality/value: Highlights how the tangible and intangible aspects of a Product Service System can be quantified in monetary terms to assist in decision-making.
Description: This is a conference paper.
Version: Submitted for publication
URI: https://dspace.lboro.ac.uk/2134/17079
Publisher Link: http://www.servitization.org/?page_id=598
Appears in Collections:Conference Papers and Contributions (Mechanical, Electrical and Manufacturing Engineering)

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