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|Authors:||Djoko Setijono: Department of Forest & Wood Technology, Växjö University, Sweden|
|Publication title:||Customer Value: Knowledge; Sustainability; and Transformation|
|Conference:||10th QMOD Conference. Quality Management and Organiqatinal Development. Our Dreams of Excellence; 18-20 June; 2007 in Helsingborg; Sweden|
|Publication type:||Abstract and Fulltext|
|Abstract:||Although value is an important concept; many companies often do not know how to define and/or measure value (Anderson and Narus; 1998; Lindgren and Wynstra; 2005). According to Bounds et al (1994; pp. 345); the ability to create superior value to customers requires at least three kinds of knowledge: customer knowledge (knowledge of customer needs; desires; and how customers use products or services); subject matter knowledge (scientific; engineering; and social knowledge required to be able to produce the product or service); and self-knowledge (knowledge regarding the mechanisms and capabilities of an organisational system to deliver value as well as the knowledge to improve the system).|
Customer knowledge can be gained through identifying customer needs; goals; or desires using a hierarchical value map or the means-ends model (in e.g. Bounds et al; 1993). Value to customers is then related to the degree of compatibility (match) between the consequences of using the product and customer needs. Within TQM (and Six Sigma); the subject matter knowledge seems to be the dominating knowledge for value creation and delivery if we take Quality Function Deployment (QFD) as an example. Thus; customer value is related with the existence or performance of product/service attributes. Meanwhile; the Lean Production methodology seems to rely more on self-knowledge to create and deliver value to customers; meaning that creating customer value is about driving away the wastes from a system.
As a value-creating system; an organisation also needs to focus on customer knowledge (besides subject matter knowledge and self-knowledge) to understand to whom is the system creating value for. Therefore; the purpose of this paper is to propose a method to identify customer value based on customer knowledge; which can be transformed by the producer into value that can flow along the value stream.
|Keywords:||Customer value; system thinking; customer knowledge; functional utilities|
|No. of pages:||9|
|Series:||Linköping Electronic Conference Proceedings|
|Publisher:||Linköping University Electronic Press; Linköpings universitet|
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