Towards A Framework For Total Value Development

This chapter provides a typology of four kinds of value development systems that vary in the extent to which goods and services are integrated in customer offerings from the outset of development. The thesis is that innovative business opportunities may be exploited by simultaneously integrating goods and services in the holistic development of customer offerings. A composite model of development operations is introduced as robustly capable of concurrently developing goods and/or service offerings because it melds the strength of multiple kinds of practice into an integrated system. To exploit the capabilities of the composite model, two divides need to be crossed. The first is between stakeholders at upstream vs. downstream ends of the value development continuum. The second is the integration of development by functional specialists in services and goods which are typically housed in separate administrative units. Crossing these two divides generates opportunities for devising innovative business models offering customers greater holistic value.