Culture-Driven service Transformation: A framework

ABSTRACT

In the context of organisational culture change, this study explores the service design perspective on the challenges of the organizational transition from goods to service, often called as servitization in organizations (Vandermerwe & Rada, 1988). Originally presented by Vargo & Lusch in 2004 for service marketing, Service-Dominant logic (S-D Logic) proposes a new understanding that all economies are service economies. But, this view still remains unclear and difficult implementation for the organisations of today.

This transition from goods to service is very contextual, complex, and challenging in nature and affects all levels of the organisation in its own unique ways. With this, it brings in a need for managing this transition for the organisation. In an attempt to study the arising complexity within the phenomena of culture change through a service design lens, a research study was conducted in five stages with secondary and primary data collection. The produced data was analysed with the help of automated text analysis software. The results were synthesized to develop a culture-driven sensemaking framework that could help organisations better navigate this transformation. Based on utilizing existing knowledge and creating new knowledge within the organisation to address the underlying culture shift, the framework has four elements and defines 3 goals for servitization: competitive offerings through stakeholders expertise, cocreation based on non-transferable ownership, and ongoing innovative customization. The research suggests that these 3 goals will contribute to a clearer and easier implementation of servitization by the organisations of today.

Service designers are often called to perform challenging roles of organisational designers and change managers. The proposed framework offers Service Designers the potential to perform better at supporting organisations to understand and apply S-D logic within their culture change efforts.

"The article is part of Touchpoint Vol. 10 No. 2 – Designing the Future Touchpoint, the Journal of Service Design is published by the Service Design Network and is available to purchase in print and PDF format at wwww.service-design-network.org/touchpoint "