Service value encounters in the virtual service value chain: a conceptual framework

Abstract

This research addresses the concept of the service value encounter for pure services over the web, when businesses are organised along a virtual service value chain. First, the issue of value creation is described, along with the progression from value chains to service value chains. This is followed by the conceptual development of a 'service value encounter'-framework, along with important dimensions that influence the effective management of such customer encounter in a virtual service value chain business model. These include bullwhip and bottleneck dimensions, as well as factors related to web-interface development, customer targeting, information communication technology, and web-related financial metrics. Finally, important issues are discussed in relation to strategic positioning and strategic alignment when operating in a virtual service value chain, using an industry impact analysis and a balanced scorecard approach for strategic alignment.