Managing risks in service value networks

Abstract

Development of successful service concepts is a prerequisite for success. Developing business through service excellence is one way of surviving competition while improving customer service and loyalty. Service value is created in a network context, and the structure and dynamics of the value network and customer expectations influence the complexity of service delivery. This needs to be taken into account when considering the management of risks. The traditional emphasis on of risk management has been on protecting the system, and its users, from the failures in the system. When considering the performance of a system in its larger commercial and political environment, uncertainty may provide opportunities as well as threats. The key research question in this paper is how to develop new service business and manage risks in service value networks taking into account both threats and opportunities related to the services’ value creation.