Value adding aspects of the product and/or service to the organization

There is an urgent need for Corporations to move toward value added services and away from general commodity-type services, Birks (2000). In order to remain a leader in customer service and compete in a highly competitive market, organizations looks for ways to foster efficiencies by improving collaboration within the company and by offering value-added services that benefit its customers. “Our business is taking place at the customer’s location, so what we try to do is streamline collaboration with our customers and internally with our employees,” a CEO remarked. “That partnership helps us develop value-added services that can increase efficiencies for both the organizations and its customers, which makes everyone happy.”
Market leaders across industries recognize services is key to driving revenue, differentiating offerings and meeting customer needs.
Cost
•Increasing global competition
•Mounting product price pressure
•Decreasing product margins
Cycle Time
•Decreasing product life cycles
Integrated customer needs
•Meeting wider set of related customer needs & customer out comes
•Creating new sources of differentiation
•Diversifying revenue stream
•Higher Margins
•Longer contracts

Reference: Birks, G., (2000). Value-added Information Services. The Art of Being Synchronous with Your Corporation. Retrieved on January 15, 2008 from: http://www.asis.org/Bulletin/Dec-/birks.html