Building Theory For Systemic Customer Value: Case Apple

One main management topic for telecom operators in the new services area in mature ICT markets relates to the combining of existing products in bundles. Major equipment vendors and operators are moving into areas of content and applications, some are establishing digital stores. They attempt to create advanced value systems, based on one or more devices that interoperate and are connected to Internet-based, value-added services. Recent studies on the customer preferences of Quad Play offering show that the ease-of-use, convenience and interoperability of devices produced in a total offering are as strong as or even stronger value components than price. These value components are not directly linked to any single source of value like a certain device or a service module. This phenomenon is referred to as 'systemic customer value'. It further suggests that a business developer enhance those value components in order to add new value for customers without a need to enter the discount game. Theories to explain the phenomenon were lacking, and thus, this paper examined how to combine different theoretical approaches. The consistency component from the SERVQUAL framework offered a way to treat ease-of-use and convenience from a time perspective. The field theory concept of the goal region combined with results from behavioural decision research about waiting time, delays and decision-making support the existence of systemic value creation in an ICT usage case when time is a scarce resource. Apple's total offering was investigated from these theoretical angles and some conclusions were drawn on how complex value systems in ICT may operate. Four propositions about the dynamics of systemic customer value creation were formulated and key management implications for capturing this value element were determined.