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Service Transformation Monitor - Research Project


Value Drivers for Data-Driven Services 

Value Drivers Framework to Assess and Articulate the Potential Company Value from Data-Driven Services

January - March, 2024


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The Challenge: Buy-In

The Service Transformation Journey



The manufacturing industries are on an exciting journey, compelled to adapt and innovate due to several key trends:

  • Intense Global Competition
    Manufacturers worldwide continually improve, leading to commoditisation and mounting pressure on margins. It's a race to deliver the best, the quickest.

  • Digital Disruption
    The digital revolution is transforming customer expectations and behaviours. Traditional business models are being shaken up, and those who fail to adapt risk becoming obsolete.

  • Sustainability Imperative
    Increasing global awareness of environmental issues presents new opportunities and challenges. Sustainable practices are no longer optional but a core expectation from customers and stakeholders.

During this Service Transformation Journey, the way manufacturing companies deliver value to their customers through services is evolving. 

It involves three fundamental changes:

  1. Service Operations
    Improving how services are provided, ensuring they are efficient and meet customer needs.
  2. Service Business Model
    Developing new service offerings and models, aligning them with changing market demands.
  3. Overall Business Model
    Adjusting the company's primary approach to delivering value with services, data, software, and products, ensuring it remains relevant and competitive.

In essence, services shift from an operational aftermarket function via a profit centre to a strategic business line.


The challenge – Lack of Clarity in Value Creation with Data-Driven Services

In today's rapidly evolving digital landscape, developing winning strategies for data-driven and digital services has become paramount for companies seeking sustained success.

These strategies pivot around a dual objective:

  • Delivering tangible, quantifiable value to customers, which goes beyond mere satisfaction and cements long-term loyalty.Generating significant bottom-line value for the company, contributing to overall business growth, profitability and competitive advantage. 
  • Generating significant bottom-line value for the company, contributing to overall business growth, profitability and competitive advantage. 

The challenge, however, lies not just in adopting digital and data-driven solutions but in crafting winning strategies that harness their full potential while aligning with broader business goals.


Lack of Clarity in Value Creation

A common hurdle in this journey is the pervasive gap in understanding exactly how data-driven services translate into tangible value for customers and the business. 

Many companies struggle to see beyond improved uptime, more predictable downtime, and potential operational benefits from remote services. 

While these are important, the true value often extends into realms like solving broader customer problems, enhanced customer experiences, personalised services, and data-informed decision-making, which are harder to quantify but immensely impactful. 

Moreover, there's a notable challenge in building a well-grounded, comprehensive assessment of the potential value of data-driven services. This involves not only understanding the immediate benefits but also forecasting the long-term gains in a way that is both realistic and compelling.


Key Issues Arising from Lack of Clarity

This lack of clarity leads to several critical issues.

  • There is often difficulty in establishing a consistent focus on vital initiatives. Without a clear understanding of the value drivers, initiatives can become scattered, leading to diluted efforts and suboptimal outcomes.
  • Building credible and adequate value projections and business cases also becomes challenging. Without concrete projections, convincing stakeholders of the viability and necessity of these projects is an uphill task. 
  • This, in turn, creates obstacles in securing the necessary funding for data-driven initiatives, as stakeholders typically seek clear evidence of potential returns.
  • There are complications in developing a comprehensive roadmap that effectively prioritises short-, medium-, and long-term goals, often resulting in a misalignment of resources and strategic objectives. 

Addressing these issues requires a deliberate and informed approach, ensuring that the deployment of data-driven strategies is effective and aligned with the overarching business vision.

Why this matters

Understanding and implementing winning strategies for data-driven services is not just a business imperative; it's a decisive factor in a company's ability to stay relevant and competitive in a rapidly changing landscape. This relevance stems from several key trends and evolving market dynamics.

Firstly, there's the undeniable trend towards enhanced operational performance. Data-driven services can elevate operational efficiency to new heights, optimising costs and maximising value in previously unattainable ways. This optimisation is not just a matter of internal efficiency but translates into tangible customer benefits, such as faster service, improved product quality, and personalised experiences.

Moreover, customer needs and expectations are evolving at an unprecedented pace. The journey over the next few years, possibly extending into decades, will be marked by customers increasingly seeking solutions that are efficient, cost-effective, innovative, sustainable, and tailored to their specific needs. Data-driven services are at the heart of meeting these expectations, offering insights that can lead to more customer-centric products and services.

Winning strategies in this domain can yield significant benefits. They enable companies to respond to current customer needs and anticipate future trends, positioning them as proactive leaders rather than reactive followers. This forward-thinking approach is critical for sustained success and customer loyalty.

Finally, the potential for disruption cannot be overstated. Companies harnessing data-driven services effectively can disrupt existing markets, create new market niches, and redefine customer expectations. Conversely, companies that fail to adapt risk being left behind as the market evolves. In essence, adopting and refining data-driven strategies are not just about maintaining market share; they represent an opportunity to redefine the playing field, offering innovative solutions that set new industry standards. This potential for disruption underscores why understanding and implementing these strategies is so crucial in today's dynamic business environment.

Goal of the research

The primary goal of this research project is to develop a comprehensive Value Drivers Framework, a tool designed to significantly enhance decision-making processes in the realm of data-driven services. This framework is not just a theoretical construct but a practical guide that aims to transform how companies identify, articulate, and leverage key value drivers in their service offerings.

Understanding "Value Drivers"

  • What it is
    The framework will define what constitutes a 'value driver' in the context of data-driven services, providing a clear and concise
  • Why We Need One
    It will explain the importance of identifying and focusing on these drivers, highlighting their role in enhancing company and customer value.
  • How to Use It
    The framework will offer practical guidance on how to apply these concepts in real-world scenarios, ensuring that the theoretical understanding is translated into actionable strategies.
  • How to Develop It
    The research will provide a step-by-step process for developing a value driver framework tailored to different organisations' unique needs and goals.

Baseline for Value Driver Framework

  • The research will describe a baseline framework for assessing company value through the lens of these value drivers. Of course, there will be no single silver bullet for all companies, but this baseline framework will be a good starting point for you to develop your own specific value driver framework.
  • It will also present an example framework focused on customer value, illustrating how value drivers can enhance customer engagement and satisfaction.


Building Your Value Drivers Framework

The project will offer insights into constructing a personalised value drivers framework, considering a company's specific context and strategic objectives.

Leveraging the Value Drivers Framework

  • The framework will guide key business activities, including decision-making, resource allocation, and prioritisation, ensuring that these activities align with the organisation's overarching goals.
  • It will facilitate strategic dialogue with stakeholders, building consensus and ensuring everyone is aligned with the company's strategic direction.

Outcome for Service Leadership and Innovation Teams

By the end of this research, service leadership and innovation teams will be equipped with a robust value drivers framework. This tool will empower them to effectively identify, prioritise, and leverage the most critical aspects of their data-driven services, ultimately driving both company and customer value.

Benefits of this Value Drivers Framework

The Value Drivers Framework is an essential tool that empowers service leadership and innovation teams to strategically navigate the complex terrain of service transformation. It clarifies and focuses on identifying and leveraging key elements that drive tangible value.

  • Strategic Alignment
    Ensures all stakeholders are aligned and engaged.
  • Resource Optimisation
    Guides efficient allocation of resources towards high-impact areas.
  • Enhanced Customer Loyalty
    Aids in developing targeted services that resonate with customer needs.
  • Informed Decision-Making
    Facilitates data-driven decisions, enhancing overall business effectiveness.

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Approach and status of the research project



The research project will run from January to early March 2024, encompassing several phases, as described below.



  • Exploration
    • Defining a robust and dynamic framework and formulating testable hypotheses.
    • Gathering existing insights and conducting desk research.
    • Conducting explorative interviews and panels
    • Run an explorative survey.
  • Data Collection
    • Conducting focused panels and interviews
    • Run a survey to collect comprehensive data.
  • Analysis & Reporting
    • Conducting a (comparative) analysis of the data to identify the critical success factors and best tactics.
    • Preparing an extensive report and framework.
  • Dissemination
    • The findings and framework will be shared amongst all participants at no cost.
    • We will organise an interactive online masterclass.
    • Within the service community, we will further exchange experiences on how to apply the framework.
    • The Service Community will further elaborate on leveraging the framework in various community meetings such as Roundtables, Peer Groups, and Service Transformation Summits.

Who is being involved

  • The research actively involves service leadership and innovation teams of B2B manufacturing companies.
  • We may interview relevant experts and academics.
  • We are also exploring the involvement of other relevant stakeholders within manufacturing companies to broaden our understanding and impact.

Current Status

We are currently in the exploration phase, laying the groundwork for the research and engaging with various participants to ensure a rich and diverse input base.

Framework (preliminary)

The Value Drivers Framework is based on the understanding that successful service transformation and value creation require a robust and cohesive approach. This involves aligning the organisation's activities and strategies with the expected business value, whether for the company itself or its customers.

The framework is structured like a value driver tree, encompassing various elements contributing to overall business success.

Central to this framework is the assumption that driving profit and growth is the ultimate goal. However, it could be that other key drivers are the starting point, like shareholder value or navigating disruption.

To provide a clearer picture, key elements of the framework include:

  • Revenue Drivers:
    • Revenue per customer: Focusing on increasing the value derived from each customer.
    • Customer base: Expanding the number of customers who use the company's services.
  • Operating Cost and Efficiency:
    • Cost to acquire customers: Streamlining the process of customer acquisition to enhance efficiency.
    • Cost to serve: Optimising service delivery costs.
    • Operational overhead: Minimising non-essential expenditures
  • Financial Metrics and Efficiency:
    • Capital: Effective management of capital investments.
    • Stock: Efficient inventory management to reduce costs and improve service.
  • Other Enablers:
    • Customer experience: Enhancing the overall customer journey to foster loyalty and satisfaction.
    • Employee experience: Ensuring a motivated and engaged workforce.
    • Customer centricity: Prioritising the needs and expectations of customers in all business decisions.
    • Innovation culture: Fostering a culture that encourages innovation and continuous improvement.
    • Compliance and safety: Adhering to regulatory standards and ensuring safe practices.

A similar approach is used for constructing a value driver framework that focuses on the customers' value from data-driven services. This holistic view ensures that every aspect of the business contributes to creating and maximising value for both the company and its customers.

Key drivers/strategy

The essence of the Value Drivers Framework lies in selectively focusing on the most impactful value drivers that align with a company's unique circumstances and strategic priorities.

This tailored approach ensures that stakeholders are aligned on the focus and that resources are concentrated on areas that promise the greatest return, aligning with the organisation's distinct goals and market position.


Utilising the Value Drivers Framework, companies can develop and implement initiatives specifically designed to enhance their data-driven capabilities, improve existing services, and create innovative new service offerings. This approach involves a systematic assessment and development process:

  • Develop Data-Driven Capabilities:
    • Identify key areas where data analytics and insights can significantly impact business outcomes.
    • Implement initiatives to integrate advanced data analytics into operational processes, decision-making, and customer interactions.
  • Enhance Existing Services:
    • Evaluate current service offerings through the value drivers framework lens to identify improvement areas.
    • Launch initiatives to elevate the quality, efficiency, and customer relevance of existing services.
  • Develop New Services:
    • Leverage insights from the value drivers framework to identify emerging customer needs and market trends.
    • Initiate projects to create novel services that align with these identified needs and trends, ensuring they add tangible value to customers.

Additionally, the framework is used to assess the potential value of these initiatives, ensuring that they are feasible, align with the strategic goals, and offer a high potential for return on investment. This evaluation is crucial for prioritising initiatives, allocating resources effectively, and setting clear objectives and metrics for success.

Our proposition to participants

We offer the following benefits to the participants in this research project:

  • Full Report and Framework (Complimentary)
    Participants receive the complete report and Framework at no cost.
  • Exclusive Insights
    Gain access to deeper insights and analysis directly from the primary research source, like the interviews, panel discussions and interactive masterclass.
  • Application Guidance
    Free follow-up interactive masterclass on practical application of the research findings in your organisation.
  • Summit Discount
    Special discount of 10% for your tickets for one of the upcoming Service Transformation Summits.

Join Our Research Journey

We invite you to actively participate in shaping the future of service transformation. Here's how you can get involved:

Your contribution is invaluable. Together, we can drive meaningful change in the service industry.

Join in this research project

And benefit from:

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