Today's software makes it easier to track patterns, trends, and even granular details of how customers use products. This data is collected in systems that support marketing, sales, finance, and operations. But many companies aren't sure how they can best support employees who are overseeing hundreds of unique relationships. They're grappling with how to manage and use all their data to improve customer retention. And they're wondering how they can assess the health of their customer relationships before it's too late. One solution is the use of customer‑health scores. In this article the authors introduce a model that any B2B company can use to measure and improve customer health. They identify three dimensions of customer health-customer-relationship quality, product usage, and value realization-and offer advice on how to measure and weigh relevant metrics. The authors then take an in-depth look at how BigCommerce, an e-commerce platform, developed and refined its customer-health model. They share five lessons the company learned through the process, including how to identify the relationship between health and churn, and that a flywheel effect occurs as health scoring matures.

DSM (A) and (B) tell the remarkable story of how Helen Mets, EVP of DSM's Resins & Functional Materials business (DRF), generated considerable value for DSM by pursuing a radical sustainability strategy, steering DRF to a 12.4x multiple when it was sold to Covestro. DSM (A) discusses DSM's path to greater sustainability, highlighting the environmental issues caused by the chemical industry and, in particular, its impact on the environment with chemicals of concern, GHG emissions, and waste. It describes how Mets set DRF on a visionary pathway to sustainability with a new strategy and roadmap and the steps she took to achieve this, including changing the culture and mindset within the organisation and identifying maverick thinkers such as Sjoerd Dijkstra, who did much of the work on chemicals of concern identification and building the roadmap. Case (A) closes with Met's dramatic step of announcing the new strategy in public at the European Coatings Show. Had Mets gone too far in making the announcement public? Could DRF live up to its promises? How would the industry respond? DSM (B) picks up immediately with Mets leaving the stage having made the announcement in April 2019. Mets continued to pursue the strategy on returning to the Netherlands. A few months later, Covestro, a competitor and customer of DRF approached DSM to acquire DRF. We learn that Covestro was particularly interested due to DRF's focus on sustainability and that the acquisition price was much more than if DSM had tried to sell DRF prior to its sustainability strategy.

DSM (A) and (B) tell the remarkable story of how Helen Mets, EVP of DSM's Resins & Functional Materials business (DRF), generated considerable value for DSM by pursuing a radical sustainability strategy, steering DRF to a 12.4x multiple when it was sold to Covestro. DSM (A) discusses DSM's path to greater sustainability, highlighting the environmental issues caused by the chemical industry and, in particular, its impact on the environment with chemicals of concern, GHG emissions, and waste. It describes how Mets set DRF on a visionary pathway to sustainability with a new strategy and roadmap and the steps she took to achieve this, including changing the culture and mindset within the organisation and identifying maverick thinkers such as Sjoerd Dijkstra, who did much of the work on chemicals of concern identification and building the roadmap. Case (A) closes with Met's dramatic step of announcing the new strategy in public at the European Coatings Show. Had Mets gone too far in making the announcement public? Could DRF live up to its promises? How would the industry respond? DSM (B) picks up immediately with Mets leaving the stage having made the announcement in April 2019. Mets continued to pursue the strategy on returning to the Netherlands. A few months later, Covestro, a competitor and customer of DRF approached DSM to acquire DRF. We learn that Covestro was particularly interested due to DRF's focus on sustainability and that the acquisition price was much more than if DSM had tried to sell DRF prior to its sustainability strategy.

Executives need guidance about managing their organizations' engagement with societal issues-including hot-button topics such as gender, climate, and racial discrimination. Success in this realm does not mean avoiding public controversy or achieving unanimous support among key stakeholders, the authors write. Rather, it results from adhering to certain processes and strategies, which they have derived from recent global survey research along with examples from managerial best practice. They offer an approach that is anchored in data but sensitive to values and context. It can be helpful in figuring out which issues to address and how; in ameliorating disappointment among stakeholders; and in managing any potential blowback. Data can tell you what your various stakeholders care about, they write, but judgment is necessary to act in careful consideration of conflicting preferences while being consistent with your company's values.

As the new CEO of Boston Consulting Group (BCG) since autumn 2021, Christoph Schweizer had big shoes to fill-his predecessor, Rich Lesser, had tripled the partnership's total revenues and created digital initiatives that contributed 40+% of 2021 revenues, more than doubling headcount along the way. Schweizer announced plans for fresh growth: he planned to double the partnership's size and pursue what he called moonshots-dedicated efforts to accelerate in artificial intelligence and climate & sustainability that would each help drive 20% to 30% of total BCG revenues by 2030. Externally, however, BCG was soon grappling with the macro-effects of Russia's invasion of Ukraine as well as rising interest rates, compounding the potential risks BCG faced with a commitment to rapid growth. As yet unclear was how much BCG needed to adapt or alter the formula of success that Lesser had applied in order to tackle these headwinds and deliver on Schweizer's vision.

This case study describes how ZEISS Vision Care China, a subsidiary of the Germany-based ZEISS Group, was transforming itself into a service-oriented business. After the implementation of the transformation towards an agile organization-which involved digitalization and a radical organizational change-the company was beset with numerous issues in 2021, such as chaotic work processes, the increased workload of all staff, the resignation of critical personnel, and customer complaints. On top of that, some executives expressed concerns during a strategy meeting with Winston Yang, General Manager of ZEISS Vision Care China, regarding the need for such a radical overhaul, especially considering the company's already robust annual growth rate. Some executives even suggested the transformation should be postponed. The unexpected and challenging situation of the company forced Winston Yang to ask himself whether it would be necessary for the company to continue with such a high-risk organizational transformation.

Lisa Mitchell, Deputy Vice President of Tech Operations at Albright Cancer Centers (ACC), is confronted with significant customer service issues. The current cloud system often malfunctions, causing disruptions for patients and their families. Founded in 1988 by Robert L. Albright after the heart-wrenching loss of his daughter to cancer, ACC has always prioritized compassionate care. By 2023, the center had expanded to over 2,000 staff across various cities. Their unique Guardian Standard combines traditional medical care with therapies aimed at enhancing the overall well-being of patients, emphasizing empowerment throughout their treatment journey. However, the present call system falls short of these standards. Recognizing this gap, Mitchell advocates for the exploration of advanced AI solutions. She launches the "Guardian Level of Call" initiative, aiming to transform the calling experience. With the help of consultant Alex Sanches, they undertake a thorough analysis of the customer journey. ACC's CEO, Dr. Fernanda Rivera, later introduces Air.ai, a state-of-the-art AI system, believing it could replace customer service reps and redefine ACC's customer service approach.

In 2020, Banco del Barrio (BB) celebrated its12th anniversary since its establishment as a non-bank correspondent. BB had successfully reduced the traditional barriers to accessing financial services for its users at the base of the pyramid. However, the financial services offered had a low utilization rate, so BB was not making significant progress in promoting financial inclusion. In the midst of this scenario, the Vice President of Personal Banking responsible for managing BB's operations, had to develop the 2020 plan. The dilemma involves evaluating the options of expanding services in women's banking or transitioning towards a platform of services for micro-businesses.

On November 2, 2021, Enrique Lores, CEO of HP, Inc., ended the first online huddle of the week with his executive leadership team. The day was an historic one for the Palo Alto-based global company: six years earlier, HP Inc. came into being after the split of the iconic hardware company into two: HP, Inc. and Hewlett Packard Enterprise. As soon as Lores, who had become CEO the year prior, took over the reins at HP Inc., he immediately began to strategize the aggressive transformation of the hallowed company from a product-oriented to a customer experience-oriented company, identifying three areas, each requiring significant innovation: 1. Evolution of core business models to adapt to changing customer needs; 2. Pursuit of adjacencies in relation to the personal computer and print businesses; and 3. Leveraging platforms (capability and asset) and software assets to create new businesses. The broad and deep change initiative that he had charted for HP would require changes in skills, talent, infrastructure, and culture. To communicate what was required of his team, shift their thinking, and achieve a better multiple on their earnings per share, Lores asked his leaders to focus their attention on three key concepts: (1) Advance the business models of HP's core businesses; (2) Disrupt using HP's core assets; and (3) Transform the processes, cost structure, go-to-market capabilities, supply chain and brand of HP. Perhaps unsurprisingly, discussions at the morning meeting centered around the need to harness the past and drive the future. Markets were changing, HP's performance was accelerating and the company was seeing new customer behaviors. In addition, there was an inflection point in the PC stack and importantly, 3D printing, where HP had a great position, was attracting a lot of interest.

In 2022, Hyundai Motor Group had become the world's third-largest automaker by sales volume. Under Executive Chair Euisun Chung's leadership, HMG was shaping its vision as a "game changer" in the global automotive industry. The company no longer viewed itself as a traditional car manufacturer, but as a provider of smart mobility solutions. The case study explores Hyundai's strategies to pivot beyond the "fast follower" mission that had guided its rapid international expansion since the 1980s, under the leadership of founding Chairman Ju-yung Chung. Three decades later, South Korea's automaker declared its next goal: achieve global leadership in vehicle electrification. Hyundai's IONIQ 5 and the Kia EV6 were award-winning electric vehicles; the company planned to expand to 23 electric vehicle lines and sell more than 1 million EVs by 2025. Beyond electrification, Hyundai was making big bets on hydrogen energy, AI technology, robotics, and advanced air mobility-all of which could help make Hyundai the pioneering leader of the transportation sector of the future.

This case explores the introduction of a new product that targets both new and existing segments of the investment management services market. Cinnamon, a discretionary investment management app, was founded in the United Kingdom in 2011. With the help of the team's first product manager, Maria Pasquale (GSB '11), Cinnamon navigated the new product introduction process: identifying unmet needs, developing value hypotheses, building a minimum viable product, creating a marketing and launch plan, and setting up a customer feedback loop. The team then clarified their target customer and refined the product in pursuit of product-market fit. Throughout the process, Pasquale established Cinnamon's product management function, including the organizational structure, processes, and mindsets that fostered effective product development.

On November 2, 2021, Enrique Lores, CEO of HP, Inc., ended the first online huddle of the week with his executive leadership team. The day was an historic one for the Palo Alto-based global company: six years earlier, HP Inc. came into being after the split of the iconic hardware company into two: HP, Inc. and Hewlett Packard Enterprise. As soon as Lores, who had become CEO the year prior, took over the reins at HP Inc., he immediately began to strategize the aggressive transformation of the hallowed company from a product-oriented to a customer experience-oriented company, identifying three areas, each requiring significant innovation: 1. Evolution of core business models to adapt to changing customer needs; 2. Pursuit of adjacencies in relation to the personal computer and print businesses; and 3. Leveraging platforms (capability and asset) and software assets to create new businesses. The broad and deep change initiative that he had charted for HP would require changes in skills, talent, infrastructure, and culture. To communicate what was required of his team, shift their thinking, and achieve a better multiple on their earnings per share, Lores asked his leaders to focus their attention on three key concepts: (1) Advance the business models of HP's core businesses; (2) Disrupt using HP's core assets; and (3) Transform the processes, cost structure, go-to-market capabilities, supply chain and brand of HP. Perhaps unsurprisingly, discussions at the morning meeting centered around the need to harness the past and drive the future. Markets were changing, HP's performance was accelerating and the company was seeing new customer behaviors. In addition, there was an inflection point in the PC stack and importantly, 3D printing, where HP had a great position, was attracting a lot of interest.

In early April 2019, the executive team of San Jose-based Zoom Video Communications gathered in the company conference room to strategize about their messaging for a planned IPO, an event that only a few years earlier would have seemed improbable to many. Indeed, when Zoom founder and CEO Eric Yuan had first sought venture capital funding to start his company back in 2011, he was turned down countless times. "A new video conferencing entrant at this stage?" wrote Patrick Eggen, of Counterpart Ventures, describing the general response. "No commercial data points, massively saturated market, limited funding to enter the SME space (ughh) and founder with no CEO experience. Red flags galore." But Yuan was absolutely convinced that the world did, in fact, need a new video conferencing solution-one that would not merely suffice, but far surpass the "terrible" existing options and make its users downright happy. So he ignored the naysayers and refused to give up-and the rest is history. This case details the story of Zoom Video Communications from its earliest origins as an idea that came to Yuan while he was a student riding a train in China to its IPO in 2019. It includes interviews with key Zoom executives, including Eric Yuan. A forthcoming B case will continue the story.

Service process design is evolving with opportunities for new design configurations being supported and limitations diminishing. Tasks usually done by the service provider are now sometimes done by customers, resulting in customers having a bigger role in the service process through self-service and offering information to service providers to create a personalized service experience. This book examines how service processes should be designed to use expanding opportunities for customers and service providers to create value together. Frameworks and models are given for designing various kinds of service processes and knowledge-intensive services. The text also takes COVID-19 into account, offering examples of how services adapted during the pandemic. Technology-enabled innovations are also discussed, which provide flexibility in service process design and influence how service providers and customers co-produce services. Readers will learn about the important impacts these service innovations can have on benefit and cost trade-offs and synergies that determine value co-creation. Chapter 1 begins by discussing and giving examples of service processes, which are defined as transformations that convert inputs to outputs. Two familiar service processes are ATMs and self-service checkouts. These two processes are compared and contrasted, looking at benefits and drawbacks for businesses and customers concerning aspects from value to technology. Value is when benefits are seen to be greater than the costs. The chapter ends by offering an outline of the rest of the text.

Service process design is evolving with opportunities for new design configurations being supported and limitations diminishing. Tasks usually done by the service provider are now sometimes done by customers, resulting in customers having a bigger role in the service process through self-service and offering information to service providers to create a personalized service experience. This book examines how service processes should be designed to use expanding opportunities for customers and service providers to create value together. Frameworks and models are given for designing various kinds of service processes and knowledge-intensive services. The text also takes COVID-19 into account, offering examples of how services adapted during the pandemic. Technology-enabled innovations are also discussed, which provide flexibility in service process design and influence how service providers and customers co-produce services. Readers will learn about the important impacts these service innovations can have on benefit and cost trade-offs and synergies that determine value co-creation. Chapter 5 looks more closely at underlying capabilities that are the source of value co-creation. The service providers and customers both contribute resources to the service process; the resources make up the capabilities in the service process design that drive value. Improving current capabilities and creating new ones means that the value from the service delivery process can rise. How to "unlock" these capabilities is discussed, including how to unlock capabilities in a firm and how service providers can unlock customer capabilities. Customers can also unlock service provider capabilities; service inventory and customer-driven service innovation are explored with this in mind. The power of service providers and customers unlocking each other's capabilities comes from the synergies reached when they work together to improve their joint capabilities.

Service process design is evolving with opportunities for new design configurations being supported and limitations diminishing. Tasks usually done by the service provider are now sometimes done by customers, resulting in customers having a bigger role in the service process through self-service and offering information to service providers to create a personalized service experience. This book examines how service processes should be designed to use expanding opportunities for customers and service providers to create value together. Frameworks and models are given for designing various kinds of service processes and knowledge-intensive services. The text also takes COVID-19 into account, offering examples of how services adapted during the pandemic. Technology-enabled innovations are also discussed, which provide flexibility in service process design and influence how service providers and customers co-produce services. Readers will learn about the important impacts these service innovations can have on benefit and cost trade-offs and synergies that determine value co-creation. Chapter 4 narrows its focus to knowledge-intensive services - services that are centered on information, such as health care, legal services, and technology consulting. Specific challenges that come with knowledge-intensive services are described. Four foundational activities of knowledge-intensive services are identified: service provider information processing, customer information processing, service provider-to-customer information transfer, and customer-to-service provider information transfer. Information processing and information transfer are both essential to creating value. Because of the highly customized aspect of knowledge-intensive services, close collaboration between co-productive efforts of service providers and customers is vital.

Service process design is evolving with opportunities for new design configurations being supported and limitations diminishing. Tasks usually done by the service provider are now sometimes done by customers, resulting in customers having a bigger role in the service process through self-service and offering information to service providers to create a personalized service experience. This book examines how service processes should be designed to use expanding opportunities for customers and service providers to create value together. Frameworks and models are given for designing various kinds of service processes and knowledge-intensive services. The text also takes COVID-19 into account, offering examples of how services adapted during the pandemic. Technology-enabled innovations are also discussed, which provide flexibility in service process design and influence how service providers and customers co-produce services. Readers will learn about the important impacts these service innovations can have on benefit and cost trade-offs and synergies that determine value co-creation. This chapter discusses the overall goal of service process design: to offer a mechanism for unlocking value co-creation. Co-creation is when service providers and customers meet through the service process design and co-create value. Ideas on how to do this are provided. In order to unlock value, benefits, costs, and value calculations need to be understood from the side of the customer and the service provider. These two perspectives are discussed in depth with examples. When thinking about the customer's perspective, it is important to keep in mind trade-offs and various factors that influence a customer's assessment of the service experience. With the service provider's perspective, sources of revenues and costs should be considered. These two perspectives are then combined to co-create value.

Service process design is evolving with opportunities for new design configurations being supported and limitations diminishing. Tasks usually done by the service provider are now sometimes done by customers, resulting in customers having a bigger role in the service process through self-service and offering information to service providers to create a personalized service experience. This book examines how service processes should be designed to use expanding opportunities for customers and service providers to create value together. Frameworks and models are given for designing various kinds of service processes and knowledge-intensive services. The text also takes COVID-19 into account, offering examples of how services adapted during the pandemic. Technology-enabled innovations are also discussed, which provide flexibility in service process design and influence how service providers and customers co-produce services. Readers will learn about the important impacts these service innovations can have on benefit and cost trade-offs and synergies that determine value co-creation. Chapter 2 explores three trends that are influential in the service process design landscape: the fast pace of technology-enabled service innovation, the customer's expanded role, and service inventory's increasing use. The impact of these trends are typically linked through supporting technologies. Many examples of these trends and how they intersect are given, such as self-service technologies helping to expand the customer's role. Other examples that are examined include remote monitoring to build a database and mining social media. Service inventory is a newer concept; however, physical versions of it have existed for a while. Pre-producing according to forecasted customer demand can lead to costs of excess inventory.

In November 2020, Chief Veterans Experience Officer, Lynda Davis, and Deputy Chief Veterans Experience Officer, Barbara C. Morton reflect on a busy four years leading the Veterans Experience Office at the U.S. Department of Veterans Affairs. The case provides an update on the transformation efforts at VA that were documented in the "Improving Access at VA" case.

Tim Höttges was at the outset of his seventh year as CEO of Deutsche Telekom (DT) in 2020. The company served more than 184 million mobile customers and had a presence in over 50 countries. Over the course of the previous 7 years, European telecommunication companies had experienced varying degrees of success. Revenues for telecommunication companies in France, Germany, Italy, and Spain as a whole fell by 14 percent from 2012-2019, while DT's revenues rose by 38 percent, with fully two-thirds of DT's revenues generated outside of Germany in 2019. In late January, 2020, Höttges and his executive team are focused on the challenges faced by European telcos: advances in "digitization," "cloudification" and "softwarization" of the telecommunications network, along with the growth of 5G wireless capabilities, and the emergence of new types of co-opetitive relationships with the hyperscalers, large companies like Amazon and Microsoft that were making efforts dominate the public cloud and cloud services industries and expand into related verticals. This case describes the strategic challenges facing DT in 2020 and beyond that Höttges needs to think about and act upon: (1) the evolution of network technologies to cloud-centric production models, (2) attractive products and services as well as customer interaction through digital channels, synergies, and efficiency levers in internal processes, (3) the battle with the hyperscalers, and (4) the resolution of the fiber-to-the-home (FTTH) challenge in Germany.