Abstract and Keywords
Services engineering involves the virtual or operational modification of an underlying service. Virtual modifications are real (non-financial) options that affect the fulfilment or consumption of a service. Service providers can use them to mitigate supply or demand risk. Operational modifications involve adding (bundling) or removing (unbundling) ancillary services from core services. This article is organized as follows. Section 28.2 discusses virtual service modifications, a variety of real options that improve profits by segmenting customers. These include fulfillment options, consumption options, and real options for access services. Section 28.3 investigates operational service modifications. These include bundling, unbundling, and versioning. Section 28.4 discusses ways to apply services engineering to revenue management and customer relationship management, while Section 28.5 concludes.
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