Service-Dominant Logic – Exposing CPA Australia’s K-Strategy

Service-Dominant (S-D) Logic is an important new mindset in business. The fundamental premise of S-D Logic is that organisations, markets, and society are fundamentally concerned with exchange of service where a service is the application of competencies (knowledge and skills) for the benefit of a party. Thus, service is exchanged for service and all firms, markets and societies are service-based.

The fundamental difference between the more traditional Goods-Dominant logic and S-D logic is that S-D logic embraces value-in-use and co-creation of value and rather than value-in exchange and embedded-value concepts of G-D logic.

S-D logic advocates that rather than firms marketing to customers, customers are co-creators of value and the nature of that value can only be judged by the customer. Firms therefore can only make value propositions and these are either supported (translated) or rejected by the customer. Furthermore, firms must leverage the co-creation of value with alliance partners within their value network.

Let’s turn our attention to Tony’s post – CPA Australia and the Smart Enterprise. With a little analysis, we can see the strong threads of S-D logic and its innovativeness in CPA Australia’s knowledge strategy:

Co-creation of value with members:
• “Leveraging the IP of our members for the benefit of our members” (Connecting & Exchange)
Co-creation of value with alliance partners:
• “Provide a wider range of technical and non-technical knowledge largely sourced from high-quality education providers under alliance/partnership arrangements” (Relevance & Reach)
Value propositions:
• “Provide knowledge through innovative media” (Anytime, Anywhere)
• “Provide a compelling and market responsive CPA Program & flexible entry pathways for global career advantage” (Market Responsive CPA Program)

The strong ties with S-D logic and the CPA Australia knowledge strategy shows foresight by CPA Australia in making it’s services at one with membership needs. The key to it’s success will be how you as members will embrace the strategy and assist CPA Australia and your fellow members through adding your own value through participation in the program.

I strongly recommend you spend some time reviewing: http://www.sdlogic.net if you are unfamiliar with S-D logic. I believe this “mindset” will be at the centre of future organisational success. Particularly in a world that is Web 2.0 enabled (see Mick’s post below) for customers to take part actively in co-creation.