Revenue measures the extent of service operations
Profit measures the profitability of service business
Total process costs
Measures the ...
e.g., response time
Service business should create value both to the customer and provider. This
requires collaborative analysis and measurement of joint efforts and value
Direct / indirect impacts
Strategic goals affect on long term. Achieving the goals can’t be measured
directly, and there can be considerable time before strategies are implemented
in measurable operations.
Impact and earning logic have to be addressed separately
earnings wise the impact of services is sometimes considered to be indirect
sometimes the impact can’t be measured directly as revenue, profit etc.
Challenge: financial measures are affected by the accounting systems and
organizational interests in the companies (what kind of reports are wanted by
the management, what reports are made public)
Service provider / customer / both combined impacts
Service has impact both on the service provider and the service customer.
These can be evaluated separately but often the service is collaborative
process between customer and provider. Service business solution should have
positive impact to both. This requires collaborative analysis and measurement
of joint efforts and value creation.