The 5 steps to learn transformation as per Womac & Jones are
Customer perceived value (CPV) is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives.
Total customer value is the perceived monetary value of the bundle or economic, functional, and psychological benefits customers expect from a given market offering.
Total customer cost is the bundle of costs customers expect to incur in evaluating, obtaining , using, and disposing of the given marketing offering.
Once the service industry people see Lean from this angle, everything becomes very clear. Total Customer value doesn’t only come from product features but also comes from personal benefit, image benefit. Total cost is not only the pocket expense but anything that customer doesn’t enjoy – the time spent in understanding, resolving issues, calling customer care.
In services, while many tasks are performed by employees alone, however, some of the tasks are also done by customer. So both customer and employees work together to create value. For e.g. Me, trying to find a windshield repair shop is done entirely by me, appointment scheduling is done jointly etc.
The concept of “Value Add” can be applied anywhere and everywhere – from Support to Sales, from Operations to Product, from startups to big companies. Application of Kanban in software life cycle development, for instance, is quite interesting. The value software customers long for is to see developed software faster, frequently, error-free for which developers should balance the variety of tasks he can handle. See this to learn how Kanban is implemented in Software development life cycle.
I hope, understanding this – gives you a solid foot in implementing lean.