Beyond the physical product: the logic of services
For many decades, business thinking focused on manufacturing and selling tangible things, like cars, shoes, or home appliances. When you buy a fan, the transaction ends the moment you pay for the box at the store register and take the object home. The contemporary world, however, runs on services, where the customer does not seek ownership of a good, but access to an ongoing benefit. In a service, value is not frozen inside the box; it reveals itself in the quality of every contact over time.
A service unfolds like a living experience. Think of the difference between buying a used car and subscribing to a ride-hailing plan or purchasing auto insurance. If the app fails when it starts raining, or if the tow truck takes four hours to arrive on the highway, the customer feels abandoned. Understanding this logic requires shifting focus from product engineering to the design of dynamic relationships among people, machines, and processes.
