Design of contracts

The design of a contract should seek to reduce and eliminate costs and risks, and not simply move them around from one side the other. The beautiful contract is free of false choices and compromises. O-P/E=N highlights the relationships between key factors driving net value, so each may be systematically targeted to improve yield in…

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Total cost of utilization, TCU

Service design facilitates market transactions New kind of offerings are possible with low transaction costs Service design expands the market The total cost of utilization (TCU) is the idea that customers pay over and above the price of the service, in cash and or in kind.  To make use of the service, they may incur…

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Total cost of service, TCS

From the service provider’s perspective net value is the profit the results from the successful delivery of the service. Government and not for profit enterprises think of profit in terms of financial surplus, reduction in deficits, public good, and public trust. In all cases, long-term viability, success and growth depend on producing a higher net…

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Two Sides of Experience

There is empathy between users and agents. Agents are willing to tolerate pain to facilitate things for users. Similarly, users are willing to tolerate pain to make things easier for agents, mostly by cooperating with them, knowing very well it is in their own interest. Agents expect users to be easy to work with or…

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User experience

Some services start in the premium range, then face competition as other service providers develop the audacity to match the offering at a lower price. Take the airline industry for example. There are few things as audacious as flying passengers and bags at over 500 mph, over 35,000 feet, for more than 10 hours nonstop,…

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