Co-Creating Value in Systems Development: A Shift towards Service-Dominant Logic

Jeffrey S. Babb Jr., West Texas A&M University
Mark Jeffrey Keith, West Texas A&M University

Abstract

If we accept the advent of agile systems development methods as a disruptive technology, then what have we learned fromthe perturbation? An important lesson to learn is not how agility changed existing methods, but rather what changes in theenvironment precipitated agile methods and what can we learn about the future of systems development from these changes?In this paper, we re-conceptualize systems development methods from both a service-dominant logic (S-DL) perspective(Vargo and Lusch 2004) and from the perspective of the co-creation of value (Prahalad and Ramaswamy, 2004) betweensystems developer and customer during the systems development life cycle (SDLC). In software development, value cocreationhappens in the form of meeting customer needs as well as the creation of new operant resources. We provide a newconceptualization of systems development method selection based on these ideas and illustrate some implications from boththe S-DL and Co-creation perspectives. This conceptualization should afford new areas for future research which assumesthat agile vs. plan-driven methodology choice is a false dichotomy.