Disclosing Shared Value in Business Ecosystems Alte Kalkscheune Berlin, October
th 10
2012
201 2
WO RL DU SA BIL ITY DA Y
BE RL IN
Corporate Confusion Innovation! We need more innovation!
The key is: We have to create more value for our customers! ‌ and our solutions have to become more easy to use.
Yes! Our brand definitely needs an emotional supercharge!
We need a clear positioning! Our value proposition has to be refined. I personally have the vision of becoming the Apple of ...!
2
Agenda
01
What is User Value?
02
And a Value Proposition?
03
Value Creation: How to create/deliver new value?
04
Team Work!
45 min
3
Biosphere
Individual
Society
Adapted from Daly and Farley (2004)
Economy
4
Biosphere Society Economy
Individual
Adapted from Daly and Farley (2004)
4
Ecology
Biosphere
Economy
Society Economy
Individual
Psychology
Adapted from Daly and Farley (2004)
Sociology
4
Levels of Value
y t ie m e t s n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
y t ie m e t s n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
y t ie m e t s n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
y t ie m e t s n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
Perspectives on Value
r e
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Economy
Ecology
Perspectives on Value
Psychology
Sociology
Acquisition Value, Aesthetic Value, Basic Value, Conditional Value, Delivered Value, Efficiency Value, Desired Value, Emotional Value, Dual-stimulus Value Epistemic Value, Exchange Value, Esteem Value, Exc Value, Ethical Value, Expected Value, Excellence Valu General Value, Functional Value, Postpurchase & Performance Value, Image Value, Private Meaning Va Logical Value, Public Meaning Value, Material Value, Received Value, Play Value, Sign Value, Redemption Possession Value, Relative Value, Practical Value, Sin stimulus Value, Social Value, Transaction Value, Spiri Value, Unanticipated Value, Status Value, Use Value, Value, Experience Value, Means-end Value, Exchang Value, Labor Value, Extrinsic Value, Intrinsic Value, Satisfaction Value, Perceived Value, Value in Context
User Value?
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money
Economy
Ecology
Perspectives on Value
Psychology
Sociology
Classic Value Theory in Economics
10
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money Happieness
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money Happieness
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money Happieness Belonging
Economy
Ecology
Perspectives on Value
Psychology
Sociology
Sign Value
13
Sign Value
13
Play Value: Children’s Hospital of Pittsburgh
Image Credit: Š 2011 General Electric Company (http://www.gehealthcare.com/promo/advseries/adventure_series.html)
14
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money Happieness Belonging
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money
EcoFootprint
Happieness Belonging
Economy
Ecology
Perspectives on Value
Psychology
Sociology
ÂťUser ValueÂŤ? What science is saying ...
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»Consumer Value« ! Customer Value ! User Value Customer Value = Value for the Customer
Value for the Firm
(Customer Perceived/Received Value)
(Customer Lifetime Value)
Net benefit
Utility
(Costs - Sacrifices)
(total satisfaction with o!ering o and willingness to pay)
Means-end
Customer Lifetime Value (economic worth of customer to the firm)
Phenomenological experience
V
adapted from Ng & Smith (2012)
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Perceived Satisfaction
in
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(delivery of »superior« customer value = competitive advantage)
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Functional/Instrumental Value
Experiential/Hedonic Value
Correct/accurate attributes Utility Appropriate performances Appropriate outcomes
Sensory Emotional Social/relational Epistemic
Symbolic/Expressive Value
Cost/Sacrifice Value
Self-identity/concept/worth Personal meaning Self-expression Social meaning Conditional Meaning
Economic Psychological Personal investment Risk
Sources of Value V
after Smith & Colgate (2007)
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»User Value«? What science is saying ...
“
Value for the customer (VC) is any demand-side, personal perception of advantage arising out of a customer’s association with an organisation’s offering, and can occur as reduction in sacrifice; presence of benefit (perceived as either attributes or outcomes); the resultant of any weighed combination of sacrifice and benefit (determined and expressed either rationally or intuitively); or an aggregation, over time, of any or all of these. V
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»User Value«? What science is saying ...
“
?
Value for the customer (VC) is any demand-side, personal perception of advantage arising out of a customer’s association with an organisation’s offering, and can occur as reduction in sacrifice; presence of benefit (perceived as either attributes or outcomes); the resultant of any weighed combination of sacrifice and benefit (determined and expressed either rationally or intuitively); or an aggregation, over time, of any or all of these. V
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20
»User Value«? What science is saying ...
“
(Perceived) Customer Value must be seen as an ongoing assessment within an evolving consumer relationship. Sánchez-Fernández & Iniesta-Bonillo 2007, p.433
V
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»User Value«? What science is saying ...
“
Use r (Perceived) Customer Value must be seen as an ongoing assessment within an evolving consumer relationship. r e s u Sánchez-Fernández & Iniesta-Bonillo 2007, p.433
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21
»User Value«? What science is saying ...
“
Value resides not in the product purchased, not in the brand chosen, not in the object possessed, but rather in the consumption experience(s) derived therefrom. Holbrook 1999, p.8 ) 9 0 0
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22
Experience Value?
Experience Value: An Example Pre-Sales
Sales
Ex Ante
Transaction
Awareness
Evaluation
Purchase
After Sales
Delivery
Ex Post
Use
Supplements & Extensions
Disposition
Maintenance
Disposal
Value Dimensions
Functional-Instrumental Experiential-Hedonic Symbolic-Expressive Cost-Sacrifice
Cost-Sacrifice
Value Dimensions in Time Expectation Setting
Pre-purchase Interactions
Purchase Interaction
Product Service Consumption
adapted from Kim & Mauborgne (2005), Shaw & Ivens (2002), Arnould, Price & Zinkhan (2003) and Woodall (2003)
Post Experience Review
24
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money
EcoFootprint
Happieness Belonging
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money
EcoFootprint
Happieness Belonging
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money
Experience EcoFootprint
Happieness Belonging
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money
Experience EcoFootprint
Happieness Belonging
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money Profit
Experience EcoFootprint
Happieness Belonging
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money Profit
Experience EcoFootprint
Happieness Belonging Core Values
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money Profit
Experience EcoFootprint
Happieness Belonging Core Values
Social Responsibility
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money Profit
Experience EcoFootprint
Happieness
EcoE!ectiveness
Belonging Core Values
Social Responsibility
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Us
Or ga ni
Ec os y
So c
Levels of Value
r e
Value for Money Profit
Experience EcoFootprint
Happieness
EcoE!ectiveness
Belonging Core Values
Social Responsibility
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money Profit
Experience EcoFootprint
Happieness
EcoE!ectiveness
Belonging Core Values
Social Responsibility
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money Profit
Experience EcoFootprint
Happieness
EcoE!ectiveness ectiveness
Belonging Core Values
Social Responsibility
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money Profit
Experience EcoFootprint
Happieness
EcoE!ectiveness ectiveness
Belonging
Stability Core Values
Social Responsibility
Economy
Ecology
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Happieness
Profit
EcoE!ectiveness ectiveness
Belonging
Stability Core Values
Economy
Experience EcoFootprint
Social Responsibility
Ecology
Shared Drivers
Perspectives on Value
Psychology
Sociology
y t ie m e st n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values Shared Drivers
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Social Responsibility
Ecology
Reciprocity
Sociology
y t ie m e st n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values Shared Drivers
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Ecology
Reciprocity
Sociology
y t ie m e st n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values Shared Drivers
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Ecology
Reciprocity
Sociology
y t ie m e st Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values Shared Drivers
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Ecology
Reciprocity
Sociology
y t ie m e st Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values Shared Drivers
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Ecology
Reciprocity
Sociology
y t ie m e st Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values
Wealth
Shared Drivers
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Ecology
Reciprocity
Sociology
y t ie m e st Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
EcoE!ectiveness ectiveness
Happieness
Profit
Belonging
Stability Core Values
Wealth
Economy
Experience EcoFootprint
Shared Drivers
Sustainability
Social Responsibility
Ecology
Reciprocity
Wellbeing
Perspectives on Value
Psychology
Sociology
y t ie m e st Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values
Wealth
Shared Drivers Wellbeing
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Ecology
Reciprocity
Meaningful Life
Sociology
y t ie m e st Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values
Wealth
Shared Drivers Wellbeing
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Livability of the Environment
Reciprocity
Meaningful Life
Sociology
Ecology
y t ie m e st Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values
Wealth
Shared Drivers Wellbeing
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Livability of the Environment
Reciprocity
Meaningful Life
Sociology
Ecology
y t ie
Transformation
m e st
Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values
Wealth
Shared Drivers Wellbeing
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Livability of the Environment
Reciprocity
Meaningful Life
Sociology
Ecology
y t ie
Transformation
m e st
Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values
Wealth
Shared Drivers Wellbeing
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Livability of the Environment
Reciprocity
Meaningful Life
Sociology
Ecology
Value Proposition(s)
y t ie
Transformation
m e st
Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values
Wealth
Shared Drivers Wellbeing
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Livability of the Environment
Reciprocity
Meaningful Life
Sociology
Ecology
Value Propositions Origin, Definition, Future ...
Hacking Functionality
Meaning
31
Hacking Functionality
Meaning
31
Examples: Cake Mix in the 1950s
+ 32
Examples: Same Product – Two Meanings
Cage Hen Egg
Free Range Hen Egg
33
Examples: Redefine the Wheel Chair Experience
Image Credit: Michael Seymour for New Halls Wheels (http://mjseymour.com); Photo by Annie Leibovitz
34
Examples: Aeron – Most Successful Chair in the World
35
Examples: Aeron – Most Successful Chair in the World
“
When we showed early prototypes to customers, they asked if they could see a finished upholstered model instead of a semifinished prototype. They could not believe that was the final version. Bob Wood, VP Research, Design & Development, Herman Miller (in Verganti 2009)
„ 35
Examples: Portable Music Player Evolution
36
Examples: Nest
37
Meaning
Meaning Values/Identity Emotions Price Features
Adapted from Nathan Shedro! (www.nathan.com/thoughts & www.makingmeaning.org)
38
Meaning
Meaning Values/Identity Emotions Price Features
Adapted from Nathan Shedro! (www.nathan.com/thoughts & www.makingmeaning.org)
38
Meaning
Does this do what I need?
Meaning Values/Identity Emotions Price Features Features
Adapted from Nathan Shedro! (www.nathan.com/thoughts & www.makingmeaning.org)
38
Meaning
‌ at a price that’s worth it?
Meaning Values/Identity Emotions Price Price Features
Adapted from Nathan Shedro! (www.nathan.com/thoughts & www.makingmeaning.org)
38
Meaning
How does it make me feel?
Meaning Values/Identity Emotions Emotions Price Features
Adapted from Nathan Shedro! (www.nathan.com/thoughts & www.makingmeaning.org)
38
Meaning
Is this me?
Meaning Values/Identity Values/Identity Emotions Price Features
Adapted from Nathan Shedro! (www.nathan.com/thoughts & www.makingmeaning.org)
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Meaning
Does it fit into my world?
Meaning Meaning Values/Identity Emotions Price Features
Adapted from Nathan Shedro! (www.nathan.com/thoughts & www.makingmeaning.org)
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Meaning
Meaning Values/Identity Emotions Price Features
Adapted from Nathan Shedro! (www.nathan.com/thoughts & www.makingmeaning.org)
38
Meaning
Meaning Values/Identity Emotions Price Features
Adapted from Nathan Shedro! (www.nathan.com/thoughts & www.makingmeaning.org)
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Meaning Context Value
Single-stimulus Value Unanticipated Value
Sign Value Extrinsic Value
Epistemic Value
Desired Value Intrinsic Value
Means-end Value
Ethical Value
Image Value
Private Meaning Value Emotional Spiritual Value Value Social Value Experience Value Play Value Status Value
Possession Value
Exclusive Value Public Meaning Value
Meaning Values/Identity Emotions Price Features
Aesthetic Value Transaction Value Utility Value
Adapted from Nathan Shedro! (www.nathan.com/thoughts & www.makingmeaning.org)
Dual-stimulus Value
The Five Factors of Experience Research
1. Physical.
How do people experience their physical interaction with things?
2. Cognitive. How do people associate meanings to things they interact with? 3. Social.
How do they behave in teams or in social settings?
4. Cultural.
How do people experience shared norms, habits, and values?
5. Emotional. How do people experience their feelings and thoughts?
Kumar (2009)
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Progression of Economic Value
Differentiated
Relevant to Customization
Competitive Position
Stage Experiences
Make Goods
Extract Commodities
Commoditization
Commoditization
Commoditization
Undifferentiated Market
Needs of Customers
Customization
Guide Transformations
Irrelevant to Pricing
Premium 41
Progression of Economic Value
TRANSFORMATION
Differentiated
?
EXPERIENCE
Customization
Guide Transformations
SERVICE
Competitive Position
Stage Experiences
PRODUCT
COMMODITY
Make Goods
Needs of Customers
Customization
Relevant to
Commoditization Shared Value?
Experience Value Commoditization hedonic, social value, etc.
Extract Commodities
Undifferentiated Market
Sign Value Commoditization Use Value Utilitarian Value Irrelevant to
Exchange Value Pricing
Premium 42
y t ie
Transformation
m e st
Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values
Wealth
Shared Drivers Wellbeing
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Livability of the Environment
Reciprocity
Meaningful Life
Sociology
Ecology
Value Proposition(s)
y t ie
Transformation
m e st
Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values
Wealth
Shared Drivers Wellbeing
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Livability of the Environment
Reciprocity
Meaningful Life
Sociology
Ecology
»Value Proposition«? What science is saying ...
“
Value propositions should be crafted: as a reciprocal exchange of value; described in terms of perceived benefits or reduced costs; transparent about to whom that value should flow and how; perceived as a fair exchange of value; delivered over a time frame longer than a single transaction; often co-created through interaction between two or more parties; and, congruent with the relationship objectives set for a particular market.
„
Ballantyne, Frow, Varey & Payne (2011)
45
Value Proposition(s)
y t ie
Transformation
m e st
Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values
Wealth
Shared Drivers Wellbeing
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Livability of the Environment
Reciprocity
Meaningful Life
Sociology
Ecology
Value Proposition(s)
y t ie
Transformation
m e st
Doing good
n o i t a s
Or ga ni
Ec os y
So c
Levels of Value
Us
Doing Well
r e
Value for Money
Belonging
Stability Core Values
Wealth
Shared Drivers Wellbeing
Perspectives on Value
EcoE!ectiveness ectiveness
Happieness
Profit
Economy
Experience EcoFootprint
Psychology
Sustainability
Social Responsibility
Livability of the Environment
Reciprocity
Meaningful Life
Sociology
Ecology
Value Creation
Value Creation
Production Perspective Joint production process: the Customer participates as co-producer of resources and processes with the provider
Production
Provider’s Value Facilitation
Customer’s Independent Value Creation
Interaction
Customer’s Value Creation
Value Creation Perspective Joint value creation process: the Provider participates as co-creator of value with the customer
Time adapted from Grönroos (2011)
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Product/Service Ecosystems
Image Credit: http://subprint.com/blog/it%27s-the-ecosystem,-stupid
49
Business Ecosystem?
“A value network model visualizes specific interactions within the network to provide a perspective for understanding value-creating roles and relationships, and to offer a dynamic view of how both financial and non-financial assets are converted into negotiable forms of value.� Ouden, E. den (2011), p.154
Image Credit: http://www.elkedenouden.com/AboutElke.html
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Apple’s Business Ecosystem Ž
Other Stakeholders Lowest Production Costs Sponsoring / Discounts High Volume and Planning Certainty
Manufacturing Knowledge
Service Contract Infrastructure Management IP royalties / Commission
Core Value Proposition
Bulk Purchases
???
Reputation and Awareness
Digital Sales Channel with DRM and wide Spread
Media Delivery
Apple on Campus ???
New Business Ideas
IP royalties Personal Data
Apple Platform
Price Premium (Hardware, Media and App Sales) Reputation
Comission
Complementary Offerings
App Purchases Sales Platform
Seamless User Experience
Technical and Sales Training Higher Margins : Apple Price Premium Enriched User Experience
Broad Service Station Covering
Supplying and Enabling Network
Higher Margins via Apple Price Premium TM
Goods & Services Money & Credits Information Intangible Value
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Apple’s Business Ecosystem Hardware OEM's: e.g. Foxconn
Lowest Production Costs Sponsoring / Discounts High Volume and Planning Certainty
Schools and Universities
Manufacturing Knowledge
Service Contract Infrastructure Management
Technical Backend Providers: e.g. SAP
IP royalties / Commission
Bulk Purchases
???
Reputation and Awareness
Digital Sales Channel with DRM and wide Spread
Media Delivery
Apple on Campus ???
New Business Ideas
IP royalties
Microsoft, Google, etc.
Personal Data
Apple Platform
Price Premium (Hardware, Media and App Sales) Reputation
Comission App Purchases
Media Industries
Sales Platform
Seamless User Experience
Developer Community
Technical and Sales Training
Apple Users
Higher Margins : Apple Price Premium Enriched User Experience
Apple Communities
Goods & Services
Software Developers: e.g. Adobe
Broad Service Station Covering
Higher Margins via Apple Price Premium
Retail/Certified Partners: e.g. Gravis Official Accessory Manufacturers: e.g. Belkin
Money & Credits Information Intangible Value
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Customer
Supplier
Godfather
Competitor
Intermediary
Enabler
Financier
Provider of Content
Provider of Goods
Marketing & Communications
Provider of Services
Provider of Systems
Align and Balance Value Flows
Goods & Services
Goods & Services
Money & Credits
Money & Credits
Information
Information
Intangible Value
Intangible Value
Apple’s Business Ecosystem Hardware OEM's: e.g. Foxconn
Other Stakeholders Lowest Production Costs Sponsoring / Discounts High Volume and Planning Certainty
Schools and Universities
Manufacturing Knowledge
Service Contract Infrastructure Management
Technical Backend Providers: e.g. SAP
IP royalties / Commission
Core Value Proposition
Bulk Purchases
???
Reputation and Awareness
Digital Sales Channel with DRM and wide Spread
Media Delivery
Apple on Campus ???
New Business Ideas
IP royalties
Microsoft, Google, etc.
Complementary Offerings
Personal Data
Apple Platform
Price Premium (Hardware, Media and App Sales) Reputation
Comission App Purchases
Media Industries
Sales Platform
Seamless User Experience
Developer Community
Technical and Sales Training
Apple Users
Higher Margins : Apple Price Premium Enriched User Experience
Apple Communities
Goods & Services
Software Developers: e.g. Adobe
Broad Service Station Covering
Higher Margins via Apple Price Premium
Retail/Certified Partners: e.g. Gravis Official Accessory Manufacturers: e.g. Belkin
Supplying and Enabling Network
Money & Credits Information Intangible Value
55
Value Proposition(s)
y t ie
Transformation
m e st
Doing good
n o i t a s
Or ga ni
Ec os y
So c
Apple’s Shared Value Creation?
Us
Doing Well
r e
Value for Money
EcoE!ectiveness
Happieness
Profit
Belonging
Stability Core Values
Wealth
Shared Drivers Wellbeing
Value Framework Model by Elke den Ouden (2011)
Experience EcoFootprint
Sustainability
Social Responsibility Reciprocity
Meaningful Life
Livability of the Environment
Once again ...
“
Value propositions should be crafted: as a reciprocal exchange of value; described in terms of perceived benefits or reduced costs; transparent about to whom that value should flow and how; perceived as a fair exchange of value; delivered over a time frame longer than a single transaction; often co-created through interaction between two or more parties; and, congruent with the relationship objectives set for a particular market.
„
Ballantyne, Frow, Varey & Payne (2011)
57
Aha!
“
An end customer's value-in-use assessment is the culmination of a time-series of interactions, including value propositions and negotiated agreements as well as value-in-use determinations by various resource providers and integrators.
„
Ballantyne, Frow, Varey & Payne (2011)
58
Your Turn!
If you were Square ...
4 5 MI :0 NU 0 T ES
Image Credit: Š 2012 Square (http://squareup.com)
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STAY TUNED!
www.uservalue.de 61
Attributions “Gears” symbol by Dima Yagnyuk // "Type Desgin" symbol by Andrew J. Young // “Compass” symbol by Adam Whitcroft // “Refresh” symbol by Joris Hoogendoorn // “Pointer” symbol by ___Lo // “Speaker” symbol by Harold Kim // “Book” symbol by Ahmed Hamzawy // “Unlock” symbol by Ugur Akdemir // “Heart” symbol by John Caserta // “Like” symbol by Marwa Boukarim // “Letter” symbol by John Caserta // “Lock” symbol by Dave Tappy // “Cess” symbol by Alessandro Suraci // “Social Services” by Jack Biesek, Gladys Brenner, Margaret Faye, Healther Merrifield, Kate Keating, Wendy Olmstead, Todd Pierce, Jamie Cowgill, Jim Bolek // “Building” symbol by Antonis Makriyannis // “Brain” symbol by Arjun Adamson // “Building Block” symbol by Michael Rowe // “City” by inna belenkey // “Basket” symbol by Roman J. Sokolov // “Unlock” symbol by Ugur Akdemir // “Hand” symbol by Jakob Vogel as well as "Home" and "Umbrella" from The Noun Project collection. -----------------------------------------------------------------------------------------------------------------------------------------------------------Some References this Workshop/Presentation was based on: Arnould, E. J., Price, L., & Zinkhan, G. M. (2003). Consumers (2nd ed.). New York: McGraw-Hill/Irwin. Ballantyne, D., Frow, P., Varey, R. J., & Payne, A. (2011). Value propositions as communication practice: Taking a wider view. Industrial Marketing Management, 40, 202–210. doi: 10.1016/j.indmarman.2010.06.032. Boyle, D. (2011, November). More Than Money - Platforms for Exchange and Reciprocity in Public Services. Nesta UK. Retrieved October 11, 2012, from http://www.nesta.org.uk/blogs/assets/features/more_than_money. Diller, S., Shedro!, N., & Rhea, D. (2005). Making meaning: How successful businesses deliver meaningful customer experiences. New Riders. Drucker, P. F. (2007). The Essential Drucker. Butterworth-Heinemann. Frow, P., Payne, A., & Storbacka, K. (2011). Co-Creation: A Typology And Conceptual Framework. . Grönroos, C. (2011). Value co-creation in service logic: A critical analysis. Marketing Theory, 11(3), 279 –301. Holbrook, M. B. (1999). Consumer value: a framework for analysis and research. New York: Routledge. Kim, W. C., & Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston, Mass: Mcgraw-Hill Professional. Kumar, V. (2009). The Practice of Innovation Design in Process. Journal of Business Strategy, 30(2/3), 91–100. Ng, I. C. L., & Smith, L. A. (2012). An Integrative Framework of Value. Review of Marketing Research, 9, 207–243. Ouden, E. den. (2011). Innovation Design: Creating Value for People, Organizations and Society (1st ed.). Springer London. Porter, M. E., & Kramer, M. R. (2011). Creating Shared Value. Harvard Business Review, 89(February), 62–77. Shaw, C., & Ivens, J. (2002). Building Great Customer Experiences (First ed.). New York: Palgrave Macmillan. Smith, J., & Colgate, M. (2007). Customer Value Creation: A Practical Framework. The Journal of Marketing Theory and Practice, 15(1), 7–23. Verganti, R. (2009). Design Driven Innovation: Changing the Rules of Competition by Radically Innovating What Things Mean. Harvard Business Press. Woodall, T. (2003). Conceptualising “value for the customer”: an attributional, structural and dispositional analysis. Academy of Marketing Science Review, 2003(12), 1–42.
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Design-driven strategic business planning Jan Schmiedgen // Zwiestädter StraĂ&#x;e 7 // 12055 Berlin // +49 173 3 83 15 26 // kontakt@schmiedgen.eu
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