Disclosing Shared Value in Business Ecosystems

Page 1

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

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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

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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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»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

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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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»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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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)

38


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)

38


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 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)

40


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)

48


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

50


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

51


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

52


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)

60


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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