Collaborative networked organisations and customer communities: value co-creation and co-innovation in the networking era
TL;DR: In this article, the authors look at the network structures as a source of jointly value creation and open innovation through access to new skills, knowledge, markets and technologies by sharing risk and integrating complementary competencies.
Abstract: Strategic networks such as collaborative networked organisations (CNOs) and virtual customer communities (VCCs) show a high potential as drivers of value co-creation and co-innovation. Both look at the network structures as a source of jointly value creation and open innovation through access to new skills, knowledge, markets and technologies by sharing risk and integrating complementary competencies. This collaborative endeavour is able to enhance the adaptability and flexibility of CNOs and VCCs value creating systems in order to react in response to external drivers such as collaborative (business) opportunities. Strategic business networks are active entities continuously adapting to their environment in order to enhance their capabilities to respond to short-term business opportunities, and therefore allow their business ecosystems to follow the rhythm of industry dynamics, and customers’ changing needs and preferences. Value co-creation is the new trend in open-business models trying to integrate or...
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TL;DR: In this article, sustainable business models (SBM) incorporate a triple bottom line approach and consider a wide range of stakeholder interests, including environment and society, to drive and implement corporate innovation for sustainability, can help embed sustainability into business purpose and processes, and serve as a key driver of competitive advantage.
2,360 citations
Cites background from "Collaborative networked organisatio..."
...…network perspective (Allee, 2000; Garetti and Taisch, 2012; Prescott et al., 2002; Bocken et al., 2013) and collaborating across the value chain (Romero and Molina, 2011; Bocken and Allwood, 2012); industrial symbiosis (Chertow, 2000), and green business models (Høgevold, 2011; Barber et al.,…...
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..., 2013) and collaborating across the value chain (Romero and Molina, 2011; Bocken and Allwood, 2012); industrial symbiosis (Chertow, 2000), and green business models (Høgevold, 2011; Barber et al....
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30 Mar 2003
1,125 citations
01 Jan 2004
TL;DR: Prahalad and Ramaswamy as mentioned in this paper presented a framework for co-creation of value where customer is at the centre stage, and the authors have accomplished that with aplomb.
Abstract: THE FUTURE OF COMPETITION: CO-CREATING UNIQUE VALUE WITH CUSTOMERSC.K. Prahalad & Venkat RamaswamyThe authors - C.K. Prahlad and Venkat Ramaswamy, are known for their non-traditional approach and that has made possible to bring out this path breaking book. Unlearning age old management practices and understanding the changes that is sweeping the business world and giving a framework to the still evolving concept of co-creation of value where customer is at the centre stage is indeed a tough task. And authors have accomplished that with aplomb.Our industrial system is generating more goods and services than before but customer satisfaction remains low in spite of having overwhelming choices, profit level of companies is shrinking though many more decision making tools are at its disposal. What is going wrong and how to set this right? Companies are grappling with these issues and trying to fathom these problems. With the emerging technologies, customers are well informed, well connected with their peer groups and very active in their domain. Now customers have started playing dominant role in the value chain through co-creation of experience which enhances the value.The book can be divided into three distinct parts covering twelve chapters, highlighting future of competition and the role to be played by consumers, markets and companies. First six chapters develop the framework of consumers' role in the changing scenario. Early chapters give a brief account of the change that is taking place; how autonomy of companies in creating product value and satisfying consumers, is slowly and surely giving way to consumer-centric approach? How consumer and firm interact and co-create value, and how the cocreation experience becomes the very basis of value? The authors develop the co-creation experience framework in the subsequent chapters very cogently and lucidly. It goes like this, the co-creation experience depends highly on individuals. Each person's uniqueness affects co-creation process as well as co-creation experience. Dialogue, access, risk assessment and transparency (DART) are the building blocks of value co-creation process and companies use this to engage customer effectively as collaborator. In the domain of competition, co-creation experience plays the most important role in decision making. This process further gains momentum in the later chapters of first part as co-creation experience is shaped by dimensions such as choice of channels, options made available, quality of transaction and price-experience relationship. This experience will vary from consumer to consumer due to the different traits of individual. To ensure that the transaction between the consumer and the firm produces positive co-creation experience, the presence of an appropriate environment is imperative, authors develop this concept very carefully. This environments accommodate the heterogeneity of consumer and facilitate a variety of co-creation experience. In the present day world, emerging technology acts as an experience enabler, facilitating innovation in experience environment. With intense competition, sky high consumer expectation; consumer looks for uniqueness which is possible only through personalized co-creation experience. …
657 citations
TL;DR: In this article, the authors investigate the barriers that prevent SMEs from realising the benefits of the circular economy and identify several enabling factors that help SMEs adopt circular economy practices.
Abstract: Small and medium-sized enterprises (SMEs) are increasingly aware of the benefits of closing loops and improving resource efficiency, such as saving material costs, creating competitive advantages, and accessing new markets. At the same time, however, various barriers pose challenges to small businesses in their transition to a circular economy, namely a lack of financial resources and lack of technical skills. The aim of this paper is to increase knowledge and understanding about the barriers and enablers experienced by SMEs when implementing circular economy business models. Looking first at the barriers that prevent SMEs from realising the benefits of the circular economy, an investigation is carried out in the form of a literature review and an analysis of a sample of SME case studies that are featured on the GreenEcoNet EU-funded web platform. Several enabling factors that help SMEs adopt circular economy practices are then identified. The paper concludes that although various policy instruments are available to help SMEs incorporate circular economy principles into their business models, several barriers remain. The authors recommend that European and national policies strengthen their focus on greening consumer preferences, market value chains and company cultures, and support the recognition of SMEs’ green business models. This can be achieved through the creation of dedicated marketplaces and communities of practice, for example.
584 citations
Cites background from "Collaborative networked organisatio..."
...Confidentiality, lack of trust, and competition issues (along with competition legislation, as discussed earlier) inhibits the sharing of knowledge and product information among companies and forms a barrier to co-production, innovation, and the effective end-of-life management of products [46,47]....
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TL;DR: In this article, the authors conducted a systematic literature review from 1993 to 2016, with a hybrid methodology including bibliometric and content analysis, and identified a turning point in the literature, the transition from business ecosystem to innovation ecosystem.
383 citations
Cites background from "Collaborative networked organisatio..."
...Rong et al. (2013c), building on Lambert and Cooper (2000), state that supply chain management refers to a number of business processes, focusing on the exchange of information and the flow ofmaterials from suppliers to end users....
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References
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01 Jan 1998
TL;DR: Porter's concept of the value chain disaggregates a company into "activities", or the discrete functions or processes that represent the elemental building blocks of competitive advantage as discussed by the authors, has become an essential part of international business thinking, taking strategy from broad vision to an internally consistent configuration of activities.
Abstract: COMPETITIVE ADVANTAGE introduces a whole new way of understanding what a firm does. Porter's groundbreaking concept of the value chain disaggregates a company into 'activities', or the discrete functions or processes that represent the elemental building blocks of competitive advantage. Now an essential part of international business thinking, COMPETITIVE ADVANTAGE takes strategy from broad vision to an internally consistent configuration of activities. Its powerful framework provides the tools to understand the drivers of cost and a company's relative cost position. Porter's value chain enables managers to isolate the underlying sources of buyer value that will command a premium price, and the reasons why one product or service substitutes for another. He shows how competitive advantage lies not only in activities themselves but in the way activities relate to each other, to supplier activities, and to customer activities. That the phrases 'competitive advantage' and 'sustainable competitive advantage' have become commonplace is testimony to the power of Porter's ideas. COMPETITIVE ADVANTAGE has guided countless companies, business school students, and scholars in understanding the roots of competition. Porter's work captures the extraordinary complexity of competition in a way that makes strategy both concrete and actionable.
17,979 citations
"Collaborative networked organisatio..." refers background in this paper
...As a result, the fundamental logic of value creation based on sequential value chains (Porter 1985) is changing into value networks (Haglind and Helander 1998, Mariotti 2002) capable of redesigning their value and therefore reshuffle their structural, technological, financial and human assets…...
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Book•
01 Jan 1985
TL;DR: Porter's concept of the value chain disaggregates a company into "activities", or the discrete functions or processes that represent the elemental building blocks of competitive advantage as mentioned in this paper, has become an essential part of international business thinking, taking strategy from broad vision to an internally consistent configuration of activities.
Abstract: COMPETITIVE ADVANTAGE introduces a whole new way of understanding what a firm does. Porter's groundbreaking concept of the value chain disaggregates a company into 'activities', or the discrete functions or processes that represent the elemental building blocks of competitive advantage. Now an essential part of international business thinking, COMPETITIVE ADVANTAGE takes strategy from broad vision to an internally consistent configuration of activities. Its powerful framework provides the tools to understand the drivers of cost and a company's relative cost position. Porter's value chain enables managers to isolate the underlying sources of buyer value that will command a premium price, and the reasons why one product or service substitutes for another. He shows how competitive advantage lies not only in activities themselves but in the way activities relate to each other, to supplier activities, and to customer activities. That the phrases 'competitive advantage' and 'sustainable competitive advantage' have become commonplace is testimony to the power of Porter's ideas. COMPETITIVE ADVANTAGE has guided countless companies, business school students, and scholars in understanding the roots of competition. Porter's work captures the extraordinary complexity of competition in a way that makes strategy both concrete and actionable.
13,593 citations
Journal Article•
TL;DR: In today's fast-changing competitive environment, strategy is no longer a matter of positioning a fixed set of activities along that old industrial model, the value chain, but of reconfigure roles and relationships among a constellation of actors in order to mobilize the creation of value by new combinations of players.
Abstract: In today's fast-changing competitive environment, strategy is no longer a matter of positioning a fixed set of activities along that old industrial model, the value chain. Successful companies increasingly do not just add value, they reinvent it. The key strategic task is to reconfigure roles and relationships among a constellation of actors - suppliers, partners, customers - in order to mobilize the creation of value by new combinations of players. What is so different about this new logic of value? It breaks down the distinction between products and services and combines them into activity-based "offerings" from which customers can create value for themselves. But as potential offerings grow more complex, so do the relationships necessary to create them. As a result, a company's strategic task becomes the ongoing reconfiguration and integration of its competencies and customers. The authors provide three illustrations of these new rules of strategy. IKEA has blossomed into the world's largest retailer of home furnishings by redefining the relationships and organizational practices of the furniture business. Danish pharmacies and their national association have used the opportunity of health care reform to reconfigure their relationships with customers, doctors, hospitals, drug manufacturers, and with Danish and international health organizations to enlarge their role, competencies, and profits. French public-service concessionaires have mastered the art of conducting a creative dialogue between their customers - local governments in France and around the world - and a perpetually expanding set of infrastructure competencies.
2,168 citations
"Collaborative networked organisatio..." refers background in this paper
...In other words, the underlying strategic goal is to create an ever-improving fit between organisations’ competencies and customers’ needs (Normann and Ramirez 1993)....
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...…symbiotic business ecosystem in which organisations and customers interact in dynamic and reciprocal relations towards their commitment in the process of co-producing offerings: products, services and experiences, in a mutually beneficial producer/ customer relationship (Normann and Ramirez 1993)....
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TL;DR: In this article, the authors developed a utility-based model of the relationship between customer satisfaction and word of mouth and found that dissatisfied customers engage in more or less word-of-mouth than satisfied customers.
Abstract: Do dissatisfied customers engage in more or less word of mouth than satisfied customers? There is theoretical and empirical support for both possibilities. To better understand this issue, the authors developed a utility-based model of the relationship between customer satisfaction and word of mouth. The hypothesized functional form-an asymmetric U-shape-cannot be rejected based on data from the United States and Sweden. In addition, the estimation results based on the two samples are similar, suggesting that the proposed relationship is generalizable. The findings also indicate that although dissatisfied customers do engage in greater word of mouth than satisfied ones, common suppositions concerning the size of this difference appear to be exaggerated.
1,981 citations
"Collaborative networked organisatio..." refers background in this paper
...…alternative communication channels (e.g. interactive Websites) and innovative marketing strategies like: ‘viral marketing’ – e.g. online word-of-mouth (Anderson 1998, Wilson 2000, Subramani and Rajagopalan 2003), ‘event marketing’ – e.g. promotion of interactive conventions (Melnick and Wamm…...
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...…to become codesigners of their products and services (Sawhney et al. 2003, Fiore et al. 2004, Foray 2004, Piller et al. 2005); sales and marketing initiatives through viral marketing strategies (Anderson 1998, Subramani and Rajagopalan 2003) and branding strategies through *Corresponding author....
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TL;DR: Jenny Preece provides readers with an in-depth look at the design of effective online communities and details the enabling technologies behind some of the most successful online communities.
Abstract: From the Publisher:
Learn the enabling technologies behind some of the most successful online communities
Although the Internet has grown considerably, people are still looking for more effective methods of communicating over it. This has become a hot topic among Web developers as they look for new enabling technologies. Well-respected author Jenny Preece provides readers with an in-depth look at the design of effective online communities. She evaluates these communities and then details the enabling technologies. Analysis is also included to explain what these technologies are capable of doing and what they actually should do.
Companion Web site contains a forum for discussions on experiences setting up and running online communities
1,973 citations
"Collaborative networked organisatio..." refers background in this paper
...Virtual communities are ‘groups of people who use communication technologies for repeated social interaction to meet certain needs’ (Preece 2000)....
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...Virtual communities are ‘groups of people who use communication technologies for repeated social interaction to meet certain needs’ (Preece 2000 )....
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