Showing papers on "Value proposition published in 2001"

The loyalty effect : the hidden force behind growth, profits, and lasting value

Abstract: The virtues and value of loyalty the economics of customer loyalty the right customers the right employees productivity the right investors in search of failure the right measures transforming the value proposition partnerships for change getting started - the path toward zero defections.

Diagnosing Customer Value: Integrating the Value Process and Relationship Marketing

Abstract: The concept of value and, more specifically, customer value is of increasing interest to both academics and practitioners. This paper undertakes a substantial review of past and current literature on value and categorizes this considerable body of research into nine streams of literature. Building on the emerging relationship marketing paradigm, it then proposes a framework for relationship value management. Nine core streams of value literature are identified and discussed: consumer values and consumer value; the augmented product concept; customer satisfaction and service quality; the value chain; creating and delivering superior customer value; the customer's value to the firm; customer-perceived value; customer value and shareholder value; and relationship value. To date, the core focus of most of this literature has been on the nature of value from the perspective of the organization and its customers – the customer–supplier relationship. However, it is argued that the emergence of the relationship marketing paradigm has emphasized the role of other stakeholders in building relationships. An existing multiple stakeholder model of relationship marketing, the six markets model, is introduced and is integrated with key concepts from the value literature to produce a conceptual framework for relationship value management.

Making Solutions the Answer

Abstract: Many companies hard-pressed to maintain their margins through products alone are turning to 'solutions.' But to succeed, they must not only embrace competitors but also often turn away existing customers. In all sorts of industries, companies that traditionally have made and sold stand-alone products are changing their strategies. They are creating high-value solutions by integrating various products and services--even merging the supplier's and the customer's operations--to solve a complete customer problem. IBM, for example, rakes this approach when it builds and runs the entire infrastructure of a business-to-business e-marketplace for the chemical industry. Solutions are proving lucrative for many companies, even as the profitability and growth of their products have come under pressure. In the case of IBM, $38 billion of its revenue--43 percent of the total--now comes from the solutions--related businesses it has developed since the early 1990s. The market rewards this growth generously, seeing it as durable shareholder value built upon hard-to-copy capabilities, light capital investment, and customization that resists commoditization. Thus IBM improved its market-to-book ratio by 600 percent between 1990 and 1999. [1] Getting it right But it is mighty hard to get solutions right, and many companies fall far short in the attempt. Throughout the 1990s, Xerox promoted itself as a "documents solutions" company but struggled to execute successfully in making the transition. Hewlett-Packard wrestled with three attempts over a decade to integrate its full range of products and technical capabilities into customer solutions. One company that is currently trying to make the transition is Cummins India Limited (CIL), a subsidiary of US-based Cummins. CIL has long dominated the market for diesel engines in India. In the late 1990s, when the opening up of the Indian economy began to dent CIL's profit margins, the company started to develop solutions: commercial customers were provided with dependable backup power, for example, to cope with the country's unreliable electricity grid. CIL'S managers and engineers had concentrated for decades purely on the performance of the company's diesel engines; now these are just one part of its new solutions, for which the management imperative is to integrate a number of products and services. CIL'S chief executive officer, Ravi Venkatesan, says that his organization must "cross a chasm." Why is it so difficult to make the shift? The trouble is that the very strengths of a good product-focused business can hinder its efforts to become a successful solutions provider. Companies, like IBM, that have succeeded with solutions-and those, like CIL, that are still grappling with them- have taken some profound strategic actions that go against the grain of existing product businesses. Four actions stand out. Build value propositions for customer outcomes When product-based companies develop their value propositions, they generally start with the products they have and match those products to the customers' needs. If a customer wants something new, a product feature is added or a new product developed. At CIL, product managers might redesign an engine part to improve its reliability or add a new engine model with a horsepower rating suited to a certain application. But the nature and range of the needs that can be met are ultimately bound by what can be embedded in the product itself. In developing value propositions for solutions, a different approach is required. Managers start not with a product but with a desired outcome for a customer--an outcome that could encompass a whole range of needs. For CIL's power solutions customers, the desired outcome of uninterruptible power depends on far more than a reliable engine. The solutions manager must understand each customer's operating economics to determine the value of uninterruptible power, pull together all the components of the required generator system, work it into a customer's operating environment, and develop maintenance and testing programs. …

Revisiting public information management for effective e‐government services

Abstract: Governments are employing modern information and communication technologies to serve society better. Raising the effectiveness and quality of government services is not only a matter of new technologies; it also involves clear vision and objectives as well as a sound business strategy. Information systems need to support internal work within a government’s boundaries, serve customers through digital interfaces and leverage digital relationships among social partners. To implement such systems, preparatory work is required in both organization and technology. A new public information management philosophy underlies this significant revamping of the value propositions made to customers. The ongoing enrichment of the Greek Ministry’s of Finance e‐services follows an ICDT‐like business logic. A key factor of all these advances is the re‐orientation of information systems for customer‐centric service.

The other end of the supply chain

Abstract: By tweaking the demand-supply chain, suppliers can offer their customers completely new value propositions and improve their own operations- without having to weigh the benefits of customer service against its cost.

Towards joint value creation processes in professional services

Abstract: Studies customer relationships in professional services. A framework is proposed for managing professional service relationships in a way that creates value for both parties of the relationship. Furthermore, through the framework the marketer is able to discover also those customer needs that the customer itself is not even aware of. The framework and the benefits of joint value creation are illustrated through a case study of an organisation providing learning and personnel development services.

Integrating demand and supply chain management

Abstract: SUBTITLE: SOME COMPANIES CONCENTRATE ON UPGRADING THEIR SUPPLY CHAIN OPERATIONS. OTHER FOCUS MORE ON THE DEMAND SIDE, SEEKING TO IMPROVE THE CUSTOMER RELATIONSHIP PROCESSES. YET THE REAL KEY TO MARKET SUCCESS IS TO EFFECTIVELY INTEGRATE THE TWO INITIATIVES. BY DOING SO, YOU CAN OFFER CUSTOMERS GREATLY ENHANCED VALUE PROPOSITION. AND THIS, IN TURN, LEADS TO NEW LEVELS OF PROFITABILITY AND ASSET RETURN.

A methodology for creating e-business strategy

Abstract: In the "now" economy, knowledge, trust, technology, and the relationships among stakeholders are the keys to success. Although for almost eighty years, strategy literature stated that these concepts are important, we were not in a position to effectively leverage and/or effectively execute knowledge and relationship management in real time until the turn of the twenty-first century. Many companies have not yet adjusted the way they work to the capabilities of the present-day knowledge management and technology enablers. Also widespread is the fact that companies have not yet developed methodologies or models to create e-business strategy to support corporate strategies, or to monitor the success of an e-business strategy. The paper develops a methodology to create e-business strategy based on a simple e-business model for e-business. The primary stakeholders are the customer, operational partner, strategic partner, governance, and community. The value propositions for each stakeholder is outlined, and questions that business should ask are provided to guide in developing the e-business strategy. A sample mini-case study is developed to illustrate application of the methodology. This methodology supports the eBizReadiness!/sup TM/ framework which details infrastructure requirements for e-business.

Delivering business critical information systems though application service providers: the need for a market segmentation strategy

Abstract: This paper draws from the findings of a large-scale empirical research program on the global application service provider (ASP) industry funded by research grants from the European Commission (EC) and the Engineering and Physical Sciences Research Council (EPSRC). A conceptual framework consisting of a taxonomy of ASPs is used to demonstrate the different market segmentation strategies adopted by ASPs for competing in this fledgling and turbulent industry. Drawing from empirical research carried out in the US and Europe, the paper evaluates ASP strategies for deploying, hosting, managing and enabling software applications on behalf of their customers. The ASP business model is advocated as an attractive value proposition for SMEs, dot.com companies and other start-up firms seeking hyper-growth. Yet the evidence so far suggests a slow start to the ASP market as few reference sites demonstrating best practice exist. ASPs will therefore need to re-evaluate their strategies if they are to convince potential customers of the benefits of application outsourcing. Against this background, the paper evaluates the benefits and risks of the ASP model.

Becoming a digital business: ‐ it’s not about technology

Abstract: Many senior executives equate “going digital” with specific phenomena such as the advent of the personal computer, the proliferation of e‐mail, the growth of enterprise resource planning systems, or the popularity of the Internet. But to think of digital business design as the sum total of the high‐tech innovations multiplying around us is a fatally incomplete view. The discipline of digital business design is about serving customers, creating unique value propositions, leveraging talent, achieving order‐of‐magnitude improvements in productivity, and increasing and protecting profits. Learn from the companies that have created great value propositions for customers and employees, achieved significant improvements in productivity, created a robust profit model, and protected both their profit streams and their customer relationships from being eroded by competitors.

The value matrix and its evolution

Abstract: This paper proposes a framework that offers a set of guidelines on how an organisation could align, direct, and manage its capabilities to create and manage value. The value propositions directly align the corporate objectives and core competencies to the customer's expectations. The six value propositions of the value matrix have evolved creating the value cube. The paper addresses three case studies. The first two cases illustrate the importance of using the correct units of analysis. The last case demonstrates the use of the value cube to achieve the value proposition that the organisation wants to be to create value.

Method and system for generating a value proposition for a company in an industry

Abstract: A method and system for generating a value proposition for a company in an industry is provided. Specifically, under the present invention, operational metrics and possible solutions are identified for the industry. Then, the impacts of the solutions on the operational metrics are assessed. Once the impacts have been assessed, a current operational performance of the company is compared to an operational performance of one or more companies within the industry to expose performance gaps. Then, a value proposition is generated by identifying a solution based the impacts to address the exposed performance gaps.

Six Chasms in Need of Crossing

Abstract: The gulf between visionary early adopters of new technologies and the pragmatists who make up the mainstream technology market was made famous by Geoffrey A. Moore in his book "Crossing the Chasm." But strategists who focus on that chasm alone will miss others that loom ahead and present significant challenges. In "Six Chasms in Need of Crossing," Babson College associate professor of marketing Anirudh Dhebar calls attention to the other gaps that business leaders must bridge if they are to implement new technology and achieve long-term success in the marketplace. Dhebar argues that changing business models can be as difficult as crossing the chasm between early and mainstream markets. This may also be true when moving from an existing technology to one that is improved but incompatible ? or from an existing technology to one that is not initially seen by current customers as an improvement (what management educator and author Clayton Christensen calls a disruptive technology). Transitioning from a product created as an expedient, short-term fix for a customer problem to a product designed to be a strategic, long-term solution is another potential imperative However, it is the chasm between established ways of thinking and fundamentally new business paradigms that is perhaps the most pervasive. Dhebar encourages managers and academics alike to take account of the broader spectrum of chasms, and he provides guidelines for crossing the chasms impeding technological progress and marketplace success. The guidelines include encouraging imagination in order to see and embrace alternatives to current realities, giving new ideas a fair hearing, working with suppliers of complementary products to build the infrastructure to support new kinds of products ? and developing markets that value the performance and value proposition of disruptive technologies.

Innovation in communication: The experience of a specialist healthcare communication management consultancy

Abstract: Communication, or the process of transferring understanding of ideas and products, is complex. This is particularly true in an area where jargon is rife (science, scientific research and development, scientific marketing, and management of scientific/technical staff) and new terminology increases exponentially as the rate of innovation gathers pace. The purpose of this paper is to explain how the authors’consultancy has in the past adopted and is currently adopting innovative planning and implementation techniques in the communication process. Such adoption of new techniques is a response to an environment where information overload and information stress are increasing. There is a need for techniques that generate optional approaches for uncertain futures, clarify and define purpose, and assess possible risks associated with approaches and actions. Techniques have been adapted from management practice and interaction with a range of associates from the management specialities of marketing, human resources, information systems and information technology. Examples are given of the use of scenario (futuristic) planning to establish optional approaches, the use of the value proposition to focus messages and align terminology, and the use of risk assessment tools such as probability impact graphics.

E-Business Planning Audit: Helping Businesses Make Good on the Promises and Avoiding the Pitfalls of Electronic Business

Abstract: Moving at harrowing speeds, businesses have been created and destroyed in the tumultuous e-conomy. The topic of e-business has been a major focus of all businesses as they strive to determine what is the best approach to developing a profitable e-business application. Given the results of the stock market and the number of dot-com companies going out of business during the year 2000 and first half of 2001, it is clear that businesses need to better plan for their electronic business ventures. This paper proposes an e-Business Planning Audit to help managers and entrepreneurs better plan the launching of new electronic applications. Drawing upon traditional planning audits from the academic and trade press literature, the proposed audit involves a comprehensive tool to guide e-business development from concept development through implementation. "It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of light, it was the season of darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us." Tale of Two Cities, Charles Dickens The above quote seems to be an apt description for the e-commerce environment today. In a relatively short time, e-commerce has achieved some of the highest of highs, thought to be bullet-proof to the vagaries of the old economy and rewriting the rules of business as previously accepted, to the lowest of lows. The latter half of the year 2000 brought the dot-com party to an end and the sobering reality that there was more to this business than having a web site and a few fancy computers. In some respects, e-commerce has become a much more complex business, given the speed with which dot-com businesses can be up and running. Traditionally businesses evolved slowly, taking time to develop their capabilities and customer base, and establish their value proposition and distribution infrastructure. However, in the virtual world, ideas can be put into action before thinking through the value proposition and distribution or logistics. While there has been much excitement over operating in cyberspace, some businesses have entered into e-business too quickly. In a recent interview with eCompany, Barry Diller, Chairman and CEO of USA Networks, said, A lot of companies were out there running a race where the winner didn't win anything. Many dot-coms have not had the chance to properly develop, capitalize, or establish a customer base. Businesses have rushed to the virtual marketplace in order to be first. Armed with a web site and venture capital, adequate planning was sacrificed for immediate operations. When asked what his biggest mistake was, Marc Schiller, co-founder and CEO of ElectricArtists, responded (eCompany, 2001), Not evaluating every aspect of our business often enough. We should have, every month, dissected our business from the top down, but we were moving much too fast. Some existing businesses, however, moved slowly, hesitant to proceed into this new environment given their lack of expertise. This is not a bad move for an existing business according to Richard Branson, Chairman and founder of Virgin Group PLC (eCompany, 2001). Branson advises that for some existing businesses it makes sense to, hold off until someone else has it right. If you have a strong brand, you should do well. Both types of businesses could benefit from conducting an e-business audit to help develop a sound business strategy before implementation. Currently, there are few tools to help business owners, managers and entrepreneurs to evaluate their abilities to engage in e-commerce. Some of the tools that do exist are proprietary to e-business consultants (i.e. Forrester Research), and others are published in trade books (Hartman and Sifonis, 2000). …

Knowledge Management at the DaimlerChrysler Corporate University

Abstract: During the past two years the DaimlerChrysler Corporate University has been responsible for organizing Corporate Knowledge Management initiatives. [1] The present chapter focuses on practical issues regarding the organization, support, and impact of such initiatives. It intends to provide interested readers with implementation ideas that may be easily adapted to their respective business environments. In particular, the chapter tells you why the Corporate University took charge of Knowledge Management initiatives, how it supports them, and what comprises the university’s value proposition. The chapter ends with a vision for the university’s future role in a business environment that is characterized by the integration of Knowledge Management with E-learning and E-business activities.