Showing papers on "Value proposition published in 2006"

Social and Commercial Entrepreneurship: Same, Different, or Both?

Abstract: This study undertakes an analytical comparisonbetween social and commercial entrepreneurship using a model from commercialentrepreneurship. It is an exploratory analysis of the extent that elementsapplicable to commercial entrepreneurship are transferable to socialentrepreneurship. Conversely, it explores the ways insights from social entrepreneurship canilluminate an understanding of commercial entrepreneurship. Socialentrepreneurship can be defined broadly or narrowly, but the authors define itas an innovative, social-value creating activity that can occur within oracross the nonprofit, business, or government sectors. The comparative analysis is guided by four theoretical propositions focusingon four variables: (1) market failure, (2) mission, (3) human and financeresource mobilization, and (4) performance measurement. These will createdifferences between social and commercial entrepreneurs. A commercial entrepreneurship model is proposed in order to approach thesocial entrepreneurship process more systematically and effectively. This modelstresses the dynamic fit among the people, the context, the deal, and theopportunity. For each element, the similarities and differences between socialand commercial entrepreneurship are examined. The analysis draws out lessonsuseful for both social and commercial entrepreneurs. Finally, a revised social entrepreneurship model is proposed. At the centeris a Venn diagram in which the intersection of opportunity, capital, and peopleis a core social value proposition. Surrounding the Venn diagram are the tax,regulatory, sociocultural, macroeconomy, political, and demographics forces. Todeliver the social value proposition effectively, all components must achieve astate of alignment. (TNM)

Customer value propositions in business markets

Abstract: Examples of consumer value propositions that resonate with customers are exceptionally difficult to find. When properly constructed, value propositions force suppliers to focus on what their offerings are really worth. Once companies become disciplined about understanding their customers, they can make smarter choices about where to allocate scarce resources. The authors illuminate the pitfalls of current approaches, then present a systematic method for developing value propositions that are meaningful to target customers and that focus suppliers' efforts on creating superior value. When managers construct a customer value proposition, they often simply list all the benefits their offering might deliver. But the relative simplicity of this all-benefits approach may have a major drawback: benefit assertion. In other words, managers may claim advantages for features their customers don't care about in the least. Other suppliers try to answer the question, Why should our firm purchase your offering instead of your competitor's? But without a detailed understanding of the customer's requirements and preferences, suppliers can end up stressing points of difference that deliver relatively little value to the target customer. The pitfall with this approach is value presumption: assuming that any favorable points of difference must be valuable for the customer. Drawing on the best practices of a handful of suppliers in business markets, the authors advocate a resonating focus approach. Suppliers can provide simple, yet powerfully captivating, consumer value propositions by making their offerings superior on the few elements that matter most to target customers, demonstrating and documenting the value of this superior performance, and communicating it in a way that conveys a sophisticated understanding of the customer's business priorities.

Service-Oriented Computing Research Roadmap

Abstract: Summary Service-Oriented Computing (SOC) is a new computing paradigm that utilizes services as the basic constructs to support the development of rapid, low-cost and easy composition of distributed applications even in heterogeneous environments. The visionary promise of Service-Oriented Computing is a world of cooperating services where application components are assembled with little effort into a network of services that can be loosely coupled to create flexible dynamic business processes and agile applications that may span organisations and computing platforms. SOC is being shaped by, and increasingly will help shape, modern society as a whole, especially in the areas of dynamic and ondemand business and education, health and government services. The subject of SOC is vast and enormously complex, spanning many concepts and technologies that find their origins in diverse disciplines that are woven together in an intricate manner. In addition, there is a need to merge technology with an understanding of business processes and organizational structures, a combination of recognizing an enterprise's pain points and the potential solutions that can be applied to correct them. The material in research spans an immense and diverse spectrum of literature, in origin and in character. As a result research activities at both worldwide as well as at European level are very fragmented. This necessitates that a broader vision and perspective be established—one that permeates and transforms the fundamental requirements of complex applications that require the use of the SOC paradigm. This will further enhance the value proposition of ServiceOriented Computing and will facilitate the formulation of a Services Research Roadmap leading to more effective and clearly inter-related solutions and better exploitation of research results. This document provides the necessary background for deciding on potential future research programmes in SOC and places on-going research activities and projects in the broader context of a SOC Roadmap. This research roadmap launches four pivotal, inherently related, research themes to SOC: service foundations, service composition, service management and monitoring and service-oriented engineering. The viewpoints presented in this document partly result from intensive discussions experts with various backgrounds led in parallel workgroup and in plenary sessions that took place during the International Dagstuhl Seminar on Service-Oriented Computing held November 15-18, 2005, in Schloss Dagstuhl, Wadern. Each theme is introduced briefly from a technology, state of the art and scientific challenges standpoint. From the technology standpoint a comprehensive review of state of the art, standards, and current research activities in each key area is provided. From the state of the art the major open problems and bottlenecks to progress are identified. Several of these obstacles arise due to the current lack of interdisciplinary research in the field, which is considered to be a major impediment that limits added economic growth through deployment and use of services technology. Finally, the scientific challenges that tackle the found obstacles are formulated. These are long-term visions that serve as integration platforms and demonstrators for an holistic approach to Service Oriented Computing in the identified key areas. These future research activities form a sound background for deciding on potential future programmes in SOC.

Building Collaborative Innovation Capability

Abstract: OVERVIEW:Product innovation and supply chain process innovation efforts have traditionally been managed as separate activities. Today, collaborative innovation approaches seek to integrate them. The effect is to fully develop and exploit supply chain capabilities, radically improving the value propositions materialized by products. However, the advent of collaborative innovation is hampered by limitations in supporting processes and infrastructure. Technical and organizational barriers frequently make higher levels of collaboration difficult. Fortunately, new management approaches and information technology solutions can help firms overcome these barriers. In particular, emerging product life-cycle management (PLM) systems offer important tools for overcoming barriers associated with distance, access, lack of institutional memory, and awareness. Successful leveraging of these systems, however, usually requires changes in organizational values, processes and metrics.

How to implement a new strategy without disrupting your organization.

Abstract: Throughout most of modern busi ness history, corporations have attempted to unlock value by matching their structures to their strategies: Centralization by function. Decentralization by product category or geographic region. Matrix organizations that attempt both at once. Virtual organizations. Networked organizations. Velcro organizations. But none of these approaches has worked very well. Restructuring churn is expensive, and new structures often create new organizational problems that are as troublesome as the ones they try to solve. It takes time for employees to adapt to them, they create legacy systems that refuse to die, and a great deal of tacit knowledge gets lost in the process. Given the costs and difficulties involved in finding structural ways to unlock value, it's fair to raise the question: Is structural change the right tool for the job? The answer is usually no, Kaplan and Norton contend. It's far less disruptive to choose an organizational design that works without major conflicts and then design a customized strategic system to align that structure to the strategy. A management system based on the balanced scorecard framework is the best way to align strategy and structure, the authors suggest. Managers can use the tools of the framework to drive their unit's performance: strategy maps to define and communicate the company's value proposition and the scorecard to implement and monitor the strategy. In this article, the originators of the balanced scorecard describe how two hugely different organizations--DuPont and the Royal Canadian Mounted Police-used corporate scorecards and strategy maps organized around strategic themes to realize the enormous value that their portfolios of assets, people, and skills represented. As a result, they did not have to endure a painful series of changes that simply replaced one rigid structure with another.

An empirical investigation of web site use using a commitment-based model

Abstract: Companies throughout industry are interested in retaining existing customers, because customers' continuous consumption of products and services is critical to the long-term value propositions of most organizations. Thus, decision-making strategies that promote continuous use and customer retention are of research interest, both theoretically and practically. In the present research, we investigate one important area of continuous usage, that of Web site use. In particular, we use several theories of commitment to understand how an individual's decision to continue to use a Web site is influenced by his or her commitment toward that Web site and the vendor that supports it. Results derived from data collected from 335 users of a variety of Web sites indicated that affective commitment, calculative commitment, quality of alternatives, and trust were significantly associated with an individual's behavioral intention to continue to use a Web site. Implications for customer retention and decision-making strategies are discussed.

Manage customer-centric innovation--systematically.

Abstract: No matter how hard companies try, their approaches to innovation often don't grow the top line in the sustained, profitable way investors expect. For many companies, there's a huge difference between what's in their business plans and the market's expectations for growth (as reflected in firms' share prices, market capitalizations, and P/E ratios). This growth gap springs from the fact that companies are pouring money into their insular R&D labs instead of working to understand what the customer wants and using that understanding to drive innovation. As a result, even companies that spend the most on R&D remain starved for both customer innovation and market-capitalization growth. In this article, the authors spell out a systematic approach to innovation that continuously fuels sustained, profitable growth. They call this approach customer-centric innovation, or CCI. At the heart of CCI is a rigorous customer R&D process that helps companies to continually improve their understanding of who their customers are and what they need. By so doing, they consistently create or improve their customer value proposition. Customer R&D also focuses on better ways of communicating value propositions and delivering the complete experience to real customers. Since so much of the learning about customers and so much of the experimentation with different segmentations, value propositions, and delivery mechanisms involve the people who regularly deal with customers, it is absolutely essential for frontline employees to be at the center of the CCI process. Simply put, customer R&D propels the innovation effort away from headquarters and the traditional R&D lab out to those closest to the customer. Using the example of the luggage manufacturer Tumi, the authors provide a step-by-step approach for achieving true customer-centric innovation.

Customer loyalty programs: are they fair to consumers?

Abstract: Purpose – The purpose of this paper is to examine the fairness of loyalty programs to consumers regarding two emerging criticisms of loyalty programs: discriminating value proposition segmentation and potential exploitation of captured personal information.Design/methodology/approach – Equity theory and exchange theory are the theoretical foundations used for evaluation of the aspects of loyalty program fairness.Findings – First, through the application of equity theory, firms can more effectively recognize and reward more valuable customers without alienating less valuable customers. Second, through the use of exchange theory, firms can secure authorization to collect and use individual customer information from customers in exchange for enhanced value proposition offerings via loyalty programs. Loyalty programs can induce customers to give up their personal information in exchange for benefits they would not otherwise receive. Marketers use the higher level of benefits available through loyalty programs...

Customer Value Chain Analysis

Abstract: Customer Value Chain Analysis (CVCA) is an original methodological tool that enables design teams in the product definition phase to comprehensively identify pertinent stakeholders, their relationships with each other, and their role in the product’s life cycle. By performing CVCA, design teams are better able to recognize diverse product requirements and their relative priority when undertaking Product Definition Assessment and using downstream ‘Design for X’ (DfX) tools. This paper discusses the evolution of the CVCA in response to the need for a DfX tool which is able to delineate customer needs early in the product development process. A step-by-step guide clarifies the implementation of CVCA with an example. Three case studies highlight the tool’s broad utility and important features to support design decision making, including: (1) confirmation of the product’s business model, (2) recognition of the critical stakeholders, and (3) clarification of the value proposition to be embedded in the product.

Why small retailers endure in Latin America

Abstract: Purpose – To understand the drivers behind small‐scale retailers' collective success, even after a decade of sustained growth of the “modern” retail sector in Latin America.Design/methodology/approach – The study described in this paper was sponsored by the Coca‐Cola Retailing Research Council – Latin America. Consumer research for this study was based both on primary and secondary sources. To understand the drivers behind small‐scale retailers' collective success, standard frameworks were adapted for evaluating their value proposition and business model. Customer‐facing value drivers were examined along with selected ratios from the strategic resource model.Findings – In spite of being “poor,” emerging consumers have a substantial purchasing power as a group. They work with a very specific set of products, categories and store format needs that distinguish them from other consumers. These distinct needs imply that it is not “just a matter of money and time” for them to change their purchasing patterns ov...

Creativity is not enough: ICT‐enabled strategic innovation

Abstract: Purpose – To show how information and communication technologies (ICTs) could help a company implement radical new strategies.Design/methodology/approach – Generalizations are made based on 20 case studies of companies that strategically innovated in their industries by introducing radical new business models. Several of these cases are used in the paper to highlight the points made.Findings – The paper shows that ICT enables firms to: reach consumers that most competitors cannot serve profitably; offer radically new value propositions to consumers that other firms cannot deliver in a cost‐efficient way; and put in place value chains that no other firm could do efficiently. ICT also allows strategic innovators to scale up their business models quickly and so protect themselves from competitive attacks.Originality/value – This paper shows that coming up with a radical business model that breaks the rules of the game in an industry is easy! The difficult part is to implement such radical strategies in the m...

Strategic Innovation at the Base of the Economic Pyramid

Abstract: Much has been written about strategic innovators – companies that develop radical new strategies to attack entrenched competitors and create new markets in the process [Bower and Christensen (1995); Hamel (1996 and 2000); Kim and Mauborgne (1997), Markides (1997), Govindarajan and Trimble (2006)]. These organisations achieve their success by moving beyond industry norms or ‘sustaining’ innovations to achieve some form of architectural or business model innovation, thereby disrupting established competitors and generating value for themselves, their customers and their shareholders [Christensen, (1997); Markides, (1998)]. A significant enabler of strategic innovation in recent years has been the emergence of information and communication technologies that have reduced transaction costs and accelerated the exploitation of architectural innovation at the industry level (Anderson & Markides, 2006). As already proposed by Derek Abell (1980) in his seminal work on the subject, all companies in an industry develop their strategies on the basis of the answers that they give to three key questions: Who should we target as customers; What products/services and what value propositions to offer the chosen customers; and How to offer these products/services in a cost-efficient way. Strategic innovation takes place when a company identifies

A value based approach to management

Abstract: Purpose – The paper aims to present a three‐step approach that enables companies to define and quantify what customers value, systematically deploy their resources to deliver greater value than the competition, and capture a greater share of the value delivered to customers.Design/methodology/approach – Each of the three the three steps in the value creation cycle is examined, and the tools and approaches that leading companies use to maximize shareholder wealth are outlined.Findings – A customer‐value based approach to management can help companies instill a fact‐based decision‐making process in the enterprise. This promotes faster growth through differentiated customer investment. It ensures that the highest return initiatives are prioritized. Enterprises using this disciplined three‐step approach will be well positioned to better understand value potential, creating value, delivering value, and managing their market position to maximize the value they capture.Originality/value – Mastering the value cyc...

Public diplomacy and global business

Abstract: Purpose – The purpose of the article is to set the broader conceptual context for the exploration of the role of business in public diplomacy in this special issue of the Journal of Business Strategy.Design/methodology/approach – This article reviews the development of the public diplomacy concept, and point out its current gaps in light of the profound transformation in the global society. The article then discusses the linkage and relevance to the business community.Findings – The article highlights that public diplomacy is not a unitary but a multi‐dimensional concept, and argues for selective engagement by the private sector, that is not only desirable but also feasible. The value propositions global business can bring to the process include a global world‐view, managerial practice, and communication competence and other resources. It also explains areas of public diplomacy that they may play a part in.Originality/value – This paper provides the theoretical grounding for businesses' involvement in pub...

Developing an Online Business Community: A Travel Industry Case Study

Abstract: Many businesses are now using online communities to interact with their customers and to realise the many benefits such communities offer. However, there remains little understanding of how such communities should be developed and maintained. A case study of Lonely Planet examines the way in which the travel publisher has established a vibrant online community with more than 250,000 members. Analysis shows that the company has integrated the elements of a socially constructed community with those of a business one. Lonely Planet has increased the value proposition for their customers while nurturing a sense of social belonging. An examination of a successful business-sponsored online community contributes to more understanding of how such communities can be developed.

Aligning value propositions in supply chains.

Abstract: Despite the plethora of studies on value that have been undertaken to date, organisations still fail in identifying their value offers, particularly in aligning their resources and capabilities towards their value creation processes in their supply chains. This research proposes a new framework on value creation: 'the value matrix'. The value matrix through its six value propositions provides a comprehensive framework to understand how different organisations within a supply chain create value. It explores value creation from both the organisational and customer perspectives. A constructive research approach through an in-depth case study on the fashion industry demonstrates that 1) the value propositions of key members of the supply chain should be aligned to enhance the value proposition of the entire supply chain. 2) Other members that are not strategic members of the supply chain can have different value propositions. This paper finishes with describing an agenda for further research and an agenda for changing how we design and operate supply chains.

Delivering the message: How premium hotel brands struggle to communicate their value proposition

Abstract: Purpose – The purpose of this paper is to review the ways in which premium hotel brands address the challenge of building and sustaining their value proposition and communicating the essence of this value to their customers.Design/methodology/approach – The article draws on commercial market research, published information sources and industry experience to identify the key issues that impact on the effectiveness of marketing communications.Findings – The conclusion is that luxury hotel chains have worked hard to improve the effectiveness of brand management but that several key factors (such as market insight, differentiation, relative uniqueness) influence the long‐term effectiveness of the brand management approach.Research limitations/implications – Practical measures for improving brand management practices are identified and explained.Practical implications – The key success factors are explained, with suggestions for implementation.Originality/value – The paper draws on consulting experience and co...

Value-Based Software Engineering: Seven Key Elements and Ethical Considerations

Abstract: This chapter presents seven key elements that provide candidate foundations for value-based software engineering: 1. Benefits Realization Analysis 2. Stakeholder Value Proposition Elicitation and Reconciliation 3. Business Case Analysis 4. Continuous Risk and Opportunity Management 5. Concurrent System and Software Engineering 6. Value-Based Monitoring and Control 7. Change as Opportunity Using a case study we show how some of these elements can be used to incorporate ethical considerations into daily software engineering practice.

Improving management education

Abstract: Purpose – To present an outsider's view of how management education can be significantly improved.Design/methodology/approach – Focuses on correcting several obvious deficiencies in courses and degree programs to create highly differentiated educational experiences that are more relevant to student's needs and the organizations that employ graduates.Findings – Proposes a suite of 11 interconnected improvements as well as a fundamental re‐structuring of the MBA program designed to simplify it, provide greater focus, improve relevancy, and impart needed thematic consistency.Practical implications – Presents 11 practical improvements individual faculty or schools can readily incorporate into existing courses or degree programs. The proposed curriculum for a completely re‐structured MBA program can add distinctiveness and expand the value proposition for students and their employers.Originality/value – The suite of 11 improvements and proposed MBA program curriculum changes offers an alternate route for prepa...

Stakeholder Value Proposition Elicitation and Reconciliation

Abstract: This chapter motivates the need of methods and tools for understanding and reconciling stakeholder value propositions in software engineering. We present EasyWinWin, an example of a groupware-supported negotiation method that provides process structure and mediation to stakeholders. We identify challenges of stakeholder value proposition elicitation and negotiation and discuss possible extensions to EasyWinWin that address these challenges.

Transforming HR: creating value through people

Abstract: Introduction 1 1. A Transformational Mindset Part 1: Context 2. HR Transformation - How are we doing? 3. What is HR's Value Proposition? Part 2: Making the Case for HR Transformation 4. Envisioning the New World of HR 5. Web 2.0 and generation V 6. Developing the Business Rationale for Transformation 7. Stakeholder Engagement and Communication Part 3: Planning and Implementation 8. Service Delivery Approaches 9. Programme Management 10. Implementation: Capability and Culture 11. Implementation: Process and Technology 12. Benefits Realisation Part 4: Realising the Promise of HR Transformation 13. HR's Emerging Agenda

Evaluating Benefits of e-Procurement in a B2B Marketplace: A case study of Quadrem

Abstract: This paper reports on an investigation into the benefits from eProcurement implementations within a public eMarketplace for the mining trading community. Data was collected from nine established trading companies in this eMarketplace with respect to the perceived benefits from their market interactions. The findings are analysed according to the level of eProcurement sophistication between buyers and suppliers provided by the eMarketplace. The results indicate that the more active the buyer-supplier trading relationships become the greater level of benefits realised. A conceptual framework is used to identify how strategic e-procurement systems can be developed to ensure two-sided value propositions for buyers and sellers in the martketplace and sustained innovation and financial returns.

Ethical Customer Value Creation:Drivers and Barriers

Abstract: There is a long-standing discussion on the positive interactions between enterprise value creation and business competitiveness. The corporate value can be seen as being created from three major sources within the cycle – from employees, from processes, and from customers or investors through reinvestment. To achieve competitive advantages, a firm must create more value than its competitors in the industry. Emphasizing that, firms should explore the positive drivers of customer value creation, allowing for a true value creation that will lead to increments in competitiveness. In reality, however, there are also barriers that hinder customer value creation. Targeting the above issues that have not yet been explored or analyzed, we have collected related literature at the first stage. Based on these presumable assumptions, this paper then conducts an empirical study by surveying and analyzing the relevance given by the investigated leading machinery measuring equipment firms in Taiwan, regarding the concerns as drivers and barriers in relation to customer value creation. This paper especially aims to answer several key questions: What drivers revolving around employees and processes can facilitate the organization to create more value for its customers? Conversely, what barriers block the organization from creating value for customers in examining the same dimensions? Does value creation direct an organization’s profitability and competitiveness? Our questionnaire survey results show that the most recognized and agreed drivers of customer value creation in consideration of employees are “distinctive skills”, “personal experience”, “learning and training”, and “team work”; and, in regard to the firm’s processes, the key drivers are “innovation and evolution”, “RD and, in terms of processes, they are “short of core technology”, “poor resource support”, and “bad services and attitudes”. Furthermore, our in-depth interview outcomes reveal that “capital sufficiency” and “mergers and acquisitions” are in practice considered to be other important customer value creation drivers; in contrast, “cultural and structural barriers” and “short of mechanisms to measure customer value creation effectively” are viewed as additional critical barriers to customer value creation.

Realising the value proposition for healthcare by incorporating KM strategies and data mining techniques with the use of information and communication technologies

Abstract: Data permeate all areas of healthcare and permit the appropriate delivery of the correct services at the right time for each patient at the point of care. The application of internet-based ICTs (Information Communication Technologies) to healthcare is a necessary but not sufficient solution to address today's healthcare challenges. To improve access and quality, and thereby realise the value proposition for healthcare, healthcare organisations must maximise the data and information generated by them and which flow through these ICTs. This goal can be reached by embracing the techniques of Data Mining (DM) and the strategies of Knowledge Management (KM). When coupled with evidence-based medicine, and the introduction of various internet-based ICTs such as electronic medical record systems and e-health initiatives, KM and DM create strategic imperatives for healthcare organisations to maximise both the clinical and administrative benefits from their application of internet-based information and communication technologies to healthcare.

How the S&op Process Creates Value in the Supply Chain

Abstract: In today's competitive environment, it is easier and much less expensive to keep a customer with awesome service than to acquire a new customer ... S&OP reduces inventory levels by improving forecast accuracy ... both Sales Planners and Supply Planners have a tendency to hedge up the forecast. The supporters of S&OP implementation projects often face a tough question from senior management: How will the implementation of an S&OP process benefit the organization? This is not an unusual question, as most business process redesign efforts face similar justification issues. This article describes five typical value creation opportunities enabled by S&OP and is based on our experiences with a diverse cross industry mix of clients. Before we start, it is important to define the word "value." In this article, value is defined as an improvement in revenue, profit, efficiency, reduction of waste, obsolescence, or working capital. Organizational value can be measured with any number of return-on-assets calculations - we employ a simple return on shareholder value approach. With the recent increase in the use of S&OP processes, a number of research groups have attempted to assign various value propositions to the S&OP process. As an example, the Aberdeen Research Group in a recent article claims the following benefits associated with a typical best in class S&OP implementation: * 14% increase in operating margin * 4% increase in gross margin dollars * 55% reduction in inventory write-off * 17% increase in new product revenues These results are not surprising to us. Of course, with any reference to a benchmarkoriented benefits statement, there are always some additional questions. The first one is simple: "Can my company expect to get the same results?" We can answer this question with a definitive maybe! The second question is normally, "What do I have to do to get all these benefits?" Hopefully, this article will attempt to illustrate how the benefit stream is realized. THE BENEFIT STREAM At a recent Institute of Business Forecasting (IBF) conference, a speaker offered his personal experience of a benefit stream derived from an S&OP implementation. As a way to set the stage, he offered the information as shown in Table 1, which exhibits a "live" calculation of cost of inventory at his company. Inventory was a real concern at his company, as they were carrying twice as much inventory as their nearest competitor. The company conducted a thorough review of inventory cost as a way to assess the value leakage associated with carrying this excess inventory. The presenter used Table 1 to demonstrate how the company used actual transactional inventory costs - as well as a fairly low cost of capital-to calculate a surprising 20% annualized cost of inventory. With an average summed finished good value of $35,000 per SKU, each item in the company's product portfolio was costing the business almost $7,000 per year. If you multiply this by the total number of SKUs in the product portfolio (1,500), the cost of carrying the inventory was over $10 million per year, and the amount of cash tied up in inventory was over $52 million. When his company calculated the number of turns, they found they were only six per year, while the industry benchmark standard was twelve. Using the competitive benchmark as a guide, the presenter determined his company was carrying $26 million in excess inventory, and was incurring about $5 million in additional costs each year to hold and manage the inventory. The conclusion was obvious: a reduction in inventory would have a dramatic impact on cash flow, profitability and competitiveness. This particular company recognized the value leakage associated with its excess inventory, and then focused the S&OP process on metrics that increased the visibility of the excess. The company also sought to use measurements to modify some of the planning behaviors that it determined were contributing to the excess inventory carry. …

Pricing on Purpose: Creating and Capturing Value

Abstract: Foreword. Preface. Acknowledgments. About the Author. 1. Why Is Movie Theater Popcorn So Expensive? 2. Why Are We in Business? 3. Mind Over Matter. 4. The Old Business Equation. 5. The New Business Equation. 6. Ninety-Nine-Cent Pricing, Engagement Rings, and the Assumption of Rationality. 7. The Invisible Hand: No One Person Knows How to Make a Pencil. 8. ATale of Two Theories. 9. Cost-Plus Pricing's Epitaph. 10. The Wrong Mistakes. 11. Price-Led Costing Replaces Cost Accounting. 12. What and How People Buy. 13. The Value Proposition. 14. The Consumer Surplus and Price Discrimination. 15. Customer Segmentation Strategies. 16. Price Discrimination in Practice. 17. There Is No Such Thing as a Commodity. 18. Baker's Law: Bad Customers Drive Out Good Customers. 19. Ethics, Fairness, and Pricing. 20. Antitrust Law. 21. Who Is in Charge of Value? 22. Pricing on Purpose: Getting Paid for the Value Your Company Creates. Bibliography. Suggested Reading. Index.

Tourism System Dynamics: A Multi-level Destination Approach

Abstract: A review of the late literature on local tourism development highlights a number of issues recently covered, such as: (1) the territory, meant as a bundle of resources to be preserved and developed over time, in line with environmental, social and economic sustainability criteria; (2) the tourism system, meant as a territorial dimension capable of enhancing the surplus value which can be generated by a destination as a whole (an incremental surplus value vis-a-vis the one which can be created by the individual stakeholders); (3) the forms adopted by the system and denoting how resources interact; (4) the tourism product, meant as the mix of tourism resources which defines the value proposition of a specific area vis-a-vis a specific target; (5) the evolutionary process which makes it possible for a specific area to modify its vocation over time and express it by generating new products.

The practice of co‐creating unique value with customers: an interview with C.K. Prahalad

Abstract: Purpose – Strategy & Leadership asked the originator of the concept of co‐creation of unique value with customers to explain how it works in theory and practice.Design/methodology/approach – Questions for this interview were prepared by both academics familiar with C.K. Prahalad's concepts and managers struggling to innovate new value propositions.Findings – Co‐creation theory asks a basic question. What if: Consumer ≥ the Firm? Instead of assuming that their firm can innovate unilaterally, managers are learning to depend on the consumers to be involved. They shift from product innovations to experience innovations.Research limitations/implications – Case studies of the development of new experienced‐based value propositions need to address issues such as sustainability of competitive advantage.Practical implications – The theory points the way to new growth opportunities. If we accept the role of the consumers in helping us create their own experience then finding new markets is not all that onerous. Loo...

Leading Innovation: How to Jump Start Your Organization's Growth Engine

Abstract: Leading Innovation presents a unique, holistic approach to creating innovation at all levels of your organization. Authors Jeff DeGraff and Shawn Quinn have created a real-world, how-to playbook of integrated creativity tools and techniques for understanding where innovation comes from and harnessing its power to create a culture where real growth happens on a constant basis. Based on DeGraff's proven methods-which he teaches in his innovation program at the University of Michigan Ross School of Business and has applied at Fortune 500 companies around the world-this breakthrough guide focuses on systematically integrating business practices and connecting them to the value propositions they produce. You'll discover how to diagnose obstacles to innovation, realistically assess your options, and develop an integrated program of action that can be adjusted to meet the needs of any group, department, or business unit throughout your organization. You'll learn the 7 key steps to double-digit growth, sparking innovation in your: Leadership-teams, development, and behavior Strategic planning-identifying emerging opportunities Organizational culture and competency development Performance management processes-resource allocation, portfolio management Innovation incubation processes-stage-gate development processes, innovation networks Human resource management-staffing, team building, organizational learning Throughout, insightful case studies demonstrate how these results-driven methods are supported by senior leadership at GE, Reuters, Coca-Cola, Pfizer, Johnson & Johnson, Eaton, and other leading innovators.