Showing papers on "Value proposition published in 2007"

Identifying competitive customer value propositions in retailing

Abstract: Purpose – The purpose of this paper is to develop a framework for identifying competitive customer value propositions in retailing.Design/methodology/approach – The paper draws on existing literature on customer value and competitive advantage in order to form an understanding of the key dimensions of customer value, developing a hierarchical model of value propositions and establishing a link between customer value and competitive advantage.Findings – The work suggests a framework for identifying competitive customer value propositions (CVPs) where four hierarchical key dimensions of customer value – economic, functional, emotional, and symbolic – are first identified. In the second stage, a CVP is developed on the basis of these value dimensions. In the third stage, the CVP is evaluated for competitive advantage. It is proposed that economic and also functional CVPs are more likely to represent points of parity, whereas emotional and social CVPs represent points of difference for retail companies seekin...

Exit Services Marketing – Enter Service Marketing

Abstract: Since the 1970s, services marketing has grown into a major subdiscipline of marketing. It is constantly claimed – but is refuted in the article – that services are now the dominant economic activity in developed countries and keeps growing while the two traditional goods sectors, manufacturing and agriculture, are declining. An unsolved problem that has been swept under the carpet is the fact that goods and services always appear together. An international debate on the content of services marketing and marketing in general is in progress, especially fuelled by the service-dominant logic suggested by Vargo and Lusch (2004a). This new logic is a synthesis of knowledge and ideas that have been brewing over many decades. Among its tenets are that customers are not buying goods or services but value propositions to be of service to them, that customers are co-creators, and that value is actualized in the customer usage process rather than in the supplier value chain. The purpose of the article is to help break a deadlock of taken-for-granted “truths” in marketing, stimulate the emergence of more valid and relevant marketing theory and even uncover the inner secrets of marketing, its genome. In fulfilling this purpose the author points to the need to rethink several marketing-related issues, among them the economic sectors; alleged differences between goods and services; where and when marketing occurs; the interdependence between quality, productivity and profits; the roles of supplier and customer; the importance of customer-to-customer interaction (C2C); the high tech/high touch balance; the marketing mix; and relational and interactive approaches to marketing. Finally, the article questions the relevance of the marketing concept and customer centricity, advocating the need to apply “balanced centricity” and a stakeholder and network approach, epitomised by the author’s concept many-to-many marketing.

Branding in B2B markets: insights from the service‐dominant logic of marketing

Abstract: Purpose – This paper aims to explore how the service‐dominant (S‐D) logic of marketing proposed by Vargo and Lusch impacts on business‐to‐business branding concepts and practice.Design/methodology/approach – Vargo and Lusch argue that service interaction comes from goods‐in‐use as well as from interactions between a buyer and a supplier. Their key concepts are examined and the branding literature critically compared.Findings – Goods become service appliances. Buyer judgments about the value‐in‐use of goods extends the time‐logic of marketing. The exchange concept is no longer transaction bound. Service‐ability (the capability to serve) becomes the essence of a firm's value propositions. Service experience becomes paramount in developing and sustaining the life of a brand.Research limitations/implications – S‐D logic highlights the need for rigour and clarity in the use of the term “brand”. It also opens up for consideration a variety of previously unexplored contact points in the customer service cycle, e...

Artifact-centered operational modeling: lessons from customer engagements

Abstract: For almost a decade, the artifact-centered operational-modeling approach for modeling business operations, also referred to as the "business artifact method," has been practiced and refined. This approach has been used in a variety of engagements, and each engagement has brought forth innovations that have enriched and strengthened the approach. In this paper, we describe three of these engagements in order to illustrate the method and highlight some of the lessons learned. The main objective of this paper is to establish the value of operational modeling in business transformation and to incorporate the lessons we have learned into a more comprehensive account of the method. We also describe the model-driven business transformation toolkit, which adds a unique value proposition to the method-the rapid and effective transformation of operational models into implementations that are manageable and can be monitored.

On-Orbit Servicing: A New Value Proposition for Satellite Design and Operation

Abstract: The use of humans to service satellites designed for servicing has been adequately demonstrated on the Hubble Space Telescope and International Space Station. Currently, robotic on-orbit servicing technology is maturing with risk reduction programs such asOrbital Express. Robotic servicing appears to be technically feasible and provides a set of capabilities which range from satellite inspection to physical upgrade of components. However, given the current design and operation paradigms of satellite architectures, it appears that on-orbit servicing will not be heavily used, and, as a result, is not likely to be economically viable. To achieve the vision of on-orbit servicing, the development of a newvalue proposition for satellite architectures is necessary. This new value proposition is oriented around rapid response to technological or market change and design of satellites with less redundancy.

Value Merchants: Demonstrating and Documenting Superior Value in Business Markets

Abstract: Do your salespeople feel under extreme pressure to retain accounts or gain new business at any cost? If so, you may be leaving big money on the table. Consider the integrated-circuit supplier representative who lost $500,000 of potential profit on a single transaction, just to "win" a deal that he would have closed anyway at the higher price. Do not make price concessions. Become a value merchant instead. In this authoritative book, James Anderson, Nirmalya Kumar, and James Narus explain how companies in business markets can use customer value management techniques to estimate the value of your market offerings, create value propositions that resonate with your customers, and maximize the return you will get on the superior value that you deliver. Drawing on extensive research and detailed case studies of companies like Sonoco, Tata Steel, and Quaker Chemical, Value Merchants will change the mindset and behavior of your executives, sales management, representatives, and marketers--as well as your customers.

Making client values explicit in value management workshops

Abstract: Value management is a project‐focused process that makes explicit and appraises the functional benefits of a product, process or service consistent with a value system determined by the client. The value system of the client necessarily requires a method for value setting using harder performance variables than the commonly described facets of time, cost and quality. Current value theory is critically appraised in the context of current value management practice. The research proposition is that the constituent parts of time, cost and quality can be made overt enabling a client to express satisfaction in terms of a finite number of variables enabling the explicit statement of client value within a value management workshop. An action research study into the discovery of the component parts of the client's value system at the early stages of construction projects concludes that the variables are the nine non‐correlated, high order, discretionary performance variables of capital expenditure, operational exp...

Business process management for SMEs: an exploratory study of implementation factors for the Australian wine industry

Abstract: Gartner EXPPremier (2005) identified Business Process Management (BPM) as the number one business priority and building Business Process Capability as a major challenge for senior executives within the coming years. The focus of BPM in practice and related research has been its application in large organisations. The general value proposition of BPM, however, is also of significance for small and medium-sized enterprises (SMEs). SMEs within the wine industry have only recently begun to apply BPM principles to their business. The main motivating factors for this business improvement effort is a need to cope with consolidation trends and the global grape glut, which are forcing wine businesses to increase operational efficiency. The wine industry has been selected as a case study for this research not only due to its local significance, its growth driven by globalisation and its contribution to the economy, but also the relative immaturity in terms of establishing concepts of a process-oriented organisation. This study aims to explore and structure the major issues of BPM adoption and implementation as the first such research initiative for SMEs in the wine industry. The research was conducted in Western Australia and involved qualitative data collection including interviews and content analysis of existing documentation. The study shows that the lack of financial resources, time, and knowledge of BPM are the major factors inhibiting BPM implementation for SMEs in the Australian wine industry.

The Emergence of the Mobile Enterprise: A Value-Driven Perspective

Abstract: The mobile enterprise is an emerging organizational form that has resulted in a paradigm shift of how business is done. However, only little theoretical work has been done to explore what actually constitutes a mobile enterprise. This article addresses this definitional issue by exploring the salient value propositions that drive the emergence of the mobile enterprise, identifying categories of workers that can benefit from mobile ICT, reviewing what current solutions support the mobile workforce, identifying the challenges of adopting and implementing these solutions, and providing propositions for future theoretical and empirical research.

Choosing the right tools for your relationship banking strategy

Abstract: Purpose – This paper aims to examine the banking industry's expanding use of loyalty marketing programs to build profitable relationships with customers. Banks' relationship‐building strategies fall into two categories: full‐blown multi‐product loyalty programs and narrower programs that expand customer rewards in one or two key product areas.Design/methodology/approach – Innovative loyalty programs launched by various banks are used as examples to show how individual banks are customizing their relationship‐building strategies within the two broad categories. Those categories are broad multi‐product loyalty programs and narrower initiatives focused on key products.Findings – The authors believe their deeper look into relationship banking reveals that, far from a magic bullet approach, banks are customizing their relationship‐building strategies to create value propositions as unique as the institutions and customers they serve. When banks use loyalty programs to engender trust and build confidence in the...

CMMI and Six SIGMA: Partners in Process Improvement

Abstract: "In this book, I have found answers to key questions and misconceptions about the relationship between Six Sigma and the Capability Maturity Model Integration [CMMI]....Among my key takeaways is that the relationship between Six Sigma and CMMI exemplifies one of the principles of S4/IEE: CMMI provides process infrastructure that is needed to support a successful Six Sigma strategy." -Forrest W. Breyfogle III, CEO, Smarter Solutions, Inc. "Finally, a book that bridges the software and hardware process tool set. To date, there have been hardware and software engineers who for one reason or another have not communicated their process methods. And so, myths formed that convinced the hardware community that CMMI was only for software and likewise convinced the software community that Six Sigma was only for hardware. It is both refreshing and thought provoking to dispel these myths." -Jack Ferguson, Manager, SEI Appraisal Program, Software Engineering Institute CMMI and Six Sigma represent two of the best-known process improvement initiatives. Both are designed to enhance work quality and thereby produce business advantages for an organization. It's a misconception that the two are in competition and cannot be implemented simultaneously. Practitioners originally trained in either CMMI or Six Sigma are now finding that the two initiatives work remarkably well together in the pursuit of their common goal.CMMI® and Six Sigma: Partners in Process Improvement focuses on the synergistic, rather than competitive, implementation of CMMI and Six Sigma-with synergy translating to "faster, better, cheaper" achievement of mission success. Topics range from formation of the value proposition to specific implementation tactics. The authors illustrate how not taking advantage of what both initiatives have to offer puts an organization at risk of sinking time, energy, and money into "inventing" a solution that already exists. Along the way they debunk a few myths about Six Sigma applications in software.While the authors concentrate on the interoperability of Six Sigma and CMMI, they also recognize that organizations rarely implement only these two initiatives. Accordingly, the discussion turns to the emerging realm of "multimodel" process improvement and strategies and tactics that transcend models to help organizations effectively knit together a single unified internal process standard.Whether you work in the defense industry, for a commercial organization, or for a government agency-wherever quality and efficiency matter-you'll find this book to be a valuable resource for bridging process issues across domains and building an improvement strategy that succeeds.

Value proposition in m-commerce : exploring service provider and user perceptions

Abstract: Adoption of mobile services and m-business outcomes has not yet reached expectations. The uncertainties in m-commerce are still many occasioning a need to explore challenges and opportunities. This ...

Rethinking Wine Investment in the UK and Australia

Abstract: This article presents three arguments as to why the value of wine as an investment good has typically been understated and argues that wine investment in the UK and Australia represents a value proposition. It is argued that general all vintage wine indexes understate the return the typical investor receives; that comparisons using pre-tax returns overstate the value of standard financial assets relative to wine; and that wine investment provides value in terms of allowing portfolio risk to be reduced.

Discovering Perceived Value of Mobile Services

Abstract: Customer perceived value has been recognized as one of the driving factors behind a company’s success, since it increases customers’ willingness to buy and decreases their search intentions for alternative offerings. In order to discover customers’ value perceptions of different mobile services in everyday life situations, we employ the Critical Incident Technique (CIT). The findings reveal multiple value perceptions of mobile services, some of which have not been reported earlier in e-service contexts (e.g. self-respect, time to pay, anonymity). The identified value perceptions are grouped into context-related and content-related value perceptions. Furthermore, we propose that the context-related value perceptions (conditional and epistemic value) trigger mobile service use and enhance the experienced content-related value (emotional, social, monetary and convenience value). Based on the findings, we create a mobile perceived value (MPVal) framework that is applicable in the mobile service use context and recognizes situational value-enhancing elements. The results of the study provide insights for further research and theory development in the mobile field. The findings may help companies to understand better how mobile services create value for customers in different situations, to position their services relative to competitors’ services, and to communicate the appropriate value propositions to potential customers.

ROI For Nonprofits: The New Key to Sustainability

Abstract: Foreword. Preface. Introduction. About the Author. PART ONE Why ROI? CHAPTER 1 Demystifying the Status Quo. They're Big and In Business. Facts Are Facts. They're Everywhere. They Are Different. CHAPTER 2 The Changing Philanthropic Environment. Dead Economists and Nonprofits. Three Paradigm Shifts. The Leverage of Investors. The Evolving Landscape. An Unlevel Playing Field. CHAPTER 3 Organizational Reluctance. Learning from the For-Profit World. Five Classic Fundraising Misconceptions. More on "People Give to People Not Causes". More on "Nonprofit Can't Be Run Like a Business". Success Leaves Clues. Fear of "Putting Your Mission Up for Sale". CHAPTER 4 Organizational Change. Moving to an Investment-Based Mindset. Nonprofit vs. For-Profit Models. Moving Up the Motivational Pyramid. CHAPTER 5 Organizational Value/Nonprofit ROI. Beyond Logic Models-Moving from Outcomes to Outcome Value. The Silver Bullet Syndrome. Defining ROI. Valuing Values. The Value of Expected Value. CHAPTER 6 Introducing the Organizational Value Proposition(R). Market Pull. It's the Economy, Stupid! Revisited. Overcoming the Pushback. Structural Obstacles. Intended Uses. PART TWO ROI Foundations and Techniques. CHAPTER 7 Building an OVP(R) for Your Organization. Five Steps to Demonstrating Value. Areas of Focus. CHAPTER 8 Suggested Methodologies. Present Value Basics. Capital Budgeting. Present Value of Future Benefits. Multiplier Effects. Comparison Basics. Return Ratios. CHAPTER 9 Communicating an ROI-Based Program. Treating Investors as Investors. The Importance of an Investor Relations Program. Examples. But What Happens in Four Years? Unconventional Wisdom. CHAPTER 10 Putting OVP to Work: ROI Profiles. Organization 1: Rural, Small, and Dependent on Grants. Organization 2: Good Track Record, but Not Well Known. Organization 3: Demonstrating Importance to the Community. Organization 4: Large and Well Known, but Campaign Has Stalled. Organization 5: Large and Well Known, but ROI Not Obvious. Organization 6: Drilling Deep into the Private Sector. Organization 7: ROI Gene Wrong. Organization 8: Making the Economic Pie Bigger. INDEX.

Grid Computing Infrastructures and their Value for Risk Management

Abstract: Risk/return management has evolved as one of the key success factors for enterprises especially in the financial services industry. It is highly demanding in terms of business requirements and technical resources, making it an almost ideal application for grid computing concepts. In this paper we analyze the value proposition of grid computing for risk/return management. We focus on a specific problem - the estimation of covariance matrices - and propose a model to quantify the benefits and cost of the corresponding calculations. Our model not only makes a contribution to understand the business value of grid computing in the domain of risk/return management, it also constitutes a building block for the development of economic resource allocation mechanisms

E-government evaluation: a user-centric perspective for public value proposition

Abstract: Academic research and institutional reports present evidence of e-government project failures and stalled or cancelled initiatives. Prior research concludes that e-government evaluation is under developed and calls for improving egovernment evaluation practice. Stages of growth models have been used in IS research and more recently in e-government research. While egovernment stage models provide potentially useful tools for egovernment evaluation, there are different e-government stage models that are sometimes contradictory in development stages and perspectives. Drawing on the concept of public value proposition, this research surveys existing egovernment stage models from a user-centric perspective and develops a user-centric, demandside model that underscores the importance of creating public value through new e-government capabilities such as secure financial transaction, eparticipation, e-voting, and e-democracy.

The Role of Value Proposition and Value Co-Production in New Internet Startups: How New Venture e-Businesses Achieve Competitive Advantage

Abstract: Many of the successful e-businesses during the era didn't necessarily possess the original idea. Some of them duplicated their predecessors' ideas and then re-implement them with more advanced technologies and resonating value propositions to create value for their users, and successfully "captured" the value of the original ideas from its predecessors. Once the entrepreneurs in e-business gain marginal advantage over their competitors, they seek to widen the lead by building effective value co-production mechanisms. The issues raised above are what entrepreneurial strategists would concern: How a successful new venture in network economy should do to create, protect and appropriate value? The purpose of the present paper is to emphasize the role of value proposition and value co-production in new venture development. Value proposition, which has been a buzzword among managers in the real world for a while, is actually new concept to the academic world as well as value co-production. This paper argues that a properly constructed value proposition is essential to the value creation process in e-business, and value co-production is the building blocks for value protection mechanism in network economy. The discussion of value creation and value appropriation in e-business won't be complete unless the two concepts are included.

Exploring the role of customer value change and relationship adaptation in global business services

Abstract: Global business executives recently highlight the importance of understanding the sources of value creation for customers around the world. Beyond a push to better grasp what customers currently value, firms interact with dynamic customers whose needs do not stand still. In response, managers are searching for innovative ways to sense ongoing changes in customers’ desires and effectively adapt their company’s value propositions. Yet, an extensive research review suggests there is little, if any, evidence that managers can rely on to understand how business customers are changing what they value across global markets – or what these changes mean for fostering loyalty in those relationships. This global study responds to these challenges through exploring the sources of value creation and the effects of value change for 939 customers of business services in the United States, Sweden, India, Singapore, and the United Kingdom. A theoretical framework is proposed that builds on research in customer value, international buyer behavior, and buyer-seller relationships and tests 22 hypotheses across three models. Two new constructs are developed, value change responsiveness and value change anticipation, which demonstrate significant effects on customer value. Significant results and close fit across three models tested with structural equation modeling generate a number of interesting implications for global and domestic managers. For executives and strategists who are concerned about growing a profitable base of loyal customers, this study provides insights for how customers in different market segments around the world are changing what they value, and specifically the role that this change plays in their perceptions of satisfaction and loyalty.

Network Social Responsibility

Abstract: The value proposition of the firm to its market is not merely the result of “value extraction” across the world, by exploiting local resources and capabilities, but for a growing number of firms is a blend of value and values proposition, based on socially responsive behaviour. A values chain shift the emphasis from the practice of corporate social responsibility to the one of network social responsibility. Coordination of the network value chain is not just a matter of improving business performance, but it turns into a strategic matter of guaranteeing to final customers the respect of their expectations, including social responsibility issues.

Reexamining the MKM Value Proposition: From Math Web Search to Math Web ReSearch

Abstract: The interest of the field of Mathematical Knowledge Management is predicated on the assumption that by investing into markup or formalization of mathematical knowledge, we can reap benefits in managing (creating, classifying, reusing, verifying, and finding) mathematical theories, statements, and objects. This global value proposition has been used to motivate the pursuit of technologies that can add machine support to these knowledge management tasks. But this (rather naive) technology-centered motivation takes a view merely from the global (macro) perspective, and almost totally disregards the user's point of view and motivations for using it, the local (micro) perspective. In this paper we go a first step into a more principled analysis of the MKM value proposition by focusing on motivations for mathematical search engines from the micro perspective. We will use a table-based method called the "Added-Value Analysis" (AVA) developed by one of the authors. Even though we apply the AVA only to mathematical search engines, the method quickly leads to value considerations that are relevant for the whole field of MKM.

Beyond Mobile: Research Topics for Upcoming Technologies in the Insurance Industry

Abstract: This paper provides a first idea on changes induced by new ICT that goes 'beyond mobile'. Main aspects considered are value creation structures, value proposition of products and services and customer relations. Goal is to discuss these changes within the insurance industry context (primary insurers and reinsurers) and to foster thinking on new research topics that might arise due to the influence of Ubiquitous Computing (UC) technology. In order to do so UC is defined in a first step. Hereby we distinguish from notions such as Pervasive Computing (PC) and Ambient Intelligence (AmI) and provide a working definition for UC. In a second step implications of UC in the business context will be described generally, which will be followed by a general description of the characteristics of insurance industry. This will lead to the discussion of scenarios and the potential impact of UC in the insurance industry, providing us with a whole set of research aspects that need to be investigated further in the future. Hereby focus is the influence UC technology has on the business aspects for insurance industry rather than on technological questions arising.

Dynamic Optimization Of Systems Of Systems Using Value Measurement

Abstract: Many systems of systems (SoS) occur today through the collaboration of multiple stakeholders, without any clear authority or direction at the SoS level. Examples include a supply chain, an airport, and the Internet. Because of the uncontrolled interactions, such a SoS exhibits complexity behaviors such as reflexivity, emergence, self-organization, and adaptation. This paper presents underlying theory to explain a methodology for dynamic optimization of SoS, in which the stakeholders make changes based on local perceptions of the value of the SoS. Each stakeholder has a different local perception of value, measured against an objective function that may be unique to the stakeholder. As the stakeholder compares perceived value to desired value, the stakeholder attempts to optimize the SoS from its own point of view by making decisions that lead to SoS changes. These changes then affect other stakeholders, resulting in a dynamic architecture and implementation of the SoS. We present the optimizing value proposition of each stakeholder in terms of a quantifiable objective function based on the life-cycle value of the SoS to that stakeholder, and we present the dynamic interaction as a model of self-organization. An example based on supply chain management demonstrates the approach.

Cross-Case Analysis of the User Value Proposition for Next-Generation Mobile Service Platforms

Abstract: This paper analyses options for the strategic positioning of next-generation mobile service platforms in terms of the value proposition made to users, including service developers as well as end users. A cross-case comparison of the main value elements of existing and emerging platforms is performed, and the potential synergetic effects between these elements are taken into account and leveraged.

Managing the Innovative Deployment of Information and Communication Technologies (ICTs) for Global Service Organisations

Abstract: Global service organizations (GSOs), particularly those that utilize information and communication technology (ICT) at the customer interface, need to find ways of deploying these technologies that deliver both increased efficiency and manageability as well as appropriate support for the co-production of value with service customers. While ICT is already a core part of many traditional services like banking, insurance and travel, even more service organizations are becoming heavily reliant on ICT as the service sector is becoming host to the dominant users of ICT (Meyronin, 2004). Thus, attention to how ICT is deployed by and within service organizations is both timely and important. Evidence from service organizations indicates the persistent shortcomings in their abilities to deploy and exploit ICT successfully (e.g., Berkley & Gupta, 1994; Brady, Fellenz & Armstrong, 2007; Mick & Fournier, 1998). Moreover, in this paper we argue that the way in which ICT has mainly been deployed by GSOs creates fundamental challenges because typical ICT deployment in this sector fails to be successfully aligned with the demands of service customers. How can the ICT component of global services be delivered? What are the challenges for this from a management perspective? If global service organizations fully embrace a service logic (e.g., Vargo & Lusch, 2004a, b), what are the implications for the ICT currently in use in their service provision, and how can ICT most usefully be deployed with both business success and customer centric outcomes? To address these questions and challenges we consider how ICT can be a core part of global services operations yet simultaneously be responsive to differential customer needs and the subsequently customized delivery and interface management approaches in different markets. ICT deployment often fails to adequately take customer perspectives into account, and in turn disregards both the particular nature of value-creation in services (Bitner, Brown & Meuter, 2000) and the relevant management needs (Austin & Nolan, 2007). To summarize our argument, ICT deployment approaches of GSOs that do not directly reflect and support customer-centric co-production processes do more harm than good, and are likely to result in substantial competitive disadvantage. Internally, organizations need to find ways to integrate distinct perspectives on ICT deployment in order to maximize the potential that such technology use can bring to them as well as their service customers. To explore these matters our paper reviews the growth in services and the nature of ICT deployment in this sector. We identify the efficiency logic that typically drives ICT deployment in GSOs and contrast this with a more service-oriented logic that recognizes the importance of co-production and customer-centric value propositions in service provision. We trace the lack of alignment between the demands of service encounters and the nature of ICT deployment by GSOs both to typical technology assimilation patterns as well as to parochial, often functional perspectives and identify managerial and organizational requirements necessary to realign these issues in practice. We then present a range of research directions that can provide valuable input into the most appropriate ways of deploying and managing ICT in global service organizations.

Today's multi-generational workforce: A proposition of value

Abstract: Many of the findings discussed in this Issue Brief are the result of new analyses we completed using information gathered from the wage and salaried workers (N = 2,785) who responded to the 2002 National Study of the Changing Workforce (NSCW). 25% of the respondents who provided their ages were between the ages of 18-30, 48% were between the ages of 31-49, and 27% were 50 years or older. are available (www. familiesandwork.org) for use by other researchers and have been extensively analyzed with many findings presented and published. Numerous reports presenting findings from different analyses of the NSCW can be found on the website of the Families and Work Institute. We explore the following questions: What is a human capital framework, and how can it be used to think about the costs and benefits associated with employees of different ages? Are there links between employees' age and the value that they might bring to the workplace? What are some of the connections between age and the costs associated with employees?