Showing papers on "Value proposition published in 2008"

Managing the co-creation of value

Abstract: Central to service-dominant (S-D) logic is the proposition that the customer becomes a co-creator of value. This emphasizes the development of customer–supplier relationships through interaction and dialog. However, research to date suggests relatively little is known about how customers engage in the co-creation of value. In this article, the authors: explore the nature of value co-creation in the context of S-D logic; develop a conceptual framework for understanding and managing value co-creation; and utilize field-based research to illustrate practical application of the framework. This process-based framework provides a structure for customer involvement that takes account of key foundational propositions of S-D logic and places the customer explicitly at the same level of importance as the company as co-creators of value. Synthesis of diverse concepts from research on services, customer value and relationship marketing into a new process-based framework for co-creation provide new insights into managing the process of value co-creation.

The service-dominant logic and the future of marketing

Abstract: According to Vargo and Lusch (Journal of Marketing, 68:1–17, 2004a, Journal of Service Research, 6:324–335, b), service is the appropriate logic for marketing. For them, service is an interactive process of “doing something for someone” that is valued. More radically, goods also render service and have value-in-use. In this context service becomes the unifying purpose of any business relationship. This marketing world-view involves broadening and reframing what by convention counts as service and stands in opposition to 200 years of mainstream economic logic in explaining productive capacity. In our view they have succeeded in applying their scholarly thinking to old themes with synergistic results. Their thesis challenges marketing orthodoxy, and will in our view support much future innovation in both theoretical and practical terms.

Marketing for Higher Education: A Relationship Marketing Approach

Abstract: Retaining students is becoming increasingly important for institutions offering higher education. Thus, ideas from relationship marketing (RM) should be of great interest to university and college officials entrusted with student enrollment and retention. The RM approach means that great importance is attached to the creation of student value. The value proposition to students should match their needs. The creation of value should be regarded as an ongoing process over the lifetime of the relationship. Student surveys should be carried out and analyzed thoroughly in order to identify key success factors for student value and student loyalty. This study is based on a research model in which loyalty is the ultimate variable. Path coefficients of direct and indirect drivers of loyalty are estimated by way of a structural equation modeling approach, and implications for decision makers and further research are discussed.

Customer value from a customer perspective: a comprehensive review

Abstract: The value concept is one of marketing theory’s basic elements. Identifying and creating customer value (CV) – understood as value for customers – is regarded as an essential prerequisite for future company success. Nevertheless, not until quite recently has CV received much research attention. Ideas on how to conceptualize and link the concept to other constructs vary widely. The literature contains a multitude of different definitions, models, and measurement approaches. This article provides a broad overview, analysis, and critical evaluation of the different trends and approaches found to date in this research field, encompassing the development of perceived and desired customer value research, the relationships between the CV construct and other central marketing constructs, and the linkage between CV and the company interpretation of the value of the customer, like customer lifetime value (CLV). The article concludes by pointing out some of the challenges this field of research will face in the future.

Service-dominant logic and resource theory

Abstract: Taking inspiration from the importance accorded resources in the emergent-service dominant logic marketing researchers might develop a more robust marketing ecology based on existing resource theories. Researchers may begin to think of firms and their customers as deploying operant and operand resources both to co-create discursively legitimated market spaces and provide inputs for value definition and delivery within them (Vargo and Lusch 2004). Spaces ranging from the Web, to industry clusters, to trade shows, and experiential retail exemplify the former (Leigh et al. 2006; Penaloza 2000; Spohrer et al. 2007). Service is the master category that defines that later, of which examples are legion (Arnould et al. 2006). Several literatures present themselves for developing resource centered ecological theory. I will highlight a few specific points of interest related to the resource based theory of the firm; organizational ecology; cluster theoretic models; social capital theory; and Foa’s interpersonal resource model. Each provides some distinctive contributions; each has limitations that would invite further theoretical development and empirical research. One source is the resource based theory of the firm that shares with the S-D perspective an interest in the strategic value of firms’ skills, knowledge and cultural competencies (Day and Wensley 1988; Wernerfelt 1995). This literature argues that such resources are heterogeneously distributed across firms, and that these distributions are relatively stable over time, thereby conveying a superior ability to capture resources (primarily economic) from customers. Aspects of operant resources that may generate sustained competitive advantage – value, rareness, imitateability, and substitutability – have been identified, but empirically-grounded dimensions could be better developed. Day (1994) and Hunt and Morgan (1995) famously suggest market orientation is such an advantage, or in Day’s terms, market sensing and customer linking capabilities. A paradox worth further exploration is Barney’s (1991) contention that if a firm’s advantageous resources were clearly defined, they would become replicable by competitors and their advantage lost versus Hunt and Morgan’s contention that causal ambiguity about operant resources represents a firm vulnerability. More generally in a fully networked economy, the idea of information asymmetry is problematized. Opportunities exist to specify the precise nature of firm sensing and customer linking capabilities, comparative typologies thereof, and the nature of their links to firm value propositions. Research that focuses on how organizational schema for market sensing and intervention are learned and deployed holds promise for helping us understand how firms co-construct marketspaces and populate them with value propositions (Gebhardt et al. 2006). In addition, this literature would benefit from a customer centric model of firm resources to know with what kinds of firm resources customers wish to engage on a transaction specific or relational level. Finally is a customercentric model of firm lifetime value imaginable? A second source of insight is organization ecology. This literature is concerned with deterministic models of the growth, development, and death of firms within a competitive resource space. Thus the unit of analysis is not the firm, but firms within a resource space (Haveman 1995; Ruef 1997; Van Witteloostuijn and Boone 2006). One J. of the Acad. Mark. Sci. (2008) 36:21–24 DOI 10.1007/s11747-007-0072-y

The Aftermath of Information Technology Outsourcing: An Empirical Study of Firm Performance Following Outsourcing Decisions

Abstract: Increasingly, organizations are jumping onto the information technology (IT) outsourcing bandwagon in an effort to create value. However, evidence indicating the positive economic consequences of such initiatives has been limited. This study attempts to fill this void by synthesizing the process‐oriented research in IT business value literature and the resource‐based theory to develop an integrative research framework for assessing the value proposition of IT outsourcing. With a process‐oriented lens, the framework suggests that the effects of IT outsourcing are best documented at the process level and hence, it is imperative that one takes into consideration the impact of IT outsourcing on performance at both the process level as well as the firm level. Grounded in the resource‐based view, the framework also accounts for the complementary role of firms' core IT capability as a critical condition for the value creation of IT outsourcing. Consistent with the process‐oriented prediction, the findings sugges...

Customer value creation in professional service relationships: the case of credence goods

Abstract: Understanding the sources of customer value in buyer–supplier relationships is viewed as a competitive priority and a key component in a firm's long-term survival. This said, however, research examining relationship value is still at a formative stage. This is particularly the case for professional services – which are often characterised by their credence qualities being high in both information asymmetry and perceived risk, and often requiring the provider to determine the needs of the customer – where research exploring customer value is non-existent. This study examines the dimensions of customer value in professional services relationships with credence qualities (commercial insurance) through in-depth interviews with organisational buyers and front-line staff conducted in two separate studies. Six dimensions of customer value are identified and implications for theory and practice are offered.

Application of Value-Centric Design to Space Architectures: The Case of Fractionated Spacecraft*

Abstract: Recently, the superiority of value-centric (in contrast to costcentric) design methodologies has been much touted in the literature, including by the present authors. Here, we describe a specific application of value-based methods to the design of space architectures. We suggest that a family of architectures which we term “fractionated,” i.e., with mission and support functionality distributed across multiple wirelessly-interacting spacecraft modules flown in cluster orbits, offers a superior value proposition over conventional “monolithic” satellites. We describe the cost and value drivers that differentiate the potential architectural solutions and provide two notional approaches to quantifying the net value and risk (which we treat as the variance in net value) in a manner that supports performing architectural trades. We conclude with some thoughts on the incorporation of such value-based methods into the existing systems engineering and government procurement processes.

ACR White Paper: The Value Added That Radiologists Provide to the Health Care Enterprise

Abstract: Radiologists represent arguably one of medicine's least heralded but most important specialties. Although they carry sterling credentials as imaging and radiation safety experts, radiologists have lacked widespread public recognition. As public and private stakeholders cast an even more intense spotlight on imaging, the vital role of radiologists must be better understood. During the January 2008 ACR Forum on Future Practice Models for Radiology, participants and ACR leaders discussed the value added that radiologists bring to the health care enterprise and recommended that the ACR further study that topic. The ACR, dedicated to providing quality patient care since its inception in 1924, convened the Task Force on Value Added to address these issues. The task force determined the component stakeholders in the health care enterprise to whom value is added, defined the nature of the value for each constituent component, described the process of adding that value, and anticipated future trends that may affect the value proposition. Recommendations to the ACR for future action are offered.

Unleashing the Potential of the European Knowledge Economy Value Proposition for Enterprise Interoperability

Abstract: The online economy and society is anticipated to undergo another wave of transformation and growth over the next decade and beyond New economic activities will arise with new classes of networked applications and services, new forms of enterprise collaboration, new business models and new value propositions It is generally accepted that ICT is an enabler for innovation What is however less clear, and probably controversial, is the changing nature of innovation and the mechanisms for catalysing innovation This report presents findings that support a direct correlation between value innovation, open business models and Enterprise Interoperability (EI) It affirms that interoperability, as a means for European Enterprises to work together, is essential for fulfilling the vision of a competitive and dynamic knowledge-based economy Realising this vision shifts the focus of interoperability from interoperation at the technical level to the strategic value of interoperability for the enterprises, the individuals and the economy The field of EI therefore will need to continue to evolve and investigate new, radical possibilities and options in order to anticipate and help define enterprise systems required for new business as well as new technology paradigms, including paradigms for the Future Internet As noted in the Enterprise Interoperability Research Roadmap (European Commission, 2006), the delivery of IT functions as services and interoperability as a utility-like capability are essential enablers for enterprises of the future The present report builds out from the Vision and Grand Challenges described in the Roadmap, and provides an extensive Value Proposition for Enterprise Interoperability Importantly, the report establishes that the field of EI brings a unique business-driven perspective to the research and development of ICT It bridges the gulf between the business view and the technology view of interoperability in order for enterprises systems to deliver innovative and sustainable value

Determining the indirect value of a customer

Abstract: The issue of accountability in marketing has led to a substantial and growing body of work on how to value customer relationships. Net present value methods (customer lifetime value / customer equity) have emerged as generally preferred ways to assess the financial value of customers. However, such calculations fail to take account of other important but indirect sources of value noted by previous researchers, such as advocacy. This paper examines the development and application of three processes to determine indirect value in business-to-business and business-to-consumer contexts. The research shows that indirect value has a measurable monetary impact not captured by conventional financial tools, and that understanding this changes the way in which customers are managed.

Factors influencing the evolution of electronic commerce: an empirical analysis in a developed market economy

Abstract: This paper tries to explain the temporal evolution of electronic commerce in a developed country. For this purpose, we evaluate the contribution of the size of the potential market represented by the community of Internet users to the development of electronic commerce, as well as of other determinant factors. The validation carried out, for the whole Spanish market and over a period of seven years, reveals the existence of a critical threshold of online consumers that, once surpassed, supposes a change in the growth trend of electronic commerce. Likewise, we verify that broadband technology diffusion, the definition of a legal framework of consumer protection, and the design of a value proposition perceived as "secure", also influence the development of electronic commerce. We also confirm the contribution of firms' differentiation strategies to the development of electronic commerce, to the detriment of those based on price leadership. Finally, it seems that possession of a computer is no longer an indicator of access barriers.

Creating and Evolving an Open Innovation Ecosystem: Lessons from Symbian Ltd.

Abstract: Firms that practice open innovation strategies rely on the cooperation of external firms to provide components, complements and customers for the innovations of the focal firm (Chesbrough, 2003). Such strategies can be quite complex in systems-based industries, which inherently require coordinating across a wide range of partners to deliver customer value (West, 2006).Open innovation researchers have theorised that value networks (or business ecosystems) can play an important part in such open innovation strategies (Vanhaverbeke, 2006; Maula et al, 2006). However, limited empirical work has been done on the process of creating such ecosystems and the forces and processes that cause them to evolve over time.In considering firm ecosystem strategies, we are interested in the linkage between firm motivations, ecosystem strategies and outcomes, and how these factors and their relationships evolve over time. To do so, we examine the complex ecosystem surrounding Symbian Ltd. that supports its mobile phone operating system.After reviewing prior research on open innovation networks, we present a longitudinal case study on the creation and evolution of Symbian’s ecosystem over three distinct phases in its first decade. From this, we identify inherent challenges of managing open innovation networks, including creating a new network for an unproven value proposition, and prioritising the conflicting needs of disparate network members.

Multi-Level Standardization and Business Models for Cognitive Radio: The Case of the Cognitive Pilot Channel

Abstract: This paper examines the international, inter- organizational collaboration processes for the development of cognitive radio, which will be at the basis of potentially profound changes in the telecommunications value network, as well as its functional architecture, cost and value structure and the eventual value proposition of any services deployed in such a value network. The paper will analyze the transition in telecommunications from linear standardization taking place mainly in the domain of formal Standardization Organizations, to a highly complex and multi-layered process simultaneously involving formal organizations, informal bodies and industrial consortia. Subsequently, the paper discusses the development of a Cognitive Pilot Channel to show how innovation in telecommunications markets is determined by this complex interplay. It also explores how the collaborative process between research, regulation and standardization of a Cognitive Pilot Channel in different standardization platforms (viz. IEEE SCC41 and ETSI TC RRS) might influence the eventual deployment of such a cognitive radio technology and networks and services enabled by it, as well as the business models for it. For doing this, an exploratory business model scorecard analysis is performed on some of the different revenue sharing models coming out of diverging design choices of the CPC.

E-Government Service Delivery Performance: An Adaptation of the Balanced Scorecard to the Public Sector

Abstract: E-government service delivery performance has been discussed in literature as a way governments use information technologies (IT) to deliver valuable services to their citizens at a lower cost. This article examines the effectiveness of Web site-supported Balanced Scorecard’s four dimensions (innovation and learning, internal process, veteran value proposition, and financial) in improving e-government service delivery performance. The study used content analysis to analyze the data obtained from a sample of 19 county veteran service officers (CVSOs) to test the hypotheses. CVSOs use Web sites to serve veterans on a Government-to-Citizen (G2C) basis.

Collaborative academic/practitioner research in project management: Examples and applications

Abstract: Purpose – The purpose of this paper is to present a cost-benefit interpretation of academic-practitioner research by describing and analysing several recent relevant examples of academic-practitioner research with a focus on doctoral theses carried out at universities and business schools in clusters of research centred in North America, Australia and Europe. Design/methodology/approach – Using case study examples, a value proposition framework for undertaking collaborative research for higher degree level study is developed and presented. Findings – Value proposition benefits from this level of collaborative research can be summarised as enhancing competencies at the individual and organisational level as well as providing participating universities with high-quality candidates/students and opportunities for industry engagement. The project management (PM) professional bodies can also extend PM knowledge but they need to be prepared to provide active support. Practical implications – A model for better defining the value proposition of collaborative research from a range of stakeholder perspectives is offered that can be adapted for researchers and industry research sponsors. Originality/value – Few papers offer a value proposition framework for explaining collaborative research benefits. This paper addresses that need.

Creating and Managing Superior Customer Value

Abstract: Advances theory and offers tools for measuring value dimensions and strength. This work focuses on advancing value theory, research and strategy in business-to-business contexts. It is suitable for improving thinking, decisions, and actions relating to the creation, marketing, and purchasing of superior value in products and services.

Innovación en modelos de negocio: La Base de la Pirámide como campo de experimentación

Abstract: Business models in low income markets give us big opportunities to develop innovative solutions that effectively cooperate to poverty reduction and generate capabilities, knowledge and products which improve the competitively of the company. To serve the majority of the world population requires radical technological and business models innovations. Firms need to re-evaluate their value proposition. Moreover it will demand a new level of capital efficiency and new ways to measure financial success.

Knowledge mapping techniques within the construction industry: An exploratory study

Abstract: The last 15 years has seen the transitioning of the industrial economy to a knowledge economy. Knowledge is now considered as the new value proposition of the post-industrial economy, which is embedded in staff and workers in the organization; and can and should be considered a key resource for competitiveness and performance. Organisations intending to effectively exploit their knowledge assets might need to effectively identify where their knowledge resides. This is the underlying principle of “knowledge mapping”. Knowledge mapping techniques aim to track the acquisition and loss of information and knowledge. It explores personal and group competencies and illustrates how knowledge flows throughout an organisation or ‘network’. This paper reports some of the findings from an Engineering and Physical Sciences Research Council (EPSRC), UK, funded project entitled “Knowledge mapping and bringing about change for the sustainable urban environment”. This research project investigated the different types of knowledge mapping techniques that are used to bring about change from a sustainable urban environment (SUE) perspective. Semi-structured interviews were conducted with fourteen (14) construction industry actors (architects, developers, and main contractors) and four (4) developers of knowledge mapping software tools to identify current and ‘successful’ knowledge mapping tools. The semistructured interviews investigated the mechanisms by which the construction industry actors learn (both from their experiences and from external sources of knowledge), capture knowledge and know-how and diffuse it across organisations. The interviews with software developers investigated the types of knowledge mapping tools on the market, focusing on their dynamism and potential effects for the users. Of particular interest were the capture and diffusion of knowledge and know-how related to sustainability, which was defined broadly in terms of the triple bottom line (Economic, Social and Environmental). The paper concludes that the construction industry stakeholders interviewed accept that knowledge mapping is important and have initiated or improved mechanisms (tools/techniques) to capture and diffuse information, particularly with respect to sustainability. However, generally speaking, they have not adopted off-the peg knowledge mapping software solutions. The market solutions are not seen to be cost effective, do not offer the firms added value and organisations prefer instead to invest in inhouse development of intranets and other IT enabled tools. They also rely on techniques long established in the firm (e.g. meetings, briefing notes, seminars, coaching schemes, and newsletters). This study revealed that the industry actively uses different combinations of nine out of the seventeen knowledge mapping tools identified.

Challenges of Computerized Job-Search in the Developing World

Abstract: We examine the broad challenges facing a computer-based system to help match low-income domestic workers from an urban slum with potential middle-class employers in Bangalore, India. Due to the near impossibility of implementing such a system in one shot, we first implemented a paper-based system that provides the intended functionality but without a computer. This system proved a significant challenge in itself, and among the lessons learned are the crucial role of human intermediaries (necessary even in the final computer-based system), the importance of building skills among the domestic workers, the need for a strong value proposition for both employers and employees well above existing systems, and the requirement of technological literacy. We then show that these lessons are applicable to other scenarios where computing technology is applied to developingworld challenges, by analyzing corresponding issues in related work. Our broad conclusion is that computer-based systems to solve developing-world problems often require significant work above and beyond an implementation of the technology, with trustworthy human intermediaries playing a critical role.

Challenges in computerized job search for the developing world

Abstract: We examine the broad challenges facing a computer-based system to help match low-income domestic workers from an urban slum with potential middle-class employers in Bangalore, India. Due to the near impossibility of implementing such a system in one shot, we first implemented a paper-based system that provides the intended functionality but without a computer. This system proved a significant challenge in itself, and among the lessons learned are the crucial role of human intermediaries (necessary even in the final computer-based system), the importance of building skills among the domestic workers, the need for a strong value proposition for both employers and employees well above existing systems, and the requirement of technological literacy. We then show that these lessons are applicable to other scenarios where computing technology is applied to developing-world challenges, by analyzing corresponding issues in related work. \ \ Our broad conclusion is that computer-based systems to solve developing-world problems often require significant work above and beyond an implementation of the technology, with trustworthy human intermediaries playing a critical role. \

Towards a business model for cellular network and telecommunication operators: a theoretical framework

Abstract: Cellular networks and telecommunications bring major change to the way businesses are conducted. Mobility has become one of the main priorities for users and this has impacted on cellular networks and telecommunication operators (CNTOs). However, entrants into the cellular industry have been confounded primarily by inexistent or weak Business Models (BMs). Designing a BM for a CNTO is complex and requires multiple actors to balance different and often conflicting design requirements. Nevertheless, most research about CNTOs has been technically oriented and has mainly addressed the technological and engineering issues related to their infrastructure. Less attention has been given to the business model of CNTOs. Hence, there is a need to enhance our ability to determine what constitutes the optimal and most viable business model to meet the various strategic objectives and goals for these CNTOs. In this paper an overview of research into the cellular business model and the main issues to be resolved is provided. In particular, the authors propose guidelines as a basis on which to develop a more comprehensive definition which may lead to a consensus. Moreover, a generic model (V 4 Model) is proposed for the BM of these companies based on value proposition, value architecture, value network and value finance.

Social Enterprise in Africa: An Emerging Concept in an Emerging Economy

Abstract: Africa is a misunderstood continent. Unfortunately, much of the continent's information that is available to the world is that of unfortunate leadership, conflicts, emigration, economic incompetence, health issues and more. But just like every other human, the average African is daily faced with the challenge of meeting his/her needs, and possibly using such to follow up interests within their sphere of influence. In every society, it is important to note the various roles played by stakeholders (government, the private sector, and civil society in the larger frame of its definition) in pursuing a community where human dignity is respected, and sustainable livelihoods assured. While it is important to state that Africa's present socio-economic predicament needs a lot of deliberate efforts, I will deliberately focus on the role of civil society actors in their role as the mediator between the people (grassroots) and opportunities.This piece seeks to discuss the role of the Social Enterprise paradigm in Africa - as an emerging trend in an emerging continent - and to discuss the value proposition of the idea of partnering with - or supporting - social entrepreneurs in Africa: those who are delivering value within developing economies but who are focused on people and development, rather than profit. The piece will also consider possible follow-up mechanisms such as establishing a continuous bi-directional flow of knowledge and management expertise between the Social Enterprise Alliance members in North America (and beyond) and their colleagues in Africa. I hope that at the end of this session, you will have a better understanding of the Social Enterprise landscape in Africa, get updates (facts from the field) from Africa's social entrepreneurs, and discuss practical networking concepts and opportunities.

Leading in Service Innovation: Three perspectives on service value delivery in a European context

Abstract: This paper explores the relationships between the shaping of “service value propositions” according to three dimensions: “intangible mix”, “physical support”, and “time”, and the strengthening of Innovative Capability in service organizations. After the first introductory section, we describe a series of related innovative moves experienced in the European context by leading companies. We analyze how JCDecaux addresses service recipients simultaneously as citizens and consumers, focusing especially on the Cyclocity project. With CS2 Lawyers in the UK, we envision how automation and technology adoption in professional services may lead to significant productivity improvement for the good of society. Finally, we study how SNCF in France has succeeded in implementing a permanently strengthening value proposition in public service through the recent launching of the IDTGV initiative. In these situations, the service companies have clearly addressed their market considering three different forms of interrelated, yet distinct, targets: “ultimate beneficiaries”, “paying bodies”, and entities or individuals who somehow “prescribe” the consumption of services. In these three situations, we investigate the robustness of the “value propositions” thus implemented, and analyze the particular role played by technology in the success of the new ventures.

Value propositions for set-based design of reinforced concrete structures

Abstract: Reinforced concrete is used in capital facilities in all sectors of the construction industry. Numerous specialists are involved in its design and supply chain. However, reinforcing steel (rebar) configurations are typically specified by structural engineers relatively early on in the project, often without the benefit of input from project stakeholders such as rebar detailers, fabricators, and placers. In current design practice, using tacit knowledge of structural performance as well as construction expertise, structural engineers select a rebar configuration that is optimal from their perspective, given the project constraints. The adoption of new design methodologies, such as performance-based design and set-based design, affords opportunities for use of the knowledge of downstream project stakeholders in structural design. Value propositions relate, e.g., physical product characteristics, relative dollar, or time ‘costs’ to parameters that define value for different project stakeholders. They can then be used to assist project teams in developing mutual understanding while gauging the merits of different sets of alternatives, making tradeoffs, and narrowing sets of design alternatives. Industry participants in this research have helped to develop such value propositions. This paper presents a value proposition of a rebar placer, that relates rebar diameters to labour productivity rates, and these can be translated into placement costs. Proof-of-concept is delivered of the use of this value proposition in set-based design of a reinforced concrete shear wall.

Rethinking Faculty Role in a Knowledge Age

Abstract: While the relationship and the relative importance between the primary faculty tasks of teaching and research have been debated and empirically examined, the fundamental faculty expectations at most universities remains unchanged. The shift to a knowledge age and the need for knowledge workers along with an emerging paradigm shift towards learning begs that the traditional faculty role be reexamined. The need for faculty to disseminate information has been replaced by the need for learners to know how to use and apply information. In this article, we apply value chain analysis to determine where the focus of faculty work is located and to identify how faculty can best create leverage among their activities along the chain. This analysis yields a shift in faculty focus "downstream" in the value chain, where more is expected of faculty in the areas of course design and student learning and assessment. In fact, the article points out several trends that clearly indicate that this shift downstream has taken place. Based on this value chain analysis, the authors draw conclusions on what changes should be considered regarding faculty roles. INTRODUCTION Scholars have attempted to determine what, if any, relationship exists between research and teaching (e.g., Hattie and Marsh, 1996; Rowland, 1996; Marsh and Hattie, 2002). That is, do the skills required for effective teaching and effective scholarship complement one another so that one can be competent or expert in both? Correlation studies have at best found no relation - in some cases it has been found that there is a negative relation (e.g., Hattie and Marsh, 1996). During this time, our understanding of knowledge, an epistemological question, and our advances in learning theory have widened the gap between actual teaching practice and espoused learning designs in college and university classrooms. The faculty role, working on a well-worn model of performing both research and teaching, is increasingly under stress to improve both. As such, it begs the question of whether teaching and scholarship are truly complementary skills and processes; that is, can faculty build leverage by spending time in one endeavor to inform and help the other? While there is a need to continue to examine the empirical basis for the assumed synergy between research and teaching, it is time for University administrations to act on the paradigm shift that is often attributed to the knowledge age. Driven by the simultaneous breakthroughs in technology and learning theory, the knowledge age has created an environment of constant change and changed the value propositions of knowledge itself. Other industries such as newspapers have had to change their business models based on this shift. Many sober educators, based on these external trends, have called for radical change - including change to traditional faculty roles - to take place in the field of higher education as a whole (e.g., Barnett, 1992; Guskin, 1994b). In fact, one of the primary challenges facing Universities today is that they must become more efficient in the use of their resources. With faculty being the primary resource of universities, the question must be addressed as to how to use these resources most efficiently. Does the traditional model that calls for nearly equal amounts of time spent between research and teaching (with relatively smaller responsibilities for service and administration) allow for the efficiencies necessary for the modern University? Are there other ways of conceiving of the faculty role to make more effective and efficient use of this essential, but costly resource? This article will use the conceptual model of value chains to analyze the faculty role; specifically, it will propose that based on the leverage points for faculty work, many universities should consider differential faculty roles to create efficiencies and to become more effective in delivering value in a knowledge age. …