Showing papers on "Value proposition published in 2012"

Business Models for Sustainable Innovation: State of the Art and Steps Towards a Research Agenda

Abstract: The aim of this paper is to advance research on sustainable innovation by adopting a business model perspective. Through a confrontation of the literature on both topics we find that research on sustainable innovation has tended to neglect the way in which firms need to combine a value proposition, the organization of the upstream and downstream value chain, and a financial model, in order to bring sustainability innovations to the market. Therefore, we review the current literature on business models in the contexts of technological, organizational, and social sustainability innovations. As the current literature does not offer a general conceptual definition of sustainable business models, we propose examples of normative 'boundary conditions' that business models should meet in order to support sustainable innovations. Finally, we sketch the outline of a research agenda by formulating a number of guiding questions.

Linking Service-Dominant Logic and Strategic Business Practice A Conceptual Model of a Service-Dominant Orientation

Abstract: Service-dominant (S-D) logic can function as a strategic business logic that portrays creating superior value in conjunction with—rather than for—customers as a source of competitive advantage for ...

Toward a Service (Eco)Systems Perspective on Value Creation

Abstract: This article discusses how the core concepts of service-dominant logic — service-for-service exchange, value co-creation, value propositions, resource integration, and highly collaborative relationships — point to a generic actor conceptualization in which all actors engaged in exchange (e.g., firms, customers, etc.) are viewed as service providing, value-creating enterprises. In other words, all social and economic actors are essentially doing the same thing: creating value for themselves and others through reciprocal resource integration and service provision. The authors suggest that this generic actor-to-actor (A2A) orientation, in turn, points toward the dynamic and systemic nature of social and economic exchange. To account for the complexity, indeterminacy, and viability of these dynamic systems, they highlight the importance of general systems theory, complexity theory, and the viable systems approach and propose that cross-disciplinary scholarly efforts are necessary in order to develop models and frameworks that can simplify the complexity of social and economic exchange in meaningful ways and ultimately inform practice and public policy.

Toward a Service (Eco)Systems Perspective on Value Creation

Abstract: This article discusses how the core concepts of service-dominant logic—service-for-service exchange, value co-creation, value propositions, resource integration, and highly collaborative relationships—point to a generic actor conceptualization in which all actors engaged in exchange (e.g., firms, customers, etc.) are viewed as service providing, value-creating enterprises. In other words, all social and economic actors are essentially doing the same thing: creating value for themselves and others through reciprocal resource integration and service provision. The authors suggest that this generic actor-to-actor (A2A) orientation, in turn, points toward the dynamic and systemic nature of social and economic exchange. To account for the complexity, indeterminacy, and viability of these dynamic systems, they highlight the importance of general systems theory, complexity theory, and the viable systems approach and propose that cross-disciplinary scholarly efforts are necessary in order to develop models and frameworks that can simplify the complexity of social and economic exchange in meaningful ways and ultimately inform practice and public policy.

An Exploration of Networks in Value Cocreation: A Service-Ecosystems View

Abstract: Purpose – The purpose of this essay is to explore further the concept of value cocreation from a service-ecosystems view, by considering the importance of networks and the configuration of relationships and resources in markets. Methodology/approach – We use a conceptual approach to extend a service-dominant (S-D) logic, ecosystems view of value cocreation by drawing on the literature regarding networks in marketing and related research. Findings – A service-ecosystems approach to cocreating value-in-context is proposed, which points toward networks as mediating factors in value cocreation because they influence the ability to access, adapt, and integrate resources by establishing exchange relationships and shaping the social contexts through which value is experienced. Research implications – This research suggests that value cocreation is a complex and multidimensional process that is best studied in the context of dynamic networks or ecosystems of service exchange. Practical implications – This research suggests that networks mediate value cocreation, and thus, firms should consider the configurations of relationships and resources to develop more compelling value propositions. Social implications – This research draws on the idea that exchange relationships are embedded within society and suggests that processes of value cocreation not only draw on but also contribute to the social contexts that frame market exchange. Originality/value of essay – This research extends the value cocreation and S-D logic literature by exploring the role of networks in service ecosystems. In this framework, networks are mediators of value cocreation because they enable access to resources and help to (re)shape social contexts through which value is derived.

Factors influencing mobile services adoption: a brand‐equity perspective

Abstract: Purpose – The purpose of this study is to develop and validate empirically a research model that depicts the relationships between the identified key value proposition attributes of mobile value‐added services and the core factors of brand equity.Design/methodology/approach – Survey data collected from 497 mobile value‐added service consumers were examined using structural equation modeling to validate the research model.Findings – The results indicate that the mobile service attributes of personalization, identifiability, and perceived enjoyment have significant positive influences on the key brand equity factors, including brand loyalty, perceived quality, brand awareness, and brand associations. Additionally, the results confirm the significance of all four of the brand equity factors in interpreting consumer purchase intention in the context of mobile value‐added service consumption.Practical implications – The research results provide insights into how mobile value‐added services may be better design...

Visualizing Service Operations

Abstract: Service operations management (SOM) has a rich history of important but not widely recognized contributions to research and practice. There also seems to be some uncertainty about how SOM fits in the broader fields of operations management and service management. This article addresses those concerns by introducing a visual framework called Process-Chain-Network (PCN) Analysis. The framework is built upon PCN Diagrams that depict processes and interactions involving networks of entities. PCN Analysis includes identifying the value proposition of a given process network, assessing performance characteristics and value propositions of a process configuration, and identifying opportunities for process improvement and innovation. The PCN framework clarifies fundamental concepts of SOM, demonstrates how SOM fits in broader contexts of business management, illuminates managerial insights of SOM and related disciplines, and provides a basis for future SOM research.

Employer branding: Sustainable HRM as a competitive advantage in the market for high-quality employees

Abstract: This conceptual article examines how Sustainable Human Resource Management (Sustainable HRM) can help establishing an attractive employer brand that can address the different needs and expectations of potential and existing employees, without compromising a consistent employer image, which can result in a sustained competitive advantage. Sustainable HRM should help firms attract and retain high-quality employees, because by integrating Sustainable HRM practices into the employee value proposition, they establish a unique, attractive employer brand. An extended employee life cycle concept depicts how the employer brand promise can be delivered to address the different needs and expectations of potential and existing employees.

Transitioning from a goods‐dominant to a service‐dominant logic: Visualising the value proposition of Rolls‐Royce

Abstract: Purpose: The purpose of this paper is to present a visualisation of the firm's offering from a service-dominant logic (S-DLogic) perspective. The case of Rolls-Royce is presented as an avenue through which to explore an alternative view of the firm's value proposition, a visualisation informed by S-DLogic that could aid organisations in their transition from goods-dominant logic (G-DLogic) to S-DLogic. Design/methodology/approach: Through integration of an operations management approach in process mapping and design and simulation with choice modelling in business-to-business marketing, this paper operationalises some of the key aspects of S-DLogic, most notably focusing on the constructs of value and resources. This is explored through a single case; Rolls-Royce which provides access to a rich source of internal and customer data. Findings: The study finds that the S-DLogic visualisation of the firm's value proposition in equipment-based service consists of its contribution to 11 value-creating activities towards value-in-use. The visualisation depicts both the highest possible bundle of benefits for the customer along with the resources and their costs associated with delivering those bundles. When brought together these enable the identification of the optimal bundle of value-creating activities from both customer and firms' perspective. Originality/value: This paper provides empirical evidence of the difference between a G-DLogic and S-DLogic view of the firm's value proposition. In doing so, extending existing literature on S-DLogic by contributing to a methodological and empirical gap. Notably, it makes abstract concepts of S-DLogic concrete, providing a pathway for future empirical work and begins the process of systematising a methodology in S-DLogic. © Emerald Group Publishing Limited.

The co-creative practice of forming a value proposition

Abstract: Using practice theory and an empirical illustration of reciprocal exchange of knowledge between resource-integrating actors, this paper contributes to Service-Dominant Logic by deepening the unders ...

Designing Business Models for Value Co-Creation

Abstract: Purpose – The aim of this chapter is to investigate how a focal market actor may design or redesign business models for improved value co-creation. Findings – We posit that value is co-created in use as actors integrate resources in practices, which makes practices a fundamental unit of value creation. Greater density of resources, relevant to a specific practice and to the goals or mission of the actor, corresponds to greater value. The role of a provider is to support other actors in their value-creation processes by providing resources that ‘fit’ into their practices. We identify 12 categories of business model design elements that need to be defined and developed in parallel. We conclude that a focal actor needs to strive for both intra-actor and inter-actor (meso-level) configurational fit of business model elements in order to enable purposeful co-creation in specific practices. Finally, we propose that meso-level configurations develop in a three-phase process of origination, mobilization and stabilization. A focal actor wishing to improve co-creation in a network needs to develop value propositions not only for customers but also for other actor domains. Overall, the performative power of a market actor is dependent on its network position, the relative strength of its business model and the actor's ability to author compelling meanings. Originality – The research contributes to the discussion on value co-creation by identifying three shifts in the unit of analysis: (1) we argue that use-value is co-created as actors integrate resources in practices, rendering practices a fundamental unit of analysis, (2) as practices are outcomes of business models, we identified business model design as a key unit of analysis for the improvement of value co-creation and (3) our view on business models is network-centric and we focus on how to introduce new business model elements in a specific actor network. Practical implications – The realization of the fact that value creation occurs in networks of interdependent actors pinpoints the need for increased transparency both between functional silos and between actors. The business model framework identifies 12 design elements, which can act as a ‘checklist’ for managers wanting to engage in co-creative business models.

Service co-creation and value realisation

Abstract: The notion of value co-creation is central to the discourse of Service-Dominant Logic (S-D logic) yet there remains little agreement among academics seeking to explain or research the value co-creation process. We distinguish service co-creation from the S-D logic notion of value co-creation, and conceptualise service co-creation as a process comprising value potential, resource integration, and resource modification. Value, being a personal evaluative judgement, cannot be co-created; rather it is realised by actors as an outcome of service co-creation. We define service co-creation as planned resource integration behaviours by actors intended to realise a value proposition. We provide guidance to assist practitioners seeking to enhance the value their customers might realise.

Impact of Warehouse Management System in a Supply Chain

Abstract: In a supply chain, warehousing function is very critical as it acts as a node in linking the material flows between the supplier and customer. In today's competitive market environment companies are continuously forced to improve their warehousing operations. Many companies have also customized their value proposition to increase their customer service levels, which has led to changes in the role of warehouses. This paper highlights the findings of the study carried out to evaluate performance levels and enhance productivity of the manual warehouses by developing a WMS framework and cost benefit analysis.

The mechanisms of value co-creation

Abstract: Facilitated by a wide array of technological advancements, interaction between customers and companies is taking new forms and shapes that go beyond traditional exchange. Companies are no longer perceived as sole goods providers, nor customers regarded merely as sources of money. Thus, both companies and customers are initiating new ways to support each others' value creation, that is, new value co-creation mechanisms are developed. This evolution has provided companies with a strategic impetus to reconsider their customers' roles in current business practices – a central characteristic of the contemporary discussion on value co-creation. However, not all companies necessarily benefit from value co-creation, which makes it even more important for them to carefully assess the opportunities that it entails. Thus, the purpose of this paper is to examine the strategic implications of the mechanisms of value co-creation. This is achieved through investigating the possibilities of different value co-creation me...

The Impact of Organizational Capabilities on the Development of Radical and Incremental Product Innovation and Product Innovation Performance

Abstract: Academics and practitioners acknowledge the importance of product innovation to increasing quality of life, increasing firms' marketing and financial performance (Govindarajan and Kopalle, 2006; Henard and Szymanski, 2001; Sivadas and Dwyer, 2000), and sustaining firms' business in the market (Bharadwaj et al, 1993; Day and Wensley, 1988) Product innovation is one of the factors that help firms to cope with several kinds of competitive pressure, such as shortened product life-cycles, demand uncertainty, and technological turbulence (Godener and Soderquist, 2004; Ziamou and Ratneshwar, 2003) Organization capabilities play a crucial role in successfully developing new products (Brentani and Kleinschmidt, 2004) Firms must therefore define a pattern of organization which matches the type of new products they wish to develop (Damanpour, 1991; Jansen et al, 2006) Many studies investigate the organizational capabilities that affect the development of new products (Wind and Mahajan, 1997) However, a large proportion of those studies focus on radically new products, ie, products that offer new benefits or attributes previously unknown to the market (Sorescu et al, 2003) Fewer studies focus on incrementally new products, ie, products that are developed based on existing products or add some features to existing products This paper investigates the impact of organizational capabilities on the development of radical and incremental product innovation This paper empirically and simultaneously compares antecedents (organizational factors), mediators (product innovation), and consequences (performance) of the development of radical and incremental product innovation Further, this paper examines the impact of product innovation on the performance of firms Finally, conceptual models explaining the relationships among these factors are proposed The findings will help academics and practitioners to better understand the role of organizational capabilities on the development of each type of product innovation In addition, the importance of product innovation on firm performance is presented Contributions, limitations, and future research are also discussed LITERATURE REVIEW Definition of Product Innovation There are many definitions of product innovation The popular terms used to classify the degree of new product innovation are radical and incremental product innovation (Atuahene-Gima, 2005; Gatignon et al, 2002) However, these terms have diverse definitions For example, Gatignon and Xuereb (1997) and Kristina and Dean (2005) consider product innovation in terms of technology; Cooper (2000) and Govindarajan and Kopalle, (2006), define product innovation in terms of customer's opinion Kristina and Dean (2005) propose that product innovation may be evaluated in terms of the differentiated technological characteristics of the product The two criteria for the evaluation are: (1) novelty, which is the need to be dissimilar from prior technologies and (2) uniqueness, which is the need to be dissimilar from current technology Anderson and Tushman (1991: 27) define product innovation only in terms of radical innovation They define product innovation as "technological discontinuities that advance by an order of magnitude the technological state-of-the-art which characterizes an industry" (Anderson and Tushman, 1991) Anderson and Tushman (1991) explain product discontinuities as technological breakthroughs which produce fundamentally different product forms that possessed a decisive cost, performance, or quality advantage over prior product forms Product discontinuities also represent a new way of making something, ie, novel product architecture Radical products are the result of technological discontinuities From the customer's perspective, Christensen (1997) classifies disruptive product innovation as involving the creation of new products that bring a very different value proposition in a market than product created using previously available technologies …

Enhancing value in reverse supply chains by sorting before product recovery

Abstract: Offering a well-designed reverse supply chain programme can significantly improve the ability of any organisation to differentiate itself, and even to take market share away, from its competitors. Reverse supply chain considerations should be a part of an organisation's corporate strategy. From a macro-level perspective, value propositions of reverse supply chains in for an organisation, and/or the industry in which the organisation operates, include considerations for both strategies (to reuse, repair, refurbish, remanufacture, retrieve parts or cannibalise components, recycle, scrap, redesign returned products, etc.) and effective operations (to handle and sort returns by value and ease of remanufacture) to sustain and even enhance organisational competency. In this article, we examine the role of sorting used products before disassembly for parts retrieval and remanufacturing under stochastic variability based on customer demand using a Markov decision process. We address a problem of managing costs in...

Behavioral perspectives of customer engagement: An exploratory study of customer engagement with three Swiss FMCG brands

Abstract: The article discusses different angles of customer engagement phenomenon and aims to provide an outline of the debate within which the phenomenon can be further investigated. It explores in depth the behavioral perspective, as this approach represents one of the prevalent directions of the current debate on customer engagement phenomenon, especially in the social media environment. The behavioral approach is also being adopted in the empirical part. Through an online survey and a focus group, an exploratory study investigates the willingness of customers to engage with three Swiss premium food brands online and offline. The findings suggest that customers are not willing to engage with FMCG brands if they are not being offered a unique value proposition. The study suggests new implications for those brand strategies whose aim is to foster costumer engagement.

Platform-based Innovation Management: Directing External Innovational Efforts in Platform Ecosystems

Abstract: Modular platforms have become the centerpiece of collaborative value creation in platform ecosystems. Platform ecosystems co-create the platform’s value proposition and support its market adoption as the more complementors join the ecosystem to supply complementarities, the more valuable the platform becomes to consumers due to a greater variety of choice. This poses new requirements on managing innovation in open platform environments. While academic research stresses the relevance of external complementary innovation for platform success, it lacks, however, a concrete understanding to guide platform owners in directing external innovational efforts in coopetive platform ecosystems to co-create and deliver value while ensuring the overall quality, reliability and consistency of the ‘whole’ solution. Based on the challenges platform ecosystems place on innovation management, this paper explores and categorizes control mechanisms leading platform owners in the ICT industry have implemented to steer external complementary innovation efforts. From that an overall platform-based innovation management process is developed.

The Value Proposition Concept in Marketing: How Customers Perceive the Value Delivered by Firms– A Study of Customer Perspectives on Supermarkets in Southampton in the United Kingdom

Abstract: Loyal customers are the key factor of success in all organizations. They spend money, they recommend to others and they repeat buy from the same organization, as long as it delivers consistent value. Creating and delivering value where it is needed is not an easy job for a marketing planner. This study seeks to provide strong understanding of the concept of the value proposition from the academic perspective, as regards the actual understanding of what customers perceive about the organizations. This study took place in Southampton in the United Kingdom, on customers of four main supermarkets to identify the way they shop, the value they seek and the value they actually obtain from each supermarket. The method used for this study was qualitative with a use of mini-depth interviews as the approach of collecting and analyzing the data.The results indicated that the value proposition is a widely used concept, but there is no specific definition of it. Value can be created through more than one element, such as price, quality and location. Companies therefore are responsible for setting the value they seek to deliver based on their strategies and their shareholders’ values. They are responsible for communicating them and managing the change occurring in the market. Marketing provides marketing strategies and tactics that are aligned with the overall strategies of the organization, to help deliver the best value to customers. Interview results showed that customers perceive different type of values mainly depends on their age, marital status, home location, and shop prices. Some supermarkets communicate their values clearly and some do not. Some of them provide more than one element of value and others tend to focus on just one, such as Waitrose focusing on quality.The findings provided some strategic recommendations on both sides to help improve the value proposition to end customers. This includes corporate and marketing strategic considerations and the need to identify and fulfill customers’ expectations. Creating competitive advantage will finally lead to customers’ loyalty and generate profits.

Theoretical foundations of software ecosystems

Abstract: Software ecosystems have become a defined and active field of research based on the recent emergence of new open business models leading to new roles and patterns for collaboration, innovation, and value proposition. In this paper we look into the theoretical foundations of this new research field. We review recent publications to describe the present theorization; we discuss the relevance of theory and, in particular, we argue for the relevance of socio- technical theory and the related theory of organizational ecology in the continuing research on software ecosystems. To summarize we define a preliminary theoretical framework to guide and support future research.

3PL factories or lernstatts? Value‐creation models for 3PL service providers

Abstract: Purpose – The purpose of this paper is to identify and systematically discuss generic forms of contract logistics services and their distinct underlying approaches for fulfilling their respective value propositions. A general frame of reference is developed that addresses the value proposition, as well as the value creation architecture that leads to generic business model configurations for contract logistics services. The framework is built upon the basic notions of service theory, competence research and the resource based view.Design/methodology/approach – The paper combines service theory with work of organizational theory and develops an analytical framework based on conceptual considerations. First empirical results are additionally used to support and illustrate the key outcomes.Findings – Combining the dimensions of integration power and intangible knowledge creation, the authors are able to specify generic types of contract logistics services. Thereby the authors deducted for every type the dist...

Growth And Implications Of Social E-Commerce And Group Buying Daily Deal Sites: The Case Of Groupon And Livingsocial

Abstract: E-commerce has changed the nature of the value propositions that companies now offer to their customers. The convergence of content sites and social networks has resulted in emerging ecommerce business models. The group buying/local daily deals e-commerce platform represents the collective bargaining power that individuals can leverage to obtain daily deals on local products, services and “experiences”. These local discounted deals are distributed via e-mail and the websites of companies like Groupon and LivingSocial that have established themselves as the sector leaders. The convergence of traditional and electronic business models, as well as traditional and new business practices, are changing the face of global business as we know it. In this study, the authors critically reflect on the strategic management implications of the convergence of content, community and commerce in the form of social e-commerce and daily deal sites. The authors consider the implications of the rapid growth experienced by daily deal social group buying sites, in terms of strategy, and question its long-term value-creation. Future investors are urged to consider the long-term value-creation and not merely the short-term payoff of these sites. Merchants are urged to consider the practical implications of offering coupons on these sites for the day-to-day operation of their businesses.

Generic customer segments and business models for smart grids

Abstract: The implementation of smart grids—one of the urgent goals to meet international policy expectations for energy efficiency and CO2 reduction targets—is not a technological issue alone, as it also requires social acceptance by various stakeholders (Wolsink, Renew Sustain Energy Rev, 2011). It is of particular interest that smart grid products and services provide value to the customer. On the one hand, customer value of smart grid technologies is crucial to customer acceptance. On the other hand, as customer value is a key driver for economic value creation and competitive advantage (DeSarbo et al., Strategic Manag J 22:845–857, 2001; Porter, Competitive advantage, 1985), it is also important for companies and investors and thus will affect market acceptance of smart grid technologies. In the literature, business models address the bridge between customers and company needs and serve as mediators between technology and economic success by providing a value proposition to customers and a revenue model for companies (Chesbrough and Rosenbloom, Ind Corp Chang 11:529–555, 2002). However, we know from the literature that a one-size-fits-all business model may not lead to the best results as it might fail to address heterogeneous customer value perceptions (DeSarbo et al., Strategic Manag J 22:845–857, 2001; Morris et al., J Bus Res 58:726–735, 2005; Ruiz et al., Serv Ind J 27:1087–1110, 2007; Wiedmann et al., Psychol Mark 26:625–651, 2009). Thus, different business models providing different customer value propositions need to be developed to fit the different market segments in an optimal way. On the basis of a cross-European country study, we explore three generic B2C customer segments for smart grid products and services based on different value perceptions (Supporters, Ambiguous and Skeptics). Based on the segmentation we conceptually derive four generic business model designs with different customer value propositions best suited for approaching those segments (Saver, Smart +, Trader, Smart Camouflage). Implications for energy policy, research and smart grid management are derived from the findings.

The three value proposition cycles of equipment-based service

Abstract: This article contributes to the emerging discipline of service science through an empirical investigation of value propositions as connections between service systems The starting point for our research is that service science is an interdisciplinary approach to the study, design and implementation of service systems, a service system being considered a dynamic configuration of resources (people, technology, organisations and shared information) that create and deliver value between the provider and the customer through service (IfM and IBM 2008) Specifically, this article investigates value propositions in the context of equipment-based service systems Our qualitative findings identify three value proposition cycles: Recovery, Availability and Outcome In so doing, showing that providers offer three distinct propositions of value with three different primary transformations This research contributes to theory in service systems by identifying value propositions as multiple, simultaneous and iterative

Fuzzy verification of service value networks

Abstract: Service Value Networks (SVNs) represent a flexible design for service suppliers to offer attractive value propositions to final customers. Furthermore, networked services can satisfy more complex customer needs than single services acting on their own. Although, SVNs can cover complex needs, there is usually a mismatch between what the SVNs offer and what the customer needs. We present a framework to achieve SVN composition by means of the propose-critique-modify (PCM) problem-solving method and a Fuzzy Inference System (FIS). Whereas the PCM method composes alternative SVNs given some customer need, the FIS verifies the fitness of the composed SVNs for the given need. Our framework offers not only an interactive dialogue in which the customer can refine the composed SVNs but also visualizes the final composition, by making use of e3-valuemodels. Finally, the applicability of our approach is shown by means of a case study in the educational service sector.

Discussion and Concluding Remarks

Abstract: The Chapter presents a discussion about the global achievements of IPPR. The proposed method represents an original contribution in terms of the tools for supporting both BPR and NPD tasks. More specifically, it suggests modeling techniques capable to represent the functioning of a business process linking the phases to the aspects of value supplied to the user. Novel assessment metrics have been defined aimed at identifying the process bottlenecks in terms of the ratio between generated customer satisfaction and involved resources. Furthermore, original guidelines have been identified to support the user in performing new value proposition tasks oriented towards the definition of new product profiles. The tests have confirmed reliability and consistency of the feedbacks provided by IPPR. Eventually, further studies have been planned to expand the potentialities and the reliability of the methodologies, among them some are included in ongoing research activities.