Showing papers on "Value proposition published in 2013"

Critical service logic: making sense of value creation and co-creation

Abstract: Because extant literature on the service logic of marketing is dominated by a metaphorical view of value co-creation, the roles of both service providers and customers remain analytically unspecified, without a theoretically sound foundation for value creation or co-creation. This article analyzes value creation and co-creation in service by analytically defining the roles of the customer and the firm, as well as the scope, locus, and nature of value and value creation. Value creation refers to customers’ creation of value-in-use; co-creation is a function of interaction. Both the firm’s and the customer’s actions can be categorized by spheres (provider, joint, customer), and their interactions are either direct or indirect, leading to different forms of value creation and co-creation. This conceptualization of value creation spheres extends knowledge about how value-in-use emerges and how value creation can be managed; it also emphasizes the pivotal role of direct interactions for value co-creation opportunities.

Value creation processes and value outcomes in marketing theory: Strangers or siblings?

Abstract: The present article alleviates the often-cited ambiguity of the value concept by proposing that value research consists of two main streams: value creation processes and value outcomes. The prior considers the parties, activities, and resources involved in value creation, whereas the latter explains the value outcomes customers perceive. Furthermore, the article investigates the value approach offered by the Service-Dominant logic, which proposes that value is co-created by firms and customers, and that beneficiaries determine the value [outcomes] (Vargo and Lusch, 2008). Finally, the article discusses how value creation processes and value outcomes might be interlinked, and creates a number of propositions to this end. It is in particular proposed that experiences offer a shared platform for investigating value creation processes and value outcomes.

Customer dominant value formation in service

Abstract: Purpose – The purpose of this paper is to extend current discussions of value creation and propose a customer dominant value perspective. The point of origin in a customer‐dominant marketing logic (C‐D logic) is the customer, rather than the service provider, interaction or the system. The focus is shifted from the company's service processes involving the customer, to the customer's multi‐contextual value formation, involving the company.Design/methodology/approach – Value formation is contrasted to earlier views on the company's role in value creation in a conceptual analysis focusing on five central aspects. Implications of the proposed characteristics of value formation compared to earlier approaches are put forward.Findings – The paper highlights earlier hidden aspects on the role of a service for the customer. It is proposed that value is not always an active process of creation; instead, value is embedded and formed in the highly dynamic and multi‐contextual reality and life of the customer. This l...

Focusing Accounting Curricula on Students’ Long-Run Careers: Recommendations for an Integrated Competency-Based Framework for Accounting Education

Abstract: Professional accounting organizations, accrediting bodies, and accounting educators have invested substantial effort defining entry-level accounting and broad management competencies for accounting students, particularly those interested in a career in public accounting. Much less attention has been given to explicitly defining the competencies accounting students — all accounting students — need for their long-run careers, clearly distinguishing these competencies from the determinants of entry-level demands, and helping to develop these long-run competencies within the formal accounting curriculum. In 2010 the Institute of Management Accountants (IMA) and the Management Accounting Section (MAS) of the American Accounting Association (AAA) formed a Task Force to address these competency issues and to make curriculum-related recommendations for all accounting majors. This paper contains the initial completed report of the Task Force and is responsive to the recent call to “connect the accounting body of knowledge to a map of competencies…” and to create “…curricular models for the future” (Pathways Commission 2012, 37, 75). The paper provides a comprehensive review of the academic and professional literatures in three areas: (1) the scope or focus of accounting education; (2) the value proposition for accounting (i.e., specification as to how accountants today, working in a variety of settings, add organizational value); and (3) the importance of competency integration to the value proposition of accounting. These reviews lead to four recommendations regarding accounting curricula. First, accounting education should be reoriented to include a greater focus on a curriculum oriented toward long-term career demands. Second, the breadth of accounting education should be broadened to include a wide array of organizational settings including, but not limited to, public accounting/auditing. Third, the educational objectives of accounting curricula today should reflect how accountants add organizational value. Fourth, these objectives (represented as knowledge, skills and abilities) should emerge and be developed as integrated competencies. These recommendations lead operationally to the competency-based educational Framework presented in this paper. This Framework is general in the sense that it is meant to apply to a wide variety of career paths and options, including but not limited to public accounting. The paper concludes with a call to accountants in all functional areas to provide additional inputs and refinements of the general competency Framework espoused in this paper and with an appeal for an assessment of the proposed educational Framework. In two follow-up papers, the Task Force offers (1) specific curricular recommendations regarding the role of management accounting (MA) in implementing the Framework, and (2) guidance for the development of student cognitive skills in the MA portion of the accounting curriculum (IMA-MAS Curriculum Task Force 2013a, 2013b).

tranSMART: An Open Source and Community-Driven Informatics and Data Sharing Platform for Clinical and Translational Research.

Abstract: tranSMART is an emerging global open source public private partnership community developing a comprehensive informatics-based analysis and data-sharing cloud platform for clinical and translational research The tranSMART consortium includes pharmaceutical and other companies, not-for-profits, academic entities, patient advocacy groups, and government stakeholders The tranSMART value proposition relies on the concept that the global community of users, developers, and stakeholders are the best source of innovation for applications and for useful data Continued development and use of the tranSMART platform will create a means to enable "pre-competitive" data sharing broadly, saving money and, potentially accelerating research translation to cures Significant transformative effects of tranSMART includes 1) allowing for all its user community to benefit from experts globally, 2) capturing the best of innovation in analytic tools, 3) a growing 'big data' resource, 4) convergent standards, and 5) new informatics-enabled translational science in the pharma, academic, and not-for-profit sectors

Product Development Processes in the Nordic Paper Packaging Companies

Abstract: It is important for firms to continually develop their offerings as the business landscape develops in order to sustain their competitiveness (e.g. Schumpeter, 1934; Ansoff, 1979; Porter, 1985; Trott, 2012). In a context of globalization, rapid technology development and changing customer needs, the paper packaging industry is urged to enhance its product development activities (Hansen & Niskanen, 2007; Bjorkdahl & Borjesson, 2011). However, there is little research about paper packaging firms’ product development processes (ibid). Accordingly, this study assessed the product development processes of four Nordic paper packaging firms. This study took the contemporary theoretical perspective that product development is a complex, non-linear processes, which should be managed accordingly (OECD & Eurostat, 2005; Burns, 2005; Smith et al., 2008; Goffin & Mitchell, 2010; Trott, 2012). In particular, Goffin and Mitchell’s (2010) Innovation Pentathlon Framework was selected as a model to assess the firms’ product development processes. This framework comprises an innovation process that has three phases; idea generation, prioritizations and implementation. This innovation process is supported by the firms’ strategy as well as underlying human resources and organizational structures. Executives responsible for product development were interviewed using semi-structured interviews. Interview results were then analysed and compared with the Innovation Pentathlon Framework and literature. Findings were that the Nordic paper packaging producing companies have flexible and dynamic product development processes. Moreover, all executives consider that flexibility in running product development projects is vital. The four firms have different product development praxis. Nonetheless, components such as idea generation and product development phases are similar. All firms recognised that there is a need for enhanced investments in competences, people processes and team management. A key distinguishing feature of product development praxis was that some firms have a push oriented idea generating and prioritization processes while others have pull oriented processes. Involvement of customers varies among the companies accordingly. The assessment was that most firms could benefit from having a more diverse idea generating process, involving employees and customers in the prioritization process as well as focusing more on the value proposition. The study showed a difference in attitudes towards external actors. Some advocate that open innovation can provide firms with opportunities, although it requires competence in how to establish agreements and balance values etc. However, the findings also indicate that other actors in the industry are becoming more introverted, which may negatively affect the development of the sector and firms within it. Findings showed that firms’ business strategies were integrated in the product development process, although this was performed differently. The assessment found that a naturally integrated strategy can act as a facilitator for the products development, although too lose structures might lead to project drift. On the other hand, too controlled and strict processes might hamper the innovativeness, even though it secures the project alignment. The companies need to examine the effects of their approaches. Finally the study highlights the need for more knowledge about the complexity of running product development processes in paper packaging firms. Several areas for improvement are identified in the study, such as people processes and management, open innovation and customer involvement, flexibility vs. efficiency and the nature of flexible cultures. Further research is needed to understand what explicit components the management needs to address to master these areas.

Understanding Willingness to Pay for Social Network Sites

Abstract: The authors investigate how perceived customer value can be translated into economic returns for online social network sites (SNS). The (joint) impact of two value propositions, social capital and entitativity, is assessed. Perceived economic and social customer value are investigated as outcomes of these propositions. Two studies reveal that entitativity and social capital impact members’ willingness to pay (WtP) membership fees, either directly or indirectly. Moreover, the predictive ability of perceived economic and social customer value regarding WtP depends on the type of membership and the type of social network. SNS providers are advised to emphasize the benefits their users actually take advantage of. While for professional SNS, it seems advisable to stress both social and economic value, particularly for premium members, in socially oriented SNS premium members seem to be driven more by social value. Other theoretical and managerial implications are discussed.

A sustainability-oriented multi-dimensional value assessment model for product-service development

Abstract: In the product-service system (PSS), products are carriers of functions and media of services. Currently, value creation in PSS is directly related to the capabilities of the product-service solutions provided to serve customer demands and supplier business interest over time. There is a need for an evaluation approach that can identify in what manner and to what extent products and services should best be bundled in the development of a company’s value proposition. Furthermore, with an increasing focus on the sustainability profile of business operations, it is necessary to incorporate environmental impact measures with technical performance and cost measures to present a more comprehensive value assessment of product-service development. In this paper, a sustainability-oriented value assessment model is proposed as an attempt for product-service development decision support based on life cycle thinking. In this proposed approach, the fitness for extended utilisation indicators, the net present value (NP...

Strategic Customer Management: Integrating Relationship Marketing and CRM

Abstract: Part I. Introduction: 1. Strategic customer management Part II. Relationship Marketing: 2. Relationship marketing: development and key concepts Case study 2.1. Myspace - the rise and fall Case study 2.2. Placemakers - success factors in the building supplies sector 3. Customer value creation Case study 3.1. BT (British Telecommunications) - creating new customer value propositions Case study 3.2. Zurich Financial Services - building value propositions 4. Building relationships with multiple stakeholders Case study 4.1. AirAsia spreads its wings Case study 4.2. The City Car Club, Helsinki - driving sustainable car use 5. Relationships and technology: digital marketing and social media Case study 5.1. Hippo in India - using Twitter to manage the supply chain Case study 5.2. Blendtec - the 'will it blend' viral marketing initiative Part III. Customer Relationship Management: Key Processes: 6. Strategy development Case study 6.1. Tesco - the relationship strategy superstar Case study 6.2. Samsung - from low-cost producer to product leadership 7. Enterprise value creation Case study 7.1. Coca-Cola in China - bringing fizz to the Chinese beverages market Case study 7.2. Sydney Opera House - exploring value creation strategies 8. Multi-channel integration Case study 8.1. TNT - creating the perfect customer experience Case study 8.2. Guinness - delivering the 'Perfect Pint' 9. Information and technology management Case study 9.1. Royal Bank of Canada - building client service commitment Case study 9.2. The DVLA - innovating with CRM in the public sector 10. Performance assessment Case study 10.1. Sears - the service profit chain and the Kmart merger Case study 10.2. The Multinational Software Company - driving results with a metrics dashboard Part IV. Strategic Customer Management Implementation: 11. Organising for implementation Annex: the comprehensive CRM audit Case study 11.1. Nationwide Building Society fulfilling a CRM vision Case study 11.2. Mercedes-Benz - building strategic customer management capability Index.

The role of marketing activities in the fuzzy front end of innovation: a study of the biotech industry

Abstract: In this paper we explore the importance of marketing activities during the Fuzzy Front End of Innovation (FFEI), which in product life cycle management is described as the phase between R&D and the beginning of formal new product development. The FFEI is characterized by informal processes and many industry specific conditions. The particular context in which the study was conducted involved research emerging from a US government sponsored institution. Firms obtain licenses for technology from the government sponsored institution with the purpose of advancing them towards commercialization. But, the process of development often gets stalled, especially during the initial stages due to the lack of a number of resources (financial, key personnel, etc.). The specific interest in this study was, therefore, to understand the extent to which various marketing efforts by the licensees enabled the survival of early stage biotech innovations. Licensees would be expected to seek resources by undertaking a number of marketing activities designed to communicate a value proposition to potential resource providers. The study involved qualitative data collection among licensees to uncover marketing activities in which they engaged during the FFEI phase. The data was coded to develop the specific types of marketing activities that had been employed so as to provide insight into which activities were important in enabling early stage innovation survival. Future research can build upon this study’s findings in industries other than biotech and involving different sources of technology transfer (universities, etc.).

Regulatory Considerations Associated with the Expanded Adoption of Distributed Solar

Abstract: Increased adoption of distributed PV, and other forms of distributed generation, have the potential to affect utility-customer interactions, system costs recovery, and utility revenue streams. If a greater number of electricity customers choose to self-generate, demand for system power will decrease and utility fixed costs will have to be recovered over fewer kilowatt hours of sales. As such, regulators will need to determine the value and cost of additional distributed PV and determine the appropriate allocation of the costs and benefits among consumers. The potential for new business models to emerge also has implications for regulation and rate structures that ensure equitable solutions for all electricity grid users. This report examines regulatory tools and rate designs for addressing emerging issues with the expanded adoption of distributed PV and evaluates the potential effectiveness and viability of these options going forward. It offers the groundwork needed in order for regulators to explore mechanisms and ensure that utilities can collect sufficient revenues to provide reliable electric service, cover fixed costs, and balance cost equity among ratepayers -- while creating a value proposition for customers to adopt distributed PV.

The importance of stakeholder-initiatives for business models in short food supply chains: the case of the Netherlands

Abstract: While the interest in Short Food Supply Chains (SFSCs) is growing, we still await management studies that explore the impact of stakeholders of SFSCs in substantial numbers. This article investigates the differences in the business models of SFSCs that may be attributed to the initiator-stakeholder, interacting with other stakeholders. Essential to business models are the value proposition, value creation and value capture, but it is the ambition of the initiator-stakeholder that starts a SFSC. Initiator-stakeholders of 57 SFSCs were interviewed on a combination of both multiple choice and open questions. The data converges on three categories of business models. First and foremost, a large majority of SFSCs is driven by the aim of the initiator-stakeholder to increase economic viability, uses the market as governance structure, resulting in profit margins likely to be above margins in conventional business. Two other categories of business models of SFSCs group around the theme of producer-support, and, producer-consumer interaction, respectively.

The Value Proposition for Applying Advanced Completion and Stimulation Designs to the Bakken Central Basin

Abstract: The Bakken boom in North Dakota is currently focused on the Central Basin area where around half of the drilling rigs in North Dakota are now operating. What makes this area different compared to previous areas of Bakken development is that there is only minor structural variation and significantly less naturally induced fracturing as compared to the higher permeability rock facies that exist in the sub-reservoirs of earlier Bakken development such as at the Elm Coulee field in Montana or the Sanish and Parshall fields in North Dakota. As a consequence, the role of the well’s completion and stimulation design has a greater significance and impact on well productivity and ultimate recovery. Different companies have taken very different approaches to well design using either plug and perf or ball and sleeve completions, and a variety of fracture designs with slickwater, hybrid or cross-linked gel fluids and a variety of proppants from 100% natural sand to 100% ceramics. As a consequence, it is not uncommon for different operators to have over a 2 million dollar difference in their AFE’s solely because of the differences in approach to the well’s completion and stimulation design. The authors have chosen to apply “advanced completion and stimulation designs” which are designed to maximize the reservoir contact area (slickwater and plug and perf) and optimize the conductivity (ceramic proppant at relatively high volumes). In order to benchmark performance of its completion and stimulation program the authors in 2010 developed a production and completion database of all wells completed in the Central Basin using publicly available information from the North Dakota Industrial Commission’s records augmented by additional completions information obtained directly from the operators. From an initial dataset of ~30 wells the database has been updated monthly and has now grown to over 1100 wells in the Central Basin from 28 operators. Benchmarking of completion performance has been performed using the above database together with a Petra geological database developed from all publicly available logs in the Central Basin (~500 vertical wells which had been drilled and logged prior to the first Bakken horizontal well). Benchmarking of performance is somewhat subjective in the Bakken (as well as most reservoirs) due to variations in reservoir quality. Without geological input (reservoir quality), the acquired data were too scattered to achieve meaningful correlations to completion methods unless the area was limited to ensure similar reservoir quality for the wells being evaluated. By narrowing the analysis to very limited areas; this also reduced the input as to the number and type of completion methods being compared. Multivariate analysis methods, that included geological input, were used to benchmark performance over most of the Williston Central Basin, allowing comparison of the varied completion methods for 28 operators and over a thousand wells. Using multiple parameters an excellent correlation for completion methodology versus reservoir quality was obtained. While early analysis focused on 30, 60 and 90-day cumulative production; in the past year there have been enough wells to generate performance metrics based on 180 and 365-day cumulative production since over 600 wells have now been on production for at least a year.

Improvement of hospital performance through innovation: toward the value of hospital care.

Abstract: The perspective of innovation as the strategic lever of organizational performance has been widespread in the hospital sector While public value of innovation can be significant, it is not evident that innovation always ends up in higher levels of performance Within this context, the purpose of the article was to critically analyze the relationship between innovation and performance, taking into account the specificities of the hospital sector This article pulls together primary data on organizational flexibility, innovation, and performance from 95 hospitals in Portugal, collected through a survey, data from interviews to hospital administration boards, and a panel of 15 experts The diversity of data sources allowed for triangulation The article uses mixed methods to explore the relationship between innovation and performance in the hospital sector in Portugal The relationship between innovation and performance is analyzed through cluster analysis, supplemented with content analysis of interviews and the technical nominal group The main findings reveal that the cluster of efficient innovators has twice the level of performance than other clusters Organizational flexibility and external cooperation are the 2 major factors explaining these differences The article identifies various organizational strategies to use innovation in order to enhance hospital performance Overall, it proposes the alignment of perspectives of different stakeholders on the value proposition of hospital services, the embeddedness of information loops, and continuous adjustments toward high-value services

How designers and marketers can work together to support consumers' happiness

Abstract: A product’s value proposition rests on the notion that it brings value to its customers. Typically, such value is created by having novel product functionality, superior technology, or new customer benefits, but value can also be created by adhering to what is fundamentally important to customers in their lives. Focusing on customers’ happiness is a value proposition of the latter kind. Yet, implementing such an approach requires that designers and marketers have a common understanding of the product’s value proposition, and work together to create authentic value propositions about happiness that will also be compelling in the marketplace. In this article, we draw upon the positive psychology literature and present three propositions of design for happiness that designers and marketers can use to communicate and create value together. Design for happiness means designing business concepts with the aim of building and supporting long-term consumer happiness. The three propositions that we bring forward are: 1) design for fostering social relationships and belongingness, 2) design for meaning in life, and 3) design for making consumers active participants rather than passive observers. These propositions create a shared understanding of what “design for happiness” can contribute to customers, and how it can contribute to profits and sales.

The Step 2 Clinical Skills Exam — A Poor Value Proposition

Abstract: Given the very high pass rates among examinees and the cost of the Step 2 Clinical Skills exam, it appears to provide a poor return on investment and little appreciable value to the U.S. health care system. Should it be eliminated?

An Innovative Marketing Model Based on AIDA: - A Case from E-bank Campus-marketing by China Construction Bank

Abstract: In mature marketing, general perception towards AIDA is that most enterprises will lay emphasis directly on value proposition of a product or services, and encourage clients going to each step of AIDA layers, finally to increase the total number of final step, say enlarging the number of actual buying action. However to some extent, the efficiency of such a simple model appears strongly inadequate. Based on AIDA theory and market feature of universities via e-bank at China Construction Bank (CCB) , this paper has introduced a new marketing model which present a new value proposition (new value proposition is attempting to focus on practical-teaching innovation and job competency improvement) to accelerate AIDA marketing activities at university market, the outcome further helps to grow AIDA at bigger market groups. Finding of this paper shows new model greatly improved marketing efficiency of e-bank services from CCB at university market, and it also unfolds a new perspective in marketing of the enterprises.

Decision theoretic requirements prioritization: a two-step approach for sliding towards value realization

Abstract: Budget and schedule constraints limit the number of requirements that can be worked on for a software system and is thus necessary to select the most valuable requirements for implementation. However, selecting from a large number of requirements is a decision problem that requires negotiating with multiple stakeholders and satisficing their value propositions. In this paper I present a two-step value-based requirements prioritization approach based on TOPSIS, a decision analysis framework that tightly integrates decision theory with the process of requirements prioritization. In this two-step approach the software system is initially decomposed into high-level Minimal Marketable Features (MMFs) which the business stakeholders prioritize against business goals. Each individual MMF is further decomposed into low-level requirements/features that are primarily prioritized by the technical stakeholders. The priorities of the low-level requirements are influenced by the MMFs they belong to. This approach has been integrated into Winbook, a social-networking influenced collaborative requirements management framework and deployed for use by 10 real-client project teams for the Software Engineering project course at the University of Southern California in Fall 2012. This model allowed the clients and project teams to effectively gauge the importance of each MMF and low-level requirement and perform various sensitivity analyses and take value-informed decisions when selecting requirements for implementation.

Adding value: getting to the heart of the matter

Abstract: Purpose – The purpose of this paper is to explore the concept of adding value and in particular to suggest ways in which libraries can add even more value than they do so now. Design/methodology/approach – With this primarily a literature review combined with some examples of ways in which some libraries are adding value in new and interesting ways. This paper seeks to extend the work of Robert Taylor who developed a Value-Added Model. Findings – Libraries must find new ways to add value to their collections and services as competitors continue to introduce convenient services that are drawing people away from libraries. The ways in which a library might add new value have been grouped into five broad categories: community, content, context, collaboration, or co-creation and connection. Each category is discussed in some detail and examples are provided to illustrate possibilities. Originality/value – Exploring ways in which libraries can add value in the life of their customers must become a topic of con...

A Review on Mobile Applications for Citizen Emergency Management

Abstract: Mobile devices may be a powerful tool to help in case of emergency, not only for the person or people in danger but also for those ones giving assistance to them, professionally or not. In order to determine how mobile applications are currently being used in this area and the possibilities for innovation, this paper gathers the result of a review of about more than 250 applications commercially available. These applications have been featured to analyze their value proposition (e.g. main service goal, target user or pricing approach) and their operational features, with respect to their level of context-awareness and the discovery and notification of emergencies. Additionally, the paper proposes the functional design of a mobile application for Citizen Emergency Management, which takes advantage of the gap of the available offer.

Teaching and Learning in Dermatology: From Gutenberg to Zuckerberg via Way of Von Hebra*

Abstract: The World Wide Web (www) and other internet-based technologies offer enormous potential for enhancing teaching in dermatology. There is also the possibility that if these technologies are adopted uncritically, either because of ignorance of how people learn, or because they are viewed primarily as ways to reduce institutional costs, that they might diminish learning, thereby reducing the value proposition that undergraduate students receive from Medical Schools. I review the history of recent technological change with a focus on what value such technologies bring to both student and institution. After summarising some of the core principles underpinning successful learning, and modern theories of medical expertise, I critically discuss some of the ways the Web and allied technologies might enhance the learning of dermatology.

Analysis of radiology business models.

Abstract: As health care moves to value orientation, radiology's traditional business model faces challenges to adapt. The authors describe a strategic value framework that radiology practices can use to best position themselves in their environments. This simplified construct encourages practices to define their dominant value propositions. There are 3 main value propositions that form a conceptual triangle, whose vertices represent the low-cost provider, the product leader, and the customer intimacy models. Each vertex has been a valid market position, but each demands specific capabilities and trade-offs. The underlying concepts help practices select value propositions they can successfully deliver in their competitive environments.