Value proposition

About: Value proposition is a research topic. Over the lifetime, 3582 publications have been published within this topic receiving 88855 citations.

A framework for managing and utilizing product–service system design knowledge

Abstract: This study focuses on how to manage and utilise design knowledge in the conceptual design of product–service systems (PSSs). PSS is a business concept that manufacturing firms can use to enhance the value of their products. In order to design an effective PSS, it is important to search for value proposition opportunities throughout the entire product life cycle and offer appropriate services to customers at each opportunity. Because both products and services are included in the design space, PSS designers need to use a broader range of knowledge than that required in product design. Against such background, this article proposes a framework for managing and utilising PSS design knowledge to support idea generation in PSS design. The effectiveness of the framework is demonstrated by its application on an example of PSS design.

Framework for Mobile Payments Integration

Abstract: This paper derives a theoretical framework for consideration of both the technologically driven dimensions of mobile payment solutions, and the associated value proposition for customers. Banks promote traditional payment instruments whose value proposition is the management of risk for both consumers and merchants. These instruments are centralised, costly and lack decision support functionality. The ubiquity of the mobile phone has provided a decentralised platform for managing payment processes in a new way, but the value proposition for customers has yet to be elaborated clearly. This inertia has stalled the design of sustainable revenue models for a mobile payments ecosystem. Merchants and consumers in the meantime are being seduced by the convenience of on‑line and mobile payment solutions. Adopting the purchase and payment process as the unit of analysis, the current mobile payment landscape is reviewed with respect to the creation and consumption of customer value. From this analysis, a framework is derived juxtaposing customer value, related to what is being paid for, with payment integration, related to how payments are being made. The framework provides a theoretical and practical basis for considering the contribution of mobile technologies to the payment industry. The framework is then used to describe the components of a mobile payments pilot project being run on a trial population of 250 students on a campus in Ireland. In this manner, weaknesses in the value proposition for consumers and merchants were highlighted. Limitations of the framework as a research tool are also discussed.

Business model innovations for overcoming barriers in the base-of-the-pyramid market

Abstract: Many barriers must be overcome when entering the base-of-the-pyramid (BoP) market. Firms facing these barriers need to innovate new business models and reinvent existing ones to suit the BoP context. While previous literature has focused on the innovations of particular components of business models in BoP markets, we investigate the reconfigurations in the business model components that underpin the successful business model innovations. This study is based on multiple case studies in the water sector that we carried out in several different countries. Our findings suggest five business model innovations: (a) design, (b) renewal, (c) expansion, (d) diversification and (e) replication. Each business model innovation is a specific response to the barriers met in the BoP market and requires consistent configuration between its various components (i.e. value proposition, value creation and profit equation). These findings add, in two important aspects, to the academic realm of the business model doma...

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.