Disclosing Shared Value in Business Ecosystems

Disclosing Shared Value in Business Ecosystems
Alte Kalkscheune Berlin, October

th 10
2012
201 2
BE RL IN
WO RL DU SA BIL ITY DA Y
Corporate Confusion
Innovation! We need more innovation!
The key is: We have to create more value for our customers!
and our solutions have to become more easy to use.
Yes! Our brand definitely needs an emotional supercharge!
We need a clear positioning! Our value proposition has to be refined. I personally have the vision of becoming the Apple of ...!
Agenda
01 02 03 04
What is User Value? And a Value Proposition? Value Creation: How to create/deliver new value? Team Work! 45 min
Biosphere
Individual
Society
Economy
Adapted from Daly and Farley (2004)
Biosphere Society Economy
Individual
Ecology
Biosphere Society Economy
Economy
Individual
Psychology
Sociology
Levels of Value
Levels of Value
So c
ty ie
Ec os y
m te s
Or ga ni
on ti a s
Us
r e
Levels of Value
So c
ty ie
Ec os y
m te s
Or ga ni
on ti a s
Us
r e
Levels of Value
So c
ty ie
Ec os y
m te s
Or ga ni
on ti a s
Us
r e
Levels of Value
So c
ty ie
Ec os y
m te s
Or ga ni
on ti a s
Us
r e
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
r e
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Perspectives on Value
Us
r e
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Economy
Us
r e
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Economy
Us
r e
Ecology
Psychology
Sociology
Acquisition Value, Aesthetic Value, Basic Value, Conditional Value, Delivered Value, Efficiency Value, Desired Value, Emotional Value, Dual-stimulus Value Epistemic Value, Exchange Value, Esteem Value, Exc Value, Ethical Value, Expected Value, Excellence Valu General Value, Functional Value, Postpurchase & Performance Value, Image Value, Private Meaning Va Logical Value, Public Meaning Value, Material Value, Received Value, Play Value, Sign Value, Redemption Possession Value, Relative Value, Practical Value, Sin stimulus Value, Social Value, Transaction Value, Spiri Value, Unanticipated Value, Status Value, Use Value, Value, Experience Value, Means-end Value, Exchang Value, Labor Value, Extrinsic Value, Intrinsic Value, Satisfaction Value, Perceived Value, Value in Context
User Value?
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Economy
Us
r e
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Value for Money
Economy
Us
r e
Ecology
Psychology
Sociology
Classic Value Theory in Economics
10
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Value for Money
Economy
Us
r e
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Value for Money Happieness
Economy
Us
r e
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Economy
Us
r e
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Value for Money Happieness Belonging
Economy
Us
r e
Ecology
Psychology
Sociology
Sign Value
13
Sign Value
13
Play Value: Childrens Hospital of Pittsburgh
Image Credit: 2011 General Electric Company (http://www.gehealthcare.com/promo/advseries/adventure_series.html)
14
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Value for Money Happieness Belonging
Economy
Us
r e
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
r e
EcoFootprint Belonging
Economy
Ecology
Psychology
Sociology
e iv e
V a lu d
ear es
User Value? Whati science is saying ... nef e

an ts AB
a lity m a d qu nd an em a io n s d at y th e oper , nl y a te g y cu a in o s tr r he s te n c Ag i tin g , s of t to m e te x t. cons e s n n m a rk s and ss co d a tio he cu t e n es m e fo r y fo u b u s in s fro c is e n lu C e n er xt in th ir c o a le V of va 9 0 te th e v e s f d ,S in e d in th s is o fo rm s u se g VC m d ti in ry a ly v a rie g exa ow i e an a rk et r im a in p ns ur th ,M fo rm H av fiv e n itio te ra t d ou li r, fi n d VC e e fi a ve s of D e r iv a in d ow e e r to m ed , d H ag fo r v a lu et V C in o r o rs. and th nt d, :N e fo em e d ere ar au lo w s l si ul ag r th Fac a s fo a r tic s con a tf p m e cu to rs ks ous vaelled the id e w r s to m s bl e wo in f l a ll la u e ss th d e r ( a cro uen V C ) rg e d . W o o re 1 2 ). c in g e em(Sou VC (Figu r l Con tio n a c e : W ) Ra su o .4 3 0
S ac d
fic e ri
ie w V
nN o
A cc and
o rd i
ng t
o hi
dal
ls
in te ] su n d iv gen rp re b je c id u a ex ch cy ( ta tio t to ange Wo lly o th e ns o oda v a lu r co in flu f va ll 2 0 lle c t e, w lu e ence 03, h ere iv e l ca of b p p .5 y (a as e o th sag 6 ). very th e e s ta ty su bj lt) b e c t y th s va ec lu e syst em a
a re
a ls o
/or
s mo
exp
del
re ss
fo u r
ed i
p rim
a ry
me
rs V
a lu
esea
ea h s tr rc
s on
e rc e iv pe
v a lu e
c (S n
-F e rn hez
adieo t z
n
nP
llil2o 2007, on l 0 0 3 -B , p .9 ie s ta In &
oda
ro c
)
sac d s fic e ri (W
V ie
e on N w
a fte VC
ooda rW
003) ll (2
ess
Ben a fits e n
dal oo
003 l2
4 p .1 ,
) 120 -
sum
e rs
Image Credits: ...

v a lu a
on tiv e c ersp e cs i p e om a r ia n n in th ) it til 20 co , p .7 al an u , p .1 003 &E t ll 2 56n iv id u kes e en oda ly ta ) n d : Wo ar009 d Figuralue ifor ae in he em ce ag e e n c u tio n s . T C clle 2 12 an S our n V n ( V s( Ma e d o p e ri e s o l fo rm N et bul 03, p. b x e te VC e eernativ s can s: T h T u r n ll 2 0 o ra m a ry ri tu itiv ce hi p a fi n ve p r Cor sa cri he eWood ch otueri.nT peting alt bjective i observe. 2: Fi 1 nd in l ( ft sacf. ig u re o fits a s is e F ce ne t e a Va fo r c o m e if c a rd t rni in s f be Th a o rh d sa c .A .ct or e nperie ghted ag la n c e a th e us M du Ba er ts a nefir Ex nd wei e in me pro ss a r e e u p ro c o n . B m e a re d a atlhe sa ion V ng p ti to p anci e s o f sse s su m v al con Cus o F ig u rn a ti th e b p l r n te reo1s of th e r foe ia e, fa c t 1 : ver ct alonValu g A Pr s o ro d u g e n flu e n c in an h e i e li m iv e p ct ce xch e re t in a r n e e h SUM y mo e r ie rs p w M AR Pe e xp del o n s er Y: W ue o,f p.4) u la ti m v OOD c a lc Val sto U se u 0 0 9 a lu e f o A LL c v a lu r th e S F O n b u ll 2 s of e S u ge URrI cust b je c S ta : T u NTE nce om e e RPR t-b a u rc e r ie r (S o ETA s e d e (S o exp u rc e T IO N ,a In t r i nc nd te d e : Wo a S OF ie c a ls ns ie n ic ip per o
17
e iv e
V a lu d
ear es
Consumer Valuene Customer Value User Value fi e

an ts AB
S ac d
fic e ri
ie w V
nN o
A cc
o rd i
ng t
dal
ls
Customer Value =
Value for the Customer

Net benet
t ez ndion rn lu a P ro
(Customer Perceived/Received Value)
in te ] su n d iv gen rp re b je c id u a ex ch cy ( ta tio t to ange Wo lly o th e ns o oda v a lu r co in flu f va ll 2 0 lle c t e, w lu e ence 03, h ere iv e l ca of b p p .5 y (a as e o th sag 6 ). very th e e s ta ty su bj lt) b e c t (Customer Lifetime Value) y th s va ec lu e syst em a
a re
and
o hi
a ls o
/or
s mo
exp
del
re ss
fo u r
ed i
p rim
a ry
Value for the Firm

Utility
rs V (Costs - Sacrices) a
e z -F e nch
me
oda
)
sac d s fic e ri (W
esea
ea h s tr rc
p s on
ed va v e rc e i
u e (S l
ces
w on V ie
Net
a fte VC
Means-end
ooda rW
003) ll (2
s
Ben a fits e n
(total .satisfaction with oering 14) 3, p 0 l 20 and willingness to pay) 20 dal -1 oo Customer Lifetime Value
(economic worth of customer to the rm)
Phenomenological experience
sum
e rs
adapted from Ng &

v a lu a
on tiv e c ersp e cs i p e om a r ia n n in th ) it til 20 co , p .7 al an u , p .1 003 &E t ll 2 56n iv id u kes e en oda ly ta ) n d : Wo ar009 d Figuralue ifor ae in he em ce ag e e n c u tio n s . T C clle 2 12 an S our n V n ( V s( Ma e d o p e ri e s o l fo rm N et bul 03, p. b x e te VC e eernativ s can s: T h T u r n ll 2 0 o ra m a ry ri tu itiv ce hi p a fi n ve p r Cor sa cri he eWood ch otueri.nT peting alt bjective i observe. 2: Fi 1 nd in l ( ft sacf. ig u re o fits a s is e F ce ne t e a Va fo r c o m e if c a rd t rni in s f be Th a o rh d sa c .A .ct or e nperie ghted ag la n c e a th e us M du Ba er ts a nefir Ex nd wei e in me pro ss a r e e u p ro c o n . B m e a re d a atlhe sa ion V ng p ti to p anci e s o f sse s su m v al con Cus o F ig u rn a ti th e b p l r n te reo1s of th e r foe ia e, fa c t 1 : ver ct alonValu g A Pr s o ro d u g e n flu e n c in an h e i e li m iv e p ct ce xch e re t in a r n e e h SUM y mo e r ie rs p w M AR Pe e xp del o n s er Y: W ue o,f p.4) u la ti m v OOD c a lc Val sto U se u 0 0 9 a lu e f o A LL c v a lu r th e S F O n b u ll 2 s of e S u ge URrI cust b je c : T u NTE Smith (2012) Sta nce om e e RPR t-b a u rc e r ie r (S o ETA s e d e (S o exp u rc e T IO N ,a In t r i nc nd te d e : Wo a S OF ie c a ls ns ie n ic ip per o
Perceived Satisfaction
(delivery of superior customer value = competitive advantage)

18
e iv e
V a lu d
ear es
Functional/Instrumental Value
AB
e fi en
an ts
S ac d
fic e ri
ie w V
nN o
Experiential/Hedonic Value A cc or
d in g
y ma
dal
Correct/accurate attributes Utility Appropriate performances Appropriate outcomes fo rm

ls F
s of
act
v a lu
o rs
e fo
r th
in f l
uen
c in g
Con
sum
it qual d nd ns an em a io d at y th e oper , nl y a te g y cu a in o s tr r he s te n c Ag i tin g , s of t to m e te x t. cons e s n n m a rk s and ss co d a tio he cu t e n es m e fo r y fo u b u s in s fro c is e n lu C e n er xt in th ir c o a le V of va 9 0 te th e v e s f d ,S in e d in th s is o fo rm s u se g VC m d ti in ry a ly v a rie g exa ow i e an a rk et r im a in p ns ur th ,M H av fiv e n itio te ra t d ou li r, fi n d VC e e fi a ve D e r iv a in d ow e e r to m ed , d H ag fo r et V C in o r o rs. and th nt d, :N em e d ere ar au lo w s l si ul ag a s fo a r tic s con a tf p m cus ks ous vaelled the id e w t o m s s s t h e w o r a l l l a b lu e d e r ( a cro V C ) rg e d . W o o re 1 2 ). e em(Sou VC (Figu r l tio n a c e : W Ra 30)
Sensory re ss a ls o ry in ed i ] su n d iv te rp gen Emotional b je c re ta id u a ex ch cy ( t to tio n ange Wo lly o th e oda v a lu r co inflSocial/relational s of va ll 2 0 lle c t e, w uen lu e 03, h ere iv e l ce o ca p p .5 y (a f bo as e sag 6 ). th th Epistemicst very ty e e
a re /or exp r pr im a su bj e c t s va a lt) lu e syst by t em
and
to h
is m
ode
l fo u
he c
e rs
Val
ood
ces c Symbolic/Expressive Value (S n s v a lu e d

R esea ea h s tr rc
z -F e r he
z io nde n n
uat
ta In ie s &
all 2o o n i ll 0 0 3 -B
. 07, p 20
P ro
, p .9
)
sac d s fic e ri (W
dal oo
003 l2
4 p .1 ,
) 120 -
a fte Self-identity/concept/worth et VC on N View meaning Personal Self-expression s m ic ono Social meaning c &E nt me age Conditional Meaning te Man
s on
e rc e iv pe
Cost/Sacrice Value Economic Psychological Personal investment Risk
ooda rW
003) ll (2
Ben
a fits e
Sources of Value
e rs
sum
after Smith & Colgate

v a lu a
on tiv e c ersp e p e a r ia n in th ) it til 20 , p .7 al an u , p .1 003 ll 2 56n iv id u kes e oda ly ta ) n d : Wo ar009 d Figuralue ifor ae in he ce e e n c u tio n s . T C clle 2 12 an S our V n ( V s( e d o p e ri e s o l fo rm N et bul 03, p. b x e VC e eernativ s can s: T h T u r n ll 2 0 o ra m a ry ri tu itiv ce hi p a fi n ve p r Cor sa cri he eWood ch otueri.nT peting alt bjective i observe. 2: Fi 1 nd in l ( ft sacf. ig u re o fits a s is e F ce ne t e a Va fo r c o m e if c a rd t rni in s f be Th a o rh d sa c .A .ct or e nperie ghted ag la n c e a th e us M du Ba er ts a nefir Ex nd wei e in me pro ss a r e e u p ro c o n . B m e a re d a atlhe sa ion V ng p ti to p anci e s o f sse s su m v al con Cus o F ig u rn a ti th e b p l r n te reo1s of th e r foe ia e, fa c t 1 : ver ct alonValu g A Pr s o ro d u g e n flu e n c in an h e i e li m iv e p ct ce xch e re t in a r n e e h SUM y mo e r ie rs p w M AR Pe e xp del o n s er Y: W ue o,f p.4) u la ti m v OOD c a lc Val sto U se u 0 0 9 a lu e f o A LL c v a lu r th e S F O n b u ll 2 s of e S u ge URrI cust b je c S ta : T u NTE (2007) nce om e e RPR t-b a u rc e r ie r (S o ETA s e d e (S o exp u rc e T IO N ,a In t r i nc nd te d e : Wo a S OF ie c a ls ns ie n ic ip per o
19
e iv e
V a lu d
ear es

an ts AB
S ac d
fic e ri
ie w V
nN o
A cc and
dal
ls
esea
ea h s tr rc
s on
Value for the customer (VC) is any demand-side, personal perception of advantage arising out of a customers association with an organisations offering, and can occur as reduction in sacrifice; presence of benefit (perceived as either attributes or outcomes); the resultant of any weighed combination of sacrifice and benefit (determined and expressed either rationally or intuitively); or an aggregation, over time, of any or all of these.
me rs V a lu
e rc e iv pe d v a lu e c (S n -F e rn hez
t a fte VC
o rd i
ng t
o hi
a re
a ls o
/or
s mo
exp
del
re ss
fo u r
ed i
p rim
a ry
adieo t z
n
nP
oda
ro c
V ie
e on N w
ooda rW
003) ll (2
ess
Ben
a fits e
sac d
s fic e ri
(W
dal oo
003 l2
4 p .1 ,
120 -
sum
e rs
Image Credit: ...

v a lu a
Woodall 2003, p.21
20
e iv e
V a lu d
ear es

an ts AB
S ac d
fic e ri
ie w V
nN o
dal
ls
esea
ea h s tr rc
s on
Value for the customer (VC) is any demand-side, personal perception of advantage arising out of a customers association with an organisations offering, and can occur as reduction in sacrifice; presence of benefit (perceived as either attributes or outcomes); the resultant of any weighed combination of sacrifice and benefit (determined and expressed either rationally or intuitively); or an aggregation, over time, of any or all of these.
me rs V a lu
e rc e iv pe d v a lu e c (S n -F e rn hez
t a fte VC
adieo t z
n
nP
oda
ro c
V ie
e on N w
ooda rW
003) ll (2
ess
sum
e rs
Image Credit: ...

v a lu a
?
p
A cc and
o rd i
ng t
o hi
a re
a ls o
/or
s mo
exp
del
re ss
fo u r
ed i
p rim
a ry
Ben
a fits e
sac d
s fic e ri
(W
dal oo
003 l2
4 p .1 ,
? T A H W
120 -
Woodall 2003, p.21
20
e iv e
V a lu d
ear es

an ts AB
S ac d
fic e ri
ie w V
nN o
A cc and
o rd i
ng t
o hi
dal
ls
esea
ea h s tr rc
s on
e rc e iv pe
v a lu e
me rs V
c (S n
-F e rn hez
V ie
e on N w
a fte VC
(Perceived) Customer Value must be seen as an ongoing assessment within an evolving consumer relationship.
a lu adieo t z
n
a re
a ls o
/or
s mo
exp
del
re ss
fo u r
ed i
p rim
a ry
nP
oda
ro c
ooda rW
003) ll (2
ess
Ben
a fits e
sac d
s fic e ri
(W
dal oo
003 l2
4 p .1 ,
120 -
sum
e rs
Image Credit: ...

v a lu a
ve p e c ti s rs e n pe m ic no in th ) ita r ia til 20 co , p .7 al an u , p .1 003 &E t ll 2 56n iv id u kes e en oda ly ta ) n d : Wo ar009 d Figuralue ifor ae in he em ce ag e e n c u tio n s . T C clle 2 12 an S our n V n ( V s( Ma e d o p e ri e s o l fo rm N et bul 03, p. b x e te VC e eernativ s can s: T h T u r n ll 2 0 o ra m a ry ri tu itiv ce hi p a fi n ve p r Cor sa cri he eWood ch otueri.nT peting alt bjective i observe. 2: Fi 1 nd in l ( ft sacf. ig u re o fits a s is e F ce ne t e a Va fo r c o m e if c a rd t rni in s f be Th a o rh d sa c .A .ct or e nperie ghted ag la n c e a th e us M du Ba er ts a nefir Ex nd wei e in me pro ss a r e e u p ro c o n . B m e a re d a atlhe sa ion V ng p ti to p anci e s o f sse s su m v al con Cus o F ig u rn a ti th e b p l r n te reo1s of th e r foe ia e, fa c t 1 : ver ct alonValu g A Pr s o ro d u g e n flu e n c in an h e i e li m iv e p ct ce xch e re t in a r n e e h SUM y mo e r ie rs p w M AR Pe e xp del o n s er Y: W ue o,f p.4) u la ti m v OOD c a lc Val sto U se u 0 0 9 a lu e f o A LL c v a lu r th e S F O n b u ll 2 s of e S u ge URrI cust b je c S ta : T u NTE nce om e e RPR t-b a u rc e r ie r (S o ETA s e d e (S o exp u rc e T IO N ,a In t r i nc nd te d e : Wo a S OF ie c a ls ns ie n ic ip per o
Snchez-Fernndez & Iniesta-Bonillo 2007, p.433on
21
e iv e
V a lu d
ear es

an ts AB
S ac d
fic e ri
ie w V
nN o
A cc and
o rd i
ng t
o hi
dal
ls
esea
ea h s tr rc
s on
e rc e iv pe
v a lu e
me rs V
c (S n
V ie
e on N w
a fte VC
Use r (Perceived) Customer Value must be seen as an ongoing assessment within an evolving r consumer relationship. se u
a lu
-F e rn hez
a re
a ls o
/or
s mo
exp
del
re ss
fo u r
ed i
p rim
a ry
adieo t z
n
nP
oda
ro c
ooda rW
003) ll (2
ess
Ben
a fits e
sac d
s fic e ri
(W
dal oo
003 l2
4 p .1 ,
120 -
sum
e rs
Image Credit: ...

v a lu a
ve p e c ti s rs e n pe m ic no in th ) ita r ia til 20 co , p .7 al an u , p .1 003 &E t ll 2 56n iv id u kes e en oda ly ta ) n d : Wo ar009 d Figuralue ifor ae in he em ce ag e e n c u tio n s . T C clle 2 12 an S our n V n ( V s( Ma e d o p e ri e s o l fo rm N et bul 03, p. b x e te VC e eernativ s can s: T h T u r n ll 2 0 o ra m a ry ri tu itiv ce hi p a fi n ve p r Cor sa cri he eWood ch otueri.nT peting alt bjective i observe. 2: Fi 1 nd in l ( ft sacf. ig u re o fits a s is e F ce ne t e a Va fo r c o m e if c a rd t rni in s f be Th a o rh d sa c .A .ct or e nperie ghted ag la n c e a th e us M du Ba er ts a nefir Ex nd wei e in me pro ss a r e e u p ro c o n . B m e a re d a atlhe sa ion V ng p ti to p anci e s o f sse s su m v al con Cus o F ig u rn a ti th e b p l r n te reo1s of th e r foe ia e, fa c t 1 : ver ct alonValu g A Pr s o ro d u g e n flu e n c in an h e i e li m iv e p ct ce xch e re t in a r n e e h SUM y mo e r ie rs p w M AR Pe e xp del o n s er Y: W ue o,f p.4) u la ti m v OOD c a lc Val sto U se u 0 0 9 a lu e f o A LL c v a lu r th e S F O n b u ll 2 s of e S u ge URrI cust b je c S ta : T u NTE nce om e e RPR t-b a u rc e r ie r (S o ETA s e d e (S o exp u rc e T IO N ,a In t r i nc nd te d e : Wo a S OF ie c a ls ns ie n ic ip per o
Snchez-Fernndez & Iniesta-Bonillo 2007, p.433on
21
e iv e
V a lu d
ear es

an ts AB
S ac d
fic e ri
ie w V
nN o
A cc and
o rd i
ng t
o hi
dal
ls
esea
ea h s tr rc
s on
e rc e iv pe
v a lu e
V ie
e on N w
a fte VC
Value resides not in the product purchased, not in the brand chosen, not in the object possessed, but rather in the consumption experience(s) derived therefrom.
me rs V a lu
c (S n -F e rn hez
adieo t z
n
a re
a ls o
/or
s mo
exp
del
re ss
fo u r
ed i
p rim
a ry
nP
oda
ro c
ooda rW
003) ll (2
ess
Ben
a fits e
sac d
s fic e ri
(W
dal oo
003 l2
4 p .1 ,
120 -
sum
e rs
Image Credit: ...

v a lu a
Holbrook 1999, p.8
22
Experience Value?
Experience Value: An Example

Pre-Sales
Ex Ante
Sales
Transaction
After Sales
Ex Post Supplements & Extensions Disposition
Awareness
Evaluation
Purchase
Delivery
Use
Maintenance
Disposal
Value Dimensions
Functional-Instrumental Experiential-Hedonic Symbolic-Expressive Cost-Sacrice

Value Dimensions in Time Expectation Setting Pre-purchase Interactions Purchase Interaction Product Service Consumption Post Experience Review
Cost-Sacrice
adapted from Kim & Mauborgne (2005), Shaw & Ivens (2002), Arnould, Price & Zinkhan (2003) and Woodall (2003)
24
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
r e
Economy
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
r e
Economy
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
Economy
r e
Value for Money
Experience EcoFootprint Belonging
Happieness
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
Economy
r e
Value for Money
Happieness
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
Prot
r e
Value for Money
Happieness
Economy
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
Prot
r e
Value for Money
Happieness
Core Values
Economy
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
Prot
r e
Value for Money
Happieness
Core Values
Social Responsibility
Economy
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
r e
Value for Money Prot
Happieness
EcoEectiveness
Core Values
Economy
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
r e
Happieness
EcoEectiveness
Core Values
Economy
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Doing Well
Us
r e
Happieness
EcoEectiveness
Core Values
Economy
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Doing Well
Us
r e
Happieness
EcoEectiveness
Core Values
Economy
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Doing Well
Us
r e
Value for Money Prot Stability Core Values
Happieness
EcoEectiveness
Economy
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Doing Well
Us
r e
Happieness
EcoEectiveness
Economy
Shared Drivers
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Doing Well
Us
r e
Happieness
EcoEectiveness
Social Responsibility Reciprocity
Economy
Shared Drivers
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Doing Well
Us
r e
Happieness
EcoEectiveness Sustainability
Economy
Shared Drivers
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Doing Well
Us
r e
Happieness
Economy
Shared Drivers
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Doing good Doing Well
Us
r e
Happieness
Economy
Shared Drivers
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
r e
Happieness
Economy
Shared Drivers
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
r e
Value for Money Prot Stability Core Values Shared Drivers
Happieness
Wealth
Economy
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
r e
Value for Money Prot Stability Core Values Shared Drivers Wellbeing
Happieness
Wealth
Economy
Ecology
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
r e
Happieness
Wealth
Economy
Ecology
Meaningful Life
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
r e
Happieness
EcoEectiveness Sustainability Livability of the Environment
Wealth
Economy
Ecology
Meaningful Life
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Or ga ni
on ti a s
Us
r e
Happieness
Wealth
Economy
Ecology
Meaningful Life
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Transformation
Or ga ni
on ti a s
Us
r e
Happieness
Wealth
Economy
Ecology
Meaningful Life
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Transformation
Or ga ni
on ti a s
Us
r e
Happieness
Wealth
Economy
Ecology
Meaningful Life
Psychology
Sociology
Levels of Value
So c
ty ie
Value Proposition(s)
Ec os y
em st
Transformation
Or ga ni
on ti a s
Us
r e
Happieness
Wealth
Economy
Ecology
Meaningful Life
Psychology
Sociology
Value Propositions
Origin, Definition, Future ...
Hacking
Functionality
Meaning
31
Hacking
Functionality
Meaning
31
Examples: Cake Mix in the 1950s
+
32
Examples: Same Product Two Meanings
Cage Hen Egg
Free Range Hen Egg
33
Examples: Redene the Wheel Chair Experience
Image Credit: Michael Seymour for New Halls Wheels (http://mjseymour.com); Photo by Annie Leibovitz
34
Examples: Aeron Most Successful Chair in the World
35
Examples: Aeron Most Successful Chair in the World
When we showed early prototypes to customers, they asked if they could see a finished upholstered model instead of a semifinished prototype. They could not believe that was the final version.
Bob Wood, VP Research, Design & Development, Herman Miller (in Verganti 2009)
35
Examples: Portable Music Player Evolution
36
Examples: Nest
37
Meaning
Meaning Values/Identity Emotions Price Features
Adapted from Nathan Shedro (www.nathan.com/thoughts & www.makingmeaning.org)
38
Meaning
38
Meaning
Does this do what I need?
Meaning Values/Identity Emotions Price Features Features
38
Meaning
at a price thats worth it?
Meaning Values/Identity Emotions Price Price Features
38
Meaning
How does it make me feel?
Meaning Values/Identity Emotions Emotions Price Features
38
Meaning
Is this me?
Meaning Values/Identity Values/Identity Emotions Price Features
38
Meaning
Does it t into my world?
Meaning Meaning Values/Identity Emotions Price Features
38
Meaning
38
Meaning
38
Meaning
Context Value
Single-stimulus Value Unanticipated Value Sign Value Extrinsic Value Epistemic Value Means-end Value Ethical Value Desired Value Intrinsic Value Image Value Private Meaning Value Emotional Spiritual Value Value Social Value Experience Value Play Value Status Value Possession Value Aesthetic Value Transaction Value Utility Value Dual-stimulus Value
Exclusive Value Public Meaning Value
The Five Factors of Experience Research
1. Physical.
How do people experience their physical interaction with things?
2. Cognitive. How do people associate meanings to things they interact with? 3. Social. 4. Cultural. How do they behave in teams or in social settings? How do people experience shared norms, habits, and values?
5. Emotional. How do people experience their feelings and thoughts?
Kumar (2009)
40
Progression of Economic Value
Differentiated Customization
Relevant to
Guide Transformations
Needs of Customers
Competitive Position
Customization
Stage Experiences
Commoditization
Make Goods
Commoditization
Extract Commodities
Commoditization Irrelevant to Pricing Premium

41
Undifferentiated Market
Progression of Economic Value
TRANSFORMATION
Differentiated
EXPERIENCE
Customization
SERVICE
Guide Transformations
Needs of Customers
Relevant to
Competitive Position
Customization
PRODUCT
Stage Experiences
Commoditization Shared Value?
COMMODITY
Make Goods
Experience Value Commoditization hedonic, social value, etc.
Extract Commodities
Sign Value Commoditization Use Value Utilitarian Value Irrelevant to Pricing Premium
42
Undifferentiated Market
Exchange Value
Levels of Value
So c
ty ie
Ec os y
em st
Transformation
Or ga ni
on ti a s
Us
r e
Happieness
Wealth
Economy
Ecology
Meaningful Life
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Transformation
Or ga ni
on ti a s
Us
r e
Happieness
Wealth
Economy
Ecology
Meaningful Life
Psychology
Sociology
Value Proposition? What science is saying ...
Value propositions should be crafted: as a reciprocal exchange of value; described in terms of perceived benefits or reduced costs; transparent about to whom that value should flow and how; perceived as a fair exchange of value; delivered over a time frame longer than a single transaction; often co-created through interaction between two or more parties; and, congruent with the relationship objectives set for a particular market.
Ballantyne, Frow, Varey & Payne (2011)
45
Levels of Value
So c
ty ie
Ec os y
em st
Transformation
Or ga ni
on ti a s
Us
r e
Happieness
Wealth
Economy
Ecology
Meaningful Life
Psychology
Sociology
Levels of Value
So c
ty ie
Ec os y
em st
Transformation
Or ga ni
on ti a s
Us
r e
Happieness
Wealth
Economy
Ecology
Meaningful Life
Psychology
Sociology
Value Creation
Value Creation
Production Perspective Joint production process: the Customer participates as co-producer of resources and processes with the provider
Customers Independent Value Creation
Production
Interaction
Customers Value Creation
Providers Value Facilitation
Value Creation Perspective Joint value creation process: the Provider participates as co-creator of value with the customer
Time
adapted from Grnroos (2011)
48
Product/Service Ecosystems
Image Credit: http://subprint.com/blog/it%27s-the-ecosystem,-stupid
49
Business Ecosystem?
A value network model visualizes specic interactions within the network to provide a perspective for understanding value-creating roles and relationships, and to offer a dynamic view of how both nancial and non-nancial assets are converted into negotiable forms of value.
Ouden, E. den (2011), p.154
Image Credit: http://www.elkedenouden.com/AboutElke.html
50
Apples Business Ecosystem
Other Stakeholders
Lowest Production Costs Sponsoring / Discounts High Volume and Planning Certainty Manufacturing Knowledge Service Contract Infrastructure Management IP royalties / Commission
Bulk Purchases Reputation and Awareness
Core Value Proposition

??? Media Delivery Digital Sales Channel with DRM and wide Spread
Apple on Campus ??? New Business Ideas
IP royalties Personal Data
Price Premium (Hardware, Media and App Sales) Reputation
Apple Platform
Comission App Purchases
Complementary Offerings
Seamless User Experience
Sales Platform Technical and Sales Training Higher Margins : Apple Price Premium
Enriched User Experience
Broad Service Station Covering
Higher Margins via Apple Price Premium

TM
Supplying and Enabling Network
Goods & Services Money & Credits Information Intangible Value
51

Hardware OEM's: e.g. Foxconn
Lowest Production Costs Sponsoring / Discounts High Volume and Planning Certainty Manufacturing Knowledge
Service Contract Infrastructure Management IP royalties / Commission
Schools and Universities
Technical Backend Providers: e.g. SAP
Bulk Purchases Reputation and Awareness Media Delivery
???
Digital Sales Channel with DRM and wide Spread
IP royalties
Microsoft, Google, etc.
Personal Data
Apple Platform
Media Industries Developer Community
Sales Platform Technical and Sales Training
Apple Users
Higher Margins : Apple Price Premium Broad Service Station Covering
Apple Communities
Software Developers: e.g. Adobe
Retail/Certied Partners: e.g. Gravis Ofcial Accessory Manufacturers: e.g. Belkin
52
Customer
Supplier
Godfather
Competitor
Intermediary
Enabler
Financier
Provider of Content
Provider of Services
Provider of Systems
Provider of Goods
Marketing & Communications
Align and Balance Value Flows

Other Stakeholders
Lowest Production Costs Sponsoring / Discounts High Volume and Planning Certainty Manufacturing Knowledge Service Contract Infrastructure Management IP royalties / Commission
Hardware OEM's: e.g. Foxconn
Schools and Universities
Bulk Purchases Reputation and Awareness
Core Value Proposition

??? Media Delivery
Technical Backend Providers: e.g. SAP
Digital Sales Channel with DRM and wide Spread
IP royalties
Microsoft, Google, etc.
Personal Data
Apple Platform
Complementary Offerings
Media Industries Developer Community
Sales Platform Technical and Sales Training
Apple Users
Higher Margins : Apple Price Premium Broad Service Station Covering
Apple Communities
Software Developers: e.g. Adobe
Retail/Certied Partners: e.g. Gravis Ofcial Accessory Manufacturers: e.g. Belkin
Supplying and Enabling Network
55
Apples Shared Value Creation?

ty ie
So c
Ec os y
em st
Transformation
Or ga ni
on ti a s
Us
r e
Happieness
Wealth
Meaningful Life
Value Framework Model by Elke den Ouden (2011)
Once again ...
Value propositions should be crafted: as a reciprocal exchange of value; described in terms of perceived benefits or reduced costs; transparent about to whom that value should flow and how; perceived as a fair exchange of value; delivered over a time frame longer than a single transaction; often co-created through interaction between two or more parties; and, congruent with the relationship objectives set for a particular market.
57
Aha!
An end customer's value-in-use assessment is the culmination of a time-series of interactions, including value propositions and negotiated agreements as well as value-in-use determinations by various resource providers and integrators.
58
Your Turn!
If you were Square ...
45: MI 00 NU T
ES
Image Credit: 2012 Square (http://squareup.com)
60
STAY TUNED!
www.uservalue.de
61
Attributions Gears symbol by Dima Yagnyuk // "Type Desgin" symbol by Andrew J. Young // Compass symbol by Adam Whitcroft // Refresh symbol by Joris Hoogendoorn // Pointer symbol by ___Lo // Speaker symbol by Harold Kim // Book symbol by Ahmed Hamzawy // Unlock symbol by Ugur Akdemir // Heart symbol by John Caserta // Like symbol by Marwa Boukarim // Letter symbol by John Caserta // Lock symbol by Dave Tappy // Cess symbol by Alessandro Suraci // Social Services by Jack Biesek, Gladys Brenner, Margaret Faye, Healther Merrifield, Kate Keating, Wendy Olmstead, Todd Pierce, Jamie Cowgill, Jim Bolek // Building symbol by Antonis Makriyannis // Brain symbol by Arjun Adamson // Building Block symbol by Michael Rowe // City by inna belenkey // Basket symbol by Roman J. Sokolov // Unlock symbol by Ugur Akdemir // Hand symbol by Jakob Vogel as well as "Home" and "Umbrella" from The Noun Project collection. -----------------------------------------------------------------------------------------------------------------------------------------------------------Some References this Workshop/Presentation was based on: Arnould, E. J., Price, L., & Zinkhan, G. M. (2003). Consumers (2nd ed.). New York: McGraw-Hill/Irwin. Ballantyne, D., Frow, P., Varey, R. J., & Payne, A. (2011). Value propositions as communication practice: Taking a wider view. Industrial Marketing Management, 40, 202210. doi: 10.1016/j.indmarman.2010.06.032. Boyle, D. (2011, November). More Than Money - Platforms for Exchange and Reciprocity in Public Services. Nesta UK. Retrieved October 11, 2012, from http://www.nesta.org.uk/blogs/assets/features/more_than_money. Diller, S., Shedro, N., & Rhea, D. (2005). Making meaning: How successful businesses deliver meaningful customer experiences. New Riders. Drucker, P. F. (2007). The Essential Drucker. Butterworth-Heinemann. Frow, P., Payne, A., & Storbacka, K. (2011). Co-Creation: A Typology And Conceptual Framework. . Grnroos, C. (2011). Value co-creation in service logic: A critical analysis. Marketing Theory, 11(3), 279 301. Holbrook, M. B. (1999). Consumer value: a framework for analysis and research. New York: Routledge. Kim, W. C., & Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston, Mass: Mcgraw-Hill Professional. Kumar, V. (2009). The Practice of Innovation Design in Process. Journal of Business Strategy, 30(2/3), 91100. Ng, I. C. L., & Smith, L. A. (2012). An Integrative Framework of Value. Review of Marketing Research, 9, 207243. Ouden, E. den. (2011). Innovation Design: Creating Value for People, Organizations and Society (1st ed.). Springer London. Porter, M. E., & Kramer, M. R. (2011). Creating Shared Value. Harvard Business Review, 89(February), 6277. Shaw, C., & Ivens, J. (2002). Building Great Customer Experiences (First ed.). New York: Palgrave Macmillan. Smith, J., & Colgate, M. (2007). Customer Value Creation: A Practical Framework. The Journal of Marketing Theory and Practice, 15(1), 723. Verganti, R. (2009). Design Driven Innovation: Changing the Rules of Competition by Radically Innovating What Things Mean. Harvard Business Press. Woodall, T. (2003). Conceptualising value for the customer: an attributional, structural and dispositional analysis. Academy of Marketing Science Review, 2003(12), 142.
62
Design-driven strategic business planning

Jan Schmiedgen // Zwiestdter Strae 7 // 12055 Berlin // +49 173 3 83 15 26 // kontakt@schmiedgen.eu
63

Disclosing Shared Value in Business Ecosystems

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Droits d'auteur :

Disclosing Shared Value in Business Ecosystems

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Droits d'auteur :

Disclosing Shared Value in Business Ecosystems

Alte Kalkscheune Berlin, October

Yes! Our brand definitely needs an emotional supercharge!

Adapted from Daly and Farley (2004)

Biosphere Society Economy

Adapted from Daly and Farley (2004)

Biosphere Society Economy

Adapted from Daly and Farley (2004)

Value for Money

Classic Value Theory in Economics

Value for Money

Value for Money Happieness

Value for Money Happieness

Value for Money Happieness Belonging

Play Value: Childrens Hospital of Pittsburgh

Image Credit: 2011 General Electric Company (http://www.gehealthcare.com/promo/advseries/adventure_series.html)

Value for Money Happieness Belonging

Value for Money Happieness

User Value? Whati science is saying ... nef e

llil2o 2007, on l 0 0 3 -B , p .9 ie s ta In &

Image Credits: ...

Consumer Valuene Customer Value User Value fi e

Value for the Customer

(Customer Perceived/Received Value)

Value for the Firm

llil2o 2007, on l 0 0 3 -B , p .9 ie s ta In &

(economic worth of customer to the rm)

adapted from Ng &

(delivery of superior customer value = competitive advantage)

Correct/accurate attributes Utility Appropriate performances Appropriate outcomes fo rm

ces c Symbolic/Expressive Value (S n s v a lu e d

Cost/Sacrice Value Economic Psychological Personal investment Risk

after Smith & Colgate

User Value? Whati science is saying ... nef e

llil2o 2007, on l 0 0 3 -B , p .9 ie s ta In &

Image Credit: ...

Woodall 2003, p.21

User Value? Whati science is saying ... nef e

llil2o 2007, on l 0 0 3 -B , p .9 ie s ta In &

Image Credit: ...

Woodall 2003, p.21

User Value? Whati science is saying ... nef e

llil2o 2007, on l 0 0 3 -B , p .9 ie s ta In &

Image Credit: ...

Snchez-Fernndez & Iniesta-Bonillo 2007, p.433on

User Value? Whati science is saying ... nef e

llil2o 2007, on l 0 0 3 -B , p .9 ie s ta In &

Image Credit: ...

Snchez-Fernndez & Iniesta-Bonillo 2007, p.433on

User Value? Whati science is saying ... nef e

llil2o 2007, on l 0 0 3 -B , p .9 ie s ta In &

Image Credit: ...

Holbrook 1999, p.8

Experience Value: An Example

Functional-Instrumental Experiential-Hedonic Symbolic-Expressive Cost-Sacrice

Value for Money Happieness

Value for Money Happieness

Value for Money

Experience EcoFootprint Belonging

Value for Money

Experience EcoFootprint Belonging

Value for Money

Experience EcoFootprint Belonging

Value for Money

Experience EcoFootprint Belonging

Value for Money

Experience EcoFootprint Belonging