Reciprocal value propositions in practice: Constraints in digital markets

The value proposition concept, while forming a central foundational premise of service-dominant (S-D) logic, has nevertheless been treated somewhat ambiguously. Recent work in attempting to address this has focused through a S-D logic lens on the reciprocal nature of value propositions. Important to this work has been a focus on communicative interactions and resource integration between network suppliers and customers. Overall, value proposition thinking has not studied in detail their adoption and use in practice. Considering the compelling notion of reciprocity, there have been recent calls for research to consider reciprocal value propositions in practice. The overall aim of this paper, therefore, was to explore how reciprocal value propositions are developed (or not) in practice at the network level. The study was set in the mobile television (TV) sector, which, as an internet-driven sector, is viewed as particularly pertinent. To conduct the study an S-D logic and Industrial Marketing and Purchasing (IMP) Group framework are integrated for the first time. A key finding is that while the reciprocal value proposition concept is theoretically intuitive, it is by no means inevitable in practice. Reciprocal value propositions were found to be simultaneously constrained, and, potentially enabled by these constraints in practice. At an overall level this paper contributes to the ongoing collaborative process, which aims to move S-D logic from a framework to a theory. More specifically, we provide new insights into the development of reciprocal value propositions in practice.

Functional Complexity: The source of value in biodiversity.

Biodiversity may be seen as a scientific measure of the complexity of a biological system, implying an information basis. Complexity cannot be directly valued, so economists have tried to define the services it provides, though often just valuing the services of 'key' species. Here we provide a new definition of biodiversity as a measure of functional information, arguing that complexity embodies meaningful information as Gregory Bateson defined it. We argue that functional information content (FIC) is the potentially valuable component of total (algorithmic) information content (AIC), as it alone determines biological fitness and supports ecosystem services. Inspired by recent extensions to the Noah's Ark problem, we show how FIC/AIC can be calculated to measure the degree of substitutability within an ecological community. Establishing substitutability is an essential foundation for valuation. From it, we derive a way to rank whole communities by Indirect Use Value, through quantifying the relation between system complexity and the production rate of ecosystem services. Understanding biodiversity as information evidently serves as a practical interface between economics and ecological science. © 2012 Elsevier B.V.

A Novel Method to Enable Trade-offs Across the Whole Product Life of an Aircraft Using Value Driven Design

The increasing need to understand complex products and systems with long life spans, presents a significant challenge to designers who increasingly require a broader understanding of the operational aspects of the system. This demands an evolution in current design practice, as designers are often constrained to provide a subsystem solution without full knowledge of the global system operation. Recently there has been a push to consider value centric approaches which should facilitate better or more rapid convergence to design solutions with predictable completion schedules. Value Driven Design is one such approach, in which value is used as the system top level objective function. This provides a broader view of the system and enables all sub-systems and components to be designed with a view to the effect on project value. It also has the capacity to include value expressions for more qualitative aspects, such as environmental impact. However, application of the method to date has been restricted to comparing value in a programme where the lifespan is fixed and known a priori. This paper takes a novel view of value driven design through the surplus value objective function, and shows how it can be used to identify key sensitivities to guide designers in design trade-off decisions. By considering a new time based approach it can be used to identify optimum programme life-span and hence allow trade-offs over the whole product life.

Digital Methods for Process Development in Manufacturing and Their Relevance to Value Driven Design

This paper examines the applicability of a digital manufacturing framework to the implementation of a Value Driven Design (VDD) approach for the development of a stiffened composite panel. It presents a means by which environmental considerations can be integrated with conventional product and process design drivers within a customized, digital environment. A composite forming process is used as an exemplar for the work which creates a collaborative environment for the integration of more traditional design drivers with parameters related to manufacturability as well as more sustainable processes and products. The environmental stakeholder is introduced to the VDD process through a customized product/process/resource (PPR) environment where application specific power consumption and material waste data has been measured and characterised in the process design interface. This allows the manufacturing planner to consider power consumption as a concurrent design driver and the inclusion of energy as a parameter in a VDD approach to the development of efficiently manufactured, sustainable transport systems.

Inscribing value on business model innovations: Insights from industrial projects commercializing disruptive digital innovations

In this paper we seek to show how marketing activities inscribe value on business model innovation, representative of an act, or sequence of socially interconnecting acts. Theoretically we ask two interlinked questions: (1) how can value inscriptions contribute to business model innovations? (2) how can marketing activities support the inscription of value on business model innovations? Semi-structured in-depth interviews were conducted with the thirty-seven members from across four industrial projects commercializing disruptive digital innovations. Various individuals from a diverse range of firms are shown to cast relevant components of their agency and knowledge on business model innovations through negotiation as an ongoing social process. Value inscription is mutually constituted from the marketing activities, interactions and negotiations of multiple project members across firms and functions to counter destabilizing forces and tensions arising from the commercialization of disruptive digital innovations. This contributes to recent conceptual thinking in the industrial marketing literature, which views business models as situated within dynamic business networks and a context-led evolutionary process. A contribution is also made to debate in the marketing literature around marketing's boundary-spanning role, with marketing activities shown to span and navigate across functions and firms in supporting value inscriptions on business model innovations.

The Value of Reducing Cancer Risks at Contaminated Sites: Are More Knowledgeable People Willing to Pay More?

We use conjoint choice questions to investigate people's tastes for cancer risk reductions and income in the context of public programs that would provide for remediation at abandoned industrial contaminated sites. Our survey was self-administered using the computer by persons living in the vicinity of an important contaminated site on the Italian National Priority List. The value of a prevented case of cancer is €2.6 million, but this figure does vary with income, perceived exposure to contaminants, and respondent opinions about priorities that should be pursued by cleanup programs. © 2011 Society for Risk Analysis.