Re-Conceptualizing Value-Creation From Industrial Business Logic to Service Business Logic

There is an urgent interest in marketing to move away from neo-classical value definitions suggesting that value creation is a process of exchanging goods for money. In the present paper, value creation is conceptualized as an integration of two distinct, yet closely coupled processes. First, actors co-create what this paper calls an underlying basis of value. This is done by interactively re-configuring resources. By relating and combining resources, activity sets, and risks across actor boundaries in novel ways actors create joint productivity gains – a concept very similar to density (Normann, 2001). Second, actors engage in a process of signification and evaluation. Signification implies co-constructing the meaning and worth of joint productivity gains co-created through interactive resource re-configuration, as well as sharing those gains through a pricing mechanism as value to involved actors. The conceptual framework highlights an all-important dynamics associated with ´value creation´ and ´value´ - a dynamics the paper claims has eluded past marketing research. The paper argues that the framework presented here is appropriate for the interactive service perspective, where value and value creation are not objectively given, but depend on the power of involved actors´ socially constructed frames to mobilize resources across actor boundaries in ways that ´enhance system well-being´ (Vargo et al., 2008). The paper contributes to research on Service Logic, Service-Dominant Logic, and Service Science.

Aplicación de la Lógica Dominante del servicio (LDS) en el sector turístico: el marketing interno como antecedente de la cultura de co-creación de innovaciones con clientes y empleados

[ES] Este trabajo trata de profundizar en la comprensión del concepto de marketing interno (MI), considerado como un recurso operante desde la óptica de la Lógica Dominante del Servicio (LDS), así como en su influencia en la obtención de resultados empresariales superiores a los de la competencia. Para ello, se examina el efecto del MI en la predisposición de las empresas analizadas a que sus clientes y empleados de primera línea participen en el desarrollo de innovaciones de servicio, ampliando de este modo, de acuerdo con la LDS, las oportunidades de co-creación de valor disponibles para las organizaciones. Para contrastar las hipótesis planteadas se aplica un análisis de ecuaciones estructurales a la información facilitada por los gerentes de 240 hoteles de una muestra de ámbito nacional.

Co-Creating Knowledge Online: Approaches for Community Artists

Forming peer alliances to share and build knowledge is an important aspect of community arts practice, and these co-creation processes are increasingly being mediated by the internet. This paper offers guidance for practitioners who are interested in better utilising the internet to connect, share, and make new knowledge. It argues that new approaches are required to foster the organising activities that underpin online co-creation, building from the premise that people have become increasingly networked as individuals rather than in groups (Rainie and Wellman 2012: 6), and that these new ways of connecting enable new modes of peer-to-peer production and exchange. This position advocates that practitioners move beyond situating the internet as a platform for dissemination and a tool for co-creating media, to embrace its knowledge collaboration potential.

Drawing on a design experiment I developed to promote online knowledge co-creation, this paper suggests three development phases – developing connections, developing ideas, and developing agility – to ground six methods. They are: switching and routing, engaging in small trades of ideas with networked individuals; organising, co-ordinating networked individuals and their data; beta-release, offering ‘beta’ artifacts as knowledge trades; beta-testing, trialing and modifying other peoples ‘beta’ ideas; adapting, responding to technological disruption; and, reconfiguring, embracing opportunities offered by technological disruption. These approaches position knowledge co-creation as another capability of the community artist, along with co-creating art and media.

Co-creación de semiconductores

El mercado de los semiconductores está saturado de productos similares y de distribuidores con una propuesta de servicios similar. Los procesos de Co-Creación en los que el cliente colabora en la definición y desarrollo del producto y proporciona información sobre su utilidad, prestaciones y valor percibido, con el resultado de un producto que soluciona sus necesidades reales, se están convirtiendo en un paso adelante en la diferenciación y expansión de la cadena de valor. El proceso de diseño y fabricación de semiconductores es bastante complejo, requiere inversiones cada vez mayores y demanda soluciones completas. Se requiere un ecosistema que soporte el desarrollo de los equipos electrónicos basados en dichos semiconductores. La facilidad para el diálogo y compartir información que proporciona internet, las herramientas basadas en web 2.0 y los servicios y aplicaciones en la nube; favorecen la generación de ideas, el desarrollo y evaluación de productos y posibilita la interacción entre diversos co-creadores. Para iniciar un proceso de co-creación se requiere métodos y herramientas adecuados para interactuar con los participantes e intercambiar experiencias, procesos para integrar la co-creación dentro de la operativa de la empresa, y desarrollar una organización y cultura que soporten y fomenten dicho proceso. Entre los métodos más efectivos están la Netnografía que estudia las conversaciones de las comunidades en internet; colaboración con usuarios pioneros que van por delante del Mercado y esperan un gran beneficio de la satisfacción de sus necesidades o deseos; los estudios de innovación que permiten al usuario definir y a menudo crear su propia solución y la externalización a la multitud, que mediante una convocatoria abierta plantea a la comunidad retos a resolver a cambio de algún tipo de recompensa. La especialización de empresas subcontratistas en el desarrollo y fabricación de semiconductores; facilita la innovación abierta colaborando con diversas entidades en las diversas fases del desarrollo del semiconductor y su ecosistema. La co-creación se emplea actualmente en el sector de los semiconductores para detectar ideas de diseños y aplicaciones, a menudo mediante concursos de innovación. El servicio de soporte técnico y la evaluación de los semiconductores con frecuencia es fruto de la colaboración entre los miembros de la comunidad fomentada y soportada por los fabricantes del producto. Con el programa EBVchips se posibilita el acceso a empresas pequeñas y medianas a la co-creación de semiconductores con los fabricantes en un proceso coordinado y patrocinado por el distribuidor EBV. Los semiconductores configurables como las FPGAs constituyen otro ejemplo de co-creación mediante el cual el fabricante proporciona el circuito integrado y el entorno de desarrollo y los clientes crean el producto final definiendo sus características y funcionalidades. Este proceso se enriquece con bloques funcionales de diseño, IP-cores, que a menudo son creados por la comunidad de usuarios. ABSTRACT. The semiconductor market is saturated of similar products and distributors with a similar proposal for services. The processes of co-creation in which the customer collaborates in the definition and development of the product and provides information about its utility, performance and perceived value, resulting in a product that solves their real needs, are becoming a step forward in the differentiation and expansion of the value chain. The design and semiconductor manufacturing process is quite complex, requires increasingly higher investments and demands complete solutions. It requires an ecosystem that supports the development of electronic equipments based on such semiconductors. The ease of dialogue and sharing information that provides internet, web 2.0-based tools and services and applications in the cloud; favor the generation of ideas, the development and evaluation of products and allows the interaction between various co-creators. To start a process of co-creation adequate methods and tools are required to interact with the participants and exchange experiences, processes to integrate the co-creation within the operations of the company, and developing an organization and culture that support and promote such process. Among the most effective methods are the Netnography that studies the conversations of the communities on the internet; collaboration with Lead Users who are ahead of the market and expect a great benefit from the satisfaction of their needs or desires; Innovation studies that allow the user to define and often create their own solution and Crowdsourcing, an open call to the community to solve challenges in exchange for some kind of reward. The specialization of subcontractors in the development and manufacture of semiconductors; facilitates open innovation in the context of collaboration with different entities working in the different phases of the development of the semiconductor and its ecosystem. Co-creation is used currently in the semiconductor sector to detect ideas of designs and applications, often through innovation’s contests. Technical support and evaluation of semiconductors frequently is the result of collaboration between members of the community fostered and supported by the manufacturers of the product. The EBVchips program provides access to small and medium-sized companies to the co-creation of semiconductors with manufacturers in a process coordinated and sponsored by the Distributor EBV. Configurable semiconductors like FPGAs are another example of co-creation whereby the manufacturer provides the integrated circuit and the development environment and customers create the final product by defining their features and functionality. This process is enriched with IP-cores, designs blocks that are often created by the user community.

L.I.F.E. Landscape: A Co-created Healing Environment for Vulnerable Maasai Youth

Thesis (Master's)--University of Washington, 2016-06

Web designers, social e-value creation and e-business planning:understanding resistance from conflicting demands

This chapter investigates the conflicting demands faced by web designers in the development of social e-atmospherics that aim to encourage e-value creation, thus strengthening and prolonging market planning strategies. While recent studies have shown that significant shifts are occurring concerning the importance of users’ generated content by way of social e-communication tools (e.g. blogs), these trends are also creating expectations that social and cultural cues ought to become a greater part of e-atmospherics and e-business strategies. Yet, there is growing evidence that organizations are resisting such efforts, fearing that they will lose control of their e-marketing strategy. This chapter contributes to the theory and literature on online cross-cultural understanding and the impact website designers (meso-level) can have on improving the sustainability of e-business planning, departing from recent studies that focus mainly on firms’ e-business plans (macro-level) or final consumers (micro-level). A second contribution is made with respect to online behavior regarding the advancement of technologies that facilitate the development and shaping of new social e-atmospherics that affect users’ behavior and long term e-business strategies through the avoidance of traditional, formal decision making processes and marketing strategy mechanisms implemented by firms. These issues have been highlighted in the literature on the co-production and co-creation of value, which few organizations have thus far integrated in their strategic and pragmatic e-business plans. Drawing upon fifteen online interviews with web designers in the USA, as key non-institutional actors at the meso-level who are developing what future websites will be like, this chapter analyzes ways in which identifying points of resistance and conflicting demands can lead to engagement with the debate over the online co-creation of value and more sustainable future e-business planning. A number of points of resistance to the inclusion of more e-social atmospherics are identified, and the implications for web designers’ roles and web design planning are discussed along with the limitations of the study and potential future research for e-business studies.

The role of emotions in value creation for families in pediatric health care

The purpose of this study was to analyze emotions related to a child’s critical illness from the perspective of the family and discuss the link those emotions might form with value creation. High quality service is of paramount importance in hospital care, especially when a child is diagnosed with critical illness. Through the analysis of patient family emotions and their triggers, the study was aiming to deepen the understanding of value creation for customer. Therefore, the research sought to find answers to the following three sub-questions: 1. What are the emotions experienced? 2. What triggers them? 3. How are the emotions linked to amelioration or aggravation of value for patient and family? The theoretical background of this research is built on two core concepts: emotions and value creation. As both concepts are wide and multifaceted, the research concentrates on viewing emotions from the applicable cognitive angle, identifying and categorizing emotions in a general level. Value creation is studied from the service perspective, discussing the possible relations between emotions and value creation. Moreover, the suitability of views regarding customer value co-creation to health care encounters is analyzed. Qualitative approach was selected as the most appropriate methodology for conducting the empirical research. The empirical data was collected from public blogs, for which a total of 18 blogs were reviewed. Five blogs were selected for the analysis, which had the intent of identifying the emotions experienced by patient families and deepening the knowledge of their role in value creation during health care service encounters. The empirical study of this research discovered a wide range of positive and negative emotions, which denotes that a severe life situation does not prevent the feeling of positive emotions. Furthermore, by combining the empirical findings to the theoretical background, this study concludes that recognizing and treating the patient family as a partner and value creator is essential. The high quality technical aspect of care is vital, but it is not the sole attribute for service quality, as the interpersonal communication plays a large role in the customer’s overall assessment of the health care performance. The patients and their families largely evaluate the service encounter based on their perceptions, thus emotions play a significant role. Depending on the service experience, value maybe created or destructed. Hence, this study posits emotion at the core of the service encounter, indicating towards the importance of active assessment of customer perceptions and the recognition of the emotional states

User-designer collaboration during the early stage of the design process

As user involvement becomes a necessary part of the product development process, various ways of accessing users' latent needs have been developed and studied. Reviews of literatures in user involvement and product development have revealed that accessing users' latent needs and transferring them into design process could be facilitated by effectively implementing user-designer collaboration during the early stage of the design process. In this paper, various types of user-designer collaboration were observed and then distinct characteristics of user-designer collaboration were classified into three categories. 1) Passive objectivity, 2) workplace democratisation, and 3) shared contexts were observed as strategies for better user-designer collaboration, which have been employed in the area of user-centred design, user participatory design and design for experiencing. Based on the literature review, this paper proposed a basic collaboration mechanism between the users and the designers during the early stage of the design process and then discussed how its mechanism will help to describe the interactions between the users and the designers during the user involvement sessions.

More than just audiences

The creativity in audience engagement is not simply a delight for marketing or communications teams. New ways of engaging young audiences is now about everything from the actual art-making processes and outcomes to the hype surrounding your venue and your artists. In the process of reviewing and reporting on recent Australian and international research and practice this panel will comment upon the strengths and weakness of different ways of framing engagement: as learning, as social participation, as creative expression, and as co-creation.

The morphology of service bundling settings

The purpose of this paper is to advance our understanding of what contextual factors influence the service bundling process in an organizational setting. Although previous literature contains insights into the mechanisms underlying bundling and the artefacts for performing the bundling task itself, the body of knowledge seems to lack a comprehensive framework for analysing the actual scenario in which the bundling process is performed. This is required as the scenario will influence the bundling method and the IT support. We address this need by designing a morphological box for analysing bundling scenarios in different organizational settings. The factors featured in the box are systematised into a set of four categories of bundling layers which we identify from reviewing literature. The two core layers in the framework are the service bundling on a type level and on an instance level (i.e. configuration). To demonstrate the applicability and utility of the proposed morphological box, we apply it to assess the underlying differences and commonalities of two different bundling scenarios from the B2B and G2C sectors which stress the differences between bundling on a type and instance level. In addition, we identify several prospects for future research that can benefit from the proposed morphological box.

Mobilizing the brand experience: The adoption and use of mobile media in building consumer relationships in China

This research examines why and how brand owners in China adopt and use mobile media in marketing campaigns to deliver co-creation brand experiences and build consumer relationships. China represents an interesting case to study as it has leapfrogged into the age of consumer society and mobile media adoption. As the largest mobile market globally, it has experienced the intensity of mobile technology diffusion; and with it the rise of mobile consumer culture and participatory culture. Further, the rising individualism and the socio-cultural heritage in collectivism serve as a structuring tension in how mobile media is leveraged in marketing to cater to consumers' desires for individuality and social interaction. First, through expert interviews guided by the technology-organization-environment (TOE) framework (Tornatzky & Fleischer, 1990) as well as integrating innovation diffusion theory (E. Rogers, 2003), this research attempts to fill the gap of theoretical application in mobile marketing adoption at the firm level in China, and unravel the adoption factors of mobile marketing by brand owners in China. In total, 27 semi-structured interviews were conducted with key industry informants from mobile agencies, traditional agencies, venture capital firms, mobile content and service providers, mobile portals, and marketing management at brand owners. Second, based on case studies in China, this research investigates the use of mobile marketing to facilitate innovative co-creation of brand experience to cater to both individualistic as well as collective tendencies and desires amongst Chinese consumers. Through multiple case studies of the campaigns conducted by Nokia, Clean & Clear, and The North Face, and informed by in-depth interviews and document analysis, this research analyses the role of mobile media in marketing campaigns along three dimensions: the role of mobile media in content generation and consumption, the centrality of mobile media as text, tools or platforms; and the interactive environment. Specifically, the cases are organized along the spectrum from user-generated content to corporate-generated content, mobile media's role from being supplementary to it being central, and from a virtual environment to a hybrid environment. Overall, these cases demonstrate how brand owners adapt mobile media as text, tools, platforms, and environments to deliver co-creation brand experiences exploiting both individualistic as well as collective tendencies and desires amongst Chinese consumers. This research contributes to the literature on firm adoption of mobile marketing, and the role of the mobile media in facilitating co-creation experiences for Chinese consumers. It develops a model of the technological, organizational and environmental factors influencing mobile marketing adoption by firms, and provides a model explaining the role of mobile media in facilitating brand experience co-creation. The findings also demonstrate that mobile media can be leveraged to facilitate co-creation brand experience to generate added value; and meanwhile cater to both the rising individualism and the deep-seated collectivism of Chinese consumers. Empirically, it assists industry practitioners in understanding the adoption of mobile marketing in China, especially those on the supply side in order to improve their offerings and propositions. It also assists brand owners and agencies in designing their mobile marketing strategies to build consumer relationships in China.

Pass the scissors : consumers close in on the fashion industry

The fashion ecosystem is at boiling point as consumers turn up the heat in all areas of the fashion value, trend and supply chain. While traditionally fashion has been a monologue from designer brand to consumer, new technology and the virtual world has given consumers a voice to engage brands in a conversation to express evolving needs, ideas and feedback. Product customisation is no longer innovative. Successful brands are including customers in the design process and holding conversations ‘with’ them to improve product, manufacturing, sales, distribution, marketing and sustainable business practices. Co-creation and crowd sourcing are integral to any successful business model and designers and manufacturers are supplying the technology or tools for these creative, active, participatory ‘prosumers’. With this collaboration however, there arises a worrying trend for fashion professionals. The ‘design it yourself’, ‘indiepreneur’ who with the combination of technology, the internet, excess manufacturing capacity, crowd funding and the idea of sharing the creative integrity of a product (‘copyleft’ not copyright) is challenging the notion that the fashion supply chain is complex. The passive ‘consumer’ no longer exists. Fashion designers now share the stage with ‘amateur’ creators who are disrupting every activity they touch, while being motivated by profit as well as a quest for originality and innovation. This paper examines the effects this ‘consumer’ engagement is having on traditional fashion models and the fashion supply chain. Crowd sourcing, crowd funding, co-creating, design it yourself, global sourcing, the virtual supply chain, social media, online shopping, group buying, consumer to consumer marketing and retail, and branding the ‘individual’ are indicative of the new consumer-driven fashion models. Consumers now drive the fashion industry - from setting trends, through to creating, producing, selling and marketing product. They can turn up the heat at any time _ and any point _ in the fashion supply chain. They are raising the temperature at each and every stage of the chain, decreasing or eliminating the processes involved: decreasing the risk of fashion obsolescence, quantities for manufacture, complexity of distribution and the consumption of product; eliminating certain stages altogether and limiting the brand as custodians of marketing. Some brands are discovering a new ‘enemy’ – the very people they are trying to sell to. Keywords: fashion supply chain, virtual world, consumer, ‘prosumers’, co-creation, fashion designers