Sse value constellation_group8b_2011Presentation Transcript
WegiveyouFrom ValueChaintoValueConstellation: Designing Interactive Strategy (1993)by Richard Normann and Radael Ramirezin fewer and easierwords Media Management 2011 Group 8b: Charles Florman Lindeberg Instructor: Robin Teigland Karin Rimbäck Johanna Sjöblom Carl Waldenor
Ourtraditionalvayofviewingvaluecreation is based on assumptionsand the modelsof an industrialindustry.
Accordingtothisview, everycompanyoccupies a position on a valuechain. (like an assembly line)(1)
1. Norrman, R. & Ramirez, R., "From Value Chain to value Constellation: Designing Interactive Strategy"
ValueConstellation x The TraditionalValueChain ValueConstellation: Co-productionofValue
A changingenvironment The traditionalwayoflooking at valuecreation is outof fashion!
Instead, the authors stress that the successfulcompaniestoday (1993) do not just addvalue, theyreinvent it.
WithValueConstellationthe focus of the strategicanalysisshould not be so muchaboutcompany or industry, but the value-creating system itself, withinwhich different economicactors, worktogetherto co-producevalue.
The New LogicofValue Value has becomemoredense. Anyproduct or service is really the resultof a complicated set ofactivities: myriad economictransactions and instituionalarrangementsamongsuppliers and customers, employees. Whatweusuallysee as products and services arereallyfrozenactivities, concretereflectionof the relationships amongactors in a value-creating system.
The New LogicofValue The new logicofvalue presents companieswith3 practical implications; Companies do not reallycompetewithoneanotheranymore. Rather, it is the offeringsthatcompete for the time and attention and moneyofcustomers. As potential offeringsbecomemorecomplex and varied, so do the relationships necessarytoproducethem. A singlecompanyrarelyproduceseverythinganymore. A company’s principal strategic task is therefore the reconfigurationofitsrelationsships and business systems. The onlytrue source ofcompetetiveadvantage is the abilitytoconsider the entirevalue-creating system and make it work.
Realizing New Ideas (ex. IKEA) The truesignificanceofIKEA’s business innovation is NOT the lowprice and the lowcosts. IKEA is abletokeepprices and costs down because it has systematicallyredefined the roles, relationships and organizationalpractices in the furnitureindustry. IKEA has understoodhowcustomerscancreatetheirownvalue and havecreated a business system thatallowsthemto do it better.
Reconfigurating Business Systems Everycompanyarefacedwith a choice: Eitherreconfigureyourbusiness system totakeadvantageof the new logicofvalue OR be reconfiguredby yourmoredynamiccompetitors. Howto? Reconsider the company’sknowledgebase and itscustomerbase Reposition/reinvent the company’soffering Make new business arrangements and sometimes new social and politicalalliances.
Competencies and Customers Onlytwo assets reallymatter in the new logicofvalue; A company’scompetencies– toinvest in an ever-broadeningrangeofknowledgeresources and combinethisknowledgeintoitsofferings A company’scustomers– tokeep a relationshipwithitscustomers and to profit from theirvalue-creatingactivities
KeyWords from Normann & Ramirez Partnership Products/services as frozenactivities Co-productionofvalue Relationship Mobilization Valuecreation Competenciesand Customers Dialogue Constantreconfiguration Forget the traditionalvaluechain
Example: Second Life Value Value Value Avatars Suppliers (RL companies, SL companies) Value
The auhtor’sstatement ”A singlecompanyrarelyprovideseverythinganymore” holdstrue for SL where a largeamountofcompanieshelpcreating the extensive value system ofSL(2)
SL offers greateffectiveness in training, collaboration, education and presentation(3)
1 Normann, R. & Ramirez, R ”From ValueChaintoValueConstellation:DesigningInterarctiveStrategy” 2 http://www.metanomics.net/show/virtual_worlds_measurable_value_insight_for_enterprise_dr._mitzi_montoya/ 2011-01-26