VALUE ENCOUNTERS supporting value network analysis Hans Weigand Tilburg University The Netherlands
E3-value business model (Gordijn & Akkermans, 2004) – basics Main goals: understand business achieve shared meaning betwee...
Co-creation of value <ul><li>Customers involved in product design (Nike, crowd-sourcing) </li></ul><ul><li>Customers invol...
Source : Stephen Vargo, 2009 www.sdlogic.net
Two-sided markets <ul><li>Eisenbaum & Parker, Van Alstyne, 2006. </li></ul><ul><li>Examples:  </li></ul><ul><ul><li>Google...
E3-value- example hospital
Limitations of e3value <ul><li>Activities are located within actors. This makes it impossible to model activities in which...
Triads in networks (Choi & Wu, 2009; Li & Choi, 2009) supplier customer supplier customer agent Service outsourcing suppli...
Value encounter <ul><li>A value encounter is an interaction space between multiple actors where each actor brings in certa...
value activity actor value transfer (proposition) value transfer (derivation) source to beneficiary from reinforce 1 1 1 1...
value activity actor value transfer (proposition) value transfer (derivation) source to beneficiary from reinforce 1 1 1 1...
 
 
 
 
Value Encounter Analysis Model <ul><li>FINANCIAL </li></ul><ul><li>How is the money distributed over the partners? </li></...
Conclusions <ul><li>To capture the logic of co-creation of value, e3-value should be extended with the notion of value enc...
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Value Encounters by Hans Weigand

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Understanding co-creation of value through value encounters

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Value Encounters by Hans Weigand

  1. 1. VALUE ENCOUNTERS supporting value network analysis Hans Weigand Tilburg University The Netherlands
  2. 2. E3-value business model (Gordijn & Akkermans, 2004) – basics Main goals: understand business achieve shared meaning between stakeholders change/improve business starting-point for IS design
  3. 3. Co-creation of value <ul><li>Customers involved in product design (Nike, crowd-sourcing) </li></ul><ul><li>Customers involved in marketing (Facebook) </li></ul><ul><li>Customers involved in development (open source model) </li></ul><ul><li>Co-creation of value in service encounter (S-D logic: “all firms are service firms”) </li></ul><ul><li>Co-creation in all business activities (e.g. employee training </li></ul>
  4. 4. Source : Stephen Vargo, 2009 www.sdlogic.net
  5. 5. Two-sided markets <ul><li>Eisenbaum & Parker, Van Alstyne, 2006. </li></ul><ul><li>Examples: </li></ul><ul><ul><li>Google (searchers, advertizers) </li></ul></ul><ul><ul><li>Playstation (players, developers) </li></ul></ul><ul><ul><li>Wi-Fi equipment providers (laptop users, access points) </li></ul></ul><ul><li>Challenges in pricing vs subsidizing and coping with winner-take-all competition vs sharing. </li></ul>
  6. 6. E3-value- example hospital
  7. 7. Limitations of e3value <ul><li>Activities are located within actors. This makes it impossible to model activities in which multiple actors are involved (that is, they have to be split up) </li></ul><ul><li>According to the work of Thomas Choi, the units of analysis in networks are triads . </li></ul>
  8. 8. Triads in networks (Choi & Wu, 2009; Li & Choi, 2009) supplier customer supplier customer agent Service outsourcing supplier1 buyer supplier2 Multiple suppliers + - -
  9. 9. Value encounter <ul><li>A value encounter is an interaction space between multiple actors where each actor brings in certain resources; these resources are combined then in such a way that value is created to all of them. </li></ul><ul><li>Value encounters can be connected by means of a causal relationship (“+”), when activity in one encounter reinforces the activity in another encounter </li></ul>
  10. 10. value activity actor value transfer (proposition) value transfer (derivation) source to beneficiary from reinforce 1 1 1 1 internal resource controlled by 1 1 value object value encounter value object TypeOf TypeOf * * * * object object * 1
  11. 11. value activity actor value transfer (proposition) value transfer (derivation) source to beneficiary from reinforce 1 1 1 1 internal resource controlled by 1 1 value object value encounter value object TypeOf TypeOf * * * * object object * 1
  12. 16. Value Encounter Analysis Model <ul><li>FINANCIAL </li></ul><ul><li>How is the money distributed over the partners? </li></ul><ul><li>What is the expected profitability for each actor (short-term, long-term)? </li></ul><ul><li>What institutional form is taken to distribute the money? </li></ul><ul><li>OPERATIONAL </li></ul><ul><li>How is the value activity to be characterized (pattern)? </li></ul><ul><li>How is the value activity supported (technology)? </li></ul><ul><li>What are the goals and metrics? </li></ul><ul><li>How is the optimization ensured? </li></ul><ul><li>How are responsibilities assigned? </li></ul><ul><li>KNOWLEDGE </li></ul><ul><li>Is knowledge gained from available data? </li></ul><ul><li>Are core competencies systematically maintained? </li></ul><ul><li>Is knowledge acquired also explored? </li></ul><ul><li>Is there a healthy mix of explicit and implicit knowledge? </li></ul><ul><li>Is there an optimal use of standards? </li></ul><ul><li>SOCIAL </li></ul><ul><li>Is the social network actively developed? </li></ul><ul><li>Are social networks maintained systematically? </li></ul><ul><li>How is the social network explored </li></ul><ul><li>Is there a healthy mix of formal and informal contacts? </li></ul><ul><li>What is the contribution of the network to social capital of the environment? </li></ul>
  13. 17. Conclusions <ul><li>To capture the logic of co-creation of value, e3-value should be extended with the notion of value encounter and the process of value encounter analysis. </li></ul><ul><li>More network analysis methods should be worked out. </li></ul><ul><li>For both analysis and design, the recognition of basic patterns (analysis, solution) can be useful. </li></ul><ul><li>Analysis of relationships between value encounters may be useful for exploring innovation. </li></ul>

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