Value Creation & the Evolution of Organizational Business Models

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Presentation by Paul M. Di Gangi on January 31, 2011 at the Stockholm School of Economics in Second Life (SSE Island) for Robin Teigland.

This presentation outlines the key shifts in people, technology, and the economy that have led to the growth of new types of organizational business models and how value can be created.

This presentation is also available here: http://www.slideshare.net/eteigland/lecture-by-paul-digangivalue-creation

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  • Value Creation & the Evolution of Organizational Business Models

    1. 1. Exploring Business Models and the Role of Information Technology on Value Creation<br />Paul M. Di Gangi, Ph.D.<br />Western Carolina University<br />www.paulmdigangi.com<br />pdigangi@gmail.com<br />
    2. 2. Presentation Structure<br />Start<br />Introduction<br />Drivers of Evolution<br />Types of Business Models<br />Understanding Co-created Value<br />What should I take away from this?<br />Questions<br />Finish<br />
    3. 3. I am a product of my...<br />n<br />e<br />t<br />w<br />o<br />r<br />k<br />
    4. 4.
    5. 5. The Business Model<br />An organization’s line in the sand<br />1/31/2011<br />
    6. 6. The Business Model<br />An organization’s line in the sand<br />The conceptual foundation that determines how an organization creates and captures value.<br />Develops the boundaries of an organization by: <br /><ul><li>Articulating the organizations vision
    7. 7. Approach to managing value creation</li></ul>1/31/2011<br />
    8. 8. Happens<br />1/31/2011<br />
    9. 9. < 1 ><br />PeopleChange...<br />
    10. 10. Increased<br />Interactivity<br />
    11. 11. Suddenly... everyone’s a 933|<!<br />
    12. 12. < 2 ><br />Our//0rLD can Change...<br />
    13. 13.
    14. 14. Explosion of Social Media<br />
    15. 15. < 3 ><br />Our choices Change...<br />
    16. 16. Networked Individualism<br />(Wellman et al., 2003)<br />
    17. 17. 1/31/2011<br />Social Affordances<br />(boyd, 2007)<br />
    18. 18. User-generated Content<br />
    19. 19. Our economy changes<br />Closed<br />Open<br />Co-created<br />(Pine Jr. & Gilmore, 1998; 1999)<br />
    20. 20. Business Models<br />What happens to them?<br />Johnson, Christensen, and Kagermann (2008)<br />
    21. 21. They Evolve...<br />1/31/2011<br />
    22. 22. Closed Model<br />Organizations internalize resources for value creation; restrict access to knowledge, and protect intellectual property.<br />
    23. 23.
    24. 24. Open Model<br />Organizations leverage both internal and external resources for value creation; strategically interact with its environment<br />
    25. 25. User-driven Innovation<br />“Distributed groups of individuals focused on solving a general problem and/or developing a new solution supported by computer-mediated communication.” <br />(Dahlander & Wallin, 2006 p. 1246)<br />
    26. 26. User-driven Innovation<br />“Distributed groups of individuals focused on solving a general problem and/or developing a new solution supported by computer-mediated communication.” <br />(Dahlander & Wallin, 2006 p. 1246)<br />
    27. 27. Co-created Model<br />Organizations encourages the flow of knowledge between internal and external resources; focuses on a common good where both parties benefit<br />
    28. 28. Private-Collective Community<br />Driven by both parties sharing their experiences and co-creating the value of the network.<br />
    29. 29. How can we make these models work for us?<br />
    30. 30. Balancing the needs of both parties<br />User Interests<br />vs<br />Organizational Interests<br />
    31. 31. Getting your customers’ ideas to work for you:<br />Building user innovation communities<br />Paul M. Di Gangi<br />Molly Wasko<br />Robert Hooker<br />Presented at the SIM Workshop on Internet Architectures and Web 2.0 in Phoenix, Arizona in conjunction with the International Conference on Information Systems.<br />
    32. 32.
    33. 33. Considering<br />Rejected<br />No Status Update<br />Implementing<br />Size by # Ideas Contributed<br />February 2007<br />Di Gangi, P. M. (2009)<br />
    34. 34. Social Processes<br />Social processes for the effective development of an idea were required to transfer end user ideas into adoptable ideas for Dell. Users within adopted ideas collaborated to resolve differences in opinion, create consensus, and provide additional information to Dell.<br />
    35. 35. Exploring the Organization-User Relationship in Private-Collective Knowledge Communities<br />Robin Teigland<br />Elia Giovacchini<br />Bjørn-Tore Flåten<br />Paul M. Di Gangi<br />Currently under review at the CK Prahalad SMS Special Conference.<br />
    36. 36. Relational Dynamics<br />Theme One<br />
    37. 37. “Did you mean the communication between <NAME REMOVED> and the eZ publish community? Yes, it’s very nice!”<br />“I think the communication by <NAMES REMOVED>… is great, but one gets the feeling that they may not have the best communication with eZ Systems.”<br />Responses suggest a distinction among organizational agents (those working within eZ Publish community) and the organization (eZ Systems) when it comes to perceptions about communication.<br />Relational Dynamics<br />
    38. 38. Decision Making Process<br />Theme Two<br />
    39. 39. “Maybe more trusted people could make/develop eZ Publish. More people from community could become professional or ‘half-professional’ eZ partners, developers…”<br />“… It’s harder to give confidence to an open-source community driven by an editor than a community driven by a democratic or autocratic authority.”<br />Responses suggest a significant interest in understanding the dynamics that exist in terms of the decision making process, “rights” of the community”, and the benefits of commitment to community.<br />Decision Making Process<br />
    40. 40. Member Development<br />Theme Three<br />
    41. 41. “Creating the badge/grade/xp/achievementsystem…”<br />“Focus heavily on the noob. Hard core devs are already here, but there are not that many in the world. Grooming noobs is a growth opportunity.”<br />Responses focused on interest in developing & nurturing the growth of the community via technical (e.g., achievement system & webinar features) and social adjustments (e.g., training and mentorship for new members & inexperienced developers).<br />Member Development<br />
    42. 42. Overarching Finding<br />Need to develop a deeper understanding of the relationships within the eZ Share community.<br />3OA<br />OA<br />eZ Organizational Agent<br />eZ<br />3OA<br />3rd Part Organizational Agent<br />CM<br />OA<br />CM<br />OA<br />CM<br />Community Member<br />
    43. 43. How can I 933|< out?<br />
    44. 44. Socio-Technical System<br />Platforms<br />People<br />Societal Shifts<br />
    45. 45. Thank You for Engaging<br />Contact @ pdigangi@gmail.com | Website @ www.paulmdigangi.com<br />Modified version of these slides will be available @ www.slideshare.com/pmd06c<br />

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