There is a need to shift from a Value Chain to a Value Network Perspective

1. PC Ecosystems
• Apple has a community friendly BM
• Digital Research Inc are taking market share with ecosystem centric
BM centred around CP/M
• Tandy quickly took market share but are falling behind with vertically
integrated BM
• IBM has been watching the development of PC industry and chooses
to mimic Apple and Digital Research Inc
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Lets go back in early 1980’s and reflect !

2. IBM takes a big market share!
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3. IBM ecosystem is winning ! But clones?
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4. Trojan created accidently by IBM
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5. Summary
• Theme 1: Wider lens on innovation
Major risks: Execution
Co innovation
Adoption chain risk
• Theme2: Positioning and Timing
• Theme 3: Building, Extending and Migration ecosystem
Management of Bottle neck
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Ron Adner

6. Business Model
Transformation
6
- from a Value Chain to Value Network Perspective
Salelkar Lakshmi Pradip
Business Model Transformation06-09-2019

7. Agenda
Research Background
Motivation for the study
Purpose
Research Gaps
Research Questions
Theoretical Perspectives
Research Method
Expected outcomes
Insights
Reflections
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8. Business Model
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Gassmann et al. 2013
Angle of Attack

9. Business Model
View technology as a pipe line for value and knowledge exchange!
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Value
Capture
Create
Deliver
New Technology
Allee, Verna. 2000

10. Value Network Perspective
“Virtually any organisation can be understood as a value network”
New currencies of Value
1. Product and Service
2. Knowledge
3. Intangible benefits
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Allee, Verna. 2000

11. Current Scenario
Who do we follow ?
FAANG who are pioneering radically disruptive digitally enabled BMs
Why the need?
Manufacturing wants to go Lean
Challenges?
Its very difficult for incumbent firms to capitalise on radical innovation
How?
Digitalisation is one promising factor for Business Model Innovation
Digital platforms help to gain more access to customers data at a individual level
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12. Servitization
“ the innovation of an organization’s capabilities and processes to better create mutual
value through a shift from selling products to selling product service systems (PSS) ”
“Customers themselves are driving servitization”
“Schizophrenic relationships”
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13. Schizophrenic
This happens naturally …
Natural ecosystem: Foxes and bunny
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14. Motivation for the study
Development of transformation framework for BMI (Experimental value
blueprints ) in a multi actor ecosystem
Need to understand action (Exchange) i.e. ecosystem dynamics
Knowledge as a value as well as value currency ? (Actionable)
There is a need to shift from a Value Chain to Value Network
Perspective
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15. Purpose
To conduct exploratory studies applying Value Network Perspective to develop a framework
form static towards more fluid network orchestration to achieve sustainability and CE
enabled multi actor ecosystem
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16. Research Gaps
Research Gap 1: How should a firm position itself, and its relations with other actors, into a network of an
evolving ecosystem? (Parida and Wincent 2019)
Research Gap 2: How to establish, organise and maintain networks, such that they form a co-creative
ecosystem which does not cannibalize on the firm’s offerings? (Parida and Wincent 2019)
Research Gap 3: What are the mechanisms of knowledge transfer in these networks?
Research Gap 4: Multi-actor ecosystem perspective lacks fundamental theory (Tsujimoto et al. 2018).
Research Gap 5: How are networks governed? (Parida and Wincent 2019)
Research Gap 6: How does one maintain global networks while the control mechanisms weaken (Fulk 2001;
Parida and Wincent 2019)
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17. Research Questions
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Research Gap 1: How should a firm position itself, and its
relations with other actors, into a network of an evolving
ecosystem? (Parida and Wincent 2019)
• RQ1: What are the barriers towards achieving
sustainable- and CE-oriented BMI in a multi-actor
ecosystem perspective?
• RQ2: How can these barriers be overcome by
applying value network perspective?
• RQ3: What can be learnt from applying value
network perspective?

18. Theoretical Perspectives
• Value Network Perspective
• Stakeholders Theory
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19. Key Framework Influences
Moore, J.F., 1993. Predators and prey: a new ecology of competition.
Harvard business review, 71(3), pp.75-86.
Rowley, T. (1997). Moving beyond Dyadic Ties: A Network Theory of
Stakeholder Influences. The Academy of Management Review,22(4),
887-910. Retrieved from http://www.jstor.org/stable/259248
The Wide Lens: A New Strategy for Innovation. By Ron Adner.
Portfolio/Penguin: London, 2012,ISBN 9780670921683
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20. Research Method- Stakeholder Analysis
combined with Thematic Network Analysis
• Birth
• Expansion
• Leadership
• Self renewal
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Moore, J.F., 1993

21. Research Method: Workshop
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Theme 1: The need for a wider lens on innovation- Getting all the
major risks on the radar
Ron Adner

22. Network Theory of stakeholders Influence
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Rowley, T. (1997).

23. Network Theory of stakeholders Influence
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Rowley, T. (1997).

24. Probable Insights and Results
• May contribute to theory development - Multi Actor Network
Perspective Theory
• Framework development of a BM which enables more fluid network
orchestration to achieve sustainability and CE enabled multi actor
ecosystem
• Experimental blueprints in multi actor ecosystems
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25. References- Graphs
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Reimer, J. (2015). Total share: 30 years of personal computer market share figures.
[online] Ars Technica. Available at: https://arstechnica.com/features/2005/12/total-
share/ [Accessed 15 Aug. 2019].
Reimer, J. (2012). From Altair to iPad: 35 years of personal computer market share.
[online] Ars Technica. Available at: https://arstechnica.com/information-
technology/2012/08/from-altair-to-ipad-35-years-of-personal-computer-market-
share/ [Accessed 15 Aug. 2019].
Dediu, H. (2014). IBM and Apple: Catharsis. [online] Asymco. Available at:
http://www.asymco.com/2014/07/15/catharsis/ [Accessed 15 Aug. 2019].

26. References- Papers
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Vandermerwe, Sandra, and Juan Rada. 1988. “Servitization of Business:
Adding Value by Adding Services.” European Management Journal 6
(4): 314–24. Baines, T. S., H. W.
Baines, T., Lightfoot, H., Benedettini, O. and Kay, J. (2009), "The
servitization of manufacturing", Journal of Manufacturing Technology
Management, Vol. 20 No. 5, pp. 547-
567. https://doi.org/10.1108/17410380910960984
Allee, Verna. 2000. “RECONFIGURING THE VALUE NETWORK.” The
Journal of Business Strategy 21 (4): 36–39.

27. Thankyou !
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