5/6 - Analyzing collaborative value creation Flashcards
(18 cards)
Two perspectives on value
Value-in-exchange
Value-in-use
-> How is value received? Directly through the innovating actors’s use of the innovation (value-in-use) or through the exchange of knowledge with one or more other parties in return for compensation (value in exchange)
Two perspectives on value
Value-in-exchange
= value creation as a process of exchanging resources between actors
- value in exchange regards value as encapsulated in the (exchanged) resources and, as such, a resource has a sacrifice (e.g. it’s purchasing costs) and an estimated benefit (related to the later utilization of the resource
- therefore receivers define value based on their perceptions of the potential usefulness of the exchanged resource for addressing their needs
Two perspectives on value
Value in use
= value that an actor creates through a use process for itself
- views value as an outcome (e.g. new product or service) of a process (e.g. contributing to an open-innovation project) that consumes resources (e.g. Human Resources)
- > used resources are the sacrifices and the outcome is the benefit
- > value is created through processes of developing, producing and delivering new market offerings that create turnover
- > value is bound to an actor applying resources in a process aimed at moving toward a valued goal
Four value processes
Which processes are there?
Value realization
Value partake
Value provision
Value negotiation
Four value processes
Value realization
- The actual deployment of resources to achieve a goal
- the receiver of the value is the actor performing the process
Value in use: Tv -> value created, when TV is used
Four value processes
Value partake
Process of securing a share of the value created by another actor at the time of resource utilization
-> partaking in another actor’s value creation
How can I participate in the value creation process?
Four value processes
Value provision
- the provision of resources to an exchange partner who values the resource based on later potential use
- > while there is an intent to commercialize the exchanged resource at a later stage, the current exchange only offers a potential for later value realization
- > resources exchanged may not yet have an identified use
- > valuation can be uncertain or difficult
Tools, so that you can do something in the future
-> e.g. patients who don’t take their pills
Four value processes
Value negotiation
Process of negotiating access to and/or ownership over resources in return for the provision of value to an exchange partner
-> based on the provision of resources, actors attempt to ensure suitable return in exchange - and these exchanges need to be negotiated
A relationship-oriented value model - value for customers
Which functions are there?
Purchasing functions:
- Payment
- Volume
- Quality
- Safeguard
Network functions:
- Innovation
- Information
- Access
- Motivation
A relationship-oriented value model - value for customers
Relationship Value Estimation
Payment
- purchase price, total cost of ownership or net present value
- different payment functions, e.g. industrial products no longer sold upfront but paid for on the basis of their usage
A relationship-oriented value model - value for customers
Relationship Value Estimation
Volume
- the allocation of larger purchase volume to selected suppliers allows customers to influence suppliers, to consistency of their supplies and to reduce communication costs
- the volume function has three aspects: the volume of a given product (share of wallet), the volume of different products (share of product portfolio), and volume over time (share of long term contracts)
A relationship-oriented value model - value for customers
Relationship Value Estimation
Quality
- the quality of a product is determined by the extent to which that product fits into the customer’s operations - the better the fit, the higher the perceived value
- quality can be related to the product itself in that the product encompasses valuable features that increase the value of the customer’s product for its customers
A relationship-oriented value model - value for customers
Relationship Value Estimation
Safeguard
- customers may also create value by developing a network of flexible suppliers that can change order volumes at short notice
- > network reduces distribution costs and inventory levels
- > customers may wish to have a “reserve source” to lessen their dependency on other suppliers
A relationship-oriented value model - value for customers
Relationship Value Estimation
Motivation
- by working with a supplier that is known for its innovativeness, social responsibility, or corporate success, an employee can gain respect and recognition among colleagues, which then increases that employee’s motivation
A relationship-oriented value model - value for customers
Relationship Value Estimation
Access
- suppliers may actively help customers to establish contacts with potential exchange partners or influential people
- > other suppliers, possible customers
- > customers can use their relationships with prestigious suppliers as a reference
A relationship-oriented value model - value for customers
Relationship Value Estimation
Information
- suppliers can fulfill an information function by passing on relevant technical or market-related information
- > suppliers usually have specific knowledge about their own industry as well as their customer’s industry
- > customers of a supplier that fulfills an information function may gain access to critical information faster than the competition and may eventually be able to decrease market search costs
A relationship-oriented value model - value for customers
Relationship Value Estimation
Innovation
Suppliers can serve as valuable partners for their customer’s product and process innovations by contributing innovative ideas, supplying innovative components and production facilities, or engaging in collaborative development projects
Value is perceived - not absolutely determined
Four perspectives exist in every dyad
Supplier perceives customer value
Customer perceives own value
Supplier perceives own value
Customer perceives supplier value
Gap = speculating wrongly about value creation
Difference in the perception of what the people bring and gain
