the ecosystem value framework · “the model proved to be an excellent way of discussing the...
TRANSCRIPT
The Ecosystem Value Framework: Supporting Managers to Understand
Value Exchange between Core Businesses in Service Ecosystems
Florian UrmetzerVeronica Martinez
Andy Neely
Agenda
• Background to the study
• Research question
• Research phases
• The Ecosystem Value Canvas
• Value transfer between partners in an ecosystem
• Summary
Problem statement?
1. Request for research from practitioners
2. Call for research in understanding value (Lepak et al., 2007)
EcosystemValueCreation
ValueDelivery
CustomerValueCapture
Notallvalueisdefinedatthepointofservice
delivery
WhocreatesValue?Whocapturesatthis
point?
Lepak,D.P.,Smith,K.E.N.G.andTaylor,M.S.(2007),“IntroductionToSpecialTopicForumValueCreationAndValueCapture:AMultilevelPerspective”,TheAcademyofManagementReview,Vol.32No.1,pp.180–194.
Theory building
• This study is based on the resource dependence perspective (Jaffrey Pfeffer and Gerald Salancik, 1978). Hence companies coexist in a strategic interaction. This theory defines companies’ inability to be sustainable without external dependencies.
• Business ecosystems evolve in different stages. The starting point is described as a mix of capital, customer interest and talent base, which is the starting point for an ecosystem’s formation. This is followed by expansion, leadership and, finally, self-renewal or death (Moore, 1993; Ritala and Tidström, 2014).
• Value is created by the company itself or by its partners for the end customer. Therefore, every actor in the ecosystem creates and also captures value. This can take place upstream or downstream the value chain (Adner and Kapoor, 2010).
Thoughts and theory Ecosystems
Why Ecosystems?• Modern service delivery us often intertwined with other companies. Often these
connections are not only supplier relationships.
Why Value from Ecosystems?• The delivery of value from an ecosystem should go beyond the capability of the
counted single entity in the ecosystem
Which stakeholders do you include, which to exclude?• Stakeholders to include are available for exchange of value (not just supply)• Stakeholders to exclude are those who supply to the partners• “Leaches” need to be identified and potentially excluded
Research Phases / Methods
Phase Data Participants1– BuildingtheoryfromLiterature
Seventypeer-reviewedpapers
Selectioncriteriareviewedbythreeotherseniorresearchers
2– InterviewstestingoftheTheory
Qualitativeopen-endedinterviews,recordedandTranscribed
Managingdirectorsandgeneralmanagers
3– VerificationWorkshops Fourcasestudies inmultinationalorganizations
Managingdirectorsandgeneralmanagers
Value Creation and Capture
Manufacturer
Custom
er
Capture
Capture
Create
Create
Aim of this presentationIntroduce the Customer Value canvas
Thevaluecanvaswillenableto:
Describe,discuss,challenge,understandandconverseaboutthetypesofvaluewhichareexchangedbetweenthefocuscompanyanditscustomer!
Rules and assumptions
Rulesforbuilding theecosystemcanvas1. Mappedbyateam2. Facilitatedbyamoderator3. Parkingissues4. CollectTasksforvalidation5. Multidisciplinaryteamwiththe
strategicvisionshouldparticipateinthecanvasdesign Assumptions (underwhatconditions is
thiscanvasvalid?1. Context(servicecontract)2. Time(expiry/subjecttochangesinthe
ecosystem)3. Thebenefitofthisisdependentonthe
peopleinvolved
Value Mapping Process
Step1:DefinetheEndCustomer
Step2:BuildyourecosystemMap
Step3:Decideonyourfocalcompany
Step4:Describethedirectvalueexchanged
Step5:Describetheindirectvalue
exchanged
Step6:Decisionmakingforpartnering
MapyourEcosystem1. Definetheendcustomer2. Defineallparticipants
• EndCustomer• YourCompany• FocalCompany• Supplier• Partner• Competitor• Influencer
Your Company
Partner
Partner
End Customer
InfluencerInfluencer
Competitor
Supplier
Suppliers’ supplierInfluencer
Mapping your ecosystemConsidering all important participants
MapyourEcosystem1. Definetheendcustomer2. Defineallparticipants
• EndCustomer• YourCompany• FocalCompany• Supplier• Partner• Competitor• Influencer
Your Company
Partner
Partner
End Customer
InfluencerInfluencer
Competitor
Supplier
Suppliers’ supplierInfluencer
Mapping your ecosystemFocus on value exchanged between partners
Direct Value Creation and CaptureConsidering the ecosystem partners
Manufacturer
B2B/Cu
stom
erCapture
Capture
Create
Create
Urmetzer,Neely,Martinez(2016);“EngineeringServices:Unpackingvalueexchange”WhitepaperfromtheCambridgeServiceAlliance
Describe the indirect value exchanged
2a.Company(e.g.Financialorothercapability,Proximity,Trust)
YOUR
Co
mpany
B2BCu
stom
er
2b.Managers(e.g.CoordinationExperience,TechnologicalKnowledge,KPIs)2c.Strategically(e.g.strategicintentoftheorganisationorotherstakeholders)2d.Risk(e.g.aversionofmarketandotherrisks)
2.Whatistheindirectvaluefor:1.Whatisthedirectvaluefor:
Decision making for partnering
CaptureCreate Capture
Create
CaptureCreate
6aDecisionmakingonpartneringbasedonDirectValue
6bDecisionmakingonpartneringbasedonIndirectValue
6c.FinaldecisionmakingonpartneringbasedonTotalValue
Using the Value Canvas for practitioners
Afterusingtheframeworkinaworkshop:“Ifwehadknownthenwhatweknownow,wewouldhavemadeourvalueoffernottothestartoftheproductionchain(vetsandfarmers)buttothe completelyotherendofthechain(retailers)“DirectorOperations,ofamultinationalPharmaceuticalcompany
“themodelprovedtobeanexcellentwayofdiscussingtheissuesweunearthed”
“wewouldnothavehadtheimpactindiscussionsafterusingthemodel”
“usingthemodelhasgivenusanadvantageinbeingacollaboratoraswewereawareofthecompletevalueexchange”
“beforeusingthemodelwehavebeengoingaroundincirclesonvalue”
Summary and conclusion
• Contributedtotheideathatdifferenttypesofvaluecreatedandcapturedwithinanecosystem
• Deepened understandingofthecomplexityofecosystemsanditsdifferentvalueflows,acknowledgingthattherearedependency between companies
• Contributedtoresourcedependency theorybydefiningthattherearedirectandindirectdependencies inservicedeliverybetweencompanies
Forthcoming Webinars
Date14:30hr GMT
Topic Invitedspeaker
2017
March13th TheEcosystemValueFramework:SupportingManagerstoUnderstandValueExchangebetweenCoreBusinessesinServiceEcosystems
FlorianUrmetzer
April10th Investigatingrisksofoutcome-basedservicecontractsfromaprovider’sperspective
JingchenHou
May8th AProcessforB2BPartnerships:designingtodelivercapabilityacrosscompanies
Florian Urmetzer
June12th Exploringthe ServiceJourney VeronicaMartinez
Dr. Florian UrmetzerSenior Research Associate | Cambridge Service Alliance | Institute for Manufacturing |Department of Engineering | 17 Charles Babbage Road | Cambridge | CB3 0FS | UK |
www.cambridgeservicealliance.org