Professional Documents
Culture Documents
The world around us Emerging Business Models Transformation of value creation Value chain Network Linear to networked value chain Smile curve Locus of value Crowd sourcing The world is flat for online markets S curve and J curve
Product value
Monetary cost Time cost
Energy cost
Psychic cost
VALUE CHAIN
R&D
Procurement
Operations
Outbound Logistics
Inbound Logistics
Primary Activities
A process can be seen as a value chain. By its contribution to the creation or delivery of a product or service, each step in a process should add value to the preceding steps. Rummler and Brache, Improving Performance
Service
Products/ Services
Procurement
Operations Operations Marketing and Sales Outbound Logistics
Procurement
Operations Marketing and Sales Outbound Logistics
Procurement
Marketing and Sales Outbound Logistics
Inbound Logistics
Inbound Logistics
Service
Service
Inbound Logistics
Adding Business Value Chains together creates a Supply Chain! Supply Chains are important because they allow organizations to optimize their processes over their Suppliers and improve service to their Customers! (Inter-enterprise processes)
Service
Operations
Operations
Operations
Operations
Operations
Outbound Logistics
Outbound Logistics
Outbound Logistics
Outbound Logistics
Outbound Logistics
Inbound Logistics
Inbound Logistics
Inbound Logistics
Inbound Logistics
Inbound Logistics
Service
Service
Service
Service
Supplier-1
Supplier
Enterprise
Customer
Customer+1
In the future, organizations are going to have to worry about how their processes fit within their business partners business processes Rose Heinz, Enterprise Architect TG
Service
(Hilse, 2000)
FROWN CURVE
R&D/Innovation Centre
Standardisation
Brand
Innovation
Marketing
R&D Design Manufacture Assembly
Value Creation
Logistics
Value-added process
Cheap information disintegrates value chains, because segment consolidators realize specialization gains and economies of scope integrated production becomes costly Inputs Manufacturer Marketer Distributor Retailer
Cheap coordination atomizes disintegrated value chains and explodes value activities within layers, because microproducers realize distributed scale economies
Peers
Platform
Peers
Aggregator
35%
10%
10%
10%
35%
Inputs
Platform
Peers
Aggregator
Reconstructor
Why? Market power in atomized landscapes is a function of relative scale: the edges can realize the greatest relative economies of scale via demand and supply side network FX. The middle of the value chain explodes and cant realize scale economies. Core competences for disintegrated value chain coordinators become core rigidities value capture requires competences at both edges of the chain
40%
40%
Platform
Aggregator Peers
Peers
Why? The center explodes and atomizes hypercommoditization and value shifts to adjacent segments, because they can realize scale economies from the exploded centers output.
Examples:
Coordination
Production
Publishing
Aggregation
Filtering
Platform
Peers
Publisher
Aggregator
Reconstructor
Laptop audio
Artist
Label
Club
DJ
Blogger
bloggers
hosting
search
Bloglines
MMOG Developer
gamers
Community sites
N E W S E R V I C E S
B R A N D D E V E L O P M E N T
23
24
15-36
Metcalfs Law works something like this: as the number of users connected to a network system grows, the value of that system begins to increase at a square of the number of users
Social commerce
e-Commerce
Social Commerce
Social Media
39
PINTEREST
Pinterest is the other notable social commerce platform, where images or videos are curated by users. Pinterest is a marketers dream, as these images can link back to the originating product page.
Community Marketplaces
Powerhouses like eBay, Amazon, and Etsy specialize in consumer to consumer sales, but also feature B2C sales. These sites encourage sharing, user reviews, public wish lists, and other forms of social sharing, turning purchases into a personal endorsement.
Crowdfunding
Through sites like Kickstarter or IndieGoGo, consumers can directly fund the products or projects that they want to see created. Generally, higher level donations receive some sort of bonus for their help. Kickstarter projects must reach 100% of their goal to fund the creators, while IndieGoGo gives money to the creator projects even the project doesnt reach its goal. New sites such as Flattr, Patreon, and Tugboat Yards allow fans to pledge or sponsor their favorite creators via micropayments. This allows creators supplementary income in exchange for their podcasts, videos, or music.
Group Purchasing
Sites such as Groupon and Living Social were huge a few years ago, but have been on the decline recently. These sites offer reduced prices on products or packages if a certain number of users agree to buy the package being offered. These group purchasing sites has had a difficult time turning a long-term profit, so their future remains in doubt for now.
Locus of value
Customer engagement
BUSINESS EXCHANGES
B2B B2C P2P C2C G2C E 2E
QUANTAM MARKETING
64
7-66