Constructing Effective Value Propositions
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Presented at the SIGSVC Workshop in Shanghai, China, Dec. 3rd, 2011
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Constructing Effective Value Propositions
- 1. Constructing Effective Value Propositions for Stakeholders in Service System Networks Dr. Stephen K. Kwan Professor, Service Science MercèMüller-Gorchs Management Information Systems Karlsruhe Service Research Institute College of Business Administration Karlsruhe Institute of Technology San José State University, CA, USA Karlsruhe, Germany http://www.sjsu.edu/ssme Contact: stephen.kwan@sjsu.edu Presented at the AIS SIGSVC Workshop December 3rd 2011, Shanghai, China Download these slides at: http://www.slideshare.net/StephenKwan
- 2. Service System Worldview1 Service Customer Provider Service Experience A Service System and Its Entities 1Kwan, S. K. & Min, J. H. (2008) “An Evolutionary Framework of Service Systems”. Presented at the International Conference on Service Science, Beijing, China, April 17-18. Kwan 2011 2
- 3. A Service System Network Service Service Interactions System A Service System B Service Service System E System C Service System D Service System F Kwan 2011 3
- 4. A Service Supply Chain Service Service Interactions System A Service System B Service Service System E System C Service System D Service System F Kwan 2011 4
- 5. Service System Worldview Employees & Stockholders Community Service Customer Provider Service Partners Experience Service System Competition Society Kwan 2011 5
- 6. Value Co-Creation Through Value Propositions Employees & Value Stockholders Community Value Service Value Customer Provider Value Service Partners Experience Service System Competition Society Kwan 2011 6
- 7. Stages in Customer Empowerment in Value Co-Creation Stage 1: Value Chain Value Proposition Focal Service Customer Relationship Provider Service Experience 5 Kwan,S. K. & Yuan, S. T. ”Customer-Driven Value Co-Creation in Service Networks”, to appear in Demirkan, H., Spohrer, J.C. and Krishna, V. ed., The Science of Service Systems, volume in Service Science: Research and Innovation (SSRI) in the Service Economy series, Springer, 2010. Kwan 2011 7
- 8. Stage 2: Traditional Service Value Network Value Proposition Focal Service Customer Relationship Provider Provider Service Partner Experience Network Value Proposition cf. ICT-enabled service networks, mobile applications, etc. Kwan 2011 8
- 9. Stage 3 – Improved Value Chain Value Proposition Focal Service Customer Relationship Provider Value Proposition Service Customer’s Experience Social Network Kwan 2011
- 10. Stage 4: Customer Driven Service Value Network Value Proposition Focal Service Customer Relationship Provider Value Value Proposition Proposition Provider Service Partner Customer’s Experience Social Network Network cf. “Resource Integrators” in Service Dominant Logic literature Kwan 2011
- 11. Variety of Value Propositions Maslow’s Hierarchy Of Needs Service Provider Society Stakeholders Hedonic Spiritual Community Corporal Emotional Employees Intellectual Stockholders A point in this 3-D space is Partners a Potential Value Customers Proposition Kwan 2011 11
- 12. Disposable Income & Desire for Services Needs vs. Wants Kwan 2011 12
- 13. Value Propositions can also be bi-directional Customers Service Provider Stockholders Partners Community Employees Customers Partners Service Provider Society Service Provider Society ? Community Employees Stockholders Partners Customers Kwan 2011 13
- 14. Value Proposition Model (VPM) Starting with the Service System Service Customer Provider Service Experience Kwan 2011 14
- 15. VPM – a common example Service Customer Value Proposition Provider Customer Service Experience Service Customer Experience Service Experience Kwan 2011 15
- 16. VPM – individuals and community Service Customer Value Proposition Provider Community/ Social Customer Network A Shared Experience Service Experience Service Experience Customer Service Experience Kwan 2011 16
- 17. VPM – individuals and Facebook community Service Customer Value Proposition Provider Community/ Social Customer Network A Shared Experience Service Experience Service Experience Customer Service Experience Kwan 2011 17
- 18. VPM – service provider partners Service Customer Provider Value Proposition Customer Service Service Experience Experience Service Experience Service Experience Value Proposition Vendor Kwan 2011 18
- 19. VPM – partner’s acquistion of customer Service Customer Provider Customer Service Service Experience Experience Service Experience Service Experience Service Vendor Experience Kwan 2011 19
- 20. Example 1 of 4 Service Customer Provider Customer Service Service Experience Experience Service Experience Service Experience Vendor Kwan 2011 20
- 21. Example 2 of 4 Service Customer Provider Customer Service Service Experience Experience Service Service Experience Service Experience Experience Service Vendor Vendor Experience Kwan 2011 21
- 22. Example 3 of 4 Service Customer Provider Customer Service Service Experience Experience Service Service Experience Service Experience Experience Service Vendor Vendor Experience Kwan 2011 22
- 23. Example 4 of 4 Service Customer Provider Customer Service Service Experience Experience Service Experience Service Experience Service Vendor Experience Kwan 2011 23
- 24. Foundational Premises of Service Dominant Logic Kwan & Müller-Gorchs 2011 24
- 25. Value Systems and Value Dimensions Provider’s Value System Opportunities for Value Co-Creation Customer’s ★ Value System ★ ★ ★ ★ ★ ★ ★ His Customer’s Value System FP8 Kwan & Müller-Gorchs 2011 25
- 26. Variety of Value Propositions Maslow’s Hierarchy Of Needs Service Provider Society Hedonic Stakeholders Spiritual Cultural Community Corporal Emotional Employees Intellectual Familial…. Stockholders A point in this 3-D space is Partners a Potential Value Customers Proposition FP10 Kwan & Müller-Gorchs 2011 26
- 27. Constructing a Value Proposition The Customer have a lot of VP’s to choose from Service Level Agreement? FP7 Kwan & Müller-Gorchs 2011 27
- 28. A Customer’s Choice of Service A Service Provider’s Promised Value: Based on the Customer’s own A Customer’ Choice Function: expectations Kwan & Müller-Gorchs 2011 28
- 29. A Customer’s Realization of Value A Customer’s Realized Value: Co-Production Service Process Co-Creation of Value FP6 An Example Service Provider and Customer’s His Partners’ Contributions Contributions FP9 Kwan & Müller-Gorchs 2011 29
- 30. Constructing Value Propositions: Customers and Service Providers Sc,R,M too Connecting Components of a Value Proposition to a Service Provider’s KPI’s through Feedback Kwan & Müller-Gorchs 2011 30
- 31. Example: E-Commerce Customer Amazon.com Bookcloseout_us theBookGrinder nengland4 Kwan & Müller-Gorchs 2011 31
- 32. VP0 Se0 SE Amazon.com S0 SP0 Se1 Bookcloseout_us S1 SP1 S4 SP4 Customer Se2 theBookGrinder S2 SP2 S5 Se3 negland4 S3 SP3 S6 Kwan & Müller-Gorchs 2011 32
- 33. Service Pattern 1 – Single Service Episode Customer Instantiation of the Service Experience at a particular point VP0 In time SE0 Focal Relationship Time SP0 SE0 = Service Experience provided by SP0 SP0 = Service Provider of the Focal Relationship (the basis of the Value Proposition from Kwan & Yuan 2011) VP0 = Value Proposition offered by SP0 to Customer for SE0 Kwan & Müller-Gorchs 2011 33
- 34. Pattern 2 – Continuous Service over a Period of Time Customer VP0 SE0 Time SP0 Kwan & Müller-Gorchs 2011 34
- 35. Service Pattern 3 – Service in Parallel Customer VP0 Se0 Se1 Se2 Time Instantiation of the Service SP0 SP1 SP2 Experience at a particular point In time Kwan & Müller-Gorchs 2011 35
- 36. Pattern 3 – Continuous Service with Occasional Service Episodes Customer VP0 Se1 Se2 Se0 Time SP0 Kwan & Müller-Gorchs 2011 36
- 37. Pattern 4 – Service provided by more than one Partner Service Providers Customer VP0 SE1 SE2 SE3 SE0 Time SP0 SP1 SP2 SP3 VP1 VP3 SE4 SE6 VP2 SE5 Kwan & Müller-Gorchs 2011 37
- 38. Future Directions • More on development of Value Dimensions and Measurement • More on connecting VPM with Service Provider’s KPI • More on Quality Dimensions and Measurement • Integrate VPM with Service System Design and Prototyping Integrate with Foresight and Innovation Method Knowledge Management for Service System Design & Engineering © Cockayne and Carleton Kwan & Müller-Gorchs 2011 38
- 39. Service System Framework & Service System Networks Foresight and Innovation Method Value Propositions & Service Patterns © Cockayne and Carleton Kwan & Müller-Gorchs 2011 &Müller-Gorchs 39
- 40. Service System Framework & Service System Networks Foresight and Innovation Method © Cockayne and Carleton Process Chain Network Diagram UI Prototyping UML – Use Value Propositions Cases & Service Patterns BPMN Work System MANGA Story Service Blueprint Boards Kwan & Müller-Gorchs 2011 &Müller-Gorchs 40
- 41. Constructing Effective Value Propositions for Stakeholders in Service System Networks Dr. Stephen K. Kwan Professor, Service Science MercèMüller-Gorchs Management Information Systems Karlsruhe Service Research Institute College of Business Administration Karlsruhe Institute of Technology San José State University, CA, USA Karlsruhe, Germany http://www.sjsu.edu/ssme Contact: stephen.kwan@sjsu.edu Fin Presented at the AIS SIGSVC Workshop December 3rd 2011, Shanghai, China Download these slides at: http://www.slideshare.net/StephenKwan
- 42. Example of Value Proposition A Class Syllabus (1) Kwan 2011 42
- 43. Example of Value Proposition A Class Syllabus (2) One of many MIS Electives offered in Fall 2011 Course Description Course - Learning Objectives 3 Credit Hours Kwan 2011 $$ 43
- 44. Example of Value Proposition A Class Syllabus (3) Reputation & Accreditation “PoweringSiliconValley” Prerequisites & Required Texts Kwan 2011 44
- 45. Example of Value Proposition A Class Syllabus (4) Required Texts, Rules & Policies Class Procedure Kwan 2011 45
- 46. Example of Value Proposition A Class Syllabus (5) Grading Criteria Student Evaluations (Faculty KPI) Kwan 2011 46
- 47. Example of Value Proposition A Class Syllabus (6) Guest Lecture (Partner) Service Episodes Service Components Kwan 2011 47
Notas do Editor
- Value DimensionsQualitySocial CurrencySocial CRMEmotional – Not Logical?Ethical?