...European Management Journal (2008) 26, 289– 297 journal homepage: www.elsevier.com/locate/emj Service co-production and value co-creation: The case for a service-oriented architecture (SOA) q Andrea Ordanini a,*, Paolo Pasini b a b Bocconi University, Viale Filippetti, 9, 20122 – Milan, Italy SDA Bocconi, School of Management, Via Bocconi, 8, 20136 – Milan, Italy Available online KEYWORDS Service dominant logic; Co-production; Service management Summary An emerging marketing management logic proposes a new perspective on service activities, which previously have been subject to a biased goods-dominant logic. According to this new logic, customers always are co-producers of services and co-creators of value, not simple marketing targets, because they mobilize knowledge and other resources in the service process that affect the success of a value proposition. This article explores this key proposition, analyzing service co-production and value co-creation phenomena in the business-to-business segment and focusing on the case of service-oriented architecture (SOA) with an in-depth, qualitative analysis of two firms pioneering the implementation of SOA solutions. Ó 2008 Elsevier Ltd. All rights reserved. Introduction Marketing literature and practice converge around the idea that, especially when it comes to services, customers play different foundational roles in value-creation mechanisms. Marketing theory recently introduced the concept of the ...
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...that provided requires company to use specialized skills and knowledge to deliver the service to customers. In other words, service is always exchanged for service. According to Vargo and Lusch (2008a), goods become valuable to customers as service appliance, which it serves as distribution mechanisms for service and the value provided is at the time of its use, as value-in-use. Customers buy goods not just exchange money for goods, but the service and solutions that can provide by the goods. For example, customers who buying a heater is because of the solution, which is keep the customers warm that it provides. This is the service provided by the heater. Differences of G-D Logic and S-D Logic Traditional perspective refers to good-dominant (G-D) logic. G-D logic is centered on the good and based on value-in-exchange, in which the value is created through exchange of money and goods in the market. The economic exchange is fundamentally concerned with units of output that are embedded with value during manufacturing process (Vargo & Lusch, 2008). The value creation is often refers by activities performed by the firm such as manufacture and distribute the goods to customers. Therefore, the role of consumers and producers are distinct. However, S-D logic is based on value-in-use (Vargo & Lusch, 2008a). The role of producers and customers are not distinct, value is co-created by the interaction of customers and firms...
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...Introduction to Management Information Systems Summary 1. Explain why information systems are so essential in business today. Information systems are a foundation for conducting business today. In many industries, survival and even existence is difficult without extensive use of information technology. Information systems have become essential for helping organizations operate in a global economy. Organizations are trying to become more competitive and efficient by transforming themselves into digital firms where nearly all core business processes and relationships with customers, suppliers, and employees are digitally enabled. Businesses today use information systems to achieve six major objectives: operational excellence; new products, services, and business models; customer/supplier intimacy; improved decision making; competitive advantage; and day-to-day survival. 2. Define an information systems from both a technical and a business perspective. From a technical perspective, an information system collects, stores, and disseminates information from an organization’s environment and internal operations to support organizational functions and decision making, communication, coordination, control, analysis, and visualization. Information systems transform raw data into useful information through three basic activities: input, processing, and output. From a business perspective, an information system provides a solution to a problem or challenge facing a firm and provides real...
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...Dynamic Knowledge Creation Ikujiro Nonaka, Ryoko Toyama and Noboru Konno Despite the widely recognised importance of knowledge as a vital source of competitive advantage, there is little understanding of how organisations actually create and manage knowledge dynamically. Nonaka, Toyama and Konno start from the view of an organisation as an entity that creates knowledge continuously, and their goal in this article is to understand the dynamic process in which an organisation creates, maintains and exploits knowledge. They propose a model of knowledge creation consisting of three elements: (i) the SECI process, knowledge creation through the conversion of tacit and explicit knowledge; (ii) `ba', the shared context for knowledge creation; and (iii) knowledge assets, the inputs, outputs and moderators of the knowledge-creating process. The knowledge creation process is a spiral that grows out of these three elements; the key to leading it is dialectical thinking. The role of top management in articulating the organisation's knowledge vision is emphasised, as is the important role of middle management (`knowledge producers') in energising ba. In summary, using existing knowledge assets, an organisation creates new knowledge through the SECI process that takes place in ba, where new knowledge, once created, becomes in turn the basis for a new spiral of knowledge creation. = 2000 Elsevier Science Ltd. All rights reserved. As Alvin Tof¯er said, we are now living in a `knowledge-based...
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...Technology THE ROLE AND EFFECT OF INFORMATION TECHNOLOGY IN THE CREATION AND MAINTENANCE OF SUSTAINABLE COMPETITIVE ADVANTAGE A. Talebnejad[1] Faculty of Management and Accounting Shahid Beheshti University Email: taleb149@yahoo.com Abstract -By the appropriate use of information technology, organizations can achieve sustainable competitive advantages. This technology because of including some characteristics such as being up-to-date, fast and precise and having different geographic localities all the time, has improved organizational efficiency, effectiveness and performance. In this article, we intend to investigate the role and effect of information technology in the creation and maintenance of sustainable competitive advantages from two different approaches: market-based approach and the resource-based approach. In the Market-based approach, meeting customer's and creating values for them, using information technology and the issue of achieving the competitive advantage and position in the market by organizations are addressed. In the resource-based approach, compatibility of the organization's resources such as those of information technology and organizational skills, particularly managerial ones are investigated. Amongst different organizational skills and resources, only managerial skills of information technology can create a sustainable competitive advantage. Keywords: Information Technology, Sustainable Competitive Advantage, Creation of Value for Customers, Resource-Based...
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...LOVELY SCHOOL OF BUSINESS [pic] TERM PAPER OF CUSTOMER RELATIONSHIP MANAGEMENT ON [pic] SUBMITTED TO: SUBMITTED BY: MS.YOGITA SHAINI RUCHIKA RAJAWAT ROLL NO: A28 SEC: 1709 REG NO: 3020070011 Acknowledgement Before we embark upon the details of this project, let me take this opportunity to express our heartiest gratitude towards the people who have provided invaluable help & support through the entire duration the project. I am thankful to our facilitator MS. YOGITA SHAINI for his continuous guidance & support. I would like to thank her for giving us excellent suggestion and affectionate, encouraging through development of project and for devoting their precious time. We offer thanks to them for co-ordination and grateful to all our well-wishers who extended their support and for their valuable help throughout the work. OBJECTIVE To understand the CUSTOMER RELATIONSHIP MANAGEMENT in automotive industry (in passenger cars) & than sync it with CRM of HYUNDAI MOTORS. INTRODUCTION OF TOPIC To understand the real business scenario about the practice of CRM in Indian Automotive industry & than compare it with HYUDAI motors in passenger cars. The automobile industry in India is the tenth largest...
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...discussions in the academic field over the past several years over whether or not Knowledge Management is important to our society. Scholars and observers from many disparate subjects, such as sociology, economics or management science agree that nowadays “knowledge” is at the centre of the stage. In support to that statement, researchers have identified one key ability that is common to all successful organizations: the effective creation of relevant business knowledge and the timely dissemination of that knowledge to those members of the organization who need it (Bowman, 2002). Worldwide Chocolate Limited started out as a small chocolate bar manufacturer but knew a rapid expansion in a relatively small period of time. My subsequent report will highlight the fact that only through the implementation of a Knowledge Information System will WCL be able to preserve its core values: maintaining a high quality of product, continuous innovation and good customer service. WCL needs to improve the communication between its various departments, it has to perfect its knowledge on the different sources of supply it uses and it also has to preserve its quick response to customer needs. The linchpin of all these changes is knowledge: WCL will have to leverage knowledge in order to gain a competitive advantage. The firm currently has eight central departments, namely: Accounting, Marketing, Human Resource Management, Research and Design, Sales, Warehousing, Manufacturing and Logistics and...
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...2.1. Analytical KM Strategy 5 2.2. Asset Management KM Strategy 6 2.3. Innovation KM Strategy 6 III. IKM Activities 7 3.1. Data warehousing and mining 7 3.2. Customer Relationship Management 8 3.3. Intellectual Property 10 3.4. Knowledge Repositories 11 3.5. Community of Practice 13 3.6. Research and Development 15 IV. IKM Elements 17 V. Conclusion 19 List of References 21 Executive Summary For most contemporary enterprise, it is becoming increasingly more significant to manage knowledge, since most executives often declare that their most valuable asset is the knowledge held by their employees. Typically, almost half of all workers were making or helping to make things forty years ago while today the proportion is down to 20%, which means labor-intensive has given way to knowledge-based organizations. (Drucker, 1994; Bart, 2000) In other words, the knowledge management is unprecedentedly important in today’s society. With the clear business objective on the innovation of pharmaceutical products and diagnostics services, Roche has a strong need for a deliberate and systematic approach to reuse and innovation on the base of existing information and knowledge. Considering the current situation of Roche, three KM strategies would be chosen to sustain the concrete activities to facilitate transference and application of knowledge among employees. They are Analytical KM strategy, Asset Management KM strategy and Innovation KM strategy. Given...
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...information intermediation – private and public information –and the central role of knowledge and social forces in economic processes in the ‘market for information’. John Holland, University of Glasgow, Jo Danbolt, University of Edinburgh, Lei Chen, University of Keele. John Holland, University of Glasgow, The Adam Smith Business School, University of Glasgow, Main Building, Glasgow, G12 8QQ, Scotland Abstract: This paper develops a model of the information intermediation role of analysts in the ‘market for information’ (MFI). It illustrates how the same type of ‘soft’ intangibles information changes as it progresses through analyst information intermediation processes. The latter concern: company disclosure; analyst acquisition and analysis of company information; analyst reporting processes; and market impacts. The common information concerns ‘soft’ or qualitative information about the company intellectual capital (IC) or intangibles in the company business model. Banks and bank analysts are used as examples. Knowledge, social and economic factors in the wider ‘market for information’ (MFI) are shown to be major influences on ‘soft information’ and how it changes in analyst information intermediation processes. Negative knowledge and social factors play a role in weakening and eventually destabilising economic processes in analyst and the MFI. They were important factors in creating knowledge and information problems in analysts and the MFI, both ongoing, and during...
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...EJISDC (2004) 18, 1, 1-24 E – GOVERNMENT FOR DEVELOPING COUNTRIES: OPPORTUNITIES AND CHALLENGES Valentina (Dardha) Ndou Department of Business Administration University of Shkoder, Albania ndou@hotmail.com 1. INTRODUCTION The explosion of digital connectivity, the significant improvements in communication and information technologies and the enforced global competition are revolutionizing the way business is performed and the way organizations compete. A new, complex and rapidly changing economic order has emerged based on disruptive innovation, discontinuities, abrupt and seditious change. In this new landscape, knowledge constitutes the most important factor, while learning, which emerges through cooperation, together with the increased reliability and trust, is the most important process (Lundvall and Johnson, 1994). The competitive survival and ongoing sustenance of an organisation primarily depend on its ability to redefine and adopt continuously goals, purposes and its way of doing things (Malhotra, 2001). These trends suggest that private and public organizations have to reinvent themselves through ‘continuous non-linear innovation’ in order to sustain themselves and achieve strategic competitive advantage. The extant literature highlights the great potential of ICT tools for operational efficiency, cost reduction, quality of services, convenience, innovation and learning in private and public sectors. However, scholarly investigations have focused primarily on the...
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...NETWORK CAPABILITY – EMERGING AS PART OF AN INDUSTRIAL FIRMS COMPETENCE CONFIGURATION Jukka Vesalainen, University of Vaasa, Department of Management jukka.vesalainen@uva.fi Henri Hakala, University of Vaasa, Department of Management henri.hakala@uva.fi Abstract: The network capability refers to the firm’s ability to build, handle and exploit relationships. These capabilities are interwoven in the complex configuration with other capabilities and competencies of the firm and are, in practice, very difficult to separate from them. Rather than assuming that firms inherently possess network capability, our aim is to discover if this actually naturally occurs in the discourse of the top management teams. In order to understand how managers perceive, process and interpret network capability, the management teams of six industrial subcontractors were guided through a five-step process of introducing, identifying, critical screening, challenging and verifying the capabilities of the firm. The paper introduces strategic capability architecture and investigates how network capability emerges within the configuration of other capabilities in these firms. We found that in customer oriented capability sets, network capabilities are central to the formation this kind of capabilities. In other types of capability sets, networking capabilities play an important role as assets in the formation of the capability sets. Furthermore, we identified that the networking capabilities act in unison with other...
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...e-business differs from traditional business 2. Comprehend the relationship between e-business and electronic commerce 3. Understand the fundamental ideas behind customer relationship management 4. Understand the fundamental value proposition and key tenets of knowledge management 5. Identify the opportunities for knowledge management in e-business 6. Understand the fundamental ideas behind knowledge-enabled customer relationship management and its evolution E-Business: Is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners. CRM: Is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. KM: The capabilities by which communities within an organization capture the knowledge that is critical to them, constantly improve it and make it available in the most effective manner to those who need it, so that they can exploit it creatively to add value as a normal part of their work. Death of 4 Ps Building Digital Capital: Knowledge & Relationships. Important Definitions: Customer Acquisition Cost, Channel Strategy, Switching Costs, Lock-In, Segmentation, Customer Profitability, Customer Retention, Response Analysis Fundamentals of Customer Relationships: Lifetime Value of Customers, The Good, Bad, & Ugly The 4 Tenets of CRM CRM Lifecycle:...
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...ownership and control over. This has implications for strategizing, setting the goals and measuring performance. Efficiency and effectiveness are often used to describe performance. From a resource dependence perspective efficiency is defined as an internal standard of performance and effectiveness as an external standard of fit to various demands (Pfeffer and Salancik 1978). In supply chains efficiency improvements are e.g. Just-in Time production while effectiveness is achieved through customer orientation and innovation. The conceptualization of efficiency and effectiveness has its roots in system theory. Definition of the system is difficult for a quasi-organization as a supply chain that has blurred structural boundaries. Defining the system as processes of activities implies that the meaning of and the relation between efficiency and effectiveness might change as well. This is a conceptual paper with a purpose to describe and analyze efficiency and effectiveness as constructs based upon activity systems. The analysis of efficiency and effectiveness involves the meaning, the use and the relations between efficiency and effectiveness. We will use the resource dependence perspective’s definitions and recent development and usage of efficiency and effectiveness from IMP literature in the description. The analytical framework is in three steps: Dualism, duality and beyond (Ericson 2004). First, efficiency and effectiveness are described as two independent constructs,...
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...faster innovation has become a part of sustaining or gaining competitive advantage. Open innovation paradigm answers this need by utilizing larger resources and expertise that firms involved in the open innovation process offer. Given the recency of the concept of open innovation, the factors that influence the creation of open innovation are hazy. Most of the research on open innovation looks at the “hard” aspects of organizations, while the soft issues stand less researched. This conceptual paper draws attention to two such aspects of organization: organizational citizenship behaviour and organizational structure. This paper proposes that practicing organizational citizenship behaviours by the employees enhances the chances of creation of open innovation while not doing so can botch up the whole exercise particularly during the infancy stage. It is also proposed that informal organizational structures favour creation of innovation in the open innovation paradigm more than the rigid formal structures. It is further argued that besides proper citizenship behaviours and informal structures, firms need to achieve strategic resonance with suppliers and customers to create successful open innovation. Propositions are developed, managerial implications underscored and future research directions highlighted. Keywords: open innovation, OCB, organizational structures, strategic resonance. 1. Introduction The pressures...
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...value engineering 6. centralize purchase 7. management audit 8. company analysis with ratio/fund flow 9. study of stock exchange 10. role of SEBI 11. joint venture 12. takeover 13. merger 14. marginal cost as management tool 15. product life cycle 16. media plan 17. test marketing 18. export pricing 19. role of small scale industries in developing nation 20. role of SIDBI 21. role of EXLM bank 22. study of financial institute 23. mutual fund 24. Privatization insurance, road, ports etc. 25. waste management 26. trade union movement in India 27. labour welfare scheme 28. working capital management 29. cash management / fund management 30. importance of budget 31. invisible exports 32. tourism industries 33. brand equity 34. bench marking 35. co-operative movement in Agro-product 36. marketing Agro-product 37. DOT COM company in future 38. IT Parks 39. South East Asian origin 40. FDI 41. Regional Grouping / Trade Block 42. SEZ 43. packing need 44. social forestory 45. comparative study of industries (either financial angle or marketing angle or techno angle) 46. marketing of SSI produt 47. warehousing 48. transport 49. communication and custom service 50. universal bank 51. credit cards 52. health economics 53. Body language 54. role of financial institutions in industrial development ...
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