Four steps to re-ignite Japan’s innovation leadership

2016 ◽  
Vol 44 (6) ◽  
pp. 35-45
Author(s):  
Kazuaki Ikeda ◽  
Anthony Marshall ◽  
Shuma Okamura
Keyword(s):  
Customer Value ◽  
Business Leaders ◽  
Leadership Role ◽  
Content Type ◽  
Ecosystem Connectivity ◽  
Value Propositions ◽  
Innovation Leadership ◽  
Opening Up ◽  
Innovation Processes ◽  
Innovation Paradigms

Purpose This analysis assesses the barriers to innovation Japanese executives must contend with and outlines key strategies to help their organizations, and all companies that seek to compete in global marketplaces, assume a leadership role in implementing a business ecosystem strategy. Design/methodology/approach To better understand the economic and management challenges Japan’s business leaders face and how they are addressing them, the IBM Institute for Business Value in collaboration with Oxford Economics conducted a survey of 1,151 Japanese executives across 17 industries. Findings While the strategy of opening up innovation processes to customers, partners and other stakeholders has been adopted successfully in many nations, Japanese organizations appear stuck in closed, insular innovation paradigms Practical implications Japanese organizations need to embrace entirely new customer value propositions, build new partnering arrangements and more effectively harness the power of innovation by taking four key sets of actions that: Re-imagine customer experience; Redefine business ecosystems; Promote ecosystem connectivity; Revitalize innovation governance. Originality/value A bold analysis of why Japanese business leaders largely ignore new forms of competition emanating from startups or emergent cross-industry players, even as traditional industries such as banking now anticipate massive technology-fueled disruption and how they can change.

scholarly journals The value propositions of multi-, cross-, and omni-channel retailing

2018 ◽  
Vol 46 (11/12) ◽  
pp. 1133-1152 ◽  
Author(s):  
Mika Yrjölä ◽  
Hannu Saarijärvi ◽  
Henrietta Nummela
Keyword(s):  
Conceptual Framework ◽  
Customer Value ◽  
Design Methodology ◽  
Content Type ◽  
Case Examples ◽  
Multiple Channel ◽  
Shopping Motivations ◽  
Value Propositions ◽  
Conceptual Paper ◽  
Practical Implications

Purpose This study examines how retailers leverage multiple-channel strategies in relation to their customer value propositions (CVPs). More specifically, the purpose of this paper is to identify and analyze how multi-, cross- and omni-channel CVPs differ in terms of how they create value and which types of shopping motivations they aim to satisfy. Design/methodology/approach This conceptual paper presents and synthesizes three theoretical discussions pertaining to consumer shopping motivations, CVPs and multiple-channel retailing strategies into a tentative conceptual framework. Nine case examples are used to illustrate three different channel strategies: multi-channel, cross-channel and omni-channel retailing. Findings A tentative framework for understanding retailers’ channel strategies is suggested. Practical implications Retailers will benefit from a structured and synthesized understanding of the differences between multiple-channel strategies and their links to CVPs. Originality/value This paper introduces and integrates the concept of CVPs with the literature on multi-channel retailing strategies.

SRI’s turnaround: how four principles guided high-value, market-creating innovation

2017 ◽  
Vol 45 (4) ◽  
pp. 3-8
Author(s):  
Steve Denning
Keyword(s):  
Business Model ◽  
Customer Value ◽  
Large Scale ◽  
Leadership Strategies ◽  
Content Type ◽  
Value Propositions ◽  
On Line ◽  
Market Needs ◽  
Working Hypotheses ◽  
Practical Implications

Purpose The article explores the leadership strategies of a CEO who defied the odds against culture change and accomplished a storied turnaround, Curt Carlson who introduced a culture of innovation at SRI International. Design/methodology/approach Under Carlson’s leadership, SRI developed a methodology for rapid, large-scale, serial innovation, starting with a focus on important customer and market needs. The innovation proposals had to develop compelling hypotheses for both the product offering and the business model. Findings Need, Approach, Benefits per costs and Competition (NABC). the methodology Carlson and his team developed, contains the fundamental framework for creating customer value, it applies to the entire enterprise. It brings all functions together using a short, easy to remember meme that starts every conversation with a focus on customer need. Practical implications One of the most spectacular and best-known SRI innovation wins was Siri, the intelligent personal computer assistant and on-line knowledge navigator, an integral part of the iPhone. As a case example, Siri illustrates the power of the NABC approach. Originality/value Carlson stresses that the key element in SRI’s success with Siri was not just the technology. It was getting the entire value proposition right. “One of the things that changed at SRI was the realization that we needed to have really solid working hypotheses, both for the product and the business model, before we started spending significant money on technology. That’s one of the biggest mistakes firms make. They rush ahead and want to build the product before they de-risk their value propositions.

scholarly journals Inside-out and outside-in mental models: a top executive perspective

2018 ◽  
Vol 30 (5) ◽  
pp. 529-553 ◽  
Author(s):  
Mika Yrjölä ◽  
Hannu Kuusela ◽  
Kari Neilimo ◽  
Hannu Saarijärvi
Keyword(s):  
Decision Making ◽  
Mental Models ◽  
Customer Value ◽  
Two Dimensions ◽  
Strategic Decision ◽  
Structured Interviews ◽  
Content Type ◽  
Value Propositions ◽  
Executive Decision Making ◽  
Inside Out

Purpose The purpose of this paper is to identify and characterise executives’ inside-out (firm-oriented) and outside-in (market-oriented) mental models. As these two orientations are vital for strategic decision-making, yet potentially contradictory, it is important to understand the role of inside-out and outside-in thinking in executives’ agendas. Design/methodology/approach Qualitative, semi-structured interviews of 15 senior executives were used to capture insights into executives’ mental models. Data analysis was conducted following the principles of abstraction, theory emerging from data and constant comparison. Findings Four archetypes of executive mental models are identified and characterised along two dimensions (inside-out or outside-in orientation and focus on rational or emotional aspects). Practical implications The study introduces a tentative framework for practitioners to identify and deploy the potential of the mental models that guide executive decision-making. Originality/value The study extends prior research on mental models by combining this approach with inside-out and outside-in orientations and customer value propositions. In addition, it introduces four archetypes that illustrate the distinct potential of different mental models.

Digital transformation: opportunities to create new business models

2012 ◽  
Vol 40 (2) ◽  
pp. 16-24 ◽  
Author(s):  
Saul J. Berman
Keyword(s):  
Value Chain ◽  
Customer Value ◽  
Business Models ◽  
Customer Engagement ◽  
Content Type ◽  
Open Collaboration ◽  
Customer Interaction ◽  
New Business ◽  
Value Propositions ◽  
New Business Models

PurposeAccording to IBM research, companies seeking opportunities in an era of constant customer connectivity focus on two complementary activities: reshaping customer value propositions and transforming their operations using digital technologies for greater customer interaction and collaboration. This paper aims to address this issue.Design/methodology/approachThe paper explains that businesses aiming to generate new customer value propositions or transform their operating models need to develop a new portfolio of capabilities for flexibility and responsiveness to fast‐changing customer requirements.FindingsThe paper finds that engaging with customers at every point where value is created is what differentiates a customer‐centered business from one that simply targets customers well. Customer interaction in these areas often leads to open collaboration that accelerates innovation using online communities.Practical implicationsCompanies focused on fully reshaping the operating model optimize all elements of the value chain around points of customer engagement.Originality/valueThe article explains how companies with a cohesive plan for integrating the digital and physical components of operations can successfully transform their business models.

An empirical investigation on the links within a sustainability balanced scorecard (SBSC) framework and their impact on financial performance

2016 ◽  
Vol 29 (2) ◽  
pp. 154-178 ◽  
Author(s):  
John Stephen Sands ◽  
Kirsten Nicole Rae ◽  
David Gadenne
Keyword(s):  
Financial Performance ◽  
Balanced Scorecard ◽  
Customer Value ◽  
Structural Equation ◽  
Content Type ◽  
Internal Process ◽  
Direct Association ◽  
Social Environmental ◽  
Sustainability Balanced Scorecard ◽  
Innovation Processes

Purpose This study aims to investigate the feasibility of integrating the social, environmental and innovation processes within the four-perspective sustainability balanced scorecard (SBSC) model by determining the extent of linkages between and within the four SBSC perspectives. Design/methodology/approach A survey collected responses from senior management and middle management of large Australian companies. Findings The findings support several positive significant associations. Direct associations are found between value-creating processes within the internal process perspective. These results support the feasibility of integrating environmental, social and innovation-orientated value-creating process into the internal process of the four-perspective SBSC model. The results also provide evidence about the extent to which direct or indirect associations exist between the four SBSC perspectives: first, direct association of human capital (learning and growth perspective) with value-creating processes (internal processes perspective); second, direct association of value-creating (internal processes perspective) with customer value (customer perspective); and third, direct and indirect associations of value-creating (internal processes perspective) with financial performance (FP; financial perspective). Research limitations/implications Several limitations are acknowledged related to cross-sectional data, senior and middle managers’ perceptions and assumptions underpinning structural equation modelling. Practical implications The implications for practice from this study concern how organisational management should relate to their stakeholders while providing value in their FP. Social implications These associations reflect the influence of stakeholders’ recognised needs on process and product innovation. These needs highlight the benefits of focusing on future-orientated environmental budgets and ongoing employee training that lead to customer value and FP. Originality/value This is an initial in-depth study of a four-perspective SBSC model that provides an effective means of integrating social, environmental and innovation processes within the traditional four SBSC perspectives.

scholarly journals Opening up innovation processes through contests in the food sector

2017 ◽  
Vol 23 (6) ◽  
pp. 1290-1310 ◽  
Author(s):  
Silvia Massa ◽  
Stefania Testa
Keyword(s):  
Innovation Process ◽  
Future Research ◽  
Food Sector ◽  
Content Type ◽  
Academic Literature ◽  
Global Brands ◽  
Fine Grained ◽  
Opening Up ◽  
Innovation Processes ◽  
Global Food

Purpose The purpose of this paper is to investigate how an adequate mix of technological, organisational and managerial tools might support Open Innovation (OI) processes achieved by contests in the food sector. Design/methodology/approach The methodology of this paper is exploratory in nature. Data have been gathered about the 140 innovation contests launched by the best global food brands (2013 BusinessWeek/Interbrand Best Global Brands) over the last decade. Findings The research highlights the main changes that have occurred over the last decade, showing that the choice of platform type for contest launches is often neglected or considered as an ancillary element. Indeed, it is a choice that embeds another set of technological, organisational and managerial tools that strongly influence the collaborative behaviour (and the participation itself) of partners throughout the innovation process. Research limitations/implications Companies investigated in this paper consist exclusively of top brands in the sector. Future research should strive to obtain larger samples, develop a set of fine-grained hypotheses, and test them by using appropriate statistical techniques. Originality/value This paper fills an inexplicable gap in academic literature due to the fact that food companies are those that mainly use contests in order to implement OI but they are scarcely researched regarding this issue.

Managing digital transformation through hybrid business models

2019 ◽  
Vol 41 (6) ◽  
pp. 49-56
Author(s):  
Herbert Endres ◽  
Kristina Stoiber ◽  
Nina Magdalena Wenzl
Keyword(s):  
Business Model ◽  
Customer Value ◽  
Business Models ◽  
Value Capture ◽  
Content Type ◽  
Digital World ◽  
Business Model Canvas ◽  
Value Propositions ◽  
Successful Business ◽  
The Individual

Purpose This paper aims to examine how hybrid business models can help companies to survive in a constantly evolving digital world. The hybridization of business models is a promising approach to innovation. Design/methodology/approach The authors discuss the key elements of a successful business model hybridization along the Business Model Canvas (Osterwalder and Pigneur, 2010). In particular, the elements of value propositions, customer segments, channels and a company’s cost structures demonstrate the individual steps toward a hybridized business model. Using Paddy Power Betfair as an example, the authors showcase how the concept of a hybrid business model can be successfully implemented in practice. Findings By hybridizing its business model, Betfair not only expanded existing customer value propositions but also introduced new ways of co-creating value with customers. Simultaneously, the hybridization positively affects a company’s revenue model, hence evolving in new ways of capturing value. Originality/value To effectively hybridize and thus innovate a company’s business model, the two key factors are successful value creation and value capture. By hybridizing elements of existing business models, new value for customers can be generated. Companies capturing this additional value may achieve sustainable and successful business models and thereby gain a competitive advantage.

Frontline employees’ motivation to align with value propositions

2020 ◽  
Vol 35 (3) ◽  
pp. 420-436 ◽  
Author(s):  
Helena Elisabeth Liewendahl ◽  
Kristina Heinonen
Keyword(s):  
Customer Value ◽  
Active Role ◽  
Frontline Employees ◽  
Bottom Up ◽  
Content Type ◽  
Three Phase ◽  
Value Propositions ◽  
Established Norm

Purpose Customer value creation is dependent on a firm’s capacity to fulfil its brand promises and value propositions. The purpose of this paper is to explore frontline employees’ (FLEs’) motivation to align with value propositions. Design/methodology/approach The paper explores FLEs’ motivation to align with a firm’s value propositions as operationalised brand promises. A longitudinal, three-phase case study was conducted on a business-to-business company in the building and technical trade sector. Findings This study reveals factors that foster and weaken employees’ motivation to align with a firm’s brand promises and value propositions. The findings show that co-activity and authentic, practice-driven promises and value propositions foster FLEs’ motivation to uphold brand promises and value propositions, whereas an objectifying stance and power struggle weaken their motivation. Practical implications The study indicates that a bottom-up approach to strategising is needed and that FLE is to be engaged in traditional managerial domains, such as in developing value propositions. By creating space and agency for FLE in the strategising process, their motivation to align with value propositions is fostered. Four motivational modes are suggested to support bottom-up strategising. Originality/value The paper is unique in its focus on FLEs’ motivation. Developing value propositions traditionally falls within the domain of management strategising, while employees are ascribed the role of enactment. Contrary to the established norm, this paper highlights employees’ active role in strategising and developing value propositions.

scholarly journals Does communicating the customer’s resource integrating role improve or diminish value proposition effectiveness?

2017 ◽  
Vol 28 (4) ◽  
pp. 618-639 ◽  
Author(s):  
Sara Leroi-Werelds ◽  
Sandra Streukens ◽  
Yves Van Vaerenbergh ◽  
Christian Grönroos
Keyword(s):  
Resource Availability ◽  
Purchase Intention ◽  
Customer Value ◽  
Empirical Support ◽  
Direct Interaction ◽  
Role Clarity ◽  
Value Proposition ◽  
Content Type ◽  
Value Propositions

Purpose The purpose of this paper is to examine whether explicitly communicating the customer’s resource integrating role in value propositions improves or diminishes value proposition effectiveness. Design/methodology/approach Based on existing research on value propositions, three effectiveness criteria are used: role clarity, expected customer value, and purchase intention. Two experiments manipulating the presence of the customer’s resource integrating role in value propositions test the conceptual model in both an indirect interaction (Study 1, toothpaste, n=207) and a direct interaction context (Study 2, fitness program, n=228). Additionally, Study 2 includes the moderating role of resource availability. Findings Explicitly communicating the customer’s resource integrating role in value propositions increases customers’ role clarity, which in turn influences customer’s attitude toward the service and purchase intention through a service-related (i.e. expected benefits and expected efforts) and an ad-related (i.e. ad credibility and attitude toward the ad) route. However, these results only hold for customers high in resource availability. Originality/value This research provides initial empirical support for the often-stated claim that value propositions should include the (potential) value of the offering as well as the (resource integrating) role of the customer. Taking a broader perspective, this research provides initial empirical support for recent calls to develop marketing communication practices that facilitate value-in-use. This paper’s findings show that adopting service logic in marketing communications seems to improve value propositions’ effectiveness.

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