Value Ecosystem Design

Chapter 4 provides a set of key components and their underlying concepts needed to configure a value ecosystem that develops and delivers the high-value described in Chapter 3. As such, this chapter focuses on the second dimension (business objective priority on value ecosystem) of the business reinvention methodology. These components and concepts are about system thinking, value activities, value networks, value ecosystem configuration and sense-making, and evolutionary economics of ecosystems. This chapter lays the foundation for an ecosystem's value that would be further enhanced by its flexibility and empowerment as discussed in later chapters.

Business Reinvention Viability and Business Model

A business reinvention's success depends on its revenue and cost model when operating its value ecosystem to deliver the desired value. In particular, an innovative revenue model is important once the operational productivity has already been achieved by using specific digital operants and strategic digital architecture. Accordingly, this chapter provides different types of revenue sources followed by straightforward guidance for preparing a business reinvention model.

Framework for the Business Reinvention Methodology

To begin the section on Business Reinvention Methodology, Chapter 2 provides the methodological framework containing three dimensions that underly the development of the methodology's key components. The three dimensions are the meaningful customer value, the business priority on the value ecosystem, and the digital business strategy to achieve value ecosystem flexibility and business sustainability. Each dimension features a set of stages with increasing levels of wellbeing. In addition, this chapter describes two running scenarios (regional-tourism and city-district prosperity development) that will be used to demonstrate the methodological components in the remaining chapters of Part 2.

Business Reinvention Strategy

This chapter begins with the strategic decision-making issues for successful applications of the business reinvention methodology and discusses how businesses can decide proper strategic plans in accord with contextual situations for proper application of the methodology. This chapter models the examinations of contextual situations to assess missing components (the when and where) of the 5W1H given the methodology already addresses the who, what, why (i.e., the value design), and how (i.e., the ecosystem design and the operational design). Subsequently, this chapter reinforces the book's vision of collective wellbeing toward economic quality and growth by connecting the vision to a modern economic conception of Doughnut Economics, or the idea that “a healthy economy should be designed to thrive.” Meanwhile, this chapter suggests the proper mindset and behaviors required for different business reinvention roles, which are required for successfully applying the business reinvention methodology to create the wanted results in a cost-effective and timely manner. These business reinvention roles could be regarded as creative leaders who have qualities like inviting disruptive innovation, being comfortable with ambiguity, and changing the enterprise. Finally, the emerging research opportunities and the conclusion are also discussed.

Digital Business Operation Design

The previous chapters discussed the key components of the business reinvention methodology. This chapter focuses on how to operate a value ecosystem (resulting from the exercise of those key components) for coherent, high-value service delivery; this involves the operation design referred to as a fitting arrangement of operational strategies (including org-ware, stage-ware, customer-ware, and link-ware) for various forms of customer variability. This chapter demonstrates these operational strategies using a running scenario that involves the creation of additional digital operants that add to the productive operations of delivering service experiences.

High Human Value Design

Meaningful customer value is the first dimension indicated in the business reinvention methodology framework. Chapter 3 provides a sequence of key components and their underlying concepts that altogether furnish a systematic and empathetic way to create meaningful customer value (i.e., new wellbeing value). These components and concepts are intertwined with service thinking, design thinking, abductive thinking, and business thinking; their respective practices could be iteratively conducted toward creating a higher human value design.

Strategic Ecosystem Flexibility Design and Empowered Digital Business Design

To achieve a productive and sustainable high-value delivery, the issue of flexibility needs to be addressed so that the value ecosystem can cope with the uncertainty of potential internal or external changes; such changes might affect whether the value delivery is in a timely and cost-effective manner. This chapter focuses on how to flexibly configure talents, resources, organizations, and technologies (i.e., operants) toward a productive and sustainable way of delivering high-value by leveraging digital technologies. This leveraging for strategic ecosystem flexibility is two-fold. First, digital operants need to be created to serve as ecosystem actors and perform value exchanges. Second, strategic business choices need to be made so that digital solution architecture choices and additional digital operants can dynamically engage and empower actors in value co-creation. Furthermore, this also demonstrates the third dimension of the business reinvention methodology, which is about digital business strategies for ecosystem flexibility and business sustainability.

Collective Well-Being for Economic Quality Growth

Chapter 1 provides an overview of the current economic context for the global trend for economic quality and growth called the quality of life (QoL). Industries or businesses are progressively impacted by this trend in terms of the provision of a variety of improved QoL or wellbeing through service ecosystems. In addition, this chapter provides a rationalization of the vision for collective wellbeing toward economic quality and growth. The rationale is unfolded in terms of the provision of a conceptual model of collective wellbeing grounded in the logic of value co-creation, empowerment, and self-determined behaviors. This chapter provides the grounding mindset for the imperative elements and rationales for service providers to better design the customers (or stakeholders) empowerment processes for the co-creation of QoL wellbeing values, realizing collective wellbeing for economic quality and growth.