Value-centric business development: descriptive and prescriptive research into five different companies; pp. 543–557Full article in PDF format | doi: 10.3176/proc.2015.4S.02
The companies that discover changes and possibilities within the value system first and make use of them are considered to be prime movers and often are more successful than those who adapt late. Research has been done on multiple levels for understanding value-centric business from a practical perspective as well as from a theoretical perspective. In the first stage of the research (Descriptive Study 1), practical experience and knowledge were gained simultaneously from a case company and from literature-based case analysis. As output of a prescriptive study, a specification of a proactive value-centric business was proposed and a practical method for building a value-centric product, service, and business model was developed. In the last stage of the research (Descriptive Study 2), the method was tested at four case companies from different fields. The paper describes the data collection, analysis, and results involved in both the descriptive and the prescriptive phases of the research.
1. Kim, W. C. and Maugborne, R. The Blue Ocean Strategy. Harvard Business School Press, 2005.
2. Randmaa, M., Mougaard, K., Howard, T. J., and McAloone, T. Rethinking value: a value-centric model of product, service and business development. In Proceedings of the 18th International Conference on Engineering Design, ICED11. Scandinavian Digital Printing A/S (SDP), Copenhagen, 2011, DS 68-11.
3. Randmaa, M. and Otto, T. Value-centric business: an in-depth analysis of one case company. In Proceedings of the 9th International DAAAM Baltic Conference “Industrial Engineering”. Tallinn University of Technology, 2014, 169–174.
4. Randmaa, M., Otto, T., and Howard, T. Test results of practical value-centric business development methodology. In Proceedings of NordDesign 2014 Conference: NordDesign 2014, Espoo, Finland. Aalto Design Factory, Aalto University, 2014, 642–651.
5. Lusch, R., Vargo, S., and Morgan, F. Historical perspectives on service-dominant logic. In The Service-Dominant Logic of Marketing (Lusch, R. and Vargo, S., eds). M. E. Sharpe, New York, 2006, 29–42.
6. Pine, B. J. and Gilmore, J. H. The Experience Economy. Harvard Business School Press, 1999.
7. Randmaa, M., Howard, T. J., and Otto, T. From product centered design to value centered design: understanding the value system. In Proceedings of the 8th International DAAAM Baltic Conference “Industrial Engineering”. Tallinn University of Technology, 2012, 548–554.
8. Grönroos, C. Service logic revisited: who creates value? And who co-creates? European Business Review, 2008, 20(4), 298–314.
9. Normann, R. Reframing Business: When the Map Changes the Landscape. John Wiley & Sons, Chichester, 2001.
10. Allee, V. and Schwabe, O. Value Networks and the True Nature of Collaboration. Live digital edition (6.3.2012), 2011.
11. Etgar, M. Co-production of services. In The Service-Dominant Logic of Marketing (Lusch, R. and Vargo, S. L., eds). M. E. Sharpe, Armonk, NY, 128–138.
12. Porter, M. E. and Kramer, M. R. The big idea: creating shared value. Harvard Bus. Rev., 2011.
13. Ueda, K., Takenaka, T., Váncza, J., and Monostori, L. Value creation and decision‑making in sustainable society. CIRP Annals – Manufacturing Technology, 2009, 58(2), 681–700.
14. Ueda, K., Takenaka, T., and Fujita, K. Toward value co-creation in manufacturing and servicing. CIRP Journal of Manufacturing Science and Technology, 2008, 1(1), 53–58.
15. Takenaka, T. and Ueda, K. An analysis of service studies toward sustainable value creation. International Journal of Sustainable Manufacturing, 2008, 1(1), 168–179.
16. Ueda, K., Kito, T., and Takenaka, T. Modelling of value creation based on emergent synthesis. CIRP Annals – Manufacturing Technology, 2008, 57(1), 473–476.
17. Vargo, S., Maglio, P., and Archpru Akaka, M. On value and value co-creation: a service systems and service logic perspective. European Management Journal, 2008, 26, 145–152.
18. Porter, M. E. Competitive advantage: creating and sustaining superior performance. Harvard Bus. Rev., 1985, 76(4), 97.
19. Howard, T. J., Achiche, S., Gürcan Özkil, A., and McAloone, T. C. Open design and crowdsourcing: maturity, methodology and business models. In Design 2012 – 12th International Conference on Design. Design Society, 2012, 181–190.
20. Tan, R. A. Service-oriented Product Development Strategies. PhD thesis. DTU Management Engineering, Lyngby, Denmark, 2010.
21. Porter, M. E., Hills, G., Pfitzer, M., Patscheke, S., and Hawkins, E. Measuring Shared Value: How to Unlock Value by Linking Social and Business Results. http://www.fsg.org/Portals/0/Uploads/Documents/PDF/Measuring_Shared_Value.pdf, 2012 (accessed 04.03.2015).
22. Matzen, D. A Systematic Approach to Service Oriented Product Development. PhD thesis. DTU Management Engineering, Lyngby, Denmark, 2009.
23. Porter, M. E. and Kramer, M. R. Strategy and society: the link between competitive advantage and corporate social responsibility. Harvard Bus. Rev., 2006, 84(12), 78–92.
24. London, T., Anupindi, R., and Sheth, S. Creating mutual value: lessons learned from ventures serving base of the pyramid producers. J. Bus. Res., 2010, 63(6), 582–594.
25. Stabell, C. B. and Fjeldstad, O. D. Configuring value for competitive advantage: on chains, shops and networks. Strategic Manage. J., 1998, 19(5), 413–437.
26. Wach, E. Measuring the ‘Inclusivity’ of Inclusive Business. Practice Paper, Vol. 2012, No. 9.
27. Prahalad, C. K. and Hammond, A. Serving the world’s poor, profitably. Harvard Bus. Rev., 2002, 48–57 (Reprint 2009).
28. United Nations Development Program. Creating Value for All: Strategies for Doing Business with the Poor. http://www.ids.ac.uk/files/dmfile/Pp9.pdf, 2008 (accessed 04.03.2015).
29. Jenkins, B., Ishikawa, E., Geaneotes, A., Baptista, P., and Masuoka, T. Accelerating Inclusive Business Opportunities: Business Models that Make a Difference. Washington, DC: IFC, 2011.
30. Bjork, E. and Ottosson, S. Aspects of consideration in product development research. J. Eng. Design, 2007, 18(3), 195–207.
31. Neergaard, H. and Ulhøi, J. (eds). Handbook of Qualitative Research Methods in Entrepreneurship. Edward Elgar, 2007.
32. Wagner, S. M., Lukassen, P., and Mahlendorf, M. Misused and missed use – Grounded Theory and Objective Hermeneutics as methods for research in industrial marketing. Ind. Market. Manag., 2010, 39(1), 5–15.
Back to Issue