Presentation is loading. Please wait.

Presentation is loading. Please wait.

Wirtz,SJ 3 pillars of meaning based strategic management ( building co-operative ecosystems integrating knowledge from the service encounter management.

Similar presentations


Presentation on theme: "Wirtz,SJ 3 pillars of meaning based strategic management ( building co-operative ecosystems integrating knowledge from the service encounter management."— Presentation transcript:

1 Wirtz,SJ 3 pillars of meaning based strategic management ( building co-operative ecosystems integrating knowledge from the service encounter management ) The 4th Conference Customer Strategies for Sustained Growth INSEAD, Fontainebleau, France, June 2013 by Stephan J. Wirtz M.A, Dipl.oec, MBA, DDA h.Associate Professor Corvinus University, Budapest Adjunct Professor, EM Lyon, Shanghai Campus Associate Professor, GBS Geneva 1

2 An old statement is more and more right and applicable: According Karl E Weick “The teaching of organization theory and the conduct of organizational research have been dominated by a focus on decision-making and the concept of strategic rationality. However, the rational model ignores the inherent complexity and ambiguity of real-world organizations and their environments.” His research is about how the `sensemaking' process shapes organizational structure and behavior. The process is seen as the creation of reality as an ongoing accomplishment that takes form when people make retrospective sense of the situations in which they find themselves. The challenge is how to do this pro-actively creating ecosystems. 2

3 Wirtz,SJ According to Christensen,C, Gregersen,H 2011 one suggests to emphasize Discovery driven skills in the context of network over delivery driven Discovery-driven Associating Questioning Observing Idea networking Experimenting Delivery-driven Analyzing Planning Self-disciplined Detail-oriented implementing 3

4 Wirtz,SJ J Most leaders are using frameworks that were designed for a different era of business and based on a single dominant idea: -that the purpose of strategy is to achieve a sustainable competitive advantage. Once the premise on which all strategies were built, this idea is increasingly irrelevant. Instead, organizations need to forge a new path to winning: capturing opportunities fast, exploiting them decisively, and moving on even before they are exhausted, this leads to a notion of transient competitive advantage. Rita Gunther McGrath,

5 A business model is basically the answer to 2 questions: What ? How ? Customers want Product/ service should be to Deliverto Finance/ generate revenue Before we start let us set the situation context:

6

7 Strategic Management looks into the 3 dimensions of innovations: - technolgy is a constant innovation driver, that makes markets out of sync and disrupt business models - inside the company and its readiness to pro-actively change to market-driving relation instead of being market driven,reactive Technology Industry/Market dynamic - markets are source of supply and demand of resources, solutions and challenges, often attracting government to intervene Company

8 Strategic Management looks into the 3 dimensions of innovations: - technology is a constant innovation driver, that makes markets out of sync and disrupt business models - Technology Industry/Market dynamic Company has to manage the interface with market - reactively: many company -Pro-actively: alerted company -Driven by markets: outside- in, innovative company -Driving markets: commanding market change through innovations that become standards or benchmark in market- (segment ) company in command Company

9 Assess interdependence risks of coordinating with complementary innovators in your ecosystem Innovation Strategy Set performance expectations and determine target market. Assess initiative risks of managing the focal project. Modify performance expectations. Assess integration risks of having the solution adopted across the value chain. Technology Technically possible Process innovation Product and service innovation

10 Prof. Wirtz10 Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams

11 Wirtz,SJ Context: -Customer experience management become more and more a differentiation activity -In agile markets were new market profiles arose and are co-created the customer approach has to be integrated in any activity a company gets involved with partners as -- building trust -- creating mutual understanding of moving targets in emerging industries and -- considering the service encounter attitude and treatment as applicable to people and companies alike being in co-operation network. -The ecosystem approach can indicate some of the strategic issues one has to address in strategic management -It implies and somewhat applies that the term sustainable competitive advantage will be transformed into -Transient as well as co-constructed competitive advantage as in emerging markets become the new concepts a priori concepts may fail as a paradigm shift happens. - Achieving a significance ( DipaK Jain), making a difference instead of differentiation, is to road to ensure the righting of the things we do in order to assure viable outcomes and complete the market space. (Haque,U, 2012) 11

12 Wirtz,SJ Approach: Part one: -Look at companies orientation about its environment in emerging markets Part two: -Extend the integration of important elements into the strategic management Part three: -Construct building blocks and stepping stone Part four: Highlight finally what this has to do with meaning based 12

13 People Promotion Process Price The company links the inside performance with the market performance inside outside Meaning based Leadership Materialisation based Efficiency based Production Product/Service Positioning Place Strength and Weakness SW OT Opportunity and Threat Wirtz,SJ Part 1: 13

14 There two genuine strategy development processes with implication for strategic change management A. Prescriptive model of business strategy Environment Resources Purpose Options ChoiceImplement The prescriptive strategy process Lynch, 2008 is the usual approach and neglects often the limitations that an existing organisation and its culture limits the strategic options 14

15 B. Emergent model of business strategy Environment Resources Purpose Strategy development and implementation Keypoint: creative, experimental, more difficult to describe but essential according Lynch, The emergent strategy process – based on Quinn 1990, Senge 1990, Argyris 1977, Mintzberg 1987 and others 15

16 What is strategic change management? One approach to emergent processes Environment Resources Purpose Strategy development and implementation Emergent theories include: Survival-based Uncertainty-based Human resource-based Innovation and learning- based, Strategic Change Management issues to open the company towards networking 16

17 Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams Current wave of business model: e.g. Osterwalder: Consider important environment issues but more as impact on the company than stepping stone 17

18 Wirtz,SJ J The environment needs also to be perceived as constructed and playground for creating emerging markets through co-creation with other companies considering them as lead customers7partners 18

19 We genuinely underestimate our weakness and threats to our organization. We have difficulties to embrace vagueness, ambiguity and enter into co-operation without contractual arrangements and wishful outcomes SOWT Analysis StrengthsOpportunities Threats Weaknesses outsideinside Over- Estimate Under- In emerging markets a SWOT analysis should be extended highlighting the evaluation, estimation process by regrouping SWOT into a: 19

20 SWOT Analysis StrengthsOpportunities Threats Weaknesses PESTELPESTEL % PROBA BILITY IM PA CT We could also differentiate again for each SWOT according to favorable and deteriorating industry context

21 3-21 SWOT Analysis StrengthsOpportunities ThreatsWeaknesses PESTELPESTEL % PROBA BILITY IM PA CT Eco- system

22 Wirtz,SJ J The Cynefin Framework is used to understand and take action in different types of systems confronting decision makers. Cynefin is a sensemaking framework in theoretical form: -to operationalize the framework, it needs the domains, sub-domains and boundaries to be defined by fragments (such as day-to-day experiences of people) -to create context that is relevant to the organization and -Four tables Contextualisation. The purpose is to define and create dynamic capabilities as an organization’s ability to reconfigure internal and external competencies to address rapidly changing Sometimes just emerging corporate environments.( Teece et al.1997). Referring to emerging markets, ecosystems and leading to co-operation networks: 22

23 Exploring emerging environment and create meaning based activities The cynefin framework Watch the explaination: The leaders of tomorrow’s successful organizations will no longer be held hostage to the idea of a ‘sustainable’ competitive advantage. Rather, they will be energized to compete in a” transient advantage economy.” Rita McGrath

24 Wirtz,SJ J Simple, in which the relationship between cause and effect is obvious to all, the approach is to Sense - Categorise - Respond and we can apply best practice. Complicated, in which the relationship between cause and effect requires analysis or some other form of investigation and/or the application of expert knowledge, the approach is to Sense - Analyze - Respond and we can apply good practice. Complex, in which the relationship between cause and effect can only be perceived in retrospect, but not in advance, the approach is to Probe - Sense - Respond and we can sense emergent practice. Chaotic, in which there is no relationship between cause and effect at systems level, the approach is to Act - Sense - Respond and we can discover novel practice. The fifth domain is Disorder, which is the state of not knowing what type of causality exists, in which state people will revert to their own comfort zone in making a decision. That comfort zone including organizational ones can be the biggest hurdle for process driven innovation 24

25 Wirtz,SJ J A complex system, in our a case evolving ecosystems, has -no repeating relationships between cause and effect, -is highly sensitive to small interventions and -cannot be determined by outcome based targets, hence the need for experimentation. When dealing with complex systems there is the need for experimentation. Creating co-operation networks can be done building small miles stone events. Safe-fail Probes are small-scale experiments that approach issues from different angles, in small and safe-to-fail ways. The intent of which is to approach issues in small, contained ways to allow emergent possibilities to become more visible. Cynefin framework is helpful to create and reach new frontiers, beyond CEO execution and efficiency driven management interest 25

26 Product centered management is still somewhat restricting companies to improve customer-focused services and grow with new service business models. Many organizations have set the target to launch and develop new customer services as a key element in their strategy. According to P. Moore ( 1993) In order to adapt to the fast changing customer needs, delivery of the services requires an ecosystem of organizations.. In many large organizations there is a strong tendency to seek for the clarity of old clear product and organization focused operating models. The value chain thinking and connecting as well connected leadership models can create an extended ecosystem approach A holistic change is needed in order to design and implement an operating model that enables integrating and managing a set of contracts, indicators and measurements aiming to efficiently adapt a network of organiztions from sales to operations to fulfill customer needs and manage customer expectations. By leveraging ecosystems, companies can deliver complex solutions while maintaining corporate focus but it has to be concerned to contribute to the ecosystem construction as well. 26

27 The idea is that each business in the “ecosystem” affects and is affected by the others, creating a constantly evolving relationship in which each business must be flexible, adaptable and open to new partnerships and evolving networks 27

28 The idea is then that each business in the “ecosystem” affects and is affected by the others, be it companies, individuals, trendsetters research organization, governments and certain socio-economic events like ageing of society, obesity.. creating a constantly evolving relationship in which each business must be flexible, adaptable and open to new partnerships and evolving networks -Part 2:Extend the integration of important elements into the strategic management 28

29 Co-operation based Strategic Management Communication based sense making and receptivity X Wirtz,SJ Resource based corporate Strategic Management Y Z The 3 pillars are the axes x,y,z, Thought-concept 29

30 Wirtz,SJ Resource based corporate Strategic Management Co-operation based Strategic Management Communication based sense making and receptivity X Y Z The 3 pillars are the axes x,y,z, 4 reference platform focus on 4 strategic elements 30

31 Wirtz,SJ Resource based corporate Strategic Management Co-operation based Strategic Management Communication based sense making and receptivity X Y Z The 3 pillars are the axes x,y,z, 4 reference platform focus on 4 strategic elements: Connected and connecting leadership Focus on technology and related innovation Market management Industry/Arena specific identity 31

32 Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z Concept Execution z4 Concept Execution z3 Concept Execution z2 Concept Execution z1 Concept Execution x3 Concept Execution x4 Concept Execution x2 Concept Execution x1 Concept Execution y1 y2 Concept Execution y3 Concept Execution Concept Execution y4 This will lead to 64 activity blocks differentiated according strategy concept and strategy execution 32

33 Wirtz,SJ Resource based corporate St.M Co-operation based Strategic Management Communication based sense making and receptivity X Y Z Hard-ware Soft-ware Tech-ware Customer/ User - ware 33

34 Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. 34

35 Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Competing companies in the same arena, e.g. coffee are very different how they commercialize and address customers/users: Nescafé, Starbucks, illy and how they expand their eco-system, focusing also on co-operation in content and delivery, manipulating, breaking industry communication codes and symbols Delivery Industry codes, symbols, slogan Content 35

36 Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Delivery This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management slowly as differentiation opportunity, cost reduction in outsourcing delivery and insourcing improved content Industry codes, symbols, slogan Content 36

37 Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Delivery Industry codes, symbols, slogan This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management slowly as differentiation opportunity, cost reduction in outsourcing delivery and insourcing improved content Eco-system 1, traditional collaboration based mostly on company strength and perceived opportunity Content 37

38 Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Delivery Industry codes, symbols, slogan This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management slowly as differentiation opportunity, cost reduction in outsourcing delivery and insourcing improved content Eco-system 1, traditional collaboration based mostly on company strength and perceived opportunity Market-com, social media Uncontrollable social media already disrupts and makes ecosystem 1 additionally volatile Content 38

39 Content Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Content Delivery Industry codes, symbols, slogan This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management slowly as differentiation opportunity, cost reduction in outsourcing delivery and insourcing improved content Eco-system 1, traditional collaboration based mostly on company strength and perceived opportunity Market-com, social media Uncontrollable social media disrupts and makes ecosystem 1 volatile Expanding to ecosystem

40 Wirtz,SJ J Expanding to eco-system 2.0 According to James Moore 1993: Successful businesses are those that evolve rapidly and effectively. They must attract resources of all sorts, drawing in capital, partners, suppliers, and customers to create cooperative networks anticipate the managerial challenges of nurturing the complex business communities that bring innovations to market: Expansion Bring the new offer to a large market by working with suppliers and partners to scale up supply and to achieve maximum market coverage. Leadership Provide a compelling vision for the future that encourages suppliers and customers to work together to continue improving the complete offer. Self-Renewal Work with innovators to bring new ideas to the existing ecosystem 40

41 Wirtz,SJ J Expanding to eco-system 2.0 Consumers are adopting increasingly active roles in -co-creating marketing content with companies and their respective brands. -In turn, companies and organizations are looking to online social marketing programs and campaigns in an effort to reach consumers where they ‘live' online. -However, the challenge facing many companies is that although they recognize the need to be active in social media, they do not truly understand how to do it effectively, what performance indicators they should be measuring, and how they should measure them ( Hanna R et all 2012 ) 41

42 Wirtz,SJ J Expanding to eco-system 2.0: Ecosystems are larger, more diverse, and more fluid than a traditional set of bilateral partnerships or complementors. By leveraging ecosystems, companies can deliver complex solutions while maintaining corporate focus: Six keys to unlock ecosystem advantage: -pinpointing where value is created, -defining an architecture of differentiated partner roles, -stimulating complementary partner investments, - reducing the transaction costs, -facilitating joint learning across the network, and engineering effective ways to capture profit. ( P.Williamson, A. de Meyer 2012) Not ignoring three fundamental types of risk: -initiative risks —the familiar uncertainties of managing a project; -interdependence risks —the uncertainties of coordinating with comple-mentary innovators; and -integration risks —the uncertainties presented by the adoption process across the value chain. ( Ron Adner 2006 ) 42

43 Wirtz,SJ Some of the best guidance in creating global network and ecosystems can be derived from Y.Doz,K.Wilson (2012) using there three graphs highlighting: knowledge complexity and dispersion: Meaning full knowledge can be created by exploring new co-operations network and integrate it into ecosystems 43

44 Wirtz,SJ Creating these co-operation networks one can make excellent use of Y. Doz, approach collaborative innovation project: Through a funnel of collaborative efforts arise an evolving ecosystem based on co-operative network. 44

45 Wirtz,SJ 45

46 Wirtz,SJ Expanding to eco-system 2.0: Consumers are adopting increasingly active roles -in co-creating marketing content -with companies and their respective brands. In turn, companies and organizations are looking to online social marketing programs and campaigns in an effort to reach consumers where they ‘live' online. However, the challenge facing many companies is that although they recognize the need to be active in social media, they do not truly understand how to do it effectively, what performance indicators they should be measuring, and how they should measure them. (.see also Joachimsthaler,E, 2008 ) 46

47 Moore describes the evolutionary stages of a business-ecosystem as forms of cooperative challenges Birth Work with customers and suppliers to define the new value proposition around a seed innovation. Expansion Bring the new offer to a large market by working with suppliers and partners to scale up supply and to achieve maximum market coverage. Leadership Provide a compelling vision for the future that encourages suppliers and customers to work together to continue improving the complete offer. Self-Renewal Work with innovators to bring new ideas to the existing ecosystem. Expanding to eco-system 2.0: 47

48 Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Industry codes, symbols, slogan Market-com Social media ITC, tele-matic, Graphics, EsRP IMC, gurus brand identity, Trendsetters Expanding to ecosystem 2.0: Four additional areas of focus are added Content Delivery Standardization Virtual company network Part three: Construct building blocks and stepping stone 48

49 Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Industry codes, symbols, slogan Expanding to eco-system 2.0 Market-com Social media ITC, tele-matic, Graphics, EsRP IMC, gurus brand identity, Trendsetters Integrated market communication addressing inside and outside of companies, instrumentalization of gurus, Brand Identity of joint service, people connected leader Content Delivery Standardization Virtual company network 49

50 Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Industry codes, symbols, slogan Expanding to eco-system 2.0 Market-com Social media ITC, tele-matic, Graphics, EsRP IMC, gurus brand identity, Trendsetters The ITC is both enabler and biggest hurdle creating cooperate networks, incompatibility,EsRP that is too company focused, telematic as a language, lack of engineers, execution control via access level to IT Content Delivery Standardization Virtual company network 50

51 Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Industry codes, symbols, slogan Expanding to eco-system 2.0 Market-com Social media ITC, tele-matic, Graphics, EsRP IMC, gurus brand identity, Trendsetters Achieving fast accepted standards in the network is a power, definition and user’s rights of IP is changing, free-economics Content Delivery Standardization Virtual company network 51

52 Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Industry codes, symbols, slogan Expanding to eco-system 2.0 Market-com Social media ITC, tele-matic, Graphics, EsRP IMC, gurus brand identity, Trendsetters Value chain co-operation among different companies, no red tape management, success orientation with failure tolerance, connecting leadership Content Delivery Standardization Virtual company network 52

53 Wirtz,SJ Resource based corporate St.M Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Industry codes, symbols, slogan Expanding to eco-system 2.0 Market-com Social media ITC, tele-matic, Graphics, EsRP IMC, gurus brand identity, Trendsetters The ITC is both enabler and biggest hurdle creating cooperate networks, incompatibility,EsRP that is too company focused, telematic as a language, lack of engineers, execution control via access level to IT Integrated market communication addressing inside and outside of companies, instrumentalization of gurus, Brand Identity of joint service, people connected leader Achieving fast accepted standards in the network is a power, definition and user’s rights of IP is changing, free-economics Value chain co-operation among different companies, no red tape management, success orientation with failure tolerance, connecting leadership Content Delivery Standardization Virtual company network 53

54 Content Wirtz,SJ Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Content Delivery Industry codes, symbols, slogan Expanding to eco-system 2.0, Integrating 4 levels of conjoint orientation and meaning oriented activities: Standardization Virtual company network Market-com Social media ITC, tele-matic, Graphics, EsRP IMC, gurus Brand identity Trendsetters Dialogue, ideatizing Creating knowledge communities,, action platforms Tech-integration, virtualization, cloud, 3 D printing, AR, IPE Standards,royalties, POS, on/offline, connectivity, longtail m-commerce, blogs cost Cost control, Web3.0 C.I.,perceived quality, open vs closed, CSR, bundeling, investor relat The four areas focus the co-operation and dys- functional discussions on a cohort of issues, therefore leading to integration and new arena differentiation. It provides meaning through understanding arising solution providers’ challenges. 54

55 Content Wirtz,SJ Co-operation based St.M Communication based sense making and receptivity X Y Z What industries arena one is in How solutions commercialized Technology other than used Customer- experience mgt. Content Delivery Industry codes, symbols, slogan Expanding to eco-system 2.0, Integrating 4 levels of conjoint orientation and meaning oriented activities: Standardization Virtual company network Market-com Social media ITC, tele-matic, Graphics, EsRP IMC, gurus Brand identity Trendsetters cost Cost control, Web3.0 C.I.,perceived quality, open vs closed, CSR, bundeling, investor relat Tech-integration, virtualization, cloud, 3 D printing, AR, IPE Standards,royalties, POS, on/offline, connectivity, longtail m-commerce, blogs Dialogue, ideatizing Creating knowledge communities,, action platforms 55

56 Wirtz,SJ It results in 3D cube with 64 activity blocks like 56

57 It results in 3D cube with 64 activity blocks like a rubic cubic. Communication based sense making and receptivity Z Y X Co-operation based Strategic Management Resource based corporate Strategic Management 57

58 64 buildings block need then to be filled out and differentiated according to Strategic concept and strategic execution e.g.: Block: x4,y4,z4 Facilitating partner co-operation and managing the experience over time Concepts: Customer experience management applied to partners and competitors, Momentum Effect: Execution: Forum, TED and clubs originating joint activities and providing solution in an open source ware, funding start ups and spin offs Wirtz,SJ 58

59 Wirtz,SJ Part four: Now the link to meaning based management: In 2001 the” cluetrain “manifesto ( Levine, Locke, Searle and Weinberger) indicated the markets are about conversations, not about (branded) messages. In a forthcoming book Lisa Solomon Moments of impact, 2013 traces the importance of strategic conversations in the corporate strategic management process. Sharing knowledge across different engagement communities further blurs the walls of corporation and prepares it to bridge out to work with hitherto not served stakeholders. In the global cross disciplinary network building ICT is an important vector but Y.Doz indicated the problems of receptivity transferring knowledge is comple,x among others: Functional languages and world views Inherently difficult to share as rooted in originating context Knowledge sharing tools as a wedge to force culture change Leverage existing infrastructure to connect dispersed groups/people Common language, tools, goals, and metrics for embedded and explicit knowledge. Meaning is related to context, but the meta-context of an an ecosystem of networks Is still evolving. 59

60 Wirtz,SJ One difficult answer to the “shrinking core, expanding periphery” problem is to reliably deliver a complex solution bundle involving multiple technologies, capabilities, and services using vertical integration or the kind of subcontracting relationships familiar in traditional supply chains. Rather than outsourcing a few well-defined activities, delivering complex customer solutions requires the management of complicated interactions and an exchange of knowledge between many, mutually dependent partners—a task to which ecosystem strategies are better attuned. ( Williamson,J de Meyer; A 2012 ) In the construction of an extended ecosystem fluid ongoing value conversation ( Haque 2012) are the linking pins and a constructive strategy defines how organizations will achieve competitive outperformance by becoming radically more useful to people communities. These authentic values are more than operating efficiencies and effectiveness in the world of competitive advantage. It is co-constructing by including profit plus social, environmental human and still unexplored returns by sharing together the more complex transaction cost. Therefore the focus is on the social organization ( Bradley, A, McDonald, M.2011) and the “emergence” of collaborative communities and new forms of collaboration, working for “free” becomes freeing from old shareholder value models as well, e.g. wikipedia. 60

61 Wirtz,SJ Co-creation is as it always has been before a process, except it should focuses straight from the beginning on win-win solution, when it comes to partnering. the respective reputations of the partners will be important in fostering the trust required to reduce transaction costs and make the relationship productive and sustainable. This kind of interaction will, therefore, need to be designed so that both parties put their reputations on the line (for example, by lending their brands to the joint initiative) rather than by trying to devise a performance contract. ( Bradley,A, McDonald, M.2011 ) The co-operation is as much sense making as it is realities building 61

62 Wirtz,SJ These operations build platforms of knowledge as it sets orientation, refers to meaning as industries/arena platforms involve not only one company's technology or service but also an ecosystem of complements to it that are usually produced by a variety of businesses. As a result, becoming an active platform co-creator requires different business and technology strategies than those needed to launch a successful stand-alone product. Gawer,A Cusumano, M (2002) describe two fundamental approaches to building platform leadership, which they call "coring" and "tipping." "Coring" is using a set of techniques to create a platform by making a technology "core" to a particular technological system and market. When pursuing a coring strategy, would-be platform leaders should think about issues such as how to make it easy for third parties to provide add-ons to the technology and how to encourage third-party companies to create complementary innovations "Tipping" is the set of activities that helps a company "tip" a market toward its platform like Linux demonstrates the power of a coalition of service providers and users to tip a market by supporting a particular platform. Another tipping strategy is for a company to bundle features from an adjacent market into its existing platform; the authors call this "tipping across markets." 62

63 Wirtz,SJ Artefacts, Skills, Heuristics, Experience and Natural Talent are the five perspectives which comprise the ASHEN model. ASHEN is a way to ask a meaningful question in the context of mapping the knowledge assets of an organisation: What artefacts were used when making that decision? What skills were needed; how were they acquired? What heuristics were used to make such decisions quickly; what is the range of applicability? What experience is had, and possessed by respected members of the field? What natural talent is necessary; how exclusive is it and who else has it? This provides a contextually rich way of collecting perspective that informs the interviewers of the knowledge assets within the organization and increases the cognitive load on the respondent so they dig deeper into their memories and skillset ( cognitive edge.com tools refer to ASHEN and serves also in search for Archetypes, which are uniformly agreed to be accepted cultural representations of that community) In addition there are cultural linking pin and stepping stones creating platforms: 63

64 Wirtz,SJ The cynefin framework, mentioned earlier for its focus on different sorts of environment in which the emerging ecosystem are built “explores the relationship between man, experience, and context” and proposes new approaches to communication, decision- making, policy-making, and knowledge management in complex social environments.knowledge management in complex social environments. It conveys the sense that we all have multiple pasts of which we can only be partly aware: cultural, religious, geographic, tribal cultural, religious, geographic, tribal ( knowledge management and organiZational strategy by founder Dave Snowden, 2005 )Dave Snowden An Emergent Framework for eco-systems creations: Cynefin starts life as a sense-making framework not a categorization model. In a sense-making the framework emerges from the data, while in categorization the model is pre-given. The advantage of categorization is that it is efficient, the danger is that if the context shifts then it may result in significant category errors. Now this is best understood by describing the process by which it is constructed using the narratives of an organizations' past perspectives and possible futures for the jointly intended co-operation networks.. 64

65 Wirtz,SJ J To role of leadership in co-operation network building is coalition building in exploring new frontiers and integration the un-expected. According to Weick ( 2007 )one can observe those HROs, (high reliability organization) and how they deal with ambiguity and uncertainty by: -Creating a collective state of mindfulness that produces an -Enhanced ability to discover and correct errors before they are escalating into a crisis, eventually taking too much risk. Evolving network organizing activities like organization itself need to aply following procedures: -Track small failures, -Resist oversimplification, been there done it type of, -Being sensitive to operations and routine assumptions, -Maintaining capabilities for resilience and -Taking advantage of shifting location of expertise 65

66 Wirtz,SJ Sometimes leaders fail to create the capacity to get things done because they fail to build coalitions committed to achieving the vision. “A feature of modern organizations is: -interdependence, where no one has complete autonomy, and where -most members of the organization are tied to many others by -their work, technology, management systems and hierarchy. These interdependencies point to a need for ‘lateral leadership’ to create commitment to a shared understanding of what needs to be done “ Bradley,A,McDonald,2011 The lateral leadership needs to be combined with a connecting and connected leadership. Lessons from the” service encounter” term in the service industry can show this 66

67 Wirtz,SJ In the service encounter employee and clients are co-creating value in form of hopefully positive experiences. This knowledge needs to be applied in the extended encounter creating new networks with win-win and newcomer advantages. One of the issue is how to create trust in the exchange; - towards its own collaborators and - towards the clients and actual service users - therefore towards the co-operation partners - the approach is the same: building trust credits: and spending it wisely Trusted channel Trust Listening first Dialogue Concern for impact Trust Infectious passion Dialogue Humility Dialogue Thoughtful influence Trust No boundaries Meaning Tenacity Meaning Groundwork Meaning Understanding Dialogue These and following ideas are based on The Connected Leader: Creating Agile Organizations for People Performance and Profit, by Gobillot,E

68 Wirtz,SJ Values are created through 3 activities: through Consumption -- Experiences -- People When -Analysing drivers of value -Generating ideas -Creating product and services -Execution This leads to a new approach of co-creating values - first there is a new approach - second a respect for the “ real “ organisation, the informal one 68

69 Wirtz,SJ Focus Layer purpose Input supplier role customer role employee role --- Output Financial focus Economic measures - Generation of co-creation opportunities to deepen engagement through community of value Co-creation through networks Networks of connections to ease integration and respond to insights Engage in co-creation process driven from compatible unique purpose and help write co Creation script Orchestrate co-creation Sense co-creation opportunities and manage co-creation risks Prototypes and trials, communications, strategic co-creation, milestones plans Size of pay-off and probability of success Project based mile-stones, rate of conversion from idea to co- created business launch Number of intiatives Leadership style based on: including informal organisation: 69

70 Wirtz,SJ Leadership impact: -Elements of credibility: - Integrity >> trust - Utility >> meaning - Warmth >> meaning - Reciprocity >> dialogue - Maintenance>> dialogue 70

71 Wirtz,SJ How the connected leadership elements create impact: integrity - utility - warmth - reciprocity - maintenance Trust -trusted channel # # -thoughtful influence # # # # -Concern for impact # # -Meaning -No boundaries## # -Groundwork### # -Tenacity# # # # -Dialogue -Listening first# # # -Humility# # # -Infectious passion# # 71

72 Wirtz,SJ Developing trust: Emerging connected leaders Established connected leaders Trusted channel HelpfulProviding information that encourages reflection Offering advice to othersOpening others ’ horizons Hands onBig picture Providing training to otherschanging others ’ expectations Thoughtful influence Target those in influenceSell ideas to all Interpersonal levelSystem level Small scale ( few people at once )Large groups 72

73 Wirtz,SJ Developing trust: Emerging connected leaders Established connected leaders Concern for impact Think about impact upon othersWider and longer view of reputation judging and evaluating past Interventions Wrestle with conflict betweenWorry less about ups and downs Involvement and intrusionof individual relationships Think about others ’ perceptionsMore secure in their reputations of them 73

74 Wirtz,SJ Developing meaning: Emerging connected leaders Established connected leaders No boundaries Refer to policies and proceduresRefer to vision and meaning to to justify interventionsjustify interventionsThink about themselves as ‘ one of the team ‘ conveners of teams Tentative in interveningForceful in intervening Emotive in interveningObjective in intervening Groundwork Personal well organizedConcern with processes and procedures Follow up on commitmentsEmbed commitment and and promisesfollow-through into the organisation itself 74

75 Wirtz,SJ Developing meaning: Emerging connected leaders Established connected leaders\ Tenacity TenaciousFlexible Use reputation to developWork through others to developconnections ReliableSet agendas See things throughAdapt to events as they unfold 75

76 Wirtz,SJ Developing Dialogue: Emerging connected leaders Established connected leaders\ Listening first InterpersonalSystemic Good listenerPlanned and systematic listening Enable others to take active roleCreate systems, structures, and in conversationsculture, for debate and input ReactiveProactive creation of listening organization Humility Acknowledge and learn fromKnow limits in advance Mistakes Seek help to repairs errorsSeek help before trouble Get timely supportCreate enduring support network Infectious passion Exhibit enjoyment of role and Positive towards change OrganizationExpress excitement and optimism Positive about existing organisationsabout new ways of doing things 76

77 Wirtz,SJ In summary have a new leadership style: be TWISTED and not so different from Service encounter management: Think differently Walk in other people shoes In sync: align what you think, do and say: be authentic Share almost everything Turn your tongue, think before you speak Explain well Dream and tell stories, share experiences so they engage employees and they can co-create with customers of all sort memorable experiences and co-operation Networks in an expanding ecosystem 77


Download ppt "Wirtz,SJ 3 pillars of meaning based strategic management ( building co-operative ecosystems integrating knowledge from the service encounter management."

Similar presentations


Ads by Google