aalborg u nov4-16 public copy
TRANSCRIPT
CENTRE FOR THE
EXPERIENCEECONOMY
VALUE CREATION THROUGH EXPERIENCE
AALBORG UNIVERSITY 4 NOVEMBER 2016
TWO PERSPECTIVES
demystifying of the
concept of experience
business/ societal
perspective
by exploring new
forms of value creation
BA
experience
perspective
Structural changes in
society
CENTRE FOR THE
EXPERIENCEECONOMY
STRUCTURAL CHANGES IN FOUR PERSPECTIVES
Simultaneously on macro and micro level, there
is a shift from hierarchical to horizontal value structure
economical
philosophical
sociological
technological
€
WE NEED TO UNDERSTAND THESE CHANGES…
CENTRE FOR THE
EXPERIENCEECONOMY
philosophical
security & protection
natural
system
competences & function
social
regulatory system
meaning & insights
communication
self direction
crea tive
obe dient
hid den
sociological
self actualisationexperience explore meaning& purpose
economic impetus
captivating idea prospertity & modernity
NOW
manufacturing driven marketing brand driven people/network driven responsible business
20’s90’s80’s
technological
internet of things
cyber physical systems that monitor & control behavior & environments
digitalisation
uberi-fication across other services
artificial intelligence
singularity wearables, quantified self
€ economical
servicesgoodsmeaningful experiencescommodities
transaction
based
purpose
based
valu
e
time
#1 value is being co created
from ownership to access
monetary value becomes social value> scarcety of time
technology is enabling & democratising society
value is shared & accelerated through networks
#2
#3
#5
#4
FROM SCARCITY TO ABUNDANCE
EProcess &
organisation
Strategy &vision
Experience Value
Culture &competences
business model
5 STEPS OF VALUE CREATION; A MODUS OPERANDI
A
BCE
D
AA.Create Strategy
What is the purpose? What is the leading idea?Strategic options
B Experience Value What is the value the customer will experience?What is the role of experience design?
B. Experience ValueProposition
Processes & organisation.
C The toolbox of experience technologies; processes, scripts, protocols, touchpoints, placemaking, creating platforms of engagement, narratives story telling, moodmanagement .Systems to ensure quality and consistency of the experience.
Processes & organisation.
C The toolbox of experience technologies; everything that can be digitalised can be personalised
Culture &competencesleadership
D How to create a high performing culture & encourage fundamental leadership. Which new competences need to be developed?
E.Business & revenuemodel
E How to capture your value? Where do you make money? What are your profit zones? What are your investments and what are your cost structures?
SUMMARY
Eproces &
organisationexperienced value
culture &competences
business model
A
BCE
DStrategy &vision
It will be your challenge to create a unique balance between an inviting environment, offering (personalised) value propositions executed by people that love their job creating a significant experience for your guests & customers
VALUE CREATION IN HOSPITALITYRitz Carlton, Joie de Vive & Airbnb
Ritz Carlton
1ststage
VALUE CREATION IN HOSPITALITY
Joie de vivre hotel | phoenix
2ndstage
Ritz Carlton, Joie de Vive & Airbnb
CASE STUDY; VALUE CREATION IN NETWORKED HOSPITALITY BUSINESSES
Airbnb
EQuality &
consistency
Strategy &vision
Experience Value
Culture &competences
business model
5 STEPS OF VALUE CREATION; A MODUS OPERANDI
A
BCE
D
AA.Create Strategy
Based on serendipidity & creativityAir-bed & breakfast. “They broke every assumption that we ever made who would stay on an airbed in a strangers house”.
B Live like a local. A taste of authentic neighbourhood lifeThe experience attributes are; explorative, wonder, unique, personal, being trusted
B. The guestExperience Value Proposition
BB. The guestExperience Value Proposition
Studenten Hotelschool Maastricht
B Main motive extra money. 1-Helps them pay the bills. 2-Second meeting other people. Average age 25-44, 80% rents out the home they live in. Higher educated, 45% bachelors degree. Rents out 33 nights per year.
B. The hostExperience Value Proposition
B Young urban citizin. So called Cultural creatives ( Paul Ray2000). Average age app 37(rising), more than average income & education. Average stay 3.8 nights, vs Hotels 1,9. 30% longer than a week
B. Type of guests
B Is this a new market or a so called substitute market?B.
Type of guests
Processes & organisation.
C Experience technologies;Airbnb is a social and networked business. Experience and design driven, easy access, seemless interfaces. Community and crowd management. Data driven. Systemification.Economies of scale.
Processes & organisation.
C Experience technologies;Airbnb is experience and design driven, easy access, based on seemless interfaces, relentless guest centricity. Here is a crucial role for experience design
#1
EXPONENTIAL ORGANISATIONS GROW> 10X MARKET
experiment and innovate
compelling experience value proposition
easy access with high level of Xp design
facilitated by social technology & value networks
engagement community & crowd
#2
#3
#5
#4
#6 leveraged assets by their customers
Culture &competencesleadership
D People who understand the Zeitgeist & social business. Experience Design driven, entrepreneurial mindset & fundamental leadership. and…. public diplomacy
E.Business & revenuemodel
E Capturing value in a two sided market. 13% commission on guests, 6% on hosts. A data driven company. Leveraged assets, seemless interfaces. Hi tech, hi touch
E.Business & revenuemodel
E Capturing value60.000.000 guests, 191 countries43.000 cities, 2.000.000 accomodations. 24.5 Billion $ valide by 2020
E.Business & revenuemodel
E Cost structures;IT, experience design, marketing communication, public policy,
E.Business & revenuemodel
E Strong brands & 4 star hotels no impact. In Austin Texas highest penetration Airbnb impact - 0,2%. *** hotels negative impact 10-15%
Impact on Hotels
E.Business & revenuemodel
E Focus on experiences, build an experience eco system;Focus on local engagement, partnersFocus on place makingPay attention to the social aspectGet guest-data and algorithms in orderOffer extended stay propositions
What can Hotels learn from Airbnb
the phenomenon that consumers/citizins share unused
consumption goods or tools without charges or against a fee
( Meeren/Frenkel 2014)
Key elements;
1.peer 2 peer and C2C( not B2C)
2.temporarily access
3. no transfer of property rights
CENTRE FOR THE
EXPERIENCEECONOMY
Sharing or collaborative economy?
EXPERIENCE IS VALUE
PERSONAL VALUES ARE CHANGING
BUSINESS VALUES ARE CHANGING
!
Read the book with illustrating case studies
experience economyexperience economy
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