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Business Planning, Scenario Planning… with the Systems Changes Learning Circle
David Inghttp://systemschanges.com
Earth Tech – Climate VenturesToronto, OntarioApril 2020
David Ing, 2020Image CC-BY Mike Cassano (2009) Most Interesting Pothole
April 2020Business Planning, Scenario Planning April 2020Business Planning, Scenario Planning2 David Ing, 2020
Service systems and production systems have to capture value
Business OrganizationBusiness Organization
Viable Non-Viable
Scenario Planning
Fulfilling Commitments with External
Parties
Business Planning
Affording Offerings to Customers
Service System(s)Service System(s) Productions System(s)Productions System(s)
Capturing ValueFor
Organizational Viability
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Offerings are interactions that provide benefits in the form of (i) physical products, (ii) service and infrastructure, and (iii) interpersonal relationship
Rafael Ramirez and Johan Wallin. Prime Movers: Define Your Business or Have Someone Define It Against You, 2000, p. 50.
Physical content: hardware
Scope
Service content: software
People content:peopleware
Scope
Scope
The total offering
Scope
Scope
Scope
The total offering
General Motors has historically been more transaction focused, and long-lasting relationships have not been seen as a worthwhile goal.
Service content: software
People content:peopleware
Physical content: hardware
Toyota tries to develop long-term partnerships with its suppliers
April 2020Business Planning, Scenario Planning April 2020Business Planning, Scenario Planning9 David Ing, 2020
An offering can be an output, an input or a co-creation
Images from Flickr: “Pimp My Ride” CC-BY 2011 Grey World; “”Oaks and Spokes Bicycle Repair Repair Station” CC-BY 2015 Kristy Dactyle; “Bettter Bike Share” CC-BY 2015 Better Bike Share Partnershp
Offerings-output production● Providers fix bundles of offerings
from which customers select
Offerings-input coproduction● Customers broaden the range of
options through loose coupling
Value-elevating co-creation● Providers and customer mutually
experience, and then improveExtended from Normann, Richard, and Rafael Ramírez. 1989. “A Theory of the Offering: Toward a Neo-Industrial Business Strategy.” In Strategy Organisation Design, and Human Resource Management, edited by Charles C. Snow, 111–28. J.A.I. Press; + Kijima, Kyoichi, and Yusuke Arai. 2016. “Value Co-Creation Process and Value Orchestration Platform.” In Global Perspectives on Service Science: Japan, edited by Kwan, Spohrer, and Sawatani, 137–54, Springer.
April 2020Business Planning, Scenario Planning April 2020Business Planning, Scenario Planning10 David Ing, 2020
An offering can either be an output of coproduction, or an input to coproduction
Industrial logic(production cost
reduction)Service logic
(customer satisfaction)
Self-service logic(independence and
convenience maximization)
Partnership logic(value co-development)
Customer value through relationship
Customer value through transactions
Offering as output
Offering as input
Rafael Ramirez and Johan Wallin. Prime Movers: Define Your Business or Have Someone Define It Against You , 2000, p. 141.
Physical contentScope
Service content
Scope Scope
People content
April 2020Business Planning, Scenario Planning April 2020Business Planning, Scenario Planning11 David Ing, 2020
The theory of firms on “adding value” has turned to mobilizing interactive value constellations
Our traditional about value … [says] every company occupies a position on the value chain. Upstream, suppliers provide inputs. The company then adds values to these inputs, before passing them downstream to then next actor in the chain [whether another business or the final consumer].
… IKEA's strategic intent [is] to understand how customers can create their own value and create a business system that allows them to do it better. IKEA's goal is not to relieve customers of doing certain things but to mobilize them to do easily certain things they have never done before. Put another way, IKEA invents value by enabling customers' own value-creating activities. … Wealth is [the ability] to realize your own ideas.
Added value cost
Added value
cost
Added value cost
Suppliers ServiceProvider
Customer
Enabling interactive value creationAdding value costinteractive value (in use)
(independent) value
(in exchange)
coproducing, with offering as input
produced, with offering as
output
Beneficiary Stakeholders
Customer Signatory
Provider SignatorySupplier
inter-active
non-inter-active
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: Ric
hard
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ract
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Str
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Har
vard
Bu
sine
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Rev
iew
71:
65–
65.
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Image CC-BY Mike Cassano (2009) Most Interesting Pothole
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