irene ngalmaden2013

The University of Warwick

Facts and .................................

Established 1965

League table positions– Times and Sunday Times (2012) - 8th

– Guardian (2012 guide) – 6th – Independent (2012 guide) - 8th

– RAE 2008 – 7th overall – QS* World University Ranking (2011) – 50th – We aimed to be in the top 50 by 2015

International working– Formal working relationships with Boston

University, Monash University, IIT Kharagpur, Jawaharlal Nehru University and Nanyang Technological University

Figures Undergraduates 12,979 Postgraduates 10,441

International students6,411 International students 27% Total staff 4,912 Academic staff 687 International staff 25% Turnover £419m Campus size 292 hectares Academic departments 28 Research centres 48 Overseas alumni 44,194

* Quacquarelli Symonds Ltd

WMG Research and Development Centres

International Manufacturing Centre

International Automotive Research Centre

International Digital Laboratory (IDL)

Engineering Management

Building

New Centres

International Institute for Product and Service Innovation (IIPSI)

4

Global Partners

http://www.lti.co.uk/

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http://www.kingtronics.com/

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Product Life-Cycle Management

Experiential Engineering

Product Evaluation Technologies

Embedded Systems Simulation and Modelling

Robotics

Cloud Computing Security

Privacy Enhancing Technologies

Data Loss Monitoring

Vulnerability Research

Trust Management

Health Informatics

e-Health

Neural Engineering

Biomedical Engineering

Virtual Reality Medical Training

Visualisation

Digital Media

e-Business

Digital Manufacturing

Institute for e-Security

Institute of Digital Healthcare

Digital Technologies

International Digital Laboratory

Irene C L NgProfessor of Marketing & Service Systems, WMG

Director, International Institute of Product & Service Innovation

International Institute of Product & Service Innovation (IIPSI)

[email protected]@ireneclng

http://uk.linkedin.com/in/ireneclng bit.ly/vcssblog

www.warwick.ac.uk/go/sswmg

www.ireneng.com

mailto:[email protected]

http://uk.linkedin.com/in/ireneclng



http://www.bit.ly/vcssblog

http://www.warwick.ac.uk/go/sswmg



http://www.ireneng.com/

International Institute of Product & Service Innovation (IIPSI)

11 April 2023 Copyright Irene Ng, 2012. All rights reserved.

Cloud for Business

Smarter Social MediaData to Intelligence

Mobile for Business

Competitor

Analysis

Social Media

Analysis

Target Market

Analysis

Digital Software Innovation (tech demonstrators)

Adding Functionality to Plastic Parts

Polymer Recycling

Low Volume Production

Polymer Innovation (sample tech demonstrators)

Experience-led Innovation (sample tech demonstrators)


Customer Engagement

User Focussed Product/Service Design

Energy Usage Behaviour

Visitor Experience

11

IIPSI Service Systems & Business+

• Technology disruptions cause challenges to existing business models (e.g. Kodak)

• Adaptability, transformation needed – both for their business models (the firm’s capability to serve the market) and their economic models (the way they derive their revenues and the market exchanges they participate in)

• Business+ research into value creating service systems, digitisation/virtualisation, service-dominant logic (e.g. Bombardier, Rolls Royce, GSK); also into pricing/revenue models, methodology for new transactions & markets

• Transdisciplinary team of social science, technology, business & engineering

• 4 RCUK/EPSRC DE projects, NEMODE virtual collaboration host

IIPSI Marketspace

Startup space

SME space

Trade

pubs Academic pubs

Markets

Knowledge Transfer

& Tools Projects

IP Passing Model, demonstrators

Education

Pre-incubatin

g

12

4

35

6

18 19

13

14

Students

12

17

11

independence

InformScale

corporate space

7

funding8

Lower TRLs

Social Science

15

Mkt modularity

SME

Devt

IP Passing Model, demonstrators

9

11 primary knowledge flows, 8 secondary flows

Digital (software) innovation

Polymer Innovation

Experience-led

Innovation

Service Systems, New Econ/Biz models

Bootstrap

WMG Digital Innovation Eco System capability

Practice

Research

10

10

Impact

• created 12 new high tech start‐up businesses,

• directly generated 70 new jobs, • trained over 450 small business in

a range of digital technologies over the last 4 years

• International publications, patents, tools etc.


Irene C L NgProfessor of Marketing & Service Systems, WMG

Director, International Institute of Product & Service Innovation

New Economic and Business Models in the Digital EconomyOutcomes, Boundaries and Contexts

[email protected]@ireneclng

http://uk.linkedin.com/in/ireneclng bit.ly/vcssblog

www.warwick.ac.uk/go/sswmg

www.ireneng.com

mailto:[email protected]




http://www.bit.ly/vcssblog




http://www.ireneng.com/

Value was exchange (what I got for what I gave)

$$$11 April 2023 Copyright Irene Ng, 2012. All rights reserved.

But it wasn’t exchange that made us happy. It was experiencing what we bought that gave us the outcomes we wanted

We buy because of the service of the object, even if it was an emotional ‘service’ i.e. things are service avatars*

Mike Kuniavsky, 201011 April 2023 Copyright Irene Ng, 2012. All rights reserved.

Ownership was the only way to get the ‘service’ of an object• Previously, the only route to

service/outcomes was through ownership e.g. music CDs

• But outcomes/benefits come only in the context of use and experience

• If firms found a way to serve contexts, individuals may not need to own

• Case study: Music11 April 2023 Copyright Irene Ng, 2012. All rights reserved.

VALUE & WORTH

• BUT… we needed to BUY before experiencing – so industry focus is still on buy (WORTH) even while design focus is on experience (VALUE)

• Worth and Value is separated in time/space


Something is happening……• Exchange used to be in further in advance• With digitisation and connectivity, exchange

can now be closer to contexts of use e.g. Music

• i.e. worth is getting closer to value creation• For offerings that could be digitised, collapse

of buy (potential) and use (kinetic) into the same time/space

• VALUE has become more relevant again in determining WORTH

• With some new business models, VALUE is increasingly determining WORTH (due to collapse of buy and experience time/space

With digital connectivity, markets are now possible to be formed in context • Digitisation results in “digital

backwash” of the offering• Serving contexts increases worth!• New business and economic

models emerge• So how should we think about

value now in terms of how it might be related to worth and markets?

Value+ and Service-dominant logic*

• value is the goodness we create out of the experience with something or someone in context, and that experience/interaction is the enactment of our social and cultural values


++ Ng and Smith (2012)*Vargo and Lusch (2004, 2008)

Value is co-created for outcomes/benefits/value-in-use

CO-CREATEDVALUE that cd be

higher thanproposed

Propose

Enhance

Realise

Propose

Peace of mindEntertainment

Love

RESOURCES

RESOURCES????

Value created is Contextual. Resources are therefore also Contextual.

This camera is available

so it is a resource in

context

This camera is not

Things become more valuable in context because they enable resources for value creation

VALUE IN CONTEXT


Two functionally the SAME cameras but not the same value for the user in context. Because one camera is less competent in context, one is a

lesser service avatar (or is just simply not around!)

COMPETENCY OF OFFERING IN CONTEXT IS KEY TO NEW MARKETS


Serving Contexts (the kinetic)• Current market platforms - tablets and

mobiles• More platforms for context-based

markets now need to be created e.g. Internet-of-Things at home, in buildings

• markets are now in the same space as creatives, sociologists, interactive designers - looking at contexts and lived lives

• For non-digital things, linking supply chains to home market platforms essential for new business models

Once upon a time, our contexts were rather homogenous

• Where/when we ate meal• Where/when we listened to music• Where/when we exercised


• *Technology liberates us from constraints of– time, when things can be done– place, where things can be done– actor, who can do what– constellation, with whom it can be done

*Reframing Business, Normann, 2001

Why is this important

• Future digital connectivity for innovation and new markets;

• Understanding how current things should evolve for connectivity (e.g. biopharmaceauticals) to serve us better – new business models, new econ models, exchange & new ways to serve

• Innovating offerings/service that is scalable and replicable in creating value in context


Value created is Contextual. Resources are therefore also Contextual.

This camera is available

so it is a resource in

context

This camera is not

Things become more valuable in context because they enable resources for value creation

VALUE IN CONTEXT


Two functionally the SAME cameras but not the same value for the user in context. Because one camera is less competent in context, one is a

lesser service avatar (or is just simply not around!)

COMPETENCY OF OFFERING IN CONTEXT IS KEY TO NEW MARKETS

Why context is important


But to bring your digitised offering (content) into context, you need a medium/platform (widget), connectivity, and a

social space E.g. of ‘service’ in context digitally through your mobile• Dictionary• Calculator• Calendar• Torchlight• Camera

The New Battleground

CONTEXT

Content

Connectivity

SocialWidge

t

Digitised offering in

contextOfferin

gResour

ceSolutio

nmarket

s

Who is digitising to serve use context next? Tea? ;)

• Digitisation enables traditional offerings to become a resource in context, reducing time between acquiring a resource and using a resource - expanding demand


In context

Digitisation+Data is the new oil, Context is the new

oil-field

Mobile phone as the medium to propose digitised offerings in context• Why is the mobile phone one of

the most popular device for digitised offerings today?

• because it is often present in MANY lived experiences (contexts)

• It may not be the only widget in the future serving multiple contexts, but it is now


Once upon a time, our contexts were rather homogenous

• Where/when we ate meals• Where/when we listened to music• Where/when we exercised


• *Technology liberates us from constraints of– time, when things can be done– place, where things can be done– actor, who can do what– constellation, with whom it can be done

*Reframing Business, Normann, 2001

Markets are forming at where service creates most wealth – in context Digitisation allows

new offerings to be resources available,

accessible on demand, in contextThe better you are

able to serve context, the bigger

your market

Competitive Dynamics

• Serving Contexts changes the nature of competition

• Land grab creates disruption, enabled by new technologies. How?


ContextEnjoying music on spotify and seeing other friends choices of music while in a gym

BUSINESS MODEL VS ECONOMIC MODEL

11/04/2023

WMG 38

Value Creatio

n

Value

prop

Valu

e

cap

ture

EMI, Sony BMG

person

MUSIC

ENJOYING MUSICMoney fr access e.g.

spotifyMoney fr ownership (e.g.

CD)Money fr eyeballs (eg.

Google)

ECONOMIC MODEL- Where exchanges come from, what exchanges are there, creating worth from value creation

BUSINESS MODEL

E.G. MUSIC - CONTENT

11/04/2023

WMG 39

Value Creatio

n

Value

prop

Valu

e

cap

ture

EMI, Sony BMG

person

MUSIC

ENJOYING MUSIC

Money fr access e.g. last.fm

Money fr ownership e.g. iTunes

Money fr medium (e.g. CD)

E.G. MUSIC - WIDGET

11/04/2023 WMG 40

Value Creatio

n

Value

prop

Valu

e

cap

ture

Apple, MP3 player, Computer

person

WIDGET

ENJOYING MUSIC

Money fr ownership

E.G. MUSIC - CONNECTIVITY

11/04/2023 WMG 41

Value Creatio

n

Value

prop

Valu

e

cap

ture

O2, Vodafone, Three, Orange

person

WIFI, 3G

ENJOYING MUSIC

Money fr access

E.G. MUSIC - SOCIAL

11/04/2023 WMG 42

Value Creatio

n

Value

prop

Valu

e

cap

ture

Myspace, facebook, google+, twitter, spotify

person

Sharing platform

ENJOYING MUSIC

Money fr eyeballs (ads)

E.G. MUSIC - GYM

11/04/2023 WMG 43

Value Creatio

n

Value

prop

Valu

e

cap

ture

GYMS

person

Sport & fitness environment

ENJOYING MUSIC & SPORT

Money fr access

Industries propose value in context

11/04/2023 WMG 44

Value Creati

on

Value

prop

Valu

e

captu

re

Value Creati

on

Value

prop

Valu

e

captu

re

Value Creati

onValu

e

captu

re

Value Creati

on

Valu

e

captu

re

Value

prop

Value

prop

person

person

person

person

Valu

e

Cre

atio

n

Valu

e

pro

p

Value capture

GYMS

person

APPLE, CREATIVE (WIDGET)

SONY, EMI (CONTENT)

SKY, VIRGIN (CONNECTIVITY)FACEBOOK, MYSPACE

(SOCIAL)

Value Constellation of Music in Context

11/04/2023 WMG 45

Value Creati

on

Value

prop

Valu

e

captu

re

Value Creati

on

Value

prop

Valu

e

captu

re

Value Creati

onValu

e

captu

re

Value Creati

on

Valu

e

captu

re

Value

prop

Value

prop

person

person

person

person

Valu

e

Cre

atio

n

Valu

e

pro

p

Value capture

GYMS

person


SONY, EMI (CONTENT)


(SOCIAL)

Person enjoying music in context

Many persons enjoying music in

context


11/04/2023 WMG 46

Value

prop

Valu

e

captu

re

Value

prop

Valu

e

captu

re

Valu

e

captu

re Valu

e

captu

re

Value

prop

Value

prop

person

Valu

e

pro

p

Value capture

GYMS


SONY, EMI (CONTENT)


(SOCIAL)


PIE


context


11/04/2023 WMG 47

Value

prop

Valu

e

captu

re

Value

prop

Valu

e

captu

re

Valu

e

captu

re Valu

e

captu

re

Value

prop

Value

prop

person

Valu

e

pro

p

Value capture

GYMS


SONY, EMI (CONTENT)


(SOCIAL)


PIE

• The Value constellation map shows you which industry has a stake in which OTHER industry to expand their market penetration, driving disruption, convergence, land grab


context


11/04/2023 WMG 48

Value

prop

Valu

e

captu

re

Value

prop

Valu

e

captu

re

Valu

e

captu

re Valu

e

captu

re

Value

prop

Value

prop

person

Valu

e

pro

p

Value capture

GYMS


SONY, EMI (CONTENT)


(SOCIAL)


PIE


context

I want to play there because more content that I control will drive my connectivity

business


11/04/2023 WMG 49

Value

prop

Valu

e

captu

re

Value

prop

Valu

e

captu

re

Valu

e

captu

re Valu

e

captu

re

Value

prop

Value

prop

person

Valu

e

pro

p

Value capture

GYMS


SONY, EMI (CONTENT)


(SOCIAL)


PIE


contextI want to play there because widget that I control will secure my

connectivity business


11/04/2023 WMG 50

Value

prop

Valu

e

captu

re

Value

prop

Valu

e

captu

re

Valu

e

captu

re Valu

e

captu

re

Value

prop

Value

prop

person

Valu

e

pro

p

Value capture

GYMS


SONY, EMI (CONTENT)

SKY, VIRGIN (CONNECTIVITY)

FACEBOOK, MYSPACE(SOCIAL)


PIE


contextI just want to make sure these guys can’t

do it without me

Connectivity & Digitisation• TV was in a room• Music was on speakers and stereo

players• Digitisation & Connectivity is changing

contexts of use• Changing contexts of use is bringing

different industries into a context e.g. Tesco has a stake in your car – will they pay insurance?

• Disruption & Convergence comes from understanding value constellation of the context

11/04/2023 WMG 51

Changing Value Constellations• With more digital connectivity,

there are more connected contexts• more constellations with different

players will emerge, converging stuff, creating new ways to capture value, generating new business models, creating disruptions

• Move from vertical business models to systemic (horizontal & vertical)

For more information:

Read the book!Value: Creating New Markets in the Digital Economy- out January 2013


*

* Tentative cover

www.valueandmarkets.com

http://www.valueandmarkets.com/

Making Value Creation in Context Digitally visible

Hub-of-all-Things (H.A.T) – a designed

experiment for new business models powered by IoT

New (market) platform to serve context powered by IoT• The Internet of Things (IoT) refers to

uniquely identifiable objects (things) and virtual addressability that would create an Internet-like structure for remote locating, sensing, operating and/or actuating of such ‘things’. There is a sense that equipping all objects in the world with the ability to be animated and connected could transform lived lives.

• The home and the building as new platforms to serve contexts in the future


Key

= IoT Enabler = IoT Enabled = IoT Enhancer = Trustgate

Public Info Hub

Public Info Hub

Type1Type1

LegacyLegacy

LegacyLegacy

Type1Type1

LegacyLegacy

‘App in-Store’‘App in-Store’

‘Thing POD’

Thing Platform for Open-source Design

‘Thing POD’

Thing Platform for Open-source Design

Data for developers

Use of Virtual Devices

Applications Developed using open-source API

‘Thing Store’‘Thing Store’

Standard Data formats and defined

protocols

Type 1 Thing Interface

Type 1 Thing Interface

AppApp

AppApp AppApp

Thing 2s

Thing 2s

Thing 1s

Thing 1s

‘Thing 2’ Network

‘Thing 2’ Network

3D Printing/Scanning

Private Info Hub

Private Info Hub

Private Info Hub

Private Info Hub

‘App out-Store’‘App out-Store’

AppApp AppApp

landlord

The H.A.T.

resident Building mgr

Actuating

Exte

rna

l pla

tform

sHub-of-All-Things – tentative platform architecture for multi-sided markets

MM

M

TG

TG

New Economic Models in the Digital Economy (NEMODE)

Professor Roger Maull

Thank you


irene ngalmaden2013

Education

business research

business engineering

business mobile

existing business models

international staff25

servicedominant logic

systems simulation

wmg research