Service-Dominant Logic

Transcription

1 The Foundation and Future of Service-Dominant The Service Day 2012 Helsinki, Finland May 29, 2012 Stephen L. Vargo, Shidler Distinguished Professor University of Hawai i at Manoa Visiting Professor, Visiting Professor, VTT Technical Research Center of Finland

2 G-D Model: Value Production and Consumption Supplier Supply/Value Chain Producer Consumer

3 FOUNDATIONS: THE LOGIC CORE

4 A Partial Pedigree For D Theory of the firm Core Competency Theory Network Theory Relationship Marketing Consumer Culture theory Services Marketing Resource- Advantage Theory Service- Dominant Experience marketing

5 An Extended Pedigree for D Human Ecology Business Ecosystems Stakeholder Theory New Institutional Economics Service Science Service- Dominant Social Market Network Practices and Theory Performances

6 Core Foundational Premises of Service-Dominant Premise Explanation/Justification FP1 Service is the fundamental basis of exchange. The application of operant resources (knowledge and skills), service, is the basis for all exchange. Service is exchanged for service. FP6 The customer is always a Implies value creation is interactional. co-creator of value FP9 All economic and social Implies the context of value creation is actors are resource networks of networks (resourceintegrators). integrators FP10 Value is always uniquely Vl Value is idiosyncratic, experiential, and phenomenological determined by the beneficiary contextual, and meaning laden.

7 Value Co-creation through Resource Integration ti & Service Exchange Economic Currency Market-facing Resource Integrators Private Resource Integrators Social Currency Resource Integrator (individual, family, firm, etc.) New Resources Value Public Resource Integrators Public Currency

8 Micro Exchange Embedded in Complex (Eco)Systems of Exchange Supplier Resource Resource Integrator/ Integrator/ Supply/Value Chain Producer Consumer Beneficiary Beneficiary ( Firm ) ( Customer )

9 Resource Integration & Service-for-service Exchange within the Market System Resource Integrator/ Beneficiary ( Firm ) Resource Integrator/ Beneficiary ( Customer ) Institutions Resource Integrators

10 Resource Integration & and the Structuration of Service Ecosystems Macro Meso Micro Institutions Resource Integrators

11 Co-creation Through Social Connectivity: Facilitation ti of Resource Integration ti

12 Outcome-Based Pricing/Performance Contracting: Service for Sale Power By The Hour

13 Co-production

14 Ecosystems Architecture

15 Fabless (Contract Manufacturing) Firms TOP 10 FABLESS SEMICONDUCTOR FIRMS: $27.3 (2008) Qualcomm (QCT Division): $1.8B Broadcom: $1.2B NVIDIA: $892.7M Marvell Technology Group: $842.6M SanDisk: $816.0M LSI: $692.1M MediaTek: $543.6M Xilinx: $488.2M Avago Technologies: $439.0M Altera: $359.9M

16 REORIENTATIONS

17 Rethinking. Reframing, and Reconciliation from an D Perspective Markets From a priori to imagined, created, and institutionalized Market-ing From functional area to essential function of the firm Value From a property of output to a co-created outcome Innovation From invention to designing systems for value co-creation Strategy From prediction and control to effectuation Technology From exogenous variable to service-provision ii mechanism Role of Information Technology From tool to a transformation in value creation processes

18 Reorientations MARKETS: FROM A PRIORI TO INSTITUTIONALIZED SOLUTIONS

19 Issues for a Theory of the Market There are no (a priori) markets There are just micro-level, service exchanges gifts, generalized reciprocity, service-for-service There is a Market (Market System): transitory, linked, contextual configurations of resources and exchanges and yet markets can exist They can: Be envisioned ii --images of service potential ti become institutionalized -- Intersubjective realities Thus, markets become performed within the Market They exist because we act like they do Markets are functions of marketing (and other business practices)

20 A Market as an Institutionalized Solutions Resource Application (service) Intersubjective Agreement Institutionalized Solution = A Market Market performativity Human Problem Quasi-predictability

21 Directions MASSIVELY COOPERATIVE VALUE CREATION

22 Building on the Platform Co-Creation of Value Vl Valueproposition s Institutions Innovation Service- Dominant Platform Service ecosystems Technology Context

23 From the Individual to Market- Based Co-Creation Creation Source: Ridley 2010

24 Cost of Light in Hours Worked

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28 Growth in Prosperity through the Co-creation of Value

29 The Drivers of Increasing Returns to Scale Property rights Scientific rationalism Capital markets Specialization Fast/efficient e Rules and communications and Laws exchange Competition Consumer society Work Science ethic and Language Health, medicine Large-scale production

30 The Drivers of Increasing Returns to Scale Property rights Specialization Scientific rationalism Rules and and exchange Capital markets Laws Fast/efficient e communications Science and Competition Language g Consumer society Work ethic Health, medicine Large-scale production

31 Macro Specialization Rules and and exchange Laws Science and Language Meso Integrating Micro Normalizing i Representing Adapted from Kjellberg and Helgesson 2007

32 Thank You! For More Information on D visit: i sdlogic.net We encourage your comments and input. Will also post: Working papers Teaching material Related Links Steve Vargo: svargo@sdlogic.net Bob Lusch: rlusch@sdlogic.net