THE IMPACT OF CUSTOMER PARTICIPATION ON BUSINESS ECOSYSTEMS

Transcription

1 PRO-VE th IFIP Working Conference on Virtual Enterprises THE IMPACT OF CUSTOMER PARTICIPATION ON BUSINESS ECOSYSTEMS Garyfallos Fragidis, Institute of Technology and Education, Serres, Greece Adamantios Koumpis, ALTEC S.A., Greece Konstantinos Tarabanis, University of Macedonia, Greece

2 Outline The background of business ecosystems The background of customer participation The opportunities for customer participation A business model for customer participation in business ecosystems (customer-centric ecosystems) The impact of customer participation in business ecosystems Technological aspects on customer-centric ecosystems Future work Conclusions

3 Introduction to business ecosystems Concepts from biological systems theory & complexity theory A holistic way to examine the business enterprise and its relationships with its environment A metaphor for the development of symbiotic and co-evolutionary business networks The need for value creation & innovations

4 Particular attributes of business ecosystems Evolution (innovations) Co-evolution (mutual fate) Interdependence Symbiotic (complementary) relations Commensalisms Competition Large population Diversity (transcends sectors) Loosely connected (dynamic participation)

5 Examples of business ecosystems World Wide Web Consortium (3WC) Star Alliance Business ecosystems are defined usually is terms of: Industries The personal computers business ecosystem Business firms Microsoft s/ Apple s/ Google s business ecosystem Products i-phone business ecosystem

6 Introduction to customer participation Dichotomy between production and consumption Basic in service processes Input, process, output Customer participation can be direct/ indirect Direct: self-service, order to build, customization Indirect: customer feedback (surveys, CRM, ) Customer participation is Limited in range Submissive to the needs of the business firms Customers can rarely participate to solve their problems (configure unique products)

7 The opportunity for customer participation Customers need solutions Bundles of products/ services Customers want to participate Web 2.0 Participation is favoured in the service economy Services are information intensive The Web supports participation E-business models

8 The role of customers in business ecosystems We distinguish between corporate customers and individuals Corporate customer participate in business ecosystems as business partners Individuals do not participate in business ecosystems The customer is the end customer, the consumer, the individual Customer participation can serve business objectives Provide new ideas Perform business activities Customers can participate to solve their problems compose products/ services that meet their individual needs

9 A business model for customer- centric ecosystems

10 A business model for customer- centric ecosystems

11 The impact of customer participation on business ecosystems Customer-centric ecosystems Complete the concept of business ecosystems Reinforce the concept of business ecosystems Enhance the dynamism in business ecosystems Support the development of innovations Urge for evolution and adaptation to the environment (customer needs) Are a higher order business ecosystem Shift the strategic focus Urge for collaboration & industry convergence/ integration Urge for customer- based value analysis Are based on customer needs Offer added value (for the customer) Support customisation & product configuration ( markets of one ) Emphasize everyday operations of business ecosystems

12 Customer participation completes the concept of business ecosystems Customer is a key species in the business environment The recipient of the business process output Determines business success The source of innovations The reason for innovations The customer is the reason that business enterprises exist!

13 The impact of customer participation on business ecosystems Customer-centric ecosystems Complete the concept of business ecosystems Reinforce the concept of business ecosystems Enhance the dynamism in business ecosystems Support the development of innovations Urge for evolution and adaptation to the environment (customer needs) Are a higher order business ecosystem Shift the strategic focus Urge for collaboration & industry convergence/ integration Urge for customer- based value analysis Are based on customer needs Offer added value (for the customer) Support customisation & product configuration ( markets of one ) Emphasize everyday operations of business ecosystems

14 Customer participation reinforces the concept of business ecosystems Evolution (innovations) Co-evolution (mutual fate) Interdependence Symbiotic (complementary) relations Commensalisms Competition Large population Diversity (transcends sectors) Loosely connected (dynamic participation)

15 The impact of customer participation on business ecosystems Customer-centric ecosystems Complete the concept of business ecosystems Reinforce the concept of business ecosystems Enhance the dynamism in business ecosystems Support the development of innovations Urge for evolution and adaptation to the environment (customer needs) Are higher order business ecosystems Shift the strategic focus Urge for collaboration & industry convergence/ integration Urge for customer- based value analysis Are based on customer needs Offer added value (for the customer) Support customisation & product configuration ( markets of one ) Emphasize everyday operations of business ecosystems

16 Customer participation shift the strategic focus

17 The impact of customer participation on business ecosystems Customer-centric ecosystems Complete the concept of business ecosystems Reinforce the concept of business ecosystems Enhance the dynamism in business ecosystems Support the development of innovations Urge for evolution and adaptation to the environment (customer needs) Are higher order business ecosystems Shift the strategic focus Urge for collaboration & industry convergence/ integration Urge for customer- based value analysis Are based on customer needs Offer added value (for the customer) Support customisation & product configuration ( markets of one ) Emphasize everyday operations of business ecosystems

18 Customer participation urges for customer- based value analysis Both business and customers search for value Business value is different from customer value Businesses tend to measure the value of their processes (e.g. value chain analysis) Businesses tend to interpret customer needs and estimate customer value by themselves Customer- based value analysis means that customers have value adding activities they should have mechanisms to synthesize their value chains

19 The impact of customer participation on business ecosystems Customer-centric ecosystems Complete the concept of business ecosystems Reinforce the concept of business ecosystems Enhance the dynamism in business ecosystems Support the development of innovations Urge for evolution and adaptation to the environment (customer needs) Are higher order business ecosystems Shift the strategic focus Urge for collaboration & industry convergence/ integration Urge for customer- based value analysis Are based on customer needs Offer added value (for the customer) Support customisation & product configuration ( markets of one ) Emphasize everyday operations of business ecosystems

20 Customer participation allows for customization & product configuration Customization: select among pre-determined solutions Configuration: create new solutions according to personal tastes An instance of a customer-centric business ecosystem is a market of one The customer-centric business ecosystem is unique, because customers have unique needs/ problems. The customer-centric business ecosystem is usually short-lived and dissolves as soon as the delivery of the offers is completed

21 The impact of customer participation on business ecosystems Customer-centric ecosystems Complete the concept of business ecosystems Reinforce the concept of business ecosystems Enhance the dynamism in business ecosystems Support the development of innovations Urge for evolution and adaptation to the environment (customer needs) Are higher order business ecosystems Shift the strategic focus Urge for collaboration & industry convergence/ integration Urge for customer- based value analysis Are based on customer needs Offer added value (for the customer) Support customisation & product configuration ( markets of one ) Emphasize everyday operations of business ecosystems

22 Customer participation emphasizes everyday operations of business ecosystems Business ecosystems are developed to produce innovations and create (& exploit) market opportunities Exceptional events/ projects Customer- centric business ecosystems are developed to support the creation of value for the customer Everyday operations

23 Technical requirements for the deve- lopment of customer- centric ecosystems Service- Oriented Architectures an organizing and delivery paradigm that enables customers to get more value by using capabilities that are dispersed among multiple business enterprises. Web services Compositions/ Choreographies Major challenges in terms of inter-enterprise compositions, common semantics, transactional integrity, security/ trust, etc. Web 2.0 technologies Applications for user participation

24 The need for connecting business operations with customer needs Information system operations SOA Business operations SOAs combine business logic with application logic

25 The need for connecting business operations with customer needs Information system operations SOA Business operations? Customer needs We need methods and applications that can meaningfully connect customer needs with business operations Semantics & Ontologies The risk of (excessive) automation

26 Conclusions Business ecosystems is a powerful metaphor with significant strategic implications for businesses Customer participation completes and reinforces the concept of business ecosystems Customer participation offers new business opportunities Information technology can support the development of customer- centric ecosystems New initiative is required in connecting business operations with customer needs