Real Estate Business and Entrepreneurship (REBE) REC-E

Transcription

1 Real Estate Business and Entrepreneurship (REBE) REC-E

2 L3. Value co-creation. Understanding your customer

3 Today: 1. Guest lecture by Antti Huhta, Newsec 2. Practical matters 3. Your homework 4. Business Model Canvas 5. Value co-creation and Service-Dominant (S-D) logic 6. Your next homework

4 Practicalities

5 Missed lectures If you missed lecture points are deducted from your final grade To compensate missed lecture substitute assignments are given after each lecture. You can submit them until the end of the course!

6 Consultation hours This Thursday, 18.1., consultation hours are: 9:00-10:00 and 12:00-13:00 Room 150 (Otakaari 4) Following consultation hours: 1.2. and 8.2. (Thursdays) 9:30-11:30. Room 150 (Otakaari 4)

7 Next week s lesson Topic: Financial analysis & calculations Teacher: Dr. Sc. Jussi Vimpari, Real Estate Business research group Guest lecture: Matias Bäström, Coor p.s. Probably a shorter lecture

8 Reading task

9 In groups, discuss your take on the readings. List 3 main ideas/sentences from the article You have up to 8 mins

10 Business Model Canvas

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12 Business Model Canvas

13 Newness Performance Customization Getting job done Design Brand/status Price Cost reduction Risk reduction Accessibility Convenience Personal assistance Self-service Automated services Communities Co-creation Mass market Niche Segmented Diversified Multi-sided Direct (sales, web sales) Indirect (partner, stores, wholesaler) Asset sale Usage fees Subscription fees Renting Licensing Brokerage Advertising Source: Osterwalder & Pigneur (2010)

14 Production Problem solving Platform/network Optimization Risk reduction Resource acquisition Physical Intellectual Human Financial Cost-driven Value-driven Fixed & variable costs Economies of scale/scope Source: Osterwalder & Pigneur (2010)

15 Business Model Canvas

16 Patterns in business models Source: Gassmann et al

17 Business model environment Source: Osterwalder & Pigneur (2010)

18 Value co-creation and S-D logic

19 KONE

20 KONE Source: Virtanen (2015)

21 KONE

22 KONE ReGenerate 800 modernization solution KONE Destination control system KONE Access KONE MonoSpace 700 elevators

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24 What has changed?

25 Value proposition Elevators Customer group Building owners Marketing Trustworthy elevators Cost structure Material costs, personnel Value proposition People flow Customer group Building users, customers, technicians Marketing Saving time Cost structure Flexible, subcontracting in installation, high levels of outsourcing Digital platform ecosystem.

26 TAXI Service / need flow Data flow Money flow

27 UBER Service / need flow Data flow Money flow

28 What has changed? Customer segment Passengers Customer relationship Personalized Revenue Cost of ride Key resources Cars, drivers, call centre Cost structure Salaries, maintenance, other fixed costs Customer segment Passengers & drivers Customer relationship Highly automated Revenue Ride charges, premium brands, surge pricing Key resources Uber platform, pricing algorithm, routing algorithm Cost structure Platform development, driver payments, sales & marketing

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30 SPOTIFY Source: Luftenneger et al

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32 What do these businesses have in common? Service-orientation Value to the customer Partnerships & networks Flexibility

33 Conceptual change Value driver Creator of value Process of value creation Purpose of value Measurement of value Role of firm Goods-dominant Transitional S-D logic Product Offering (service) Experience (service) Value-added Co-production Co-creation Value-inexchange Value-in-use Value-in-context Price Value delivery Value proposition Profit maximization Financial engineering Financial feedback/learning Source: Lusch and Vargo (2006)

34 Service-Dominant Logic Axiom1 FP1 Service is the fundamental basis of exchange. FP2 FP3 FP4 FP5 Indirect exchange masks the fundamental basis of exchange. Goods are a distribution mechanism for service provision. Operant resources are the fundamental source of strategic benefit. All economies are service economies. Axiom2 FP6 Value is cocreated by multiple actors, always including the beneficiary. FP7 FP8 Actors cannot deliver value but can participate in the creation and offering of value propositions. A service-centered view is inherently beneficiary oriented and relational. Axiom3 FP9 All social and economic actors are resource integrators. Axiom4 FP10 Value is always uniquely and phenomenologically determined by the beneficiary. Axiom5 FP11 Value cocreation is coordinated through actor-generated institutions and institutional arrangements. Sources: Vargo and Lusch 2004; 2008;

35 Your homework

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37 References: Gassmann, O, K Frankenberger and M Csik (2014).The Business Model Navigator: 55 Models that will Revolutionise your Business. Harlow, UK: Pearson. Luftenegger, E.; Comuzzi, M.; Grefen, P. (2013). The Service-Dominant Ecosystem: Mapping a Service Dominant Strategy to a Product-Service Ecosystem in L.M. Camarinha-Matos and R.J. Scherer (Eds.): PRO-VE 2013, IFIP AICT 408, pp Lusch and Vargo (2006), Service Dominant Logic: Reactions, Reflections, Refinements, Marketing Theory 6(3), Osterwalder, A. and Pigneur, Y. (2010), Business Model Generation. A Handbook for Visionaries, Game Changers, and Challengers. John Wiley&Sons, Inc. USA. Vargo and Lusch (2004), Evolving to a New Dominant Logic for Marketing, Journal of Marketing 68(January), Vargo and Lusch (2008), Service-Dominant Logic: Continuing the Evolution, Journal of the Academy of Marketing Science 36(Spring), 1-10, Vargo and Lusch (2016), Institutions and axioms: an extension and update of service-dominant logic, Journal of the Academy of Marketing Science, Virtanen, A. (2015), From elevators to people flow. Slideshare. Available at: