A brand emerges from the interactions between the organization’s proposition, which is manifested through the service interaction, and the customers’ perceptions, as the reflex of their past experiences with the branded offerings. However, despite its role as a proposition, the brand value is grounded on the meanings associated by the customers to the brand name, and especially, by the power that these associations have to influence their attitudes – in other words, customers value a brand for its ability to deliver consistent experiences. This chapter proposes a model for the development of brand-based service interactions, which reinforces the customers’ experiences with the brand, strengthening their trust in the brand’s ability to deliver as expected.
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Per Egil Pedersen, Birgit Apenes Solem and Kristin Bentsen
A variety of definitions and meanings are associated with the business model (BM) concept, and business model innovation (BMI) as a new type of innovation. The general literature on BMI and the literature on BMI in retailing is unclear regarding what BMI is, and how it is different from other types of innovation. The authors attempt to fill this gap by surveying examples of BMI from studies in the retailing sector. They apply a service-dominant logic perspective, arguing for a more holistic approach to value creation and a systemic approach to innovation in general. A typology of BMI is proposed to explore how the different types of BMI depend on different types and mechanisms of trust. The analysis indicates that radical value creation, as one type of BMI, is underrepresented in the literature. The results have implications for retailing managers as well as for policy makers.
Creating Business Models with New Forms of Innovation
Stephen Flowers, Martin Meyer and Jari Kuusisto
Drawing together many strands this chapter provides a roadmap for managers who wish to develop new business models to benefit from the new sources of ideas and effort of new forms of innovation. Links are made to the Innovation Opportunity Space approach to the forms of innovative activity that currently exist, or may be developed, around novel and innovative products and services. The chapter explores how managers can think about their interactions with the external groups that drive the new forms of innovation, and move to a context in which optimal value is obtained by both the firm and those involved. The chapter also presents a four-stage action-oriented approach that managers can utilise as they seek to capture an Innovation Opportunity Space.
Dimitra Chasanidou and Amela Karahasanović
Tor W. Andreassen, Simon Clatworthy, Tore Hillestad and Marika Lüders
Camilla A.C. Tepfers
For any given organization acting upon a future narrative, trust in the process and the findings is essential. To make a future narrative actionable, the futures study should encompass both creativity and analysis. Each step of the process will emphasize the two differently. (1) Scoping, analytical: deciding which futures study method is best suited for the question at hand – the matrix approach or uncovering the strategic blind spot. (2) Evidence, analytical: challenge implicit assumptions and habitual thinking through trend analysis. (3) Prioritizing, intuitive: making a collective judgement on which trends are important to the organization. (4) Customer foresight, creative: create visual narratives of the future as seen through the eyes of the customer. (5) Experimentation, creative and analytical: managing uncertainty by involving the customers in early concept testing.
The use of websites for crowdsourcing user input for service innovation purposes has become popular. Customers and other stakeholders are invited to propose, comment on and vote for suggestions and ideas for product and service innovations. Catchphrases such as ‘the smartest people do not work for you’ and ‘the wisdom of crowds’ epitomize the ambition, yet companies might find it surprisingly difficult to manage and convert heterogeneous insights from the crowd into actual innovations. The chapter examines the experiences of two companies: an IT company using a company-internal website for gathering and elaborating ideas from their 10 000 employees, and a bank with four years of experience with an ideation website for engaging its customers in contributing ideas for service innovation. Findings suggest that companies experience trust-related issues because of the expectations raised by inviting an extended network of people into innovation work. The companies as trustees need to ensure they can be trusted by following up on contributions, or else the innovation websites become empty tokens of employee and customer involvement and empowerment.
Creating Business Models with New Forms of Innovation
Juha Arrasvuori, Liting Liang, Guo Wen and Jari Kuusisto
This chapter explores the important part played by the creation (and protection) of intellectual property (IP) within the innovation process. The growth in importance of IP within the modern business world is clearly laid out and the different forms of IP are defined and their importance explored. The emergence of new forms of IP in areas like online media are also explored and emerging tensions between ‘closed’ and more collaborative and ‘open’ forms of IP are examined. Mainstream approaches to the protection of IP are contrasted with the new forms of IP protection. With much of the IP in these contexts emerging from online communities these new forms of IP protection also tend to be characterised by their non-commercial nature and their openness. Traditional ‘closed’ and newer ‘open’ models of IP protection are compared and new forms of business model based on IP are laid out in detail.
Tina Saebi, Herbjørn Nysveen, Mohammad Touhid Hossain and Annita Fjuk
Delivering great customer experience is essential in gaining the trust of customers. In an attempt to deliver superior customer experience, companies often end up focusing on redesigning the front-end of the business model while neglecting to realign their organizational design, capabilities and skills with the different dimensions of their business model. By adopting a business model perspective, we derive important lessons on how companies can shift towards more ‘experience-centric’ business models.