Development Of Value Proposition Research Articles

FUNCTIONAL MODEL OF THE MANAGEMENT SYSTEM FOR THE DEVELOPMENT OF INNOVATIVE POTENTIAL OF AIRLINE COMPANIES ON THE BASIS OF MARKETING CONCEPT

The article is devoted to the improvement of management of the development of the innovation potential of airlines, which ensures their competitiveness in the global market. The solution to the problems caused by the need to update systems and processes in response to rapid changes in market conditions and the emergence of new technologies is seen as possible through marketing concepts and their tools, which are an integral part of the model of managing the development of innovation potential. The aim of the study is to improve the scientific approach to the formation of a model for the development of the innovation potential of an airline company based on marketing concepts. Methodology. The suggested scientific approach to the formation of a model for the development of the innovation potential of an airline company is based on a study of marketing concepts, which are enclosed in the framework of A. Osterwalder and I. Pinier, based on the phased configuration of the innovation process and taking into account the coverage of functional blocks of innovation development, value proposition formation and implementation of innovations by modern marketing tools of airline companies, integrating the possibilities of developing innovation potential with the needs of the air transportation sector market. As a result of the research, it is proved that the conceptual basis of the functional model for the development of the innovation potential of an airline enterprise is within the holistic concept of marketing, and digital marketing has a conceptual impact on almost all stages of the functional model and is manifested in certain digital marketing tools, contributing to reducing complexity and increasing predictability in the processes of managing the consumption of innovations, prices for innovative products and services, monitoring consumer behavior, partnerships, etc. In addition, the scientific approach to the formation of a model for the development of the innovation potential of an airline company based on marketing concepts is based on the target benchmarks of the sustainable development strategy (macro-marketing concept), the development of value propositions (service dominance theory) and the imperatives of increasing competitiveness and financial success (competitive advantage theory). The practical significance of the results lies in the contribution to the understanding of the use of marketing mechanisms in the process of innovation and emphasizing the need to change the traditional paradigm of airlines' functioning, directing it towards innovative development and achieving competitiveness with a focus on customer needs. Value/originality. The improved scientific approach actually creates a comprehensive theoretical and organizational basis for marketing of innovations of airline companies and will contribute to the effective implementation of marketing support for the development of innovation potential.

Value proposition development under uncertainty: A theoretical framework grounded on the trajectory of cleantech start-up founders

Sustainability has become a top priority for policymakers and societal stakeholders worldwide, with cleantech start-ups, which are businesses centered on technological innovation to provide more sustainable products and services, as key players in the transition towards a more sustainable economy. However, cleantech start-ups struggle to capture value because of the combination of market, technology, and sociocultural uncertainties. To address customers’ skepticism towards their innovative solution, cleantech start-up founders need to design and persuasively communicate a superior Value Proposition (VP). This study seeks to answer the following research question: How do entrepreneurs build and consolidate the VP in their cleantech start-ups? We explored the role of the antecedents of entrepreneurial action in the development of VP and found that contrary to what would be expected based on extant theory, the role of prior market knowledge is less relevant than the exploratory phase of the business for achieving VP consolidation. In addition to addressing the literature gap with an empirically based model that explains how founders can develop the VP of their start-ups, our research provides current and prospective cleantech start-up founders with realistic elements about the time and resources needed for crafting and consolidating a competitive VP.

Blitz Innovation Framework — From Innovation to Ecosystem for Software Startups

Start-ups and established organisations alike create business models around value propositions. This would make value propositions the core offering of value, around which business model efforts are based on. Products are created following successful validation of any identified value proposition. This research proposes a holistic approach to value proposition development, with the aim of helping software start-ups to quickly develop and scale their product development efforts. The proposed framework takes a process-based approach while remaining user-centric. It covers the whole spectrum of the value proposition development process ranging from the study of the user to managing growth-related aspects of the product and monitoring performance via the identification of key metrics. This end-to-end approach can help inexperienced start-up teams during their early development efforts and therefore lower the barriers of entry for the software startup space. Validation for the proposed framework is done using a case study approach of a successful value proposition by a former start-up.

Development of value proposition to promote green innovation for sustainable organizational development

Development of value proposition to promote green innovation for sustainable organizational development

THEORETICAL AND METHODOLOGICAL ASPECTS FOR THE DEVELOPMENT OF A CREATIVE ECONOMY IN THE CONTEXT OF THE FORMATION OF AN INNOVATIVE BUSINESS ECOSYSTEM

The aim of the study is to analyze the theoretical basis of creative economy and its development trends in the context of innovative business ecosystems formation. The scientific novelty of the research consists in solving the most important scientific and applied problem - further development of theoretical provisions of creative economy, ecosystems, as well as substantiation of the conceptual approach to the formation of innovative business ecosystem as a coherent management model. In the process of research, general scientific and special methods were used: scientific abstraction, deduction, analysis and synthesis, system and critical analysis, structural-logical, ascending from the abstract to the concrete, and statistical analysis. It has been substantiated that the priority development of creative economy as a strategic driver of sustainable development is the formation of an ecosystem conducive to the development of complex non-linear dynamic innovation processes, development of value propositions and value chain. The analysis of theoretical and methodological aspects of formation and functioning of ecosystems indicates the lack of development of this problem and the need to develop scientific approaches to their identification. Generalization of the results of theoretical analysis allowed us to group ecosystems according to the identified attributes into five main types. It was substantiated that a sustainable business ecosystem is a favorable environment for innovation to increase its value and contribute to the achievement of sustainable development goals. It is proposed to consider a sustainable "business ecosystem" as a coherent management model with established characteristics, which describes an aggregate system of business ecosystem modules that interact with each other and are focused on co-creation and co-production of value.

COVID-19: Ways and Drivers of Value Proposition Transformation of Russian Airlines

The passenger air transportation industry is one of the most affected as a result of anti-coronavirus restrictions, and its post-crisis recovery will take place in the context of changes in consumer behavior and, consequently, the configuration of the value proposition. Similar transformations of the value proposition have already been observed in the past. Therefore, an analysis of the current situation is impossible without considering the evolution of the value proposition of airlines over the past 30-40 years. We determined directions of post-COVID-19 value proposition development, based on systematic literature review. The empirical study of domestic passenger air transportation market consisted of two stages. At the first stage, we determined directions of the post-crisis airline value proposition development using case study method. At the second stage, we conducted a survey of 808 passengers on domestic routes to identify their perception of value propositions changes and its significance for airline-choosing process. Empirical results demonstrated airlines transition to expand the list of available services available for passengers. It allows them to attract new groups of passengers and increase their loyalty. From the passenger's perspective, such extension, on the one hand, differentiates carriers and, on the other hand, complicates consumer choice.

Marketing Strategy Development for Green House Karamba Hydroponic Vegetables

Green House Karamba, as a hydroponic vegetable producer, faces fluctuating sales volume and difficulty in reaching the end consumer. Therefore, Green House Karamba needs strategy formulation. This study aimed to: (1) analyze the ekisting marketing strategy of Green House Karamba based on marketing mix 4C; (2) analyze the competitive advantage of Green House Karamba based on competitive conditions; and (3) formulate a marketing strategy that can be applied by the company. This study focused on the products of hydroponic vegetables of Green House Karamba. Marketing mix 4C analysis, Porter’s five forces model, and marketing genius approach were employed for this study. Based on marketing mix 4C analysis, there were rooms for improvement in co-creation, communal activation, and conversation. According to Porter’s five forces model analysis, Green House Karamba’s potential competitive advantage were in terms of price and quality, relative independent production, and differentiation. The results of the previous analyses were considered for strategy formulation using a marketing genius approach. Based on marketing genius analysis, comprehensive marketing strategy and value proposition development were recommended for Green House Karamba. This study is expected to help Green House Karamba in facing competition. Keywords: hydroponic, marketing genius, marketing mix 4C, marketing strategy

Value Propositions in Public Collaborations: Regaining Organizational Focus Through Value Configurations

AbstractThere is consensus that complex problems of contemporary society call for public service collaborations. So‐called public service logic (PSL) focuses on joint value creation among a multiplicity of actors in service ecosystems. Despite recognizing various actors, this logic is essentially user‐centric, with the service user being the one realizing the value. Consequently, single and collaborating organizations cannot deliver value, only potential value, or so‐called value propositions. The elusive public service logic takes a network value configuration for granted and as a starting point. Drawing from two cases in Swedish healthcare, this paper argues that two other value configurations (chain and shop) are also relevant for understanding the development of value propositions – and that these may be related to both intra‐ and inter‐organizational processes. Theoretically, we conclude that just like public service logic, other collaborative public management theories need to recognize the importance of a multiplicity of value configurations and that these are often related to both intra‐ and inter‐organizational processes. We conclude that managers should not adopt the latest network trends without first reflecting on the relevance of existing internal processes.

Molecular chlamydia and gonorrhoea point of care tests implemented into routine practice: Systematic review and value proposition development.

Sexually Transmitted Infections, including Neisseria gonorrhoeae (NG) and Chlamydia trachomatis (CT), continue to be a global health problem. Increased access to point-of-care-tests (POCTs) could help detect infection and lead to appropriate management of cases and contacts, reducing transmission and development of reproductive health sequelae. Yet diagnostics with good clinical effectiveness evidence can fail to be implemented into routine care. Here we assess values beyond clinical effectiveness for molecular CT/NG POCTs implemented across diverse routine practice settings. We conducted a systematic review of peer-reviewed primary research and conference abstract publications in Medline and Embase reporting on molecular CT/NG POCT implementation in routine clinical practice until 16th February 2021. Results were extracted into EndNote software and initially screened by title and abstract by one author according to the inclusion and exclusion criteria. Articles that met the criteria, or were unclear, were included for full-text assessment by all authors. Results were synthesised to assess the tests against guidance criteria and develop a CT/NG POCT value proposition for multiple stakeholders and settings. The systematic review search returned 440 articles; 28 were included overall. The Cepheid CT/NG GeneXpert was the only molecular CT/NG POCT implemented and evaluated in routine practice. It did not fulfil all test guidance criteria, however, studies of test implementation showed multiple values for test use across various healthcare settings and locations. Our value proposition highlights that the majority of values are setting-specific. Sexual health services and outreach services have the least overlap, with General Practice and other non-sexual health specialist services serving as a "bridge" between the two. Those wishing to improve CT/NG diagnosis should be supported to identify the values most relevant to their settings and context, and prioritise implementation of tests that are most closely aligned with those values.

The Welcome to the Village Festival As an Interactive Space for Entrepreneurial Innovation: Lessons Learned

This article presents an exploratory study of the potential role of a music and arts festival in supporting entrepreneurial innovation processes. Although festivals in practice are developing their function as innovation facilitators, there has been only little academic attention from both entrepreneurship and festival studies for this trend. This article brings together extant literature on entrepreneurial innovation and festival spaces to conceptualize how interactions enabled by festivals may support entrepreneurial value proposition development. Based on a qualitative exploratory case study of the innovation program of the Dutch Welcome to the Village festival it is shown that festivals can potentially facilitate useful interactions with various stakeholders for entrepreneurs. It is found that these interactions can inform the direction of the entrepreneurial process and product/service development. However, relevant potential interactions remained latent and the transference of the results beyond the festival was limited. Recommendations are made on how this potential of the festival may be more strategically exploited. We propose that a more purposeful interaction design could benefit the festival-innovation programs (e. g., by mapping the connections as we have in this article). It also recommended for managers of these innovation programs to develop organizational structures that bridge the apparent divide between the festival and real world.

Determinants of the Relationship of Medical Service Entities in the Virtual Environment

Introducing new technologies to the healthcare market provides unique opportunities for implementing a powerful framework of resources, tools, and applications that can revolutionize the ways in which medical units interact with their patients, as well as help deliver and manage medical services. The Internet of Services, as a new concept of Internet evaluation, depends not only on technological solutions but also on service innovations in the field of new value propositions where a patient-centered model is needed. Such a model would consider patient preferences, values, and the need for information as the leading characteristics of care. Patient and medical unit engagement is an essential prerequisite for the new value proposition development process. In this paper, we focus on the identification and analysis of the determinants responsible for the mutual engagement of patients and medical units. The purpose of this study was to identify and describe a relational model for the virtual healthcare service market. This study adopted a quantitative survey approach. The questionnaire was based on a three-factor model of consumer behavior, considering motivation, capacity, and opportunities. The relationships between patients and healthcare organizations will develop on the condition that the patients are properly motivated and have adequate abilities to become engaged in the relationships with health care providers.

Breathometer: Shut Down by the Federal Trade Commission

Breathometer was the first Shark Tank pitch where all five sharks invested in one deal. This case examines how Charles Yim created a product that tests blood alcohol levels that is connected to an iPhone or Android smartphone. The product was reported to be innovative in its design and functionality. In the early stages of the company, Yim was able to raise over 2 million dollars from Silicon Valley VC’s, Shark Tank, and Indiegogo. Ultimately, the product’s advertising claims were found to be dubious by the Federal Trade Commission, and they were ordered to provide refunds to all customers. The case examines the processes of value proposition development and investor due diligence. In addition, the case explores the issues related to board composition and the value that board members with extensive industry experience bring to the success of the company. Ultimately, the company underwent a major pivot, transforming its product into one that measures bad breath and oral health. The case and instructor materials provide the vehicle for class discussion and analysis of the early-stage venture success and failure and how industry experience is essential to long-term survivability.

Toward a comprehensive framework of value proposition development: From strategy to implementation

Value propositions (VPs) can play a major role for the strategy development and implementation process in B2B markets. While being recognized as one of the firm's most important organizing principles, the VP concept is still poorly understood and executed in many B2B firms and scholarly research provides limited guidance on how to develop and implement VPs in B2B markets. This article re-assesses the VP in the context of both strategy and implementation. It undertakes a review of extant conceptual frameworks and identifies key elements that are overlooked and/or not addressed. A new conceptual framework for addressing VP design and development is offered, which incorporates five key interrelated phases of implementation that need to be comprehensively addressed. This research provides a theoretically sound and practically applicable VP development framework, integrating the firm's strategic considerations, ensuring a fit between its business model and customers' needs, and reflecting the nature of B2B markets through its dynamic perspective. In addressing key implementation issues, the article provides firms with a robust approach to addressing the dynamic competitive environment, as well as taking into account changing customer needs.

Value proposition of Russian airlines: Drivers and directions of transformation

One of the hardest hits by anti-coronavirus restrictions is the air transport market. Post-crisis recovery leads carriers to identification of changes consumer behavior of passengers and, therefore, transform the value proposition. This change has been happened in the past. In this case, analysis of nowadays situation is unable without research of airlines value proposition in the last 30–40 years. In the study, based on content-analysis of 902 articles from Web of Science and Scopus we identified main directions of airline value proposition development. Empirical study was based on Russian passenger’s airline market, where from the carriers perspective using complex case-study method we identified main directions of post-crisis value proposition evolution, from the passenger’s side — using survey of 808 respondents identified perception degree of such changes and their significance for the passenger when choosing an airline. Empirical results demonstrate that airlines choose to expand the number of available services for passengers, which allows them to attract new groups of passengers and increase their loyalty. At the same time, from the passenger perspective, such expansion doesn’t differentiate carriers n the passengers mind, but rather complicates consumer choice.

Towards circular business models: Identifying consumer needs based on the jobs-to-be-done theory

Non-renewable resources form one of the boundaries of our current linear-growth model. Moving from product-oriented to product-service systems (PSS)-based business models may contribute to the circularity of resource flows while strengthening the competitive advantage of organizations. Scholars have been studying the win-win potential of circular business models from a strategic business perspective for some time. However, methods for increasing consumer participation in circular economy (CE)-linked PSSs are yet to be studied intensively. This is particularly problematic because consumers play a significant and active role in the success of closing material loops. We sought to contribute to the closure of this research gap with a case study, in which we use a mixed-method approach inspired by the outcome-driven innovation (ODI) approach. ODI aims to detect innovation potential based on the job-to-be-done theory at the fuzzy front end of innovation. This indicates user-centric connection points for new value proposition development for circular business models. In our case study of the consumer electronics industry, we exemplify how insights about consumer needs along the lifecycle of a TV can be derived. We first interviewed a sample of consumers in order to qualitatively analyze and identify the problems they currently face when trying to solve an entertainment interruption. This revealed 30 consumer needs. In a second step, we evaluated these needs in a survey to quantify their potential according to the degree of importance and satisfaction associated with each. Our analysis revealed that 11 of the 30 needs are currently not well satisfied. These needs are linked as innovation opportunities to potential PSSs, providing a foundation for customer-centric value propositions design to foster the implementation of the CE. Our study not only advances the understanding of consumer need-orientation in CE literature, but also yields valuable contributions to the methodological repertoire for customer-centric innovation management in the CE context. Additionally, it outlines directions for further research on refining ODI for the purpose of connecting individual consumer needs with societal needs.

Value Propositions in Service Systems Enabled by Digital Technology: A Field Based Design Science Approach

In the context of the digitization of business environments, organizations and processes are currently undergoing major changes. Digital transformation offers a high potential to develop new value propositions by using digital technology, but at the same time demands for the implementation of disruptive innovation in complex service systems. Thereby, it is crucial to find out how to make use of technology-enabled potentials and how to find a structured way to develop and design new value propositions, embedded in service systems. To support the development and design of value propositions, this paper designs the VdiP-developer as a framework for the systematic development of digitization-enabled value propositions in service systems. It considers the advancement of existing likewise the development of new value propositions. In particular, the VdiP-developer highlights the roles of digital technology in service systems and establishes a framework to consider both, digital technology and service systems, in the development of value propositions. Using a field-based design-science approach to research, this paper shows how the framework for value proposition building is iteratively developed, applied and evaluated as a joint initiative by researchers and practitioners. The designed artefact, the VdiP-developer, enables organizations to systematically improve and develop value propositions by bringing management perspectives and service design elements together in one compact framework.

Eco-Innovation Drivers in Value-Creating Networks: A Case Study of Ship Retrofitting Services

Previous studies discuss how regulatory, technological and market drivers increasingly challenge manufacturing industries to adopt eco-innovations. However, the understanding of the process by which eco-innovations are developed and commercialized as a result of these drivers is not yet well established, in particular because these drivers are perceived differently by the end-users and their suppliers. In this paper, we address the following research question: How do eco-innovation drivers shape processes in value-creating networks? To answer this question, we carried out a case study purposely selected to understand how eco-innovation drivers, such as regulation, market pull and technology, interact and affect the eco-innovation decisions in a given industry. We analyzed the processes in an eco-innovation initiative about retrofitting old ships, contextualized in the maritime equipment and supply industry. The paper makes two novel contributions: First, we develop a framework that can support supply-network eco-innovation initiatives to deal with changes at the regulatory, market and technology levels. The framework includes elements, such as value co-creation to explore technological opportunities emerging from the interaction of the drivers or value proposition development to align multiple actors’ interests in the network and agree on shared expectations to exploit the opportunities. Second, we contribute to the emerging research area on eco-innovation processes by highlighting the lesser-known role of value-creating network dynamics. Value-creating networks can be a platform for the development of more radical eco-innovations if actors in the networks can align their value creation and capture objectives.

Relational development of a service concept: dialogue meets efficiency

Purpose – The purpose of this study is to build a generic model for relational development of a value proposition for a service concept. The study seeks to answer two questions: First, what kind of process is practical for joint development of a service concept in customer–service provider collaboration? Second, what are the functional principles for such collaboration? Design/methodology/approach – A participative, design science approach was used to develop the model for a joint-development process. Researchers developed and analyzed joint activities between a provider of industrial maintenance service solutions and its customer during the process of co-developing a service concept for factory maintenance. Findings – The study suggests that a co-development process has to integrate service blueprinting, a stage-gate philosophy, dialogical interaction principles and elements of joint learning to meet the requirement for both efficiency and relationality. Research limitations/implications – The study develops a generic model for collaborative development of value propositions that integrates the aforementioned elements of separate streams of research. Applying the developed model to different contexts would further verify and enhance it. Practical implications – The model can be applied to the development of a value proposition in different collaborative development situations to enhance interplay between efficiency and relationality. Originality/value – The study illustrates a generic model for joint service concept development and proposes a solution balancing contradictory requirements in such a collaboration.

The Contextual Value of Social Capital for Subsistence Entrepreneur Mobility

Close-knit relationships are a distinctive facet of subsistence living, in which survival mode entrepreneurship is a way of life. These relationships fuel “bonding social capital” within informal economies as people rely on others to work, consume, and cope with scarce resources. At the same time, policy agendas encourage business growth and social mobility by shifting informal microenterprises into the formal economy. However, success in formalized contexts requires a different form of social capital—that is, “bridging social capital” with people outside one's immediate social network and across institutional structures. Yet policy programs often stop short of addressing how subsistence entrepreneurs manage the inherent tensions across these forms of social capital. As such, this study unpacks the contextual value of social capital using data collected with street vendors in an urban Latin American setting. The analysis identifies four entrepreneurial paths pursued by street vendors and articulates the relative value of bonding and bridging social capital across different economic and social positions. The findings advance insights for a community-centric public policy approach and offer guidance for segmentation and value proposition development within subsistence entrepreneurship programs.

The moderating role of Hofstede’s cultural dimensions in the customer-brand relationship in China and India

Purpose– The purpose of this paper is to enhance the understanding of customer-brand relationships in the international marketplace, and empirically investigates and compares the customer-brand relationship development process between Indian and Chinese markets. In detail, four out of Hofstede’s original five national culture dimensions were adopted as moderators in the process of customer-brand relationship development between two markets.Design/methodology/approach– To test hypotheses, responses from 539 Indian and 400 Chinese mobile phone consumer samples were achieved, and the proposed model was estimated by using structural equations based on the partial least squares algorithm.Findings– The results demonstrate that utilitarian value and brand affect play a significant role in building brand loyalty for Chinese consumers, while hedonic value and perceived risk contribute more in building brand loyalty for Indian consumers.Research limitations/implications– This study indicated that the cultural difference affects both on brand trust formation and on the relationship between brand trust/affect and brand loyalty, implying that more customized brand management strategies should be adopted.Practical implications– Global brand values must be communicated for each culture appropriately. It is desirable that the identified match, utilitarian value-Chinese customers and hedonic value-Indian customers, be consistently presented to each cultural market in a more integrative manner.Originality/value– This study identified that the route from the development of value proposition to building up brand trust and brand affect is a critical step toward achieving brand loyalty in Indian and Chinese markets.