Deconstructing the value proposition of an innovation exemplar

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -Research into the identification and development of value propositions has recently been identified as a key research priority by the Marketing Science Institute. The purpose of this article is to identify and develop a process for value proposition deconstruction that can help organizations transform their value propositions in order to gain an improvement in their competitive position. Design/methodology/approach -A case study of an exemplar organization in the health care sector is used to develop an approach for value proposition deconstruction. Using the business system concept as a theoretical framework, the key value-adding elements that comprise this organization's value proposition are identified. A leading financial services firm is used to demonstrate how this learning approach can be successfully applied in developing a new and innovative value proposition. Findings -Using the business system framework, a structured process for deconstructing value propositions is developed. This framework is extended to explicitly acknowledge the value-in-use that results from different encounters, to incorporate learning processes and to recognize its interactive and recursive nature. Practical implications -The authors provide practitioners with insight into how to formulate new or improved value propositions. Originality/value -This work addresses two important and previously unaddressed research questions: how can the process of deconstruction of an exemplar organization's value proposition provide a more comprehensive understanding of the elements that comprise a superior value offering; and how can this process be applied to other organizations seeking to improve their value proposition?

Value propositions in accordance with service-dominant logic and service science: New insights into the Zhongguancun electrics market

“…For example, Frow and Payne explored VPs though adopted a stakeholder view and proposed a iterative framework for co-creating VPs [19,23]. Later, the authors identified the formal process of developing superior VPs through case study [24,25] [18]. Together, these analyses mainly focus on one or some combination of reciprocity, relationship, value cocreation and interactive processes of key stakeholders in light of SDL perspective, despite different representations.…”

“…Browsing the recent journal articles and bestsellers reveals that despite the emphasis on value propositions in the last decade of service research and recognition of the importance of value propositions, as one of most widely used marketing concepts and service constructs and its key role in business strategy, even as a key priority with significant interest by the academics and practitioners [ 6,[21][22][23][24][25][26][27][28], value propositions as one key fundamental premise in SDL(PF7) [8,9], much more ambiguity surrounds this concept, and there is relatively little detailed agreement about the concept and its application with the rapidly growing SDL literature, with some few exceptions [11,17]. Moreover, important challenges are the absence of a unifying framework for fully understanding of value propositions among initiators and participants through the lens of the growing intersection of service-dominant logic and service science [12,20].…”

Examining the Relationship Between Value Propositions and Scaling Value for New Companies

“…This insight suggests an opportunity to extend the research domain by studying the development of explicit value propositions for other relevant stakeholders, such as investors and external resource owners. The work by Payne and Frow (2014) suggests a process of deconstructing an exemplar organization's value proposition in order to provide an understanding of value elements and resource configurations that could inform the practices of other companies seeking to improve their value propositions.…”

Triadic Value Propositions: When It Takes More Than Two to Tango

“…344-345). Payne and Frow (2014a) "A value proposition is an organisation's offering to customers, representing a promise of benefits of value that customers will receive during and after the usage experience. It identifies both product and experiential benefits and costs (or sacrifices) that result from the relationship between customer and organisation.…”

“…With a few important exceptions (Ballantyne et al 2011;Frow and Payne 2011;Frow et al 2014), the buyer-supplier dyad remains the focus of research into value propositions. More recent conceptualizations highlight interdependence and reciprocity as critical elements, yet even these concepts remain primarily dyadic (e.g., Ballantyne and Varey 2006;Kowalkowski 2011;Payne and Frow 2014a).…”