VO breeding environments value systems, business models and governance rules
Book in Scopus
- Additional Document Info
- View All
Digital (network) economy in present day markets demands a new logic for value creation, one different from the traditional industrial view in which value creation is a linear and additive process based-on the value chain model (Porter, 1985). The emerging view of a value creation model instead is synchronic and non-additive process, mobilizing constellations of resources and activities to respond a particular business opportunity. Therefore, value nowadays is co-created in a system based-on a networked model that integrates a number of stakeholders which work together to co-produce value (a product or a service). This new value creation model is known as the "value network" (Allee, 2000), and refers to the engagement of customers, suppliers, competitors, complementors and allies in rich and dynamic relationships and exchanges for tangible and intangible value flows: goods, services, revenues, knowledge and other benefits. Under this new conceptualization of a value-creation system, an expanding holistic and systemic understanding, encompassing the role and contribution of multiple stakeholders in the value creation process is addressed by the definition of a value system according to the notion that "each product/service offered requires a set of activities carried out by a number of actors forming a value-creation system, that uses tangible and intangible resources for creating value for customers" (Parolini, 1999). This chapter addresses three important theoretical concepts: value systems, business models, and governance rules in order to provide a theoretical framework for network managers to analyse and understand the business logic behind value creation within-VO Breeding Environments as long-term strategic collaborative networks (Camarinha-Matos & Afsarmanesh, 2006)-by trying to answer the questions of how to create value for all stakeholders as well as for the customer, and at the same time how managing the interests and concerns of all parties in a collaborative value-creation system. Furthermore, business models have conventionally served to describe the way an organisation, or a network of organisations, aim to create customer value and wealth for all stakeholders; value networks represent a different logic in "value-creation systems", in opposition to the traditional value chain; and finally, governance rules look into how inter-organisational collaboration can be governed to allow autonomous, geographically distributed, and heterogeneous organisations-in terms of operating environment, culture, social capital, and goals-to work together as a more or less integrated firm. © 2008 Springer Science+Business Media, LLC.