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Wirtz,SJ
3 pilars of meaning based strategic
management
costumer

Wirtz,SJ
Context:
- Customer experience management become more and more a
differentiation activity
- In agile markets were new market profiles arose and are co-created the
customer approach has to be integrated in any activity a company gets
involved with partners as
- - building trust
- - creating mutual understanding of moving targets in emerging
industries and
- - considering the service encounter attitude and treatment as
applicable to people and companies alike
being in co-operation network.
- The ecosystem approach can indicate some of the strategic issues one
has to address in strategic management
- It implies and somewhat applies that the term sustainable competitive
advantage will be transformed into
- Transient as well as co-constructed competitive advantage as in
emerging markets a priori concepts may fail as a paradigm shift
happens.

Wirtz,SJ
Approach:
Part one:
- Look at companies orientation about its environment in emerging markets
Part two:
- Extend the integration of important elements into the strategic management

Part three:
- Construct building blocks and stepping stone

Highlight finally what this has to do with meaning based

Wirtz,SJ
Wirtz,SJ
Part 1:

The company links the inside performance with the market performance

Leadershi
p
Meaning
based

inside
outside
People
Promotion

Positioning

Materialisatio
nbased

Production

Product/Service

Place

Efficiency
based

Process
Price

Strength and Weakness SW OT Opportunity and Threat
Wirtz,SJ
There two genuine strategy development processes with
implication for strategic change management
A. Prescriptive model of business strategy

Options
Environment

Purpose

Options

The prescriptive
strategy process
Lynch, 2008

Choice

Implement

Resources
Options

is the usual approach and neglects often the limitations that an
existing organisation and its culture limits the strategic options
B. Emergent model of business strategy
The emergent
strategy process
– based on Quinn
1990, Senge 1990,
Argyris 1977,
Mintzberg 1987
and others

Environment

Purpose

Resources

Strategy
development and
implementation

Keypoint: creative,
experimental, more
difficult to describe
but essential
according Lynch,
What is strategic change management?
One approach to emergent processes

Environment

Strategic Change
Management issues to open
the company towards
networking

Purpose

Resources

,

Strategy
development and
implementation

Emergent theories
include:
•Survival-based
•Uncertainty-based
•Human resource-based
•Innovation and learningbased
Wirtz,SJ
“Ideating” the other side of innovation by
Govindarajan, V, Trimble,C 2010

Wirtz,SJ
Wirtz,SJ
Current wave of business model: e.g. Osterwalder:
Key
Partners

Key
Activities

Key
Resources

Cost
Structure

Value
Proposition

Customer
Relationships

Customer
Segments

Channels

Revenue
Streams

Consider important environment issues but more as impact on the company than stepping stone
The environment needs also to be perceived as constructed and playground for creating emerging
markets through co-creation with other companies considering them as lead customers7partners

Wirtz,SJ
In emerging markets a SWOT analysis should be extended highlighting the evaluation,
estimation process by regrouping SWOT into a:

SOWT Analysis
inside

Strengths

outside

Opportunities

OverEstimate
Under-

Weaknesses

Threats

We genuinely underestimate our weakness and threats to our organization. We
have difficulties to embrace vagueness, ambiguity and enter into co-operation
without contractual arrangements and wishful outcomes
Exploring emerging environment and create meaning based activities
The cynefin framework

Watch the explaination: http://www.youtube.com/watch?v=N7oz366X0-8
Simple, in which the relationship between cause and effect is obvious to all, the
approach is to Sense - Categorise - Respond and we can apply best practice.

Complicated, in which the relationship between cause and effect requires analysis or
some other form of investigation and/or the application of expert knowledge, the
approach is to Sense - Analyze - Respond and we can apply good practice.
Complex, in which the relationship between cause and effect can only be perceived
in retrospect, but not in advance, the approach is to Probe - Sense - Respond and we
can sense emergent practice.
Chaotic, in which there is no relationship between cause and effect at systems level,
the approach is to Act - Sense - Respond and we can discover novel practice.
The fifth domain is Disorder, which is the state of not knowing what type of causality
exists, in which state people will revert to their own comfort zone in making a
decision.
That comfort zone including organizational ones can be the biggest hurdle for
process driven innovation

Wirtz,SJ
Product centered management is still somewhat restricting companies to
improve customer-focused services and grow with new service business
models.
Many organizations have set the target to launch and develop new customer
services as a key element in their strategy.
According to P. Moore ( 1993) In order to adapt to the fast changing customer
needs, delivery of the services requires an

ecosystem of organizations..

In many large organizations there is a strong tendency to seek for the clarity of
old clear product and organization focused operating models. The value chain
thinking and connecting as well connected leadership models can create an
extended ecosystem approach
A holistic change is needed in order to design and implement an operating
model that enables integrating and managing a set of contracts, indicators and
measurements aiming to efficiently adapt a network of organiztions from sales
to operations to fulfill customer needs and manage customer expectations.
By leveraging ecosystems, companies can deliver complex solutions while
maintaining corporate focus but it has to be concerned to contribute to the
ecosystem construction as well.
The idea is that each business in the “ecosystem” affects and
is affected by the others,

creating a constantly evolving relationship in which each business must be flexible,
adaptable and open to new partnerships and evolving networks
- Part 2:Extend the integration of important elements into the strategic management
The idea is that each business in the “ecosystem” affects and is affected by the
others, be it companies, individuals, trendsetters research organization,
governments and certain socio-economic events like ageing of society, obesity..

creating a constantly evolving relationship in which each business must be flexible,
adaptable and open to new partnerships and evolving networks
Thought-concept Communication based sense
making and receptivity
Z

The 3 pillars are the axes x,y,z,

Resource based corporate
Strategic Management
X

Y
Co-operation based Strategic Management

Wirtz,SJ
Communication based sense
making and receptivity
Z
The 3 pillars are the axes x,y,z,

4 reference platform focus on 4 strategic elements

Resource based corporate
Strategic Management
X

Y
Co-operation based Strategic Management

Wirtz,SJ
Communication based sense
making and receptivity The 3 pillars are the axes x,y,z,
Z
4 reference platform focus on 4 strategic elements:
Connected and connecting leadership
Focus on technology and related innovation

Market management

Industry/Arena
specific identity

Y
Co-operation based Strategic Management

Resource based corporate
Strategic Management
X

Wirtz,SJ
Communication based sense
making and receptivity
Z
z4

Concept
Execution

z3

Concept
Execution

z2

Concept
Execution

z1
y1
Concept

This will lead to 64 activity blocks
differentiated according strategy concept
and strategy execution

Resource based
corporate St.M

Concept
Execution

Concept
Execution

x1

Concept
Execution

x2

Concept
Execution

x3

Concept
Execution

x4

Concept X
Execution

y2 Execution
Concept

y3 Execution

y4

Concept
Execution

Y
Co-operation based St.M

Wirtz,SJ
Communication based sense
making and receptivity
Z

Resource based
corporate St.M
Hard-ware

Y
Co-operation based Strategic Management

Soft-ware

Tech-ware

Customer/ X
User - ware

Wirtz,SJ
Communication based sense
making and receptivity
Z

Resource based
corporate St.M
CustomerX
What industries How solutions Technology
arena one is in commercialized other than used experience mgt.

Y
Co-operation based St.M

Wirtz,SJ
Communication based sense
making and receptivity
Z

Resource based
corporate St.M

Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content

Delivery

Y
Co-operation based St.M

Competing companies in the same arena, e.g. coffee are
very different how they commercialize and address
customers/users: Nescafé, Starbucks, illy and how they
expand their eco-system, focusing also on co-operation in
content and delivery, manipulating, breaking industry
communication codes and symbols
Wirtz,SJ
Communication based sense
making and receptivity
Z

Resource based
corporate St.M

Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content

Delivery
This is the standard strategic management approach, based
on a company focused control-equity with limited out-side in
orientation and seeing costumer experience management
Y
slowly as differentiation opportunity, cost reduction in
Co-operation based St.M outsourcing delivery and insourcing improved content
Wirtz,SJ
Communication based sense
making and receptivity
Z

Eco-system 1, traditional collaboration
based mostly on company strength and
perceived opportunity

Resource based
corporate St.M

Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content

Delivery
This is the standard strategic management approach, based
on a company focused control-equity with limited out-side in
orientation and seeing costumer experience management
Y
slowly as differentiation opportunity, cost reduction in
Co-operation based St.M outsourcing delivery and insourcing improved content
Wirtz,SJ
Communication based sense
making and receptivity
Z

Uncontrollable social
media already
disrupts and makes
ecosystem 1
additionally volatile

Eco-system 1, traditional collaboration
based mostly on company strength and
perceived opportunity
Market-com,
social media

Resource based
corporate St.M

Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content

Delivery
This is the standard strategic management approach, based
on a company focused control-equity with limited out-side in
orientation and seeing costumer experience management
Y
slowly as differentiation opportunity, cost reduction in
Co-operation based St.M outsourcing delivery and insourcing improved content
Wirtz,SJ
Communication based sense
making and receptivity
Z

Uncontrollable social
media disrupts and
makes ecosystem 1
volatile

Expanding to ecosystem 2.0

Eco-system 1, traditional collaboration
based mostly on company strength and
perceived opportunity
Market-com,
social media

Resource based
corporate St.M

Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content

Delivery
This is the standard strategic management approach, based
on a company focused control-equity with limited out-side in
orientation and seeing costumer experience management
Y
slowly as differentiation opportunity, cost reduction in
Co-operation based St.M outsourcing delivery and insourcing improved content
Wirtz,SJ
Expanding to eco-system 2.0
According to James Moore 1993:
Successful businesses are those that evolve rapidly and effectively. They must
attract resources of all sorts, drawing in capital, partners, suppliers, and
customers to create cooperative networks anticipate the managerial challenges
of nurturing the complex business communities that bring innovations to
market:
Expansion
Bring the new offer to a large market by working with suppliers and partners to
scale up supply and to achieve maximum market coverage.
Leadership
Provide a compelling vision for the future that encourages suppliers and
customers to work
together to continue improving the complete offer.
Self-Renewal
Work with innovators to bring new ideas to the existing ecosystem

Wirtz,SJ
Expanding to eco-system 2.0
Consumers are adopting increasingly active roles in
-co-creating marketing content with companies and their respective brands.

- In turn, companies and organizations are looking to online social marketing
programs and campaigns in an effort to reach consumers where they ‘live'
online.
- However, the challenge facing many companies is that although they
recognize the need to be active in social media, they do not truly understand
how to do it effectively, what performance indicators they should be
measuring, and how they should measure them ( Hanna R et all 2012 )

Wirtz,SJ
Expanding to eco-system 2.0:
Ecosystems are larger, more diverse, and more fluid than a traditional set of
bilateral partnerships or complementors. By leveraging ecosystems, companies
can deliver complex solutions while maintaining corporate focus:
Six keys to unlock ecosystem advantage:
- pinpointing where value is created,
- defining an architecture of differentiated partner roles,
- stimulating complementary partner investments,
- reducing the transaction costs,
- facilitating joint learning across the network, and engineering effective ways
to capture profit.
( P.Williamson, A. de Meyer 2012)
Not ignoring three fundamental types of risk:
-initiative risks
—the familiar uncertainties of managing a project;
-interdependence risks
—the uncertainties of coordinating with comple-mentary innovators; and
-integration risks
—the uncertainties presented by the adoption process across the value chain.
( Ron Adner 2006 )

Wirtz,SJ
Expanding to eco-system 2.0:
Consumers are adopting increasingly active roles
- in co-creating marketing content
- with companies and their respective brands.
In turn, companies and organizations are looking to online social marketing
programs and campaigns in an effort to reach consumers where they ‘live'
online.
However, the challenge facing many companies is that although they recognize
the need to be active in social media, they do not truly understand how to do it
effectively, what performance indicators they should be measuring, and how
they should measure them. ( see richthofer

Wirtz,SJ
Expanding to eco-system 2.0:
Moore describes the evolutionary stages of a business-ecosystem as forms of cooperative
challenges

Birth
Work with customers and suppliers to define the new value proposition around a
seed innovation.
Expansion
Bring the new offer to a large market by working with suppliers and partners to scale up
supply and to achieve maximum market coverage.
Leadership
Provide a compelling vision for the future that encourages suppliers and customers to work
together to continue improving the complete offer.

Self-Renewal
Work with innovators to bring new ideas to the existing ecosystem.
Part three: Construct building blocks and stepping stone
Communication based sense
making and receptivity
Expanding to ecosystem 2.0:
Z
IMC, gurus
brand identity,
Trendsetters

Four additional areas of focus are added

ITC, tele-matic,
Graphics, EsRP

Market-com
Social media

Resource based
corporate St.M

Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content

Delivery
Standardization
Virtual company
network

Y
Co-operation based St.M

Wirtz,SJ
Communication based sense
making and receptivity
Z
IMC, gurus
brand identity,
Trendsetters

Expanding to eco-system 2.0

Integrated market communication addressing inside
and outside of companies, instrumentalization of gurus,
Brand Identity of joint service, people connected leader

ITC, tele-matic,
Graphics, EsRP

Market-com
Social media

Resource based
corporate St.M

Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content

Delivery
Standardization
Virtual company
network

Y
Co-operation based St.M

Wirtz,SJ
Communication based sense
making and receptivity
Z

Expanding to eco-system 2.0

IMC, gurus
brand identity,
Trendsetters
ITC, tele-matic,
Graphics, EsRP

Market-com
Social media

The ITC is both enabler and biggest hurdle creating
cooperate networks, incompatibility ,EsRP that is too
company focused, telematic as a language, lack of
engineers, execution control via access level to IT

Resource based
corporate St.M

Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content

Delivery
Standardization
Virtual company
network

Y
Co-operation based St.M

Wirtz,SJ
Communication based sense
making and receptivity
Z

Expanding to eco-system 2.0

IMC, gurus
brand identity,
Trendsetters
ITC, tele-matic,
Graphics, EsRP

Market-com
Social media

Resource based
corporate St.M

Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content

Delivery
Standardization
Virtual company
network

Y
Co-operation based St.M

Achieving fast accepted standards in the network is a power,
definition and user’s rights of IP is changing, free-conomics

Wirtz,SJ
Communication based sense
making and receptivity
Z

Expanding to eco-system 2.0

IMC, gurus
brand identity,
Trendsetters
ITC, tele-matic,
Graphics, EsRP

Market-com
Social media

Resource based
corporate St.M

Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content

Delivery
Standardization
Virtual company
network

Value chain co-operation among different companies, no red
tape management, success orientation with failure tolerance,
Y
Co-operation based St.M connecting leadership
Wirtz,SJ
Communication based sense
making and receptivity
Z
IMC, gurus
brand identity,
Trendsetters
ITC, tele-matic,
Graphics, EsRP

Market-com
Social media

Expanding to eco-system 2.0

Integrated market communication addressing inside
and outside of companies, instrumentalization of gurus,
Brand Identity of joint service, people connected leader
The ITC is both enabler and biggest hurdle creating
cooperate networks, incompatibility ,EsRP that is too
company focused, telematic as a language, lack of
engineers, execution control via access level to IT

Resource based
corporate St.M

Industry codes,
symbols, slogan
CustomerX
What industries How solutions Technology
Content
arena one is in commercialized other than used experience mgt.
Content

Delivery
Standardization

Achieving fast accepted standards in the network is a power,
definition and user’s rights of IP is changing, free-conomics
Virtual company
network
Value chain co-operation among different companies, no red
tape management, success orientation with failure tolerance,
Y
Co-operation based St.M connecting leadership
Wirtz,SJ
Communication based sense
Expanding to eco-system 2.0,
making and receptivity
Integrating 4 levels of conjoint orientation
Z
and meaning oriented activities:
IMC, gurus
Brand identity
Trendsetters
ITC, tele-matic,
Graphics, EsRP

Market-com
Social media
Industry codes,
symbols, slogan

Content
Content
Delivery
Standardization

Virtual company
network

Y
Co-operation based St.M

Dialogue, ideatizing
Creating knowledge
communities,, action
platforms
Tech-integration,
virtualization, cloud,
3 D printing, AR , IPE
Standards,royalties,
POS, on/offline,
connectivity, longtail
m-commerce, blogs

CustomerWhat industries How solutions Technology Cost control, Web3.0 X
C.I.,perceived quality,
arena one is in commercialized other than used experience mgt.
cost
open vs closed, CSR,
bundeling, investor relat

The four areas focus the co-operation and dysfunctional discussions on a cohort of issues,
therefore leading to integration and new arena
differentiation. It provides meaning through
understanding arising solution providers’ challenges.

Wirtz,SJ
Communication based sense
Expanding to eco-system 2.0,
making and receptivity
Integrating 4 levels of conjoint orientation
Z
and meaning oriented activities:
IMC, gurus
Brand identity
Trendsetters
ITC, tele-matic,
Graphics, EsRP

Market-com
Social media
Industry codes,
symbols, slogan

Content
Content

Cost control, Web3.0
C.I.,perceived quality,
cost
open vs closed, CSR,
bundeling, investor relat

POS, on/offline,
connectivity, longtail
m-commerce, blogs

CustomerX
What industries How solutions Technology
arena one is in commercialized other than used experience mgt.

Delivery
Standardization
Virtual company
network

Y
Co-operation based St.M

Dialogue, ideatizing
Creating knowledge
communities,, action
platforms

Tech-integration,
virtualization, cloud,
3 D printing, AR , IPE
Standards ,royalties,

Wirtz,SJ
It results in 3D
cube with 64
activity blocks like

Wirtz,SJ
Z

Communication based sense
making and receptivity

It results in 3D cube with
64 activity blocks like a
rubic cubic.

X

Y
Co-operation based Strategic Management

Resource based
corporate Strategic
Management
64 buildings block need then to be filled out and differentiated according to
Strategic concept and strategic execution:
Block: x4,y4,z4
Facilitating partner co-operation and
managing the experience over time
Concepts:
Customer experience management applied
to partners and competitors,
Momentum Effect:

Execution: Forum, TED and clubs originating
joint activities and providing solution in an open
source ware, funding start ups and spin offs

Wirtz,SJ
Insead 4.cssg 3 axes of meaning based strategic management

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Insead 4.cssg 3 axes of meaning based strategic management

  • 2. 3 pilars of meaning based strategic management costumer Wirtz,SJ
  • 3. Context: - Customer experience management become more and more a differentiation activity - In agile markets were new market profiles arose and are co-created the customer approach has to be integrated in any activity a company gets involved with partners as - - building trust - - creating mutual understanding of moving targets in emerging industries and - - considering the service encounter attitude and treatment as applicable to people and companies alike being in co-operation network. - The ecosystem approach can indicate some of the strategic issues one has to address in strategic management - It implies and somewhat applies that the term sustainable competitive advantage will be transformed into - Transient as well as co-constructed competitive advantage as in emerging markets a priori concepts may fail as a paradigm shift happens. Wirtz,SJ
  • 4. Approach: Part one: - Look at companies orientation about its environment in emerging markets Part two: - Extend the integration of important elements into the strategic management Part three: - Construct building blocks and stepping stone Highlight finally what this has to do with meaning based Wirtz,SJ
  • 6. Part 1: The company links the inside performance with the market performance Leadershi p Meaning based inside outside People Promotion Positioning Materialisatio nbased Production Product/Service Place Efficiency based Process Price Strength and Weakness SW OT Opportunity and Threat Wirtz,SJ
  • 7. There two genuine strategy development processes with implication for strategic change management A. Prescriptive model of business strategy Options Environment Purpose Options The prescriptive strategy process Lynch, 2008 Choice Implement Resources Options is the usual approach and neglects often the limitations that an existing organisation and its culture limits the strategic options
  • 8. B. Emergent model of business strategy The emergent strategy process – based on Quinn 1990, Senge 1990, Argyris 1977, Mintzberg 1987 and others Environment Purpose Resources Strategy development and implementation Keypoint: creative, experimental, more difficult to describe but essential according Lynch,
  • 9. What is strategic change management? One approach to emergent processes Environment Strategic Change Management issues to open the company towards networking Purpose Resources , Strategy development and implementation Emergent theories include: •Survival-based •Uncertainty-based •Human resource-based •Innovation and learningbased
  • 11. “Ideating” the other side of innovation by Govindarajan, V, Trimble,C 2010 Wirtz,SJ
  • 13. Current wave of business model: e.g. Osterwalder: Key Partners Key Activities Key Resources Cost Structure Value Proposition Customer Relationships Customer Segments Channels Revenue Streams Consider important environment issues but more as impact on the company than stepping stone
  • 14. The environment needs also to be perceived as constructed and playground for creating emerging markets through co-creation with other companies considering them as lead customers7partners Wirtz,SJ
  • 15. In emerging markets a SWOT analysis should be extended highlighting the evaluation, estimation process by regrouping SWOT into a: SOWT Analysis inside Strengths outside Opportunities OverEstimate Under- Weaknesses Threats We genuinely underestimate our weakness and threats to our organization. We have difficulties to embrace vagueness, ambiguity and enter into co-operation without contractual arrangements and wishful outcomes
  • 16. Exploring emerging environment and create meaning based activities The cynefin framework Watch the explaination: http://www.youtube.com/watch?v=N7oz366X0-8
  • 17. Simple, in which the relationship between cause and effect is obvious to all, the approach is to Sense - Categorise - Respond and we can apply best practice. Complicated, in which the relationship between cause and effect requires analysis or some other form of investigation and/or the application of expert knowledge, the approach is to Sense - Analyze - Respond and we can apply good practice. Complex, in which the relationship between cause and effect can only be perceived in retrospect, but not in advance, the approach is to Probe - Sense - Respond and we can sense emergent practice. Chaotic, in which there is no relationship between cause and effect at systems level, the approach is to Act - Sense - Respond and we can discover novel practice. The fifth domain is Disorder, which is the state of not knowing what type of causality exists, in which state people will revert to their own comfort zone in making a decision. That comfort zone including organizational ones can be the biggest hurdle for process driven innovation Wirtz,SJ
  • 18. Product centered management is still somewhat restricting companies to improve customer-focused services and grow with new service business models. Many organizations have set the target to launch and develop new customer services as a key element in their strategy. According to P. Moore ( 1993) In order to adapt to the fast changing customer needs, delivery of the services requires an ecosystem of organizations.. In many large organizations there is a strong tendency to seek for the clarity of old clear product and organization focused operating models. The value chain thinking and connecting as well connected leadership models can create an extended ecosystem approach A holistic change is needed in order to design and implement an operating model that enables integrating and managing a set of contracts, indicators and measurements aiming to efficiently adapt a network of organiztions from sales to operations to fulfill customer needs and manage customer expectations. By leveraging ecosystems, companies can deliver complex solutions while maintaining corporate focus but it has to be concerned to contribute to the ecosystem construction as well.
  • 19. The idea is that each business in the “ecosystem” affects and is affected by the others, creating a constantly evolving relationship in which each business must be flexible, adaptable and open to new partnerships and evolving networks
  • 20. - Part 2:Extend the integration of important elements into the strategic management The idea is that each business in the “ecosystem” affects and is affected by the others, be it companies, individuals, trendsetters research organization, governments and certain socio-economic events like ageing of society, obesity.. creating a constantly evolving relationship in which each business must be flexible, adaptable and open to new partnerships and evolving networks
  • 21. Thought-concept Communication based sense making and receptivity Z The 3 pillars are the axes x,y,z, Resource based corporate Strategic Management X Y Co-operation based Strategic Management Wirtz,SJ
  • 22. Communication based sense making and receptivity Z The 3 pillars are the axes x,y,z, 4 reference platform focus on 4 strategic elements Resource based corporate Strategic Management X Y Co-operation based Strategic Management Wirtz,SJ
  • 23. Communication based sense making and receptivity The 3 pillars are the axes x,y,z, Z 4 reference platform focus on 4 strategic elements: Connected and connecting leadership Focus on technology and related innovation Market management Industry/Arena specific identity Y Co-operation based Strategic Management Resource based corporate Strategic Management X Wirtz,SJ
  • 24. Communication based sense making and receptivity Z z4 Concept Execution z3 Concept Execution z2 Concept Execution z1 y1 Concept This will lead to 64 activity blocks differentiated according strategy concept and strategy execution Resource based corporate St.M Concept Execution Concept Execution x1 Concept Execution x2 Concept Execution x3 Concept Execution x4 Concept X Execution y2 Execution Concept y3 Execution y4 Concept Execution Y Co-operation based St.M Wirtz,SJ
  • 25. Communication based sense making and receptivity Z Resource based corporate St.M Hard-ware Y Co-operation based Strategic Management Soft-ware Tech-ware Customer/ X User - ware Wirtz,SJ
  • 26. Communication based sense making and receptivity Z Resource based corporate St.M CustomerX What industries How solutions Technology arena one is in commercialized other than used experience mgt. Y Co-operation based St.M Wirtz,SJ
  • 27. Communication based sense making and receptivity Z Resource based corporate St.M Industry codes, symbols, slogan CustomerX What industries How solutions Technology Content arena one is in commercialized other than used experience mgt. Content Delivery Y Co-operation based St.M Competing companies in the same arena, e.g. coffee are very different how they commercialize and address customers/users: Nescafé, Starbucks, illy and how they expand their eco-system, focusing also on co-operation in content and delivery, manipulating, breaking industry communication codes and symbols Wirtz,SJ
  • 28. Communication based sense making and receptivity Z Resource based corporate St.M Industry codes, symbols, slogan CustomerX What industries How solutions Technology Content arena one is in commercialized other than used experience mgt. Content Delivery This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management Y slowly as differentiation opportunity, cost reduction in Co-operation based St.M outsourcing delivery and insourcing improved content Wirtz,SJ
  • 29. Communication based sense making and receptivity Z Eco-system 1, traditional collaboration based mostly on company strength and perceived opportunity Resource based corporate St.M Industry codes, symbols, slogan CustomerX What industries How solutions Technology Content arena one is in commercialized other than used experience mgt. Content Delivery This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management Y slowly as differentiation opportunity, cost reduction in Co-operation based St.M outsourcing delivery and insourcing improved content Wirtz,SJ
  • 30. Communication based sense making and receptivity Z Uncontrollable social media already disrupts and makes ecosystem 1 additionally volatile Eco-system 1, traditional collaboration based mostly on company strength and perceived opportunity Market-com, social media Resource based corporate St.M Industry codes, symbols, slogan CustomerX What industries How solutions Technology Content arena one is in commercialized other than used experience mgt. Content Delivery This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management Y slowly as differentiation opportunity, cost reduction in Co-operation based St.M outsourcing delivery and insourcing improved content Wirtz,SJ
  • 31. Communication based sense making and receptivity Z Uncontrollable social media disrupts and makes ecosystem 1 volatile Expanding to ecosystem 2.0 Eco-system 1, traditional collaboration based mostly on company strength and perceived opportunity Market-com, social media Resource based corporate St.M Industry codes, symbols, slogan CustomerX What industries How solutions Technology Content arena one is in commercialized other than used experience mgt. Content Delivery This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management Y slowly as differentiation opportunity, cost reduction in Co-operation based St.M outsourcing delivery and insourcing improved content Wirtz,SJ
  • 32. Expanding to eco-system 2.0 According to James Moore 1993: Successful businesses are those that evolve rapidly and effectively. They must attract resources of all sorts, drawing in capital, partners, suppliers, and customers to create cooperative networks anticipate the managerial challenges of nurturing the complex business communities that bring innovations to market: Expansion Bring the new offer to a large market by working with suppliers and partners to scale up supply and to achieve maximum market coverage. Leadership Provide a compelling vision for the future that encourages suppliers and customers to work together to continue improving the complete offer. Self-Renewal Work with innovators to bring new ideas to the existing ecosystem Wirtz,SJ
  • 33. Expanding to eco-system 2.0 Consumers are adopting increasingly active roles in -co-creating marketing content with companies and their respective brands. - In turn, companies and organizations are looking to online social marketing programs and campaigns in an effort to reach consumers where they ‘live' online. - However, the challenge facing many companies is that although they recognize the need to be active in social media, they do not truly understand how to do it effectively, what performance indicators they should be measuring, and how they should measure them ( Hanna R et all 2012 ) Wirtz,SJ
  • 34. Expanding to eco-system 2.0: Ecosystems are larger, more diverse, and more fluid than a traditional set of bilateral partnerships or complementors. By leveraging ecosystems, companies can deliver complex solutions while maintaining corporate focus: Six keys to unlock ecosystem advantage: - pinpointing where value is created, - defining an architecture of differentiated partner roles, - stimulating complementary partner investments, - reducing the transaction costs, - facilitating joint learning across the network, and engineering effective ways to capture profit. ( P.Williamson, A. de Meyer 2012) Not ignoring three fundamental types of risk: -initiative risks —the familiar uncertainties of managing a project; -interdependence risks —the uncertainties of coordinating with comple-mentary innovators; and -integration risks —the uncertainties presented by the adoption process across the value chain. ( Ron Adner 2006 ) Wirtz,SJ
  • 35. Expanding to eco-system 2.0: Consumers are adopting increasingly active roles - in co-creating marketing content - with companies and their respective brands. In turn, companies and organizations are looking to online social marketing programs and campaigns in an effort to reach consumers where they ‘live' online. However, the challenge facing many companies is that although they recognize the need to be active in social media, they do not truly understand how to do it effectively, what performance indicators they should be measuring, and how they should measure them. ( see richthofer Wirtz,SJ
  • 36. Expanding to eco-system 2.0: Moore describes the evolutionary stages of a business-ecosystem as forms of cooperative challenges Birth Work with customers and suppliers to define the new value proposition around a seed innovation. Expansion Bring the new offer to a large market by working with suppliers and partners to scale up supply and to achieve maximum market coverage. Leadership Provide a compelling vision for the future that encourages suppliers and customers to work together to continue improving the complete offer. Self-Renewal Work with innovators to bring new ideas to the existing ecosystem.
  • 37. Part three: Construct building blocks and stepping stone Communication based sense making and receptivity Expanding to ecosystem 2.0: Z IMC, gurus brand identity, Trendsetters Four additional areas of focus are added ITC, tele-matic, Graphics, EsRP Market-com Social media Resource based corporate St.M Industry codes, symbols, slogan CustomerX What industries How solutions Technology Content arena one is in commercialized other than used experience mgt. Content Delivery Standardization Virtual company network Y Co-operation based St.M Wirtz,SJ
  • 38. Communication based sense making and receptivity Z IMC, gurus brand identity, Trendsetters Expanding to eco-system 2.0 Integrated market communication addressing inside and outside of companies, instrumentalization of gurus, Brand Identity of joint service, people connected leader ITC, tele-matic, Graphics, EsRP Market-com Social media Resource based corporate St.M Industry codes, symbols, slogan CustomerX What industries How solutions Technology Content arena one is in commercialized other than used experience mgt. Content Delivery Standardization Virtual company network Y Co-operation based St.M Wirtz,SJ
  • 39. Communication based sense making and receptivity Z Expanding to eco-system 2.0 IMC, gurus brand identity, Trendsetters ITC, tele-matic, Graphics, EsRP Market-com Social media The ITC is both enabler and biggest hurdle creating cooperate networks, incompatibility ,EsRP that is too company focused, telematic as a language, lack of engineers, execution control via access level to IT Resource based corporate St.M Industry codes, symbols, slogan CustomerX What industries How solutions Technology Content arena one is in commercialized other than used experience mgt. Content Delivery Standardization Virtual company network Y Co-operation based St.M Wirtz,SJ
  • 40. Communication based sense making and receptivity Z Expanding to eco-system 2.0 IMC, gurus brand identity, Trendsetters ITC, tele-matic, Graphics, EsRP Market-com Social media Resource based corporate St.M Industry codes, symbols, slogan CustomerX What industries How solutions Technology Content arena one is in commercialized other than used experience mgt. Content Delivery Standardization Virtual company network Y Co-operation based St.M Achieving fast accepted standards in the network is a power, definition and user’s rights of IP is changing, free-conomics Wirtz,SJ
  • 41. Communication based sense making and receptivity Z Expanding to eco-system 2.0 IMC, gurus brand identity, Trendsetters ITC, tele-matic, Graphics, EsRP Market-com Social media Resource based corporate St.M Industry codes, symbols, slogan CustomerX What industries How solutions Technology Content arena one is in commercialized other than used experience mgt. Content Delivery Standardization Virtual company network Value chain co-operation among different companies, no red tape management, success orientation with failure tolerance, Y Co-operation based St.M connecting leadership Wirtz,SJ
  • 42. Communication based sense making and receptivity Z IMC, gurus brand identity, Trendsetters ITC, tele-matic, Graphics, EsRP Market-com Social media Expanding to eco-system 2.0 Integrated market communication addressing inside and outside of companies, instrumentalization of gurus, Brand Identity of joint service, people connected leader The ITC is both enabler and biggest hurdle creating cooperate networks, incompatibility ,EsRP that is too company focused, telematic as a language, lack of engineers, execution control via access level to IT Resource based corporate St.M Industry codes, symbols, slogan CustomerX What industries How solutions Technology Content arena one is in commercialized other than used experience mgt. Content Delivery Standardization Achieving fast accepted standards in the network is a power, definition and user’s rights of IP is changing, free-conomics Virtual company network Value chain co-operation among different companies, no red tape management, success orientation with failure tolerance, Y Co-operation based St.M connecting leadership Wirtz,SJ
  • 43. Communication based sense Expanding to eco-system 2.0, making and receptivity Integrating 4 levels of conjoint orientation Z and meaning oriented activities: IMC, gurus Brand identity Trendsetters ITC, tele-matic, Graphics, EsRP Market-com Social media Industry codes, symbols, slogan Content Content Delivery Standardization Virtual company network Y Co-operation based St.M Dialogue, ideatizing Creating knowledge communities,, action platforms Tech-integration, virtualization, cloud, 3 D printing, AR , IPE Standards,royalties, POS, on/offline, connectivity, longtail m-commerce, blogs CustomerWhat industries How solutions Technology Cost control, Web3.0 X C.I.,perceived quality, arena one is in commercialized other than used experience mgt. cost open vs closed, CSR, bundeling, investor relat The four areas focus the co-operation and dysfunctional discussions on a cohort of issues, therefore leading to integration and new arena differentiation. It provides meaning through understanding arising solution providers’ challenges. Wirtz,SJ
  • 44. Communication based sense Expanding to eco-system 2.0, making and receptivity Integrating 4 levels of conjoint orientation Z and meaning oriented activities: IMC, gurus Brand identity Trendsetters ITC, tele-matic, Graphics, EsRP Market-com Social media Industry codes, symbols, slogan Content Content Cost control, Web3.0 C.I.,perceived quality, cost open vs closed, CSR, bundeling, investor relat POS, on/offline, connectivity, longtail m-commerce, blogs CustomerX What industries How solutions Technology arena one is in commercialized other than used experience mgt. Delivery Standardization Virtual company network Y Co-operation based St.M Dialogue, ideatizing Creating knowledge communities,, action platforms Tech-integration, virtualization, cloud, 3 D printing, AR , IPE Standards ,royalties, Wirtz,SJ
  • 45. It results in 3D cube with 64 activity blocks like Wirtz,SJ
  • 46. Z Communication based sense making and receptivity It results in 3D cube with 64 activity blocks like a rubic cubic. X Y Co-operation based Strategic Management Resource based corporate Strategic Management
  • 47. 64 buildings block need then to be filled out and differentiated according to Strategic concept and strategic execution: Block: x4,y4,z4 Facilitating partner co-operation and managing the experience over time Concepts: Customer experience management applied to partners and competitors, Momentum Effect: Execution: Forum, TED and clubs originating joint activities and providing solution in an open source ware, funding start ups and spin offs Wirtz,SJ