Study on optimizing resources configuration of value activity network of manufacturing clusters
Wenping Wang, Xinhuan Huang and Jie Xie
The paper attempts to analyze the network structure of value activity in manufacturing clusters, propose the model of value creation of cluster's value activity network…
The paper attempts to analyze the network structure of value activity in manufacturing clusters, propose the model of value creation of cluster's value activity network, and explore the inner mechanism and optimization strategies of value creation in manufacturing clusters from the perspective of cluster's value activity network.
This paper applies a genetic algorithm to optimally search in the target space, and repeatedly exerts genetic operation (select, cross, variation) on the population to explore the optimal configuration strategy between value creation activity and resource utilization. It also analyzes the relation between object function of value creation and relative parameters.
The total value created by value activity network was impacted by the degree of effective configuration between all kinds of resources and value activities; the total value created by value activity network is positively related to activity units' elasticity coefficient of value creation of human resource, material resources and relations resource, and is negatively correlated to cost coefficient of human resource, material resources and relations resource; when the cooperative relations between activity units create positive relationship profit, the total value created by value activity network increases with the increase of cooperative relations between activity units.
Enterprises in clusters should reasonably configure and incorporate the resource among value activities through adding, deleting or reconfiguring activities, which makes the value activities network create maximum value; enterprises can transform the type of activity units to increase elasticity coefficient of value creation of human resources, such as transforming production activities into the high value‐added activities; enterprises can optimally incorporate the technical, material resources and human resources among activities to increase value creation elastic coefficient of material resources; enterprises can decrease cost coefficient by maintaining the stability of long‐term cooperation with the suppliers and strengthening the cultivation of talents; enterprises can increase profits from relation resource or reduce cost coefficient of relationship by updating activities, building trust mechanism and communication mechanisms and establishing long‐term cooperation relationship to improve value creation activities.
This paper proposes the model of value creation from the perspective of cluster's value activity network, and applies a genetic algorithm to explore the optimal configuration strategies between value creation activity and resource utilization.
Value activity network
Elasticity coefficient of value creation
Venkat Ramaswamy – a ten-year perspective on how the value co-creation revolution is transforming competition
In this interview with Prof. Venkat Ramaswamy, Strategy & Leadership reviews the way the concept of co-creation of value with customers is being implemented on its tenth…
In this interview with Prof. Venkat Ramaswamy, Strategy & Leadership reviews the way the concept of co-creation of value with customers is being implemented on its tenth anniversary. Prof. Ramaswamy explains the basic elements of the co-creation playbook.
Based on his research with companies pioneering innovation co-creation with customers, Prof. Ramaswamy offers insights for executives into what makes this perspective different and powerful.
Prof. Ramaswamy discusses the guiding principle underlying the transformation of enterprises towards co-creation: how to engage people to create valuable experiences together while enhancing network economics.
In designing and managing a co-creation platform, ask, how accessible is it to consumers or any other key stakeholders; how well does it facilitate dialogue among them; how transparent is this interaction to all, which helps to build trust and attract even more participants; and how well does it enable the reflexive leveraging of the innovation and learning generated to enhance the value of the platform?
Senior executives need to know how co-creation engagement platforms can also be used to generate ideas for continuously improving products and services through the lens of customer experiences.
Stakeholder competencies
Value creation in supply chain relationships: a critique of governance value analysis
The purpose of this paper is to present a critique of the use of governance value analysis (GVA) for assessment of value creation in supply chains.
The study presents a conceptual analysis of the assumptions, factors, and range of GVA as it applies to assessment of value creation in supply chains.
GVA lacks comprehensiveness in assessing value creation in supply chains in that it ignores: certain important factors that affect value creation in supply‐chain relationships; governance issues beyond transaction‐specific investments; and cooperative value‐creating activities among supply‐chain members.
The critique calls into question the applicability of GVA in governing value creation, especially in the context of dynamic contemporary conceptions of supply‐chain relationships. It is not recommendable to analytically treat cooperation in supply‐chain relationships as transactional exchange.
This is an original and timely critique of the presumption that GVA is an appropriate model for assessment of value creation in supply chains.
The value co-creation process as a determinant of customer satisfaction
Manuela Vega-Vazquez, María Ángeles Revilla-Camacho and Francisco J. Cossío-Silva
The greater part of the academic literature coincides in highlighting the positive influence that consumer participation has on the value created in service delivery. In…
The greater part of the academic literature coincides in highlighting the positive influence that consumer participation has on the value created in service delivery. In this sense, research stands out which studies the consumer's role as a value co-creator in the service. However, there are few studies which analyze the consequences of co-creation behavior from the customer perspective. This research aims to fill this gap. To do so, it sets out from the measuring of co-creation from the perspective of the customers themselves and proposes that there is a direct relationship between value co-creation behavior and customer satisfaction with the service experience.
To verify the hypothesis proposed, adults over 18 were personally interviewed. They had to be regular users of firms in the beauty parlor and personal care sector. The data collection finished with 547 duly-completed questionnaires. The SPSS 20 and AMOS 20 statistical programs were used for the data analysis.
Regarding the causal model proposed, the data confirm the relationship set out in the hypothesis. It can therefore be stated that there is a positive relation between value co-creation and customer satisfaction. It allows a greater comprehension of the value creation process, analyzing the consequences for customer satisfaction. In this sense, the findings of the study suggest that service firms dedicated to personal care should foster the customers' active participation in the value creation process.
The analysis highlights the positive influence which taking part in the value co-creation has on satisfaction. This is the first study that clearly shows this relationship from the empirical point-of-view.
Venkat Ramaswamy – how value co-creation with stakeholders is transformative for producers, consumers and society
This second part of Strategy & Leadership's interview with Prof. Venkat Ramaswamy, one of the early proponents of co-creating value with stakeholders, asks him about the…
This second part of Strategy & Leadership's interview with Prof. Venkat Ramaswamy, one of the early proponents of co-creating value with stakeholders, asks him about the progress of the “co-creation transformation” of markets on its tenth anniversary and its wider implications for firm strategists and public policy makers. The interview concludes with a remembrance of the late C.K. Prahalad, a co-developer of the theory, and reviews his many contributions to the advancement of strategic management.
This interview considers how the co-creation view starts with interactions as the locus of value and platforms of engagements with individuals as the locus of value creation.
The co-creation paradigm is a dynamic perspective that sees the interaction of customers, employees and other stakeholders as forums for learning and ever-expanding capability building.
Strategy as “stretch and leverage” in the world of co-creation becomes about joint aspirations>joint resources.
Corporate managers need to understand that leading companies that have successfully adopted the co-creation model follow a simple principle – they focus their entire organization on the engagements with individuals.