Normann, 2001 Ch. 5 - Prime Mover as Reconfigures - quite good "deck"

Question 1

What are the main attributes for a Prime Mover?

Answer 1

1. Normann writes that “companies with a strong identification with their product, or production process, rarely become reframing Prime Movers, even though they might see themselves as Prime Movers. P 69
2. Change the view, from an output in your chain till an input in your customers value chain! Meaning that you need to understand your customers business. In order to do that you need to understand the customers MAJOR STAKES. Meaning the customer’s customer, usually.
3. We need to help our customer, in order to have healthy, wealthy customers.
4. Look at how you can change your customers internal effectiveness. Either to lower their (and your costs) or make their business/processes more efficient.

Question 2

To sum up, what two values should a prime mover aim for?

Answer 2

1. Reduce the customer’s costs
2. Enabling the customer to create new and more competitive offerings in his/hers business.

Question 3

How do we recognize a prime mover? (picture/model)

Answer 3

Question 4

How do an ou-dated value chain look like? (model)

Answer 4

Question 5

How do a value star look like?

Answer 5

Question 6

What new focus should a prime mover have? (model)

Answer 6

Question 7

What should we remeber?

Answer 7

Customers relationship is a strategic asset!

Question 8

Prime mover:

Answer 8

Prime Mover

• Reintegrate and rebundle as well as disintegrate and unbundle
• Create cases of reconfiguration which seem to stem for a new design vision of an ‘industry’ or a broader system of value creation
• Tend to envision a broader value-creating system (as opposed to a technological innovation, a new product, or the simple exploitation of economic imperfection) as the outcome of their strategy. The results tend to be boundary breaking, redefining the roles of different economic actors and setting new rules of the game.
• Adds a unique competence to the whole: a vision-based network pattern, and the ability to actually bring players with disparate assets and competences together into forming a new, functioning value-creating system.
• Prime Movers move from focusing on traditional and narrow (often production and commodity-based) set of competences to a much broader and partly new set of competences and assets, which they are able to mobilize and coordinate so that the result becomes a shift of focus from a product or service to a value-creating system. The design vision which this requires often originates in a strong sense of mission based on dissatisfaction andinefficiencies in the existing system.
• Prime mover strives to reorganize activities and other institutions so that this larger system can come into being. Their critical competence is in the combination of envisioning this more effective larger system and
  in organizing other players to co-produce so as to jointly enact the more efficient larger system. This ability may, from the outset, be based primarily on the technological innovations or it may arise from intellectual and conceptual innovations, which then enable themselves and other to co-align and focus their activities.

Question 9

one company becomes prime mover, what do the other become?

Answer 9

The reconfiguration game caused by new opportunities for value creation will, according to the vacuum principle,
tend to divide economic actors into those who reconfigure (Prime Movers) and those who are reconfigured (they
have to adapt to the new rules of the game).

Question 10

What is reframing?

Answer 10

Reframing: Rethink the logic of value-creation

• a prerequisite for reconfiguration is reframing, which moves prime movers away from an orientation of manufacturing and selling a product toward the wider set of capabilities required to design and run valuecreating systems (Normann 2001, p. 66)
• A particularly fruitful way of reframing is to focus on the customer of the company as the major stakeholder Ad to mentally frame oneself as a part of the customer’s business
• True customer orientation means that one has to go beyond the direct relationship between oneself and one’s customers to understand the relationship between the customers and the customers’ customers – from the first to the second level customer relationship

Question 11

What is the customer’s internal efficiency?

Answer 11

Internal efficiency: manifested in the customer’s cost structure, customer will have the benefit of cost advantage as result of our invention (customer process more efficient, lowered costs)

Question 12

What is external effectivness?

Answer 12

External effectiveness: the input we provide to the customer has a direct effect on the customer’s own customer offering (our invention directly visible to customers customer, customer can develop market position)

Question 13

What is relieving and enabling? (chapter 2)

Answer 13

Relieving (e.g. supplier relieve customers from doing things, since they can do it better): the certain value creating activities are reconfirmed from the customer system to supplier system

Enabling (e.g. supplier provide offerings which enable the customer to do things that the customer was not able to do before): activities that could be performed by supplier or others/or nobody can be