Value Creation through Novel Resource Configurations in a Digitally Enabled World Flashcards
Definition resource configuration
It depicts the way in which it orchestrates and connects the resources it utilize
what should the design of a resource configuration be based on?
a system view and value creation-centric perspective
What is a value creation centric perspective?
views every potential value-creating participant as a value creator as well as a resource provider
What does a system based view focus on?
focuses on the resources in the focal firm’s ecosystem that are directly embedded into the focal firm’s resource configuration
What does a system based view highlight?
The value drivers that enable value creation and value capture.
What does strategic entrepreneurship perspective advocate for?
For firms to simultaneously pursue value creation and value capturing
What are the five stages for value creation in a process model?
observing, synthesizing, generating, refining, and implementing a system of interdependent activities with other value-cocreators
Definition value cocreator
A resource provider and a value beneficiary
Definition value creation process
the process by which valuable resources of all value cocreators are deployed and utilized to address one or more needs of any value cocreator.
How can new needs be identified?
by observing and synthesizing the needs of customers and partners, identifying the owners of resources, and selecting the resources to be utilized.
What are value creation processes that faciliate the identification of new needs?
Continuous testing and resource crowdsourcing
Definition resource crowdsourcing
a mechanism through which a focal firm discovers and accesses underutilized resources at a large scale. This means that they get a small amount of underutilized resource from a large group of resource providors.
When is resource crowdsourcing important?
when underutilized resources are scattered in a large group of value cocreators.
When can a bridge providor transform into a transaction enabler?
once the focal firm starts to exploit resources on both sides of the market
What does a transaction enabler do?
directly connect upstream resources with downstream customers and leverage their information advantage to facilitate transactions.
Name two processes to match needs with resoucres
sorting and prospecting
Definition sorting
firms developing methods and strategies to categorize both needs and resource such that they can be matched better. The categorization of needs is done based on different value propositions and for resources on the characteristics of the resources.
When is sorting important?
when the markets for needs and resources are very fragmented.
Definition prospecting
the focal firm predicting the needs for certain resources and the resource controllers’ expectations in order to match them through selective advertising or recommendations. This can be a source of value creation. Information relevance can be determined by the likelihood of leading to a transaction or effective matching.
When is prospecting important?
when value cocreators are overwhelmed by information or when they ahve latent needs to be uncovered.
Name two processes that can be used to bridge needs and resources
Grafting and streamlining
Definition grafting
a process in which a focal firm expriments with new combinations of unconnected resources and needs in order to identify unique complementarities between resources and needs to enhance the value creation. It starts with the resources at hand and searches for the needs of value cocreators such that it enables firms to leverage the resource and create more value.
When is grafting important?
when firms have the capabilities to access resources at a faster pace and larger scale.
Definition streamlining
the processess in which the focal firm provides or connects addiotnal resources to enable or enrich the unique complementarity they create through bridging needs and resources. It reduces the incompatibilities and uncertainties and it is critical in realizing the full value creation potential.
Where does the novelty of a digitally resource configuration come from?
the newness of the needs and resources, the innovative ways through which the matching can be done, and the uniqueness of the complmentarity among all value cocreators that the focal firm bridges and involves in the value creation process.
