Aalborg u nov4-16 public copy

CENTRE FOR THE

EXPERIENCEECONOMY

VALUE CREATION THROUGH EXPERIENCE

AALBORG UNIVERSITY 4 NOVEMBER 2016

TWO PERSPECTIVES

demystifying of the

concept of experience

business/ societal

perspective

by exploring new

forms of value creation

BA

experience

perspective

Structural changes in

society

CENTRE FOR THE

EXPERIENCEECONOMY

STRUCTURAL CHANGES IN FOUR PERSPECTIVES

Simultaneously on macro and micro level, there

is a shift from hierarchical to horizontal value structure

economical

philosophical

sociological

technological

€

WE NEED TO UNDERSTAND THESE CHANGES…

CENTRE FOR THE

EXPERIENCEECONOMY

philosophical

security & protection

natural

system

competences & function

social

regulatory system

meaning & insights

communication

self direction

crea tive

obe dient

hid den

sociological

self actualisationexperience explore meaning& purpose

economic impetus

captivating idea prospertity & modernity

NOW

manufacturing driven marketing brand driven people/network driven responsible business

20’s90’s80’s

technological

internet of things

cyber physical systems that monitor & control behavior & environments

digitalisation

uberi-fication across other services

artificial intelligence

singularity wearables, quantified self

€ economical

servicesgoodsmeaningful experiencescommodities

transaction

based

purpose

based

valu

e

time

#1 value is being co created

from ownership to access

monetary value becomes social value> scarcety of time

technology is enabling & democratising society

value is shared & accelerated through networks

#2

#3

#5

#4

FROM SCARCITY TO ABUNDANCE

EProcess &

organisation

Strategy &vision

Experience Value

Culture &competences

business model

5 STEPS OF VALUE CREATION; A MODUS OPERANDI

A

BCE

D

AA.Create Strategy

What is the purpose? What is the leading idea?Strategic options

B Experience Value What is the value the customer will experience?What is the role of experience design?

B. Experience ValueProposition

Processes & organisation.

C The toolbox of experience technologies; processes, scripts, protocols, touchpoints, placemaking, creating platforms of engagement, narratives story telling, moodmanagement .Systems to ensure quality and consistency of the experience.

Processes & organisation.

C The toolbox of experience technologies; everything that can be digitalised can be personalised

Culture &competencesleadership

D How to create a high performing culture & encourage fundamental leadership. Which new competences need to be developed?

E.Business & revenuemodel

E How to capture your value? Where do you make money? What are your profit zones? What are your investments and what are your cost structures?

SUMMARY

Eproces &

organisationexperienced value

culture &competences

business model

A

BCE

DStrategy &vision

It will be your challenge to create a unique balance between an inviting environment, offering (personalised) value propositions executed by people that love their job creating a significant experience for your guests & customers

VALUE CREATION IN HOSPITALITYRitz Carlton, Joie de Vive & Airbnb

Ritz Carlton

1ststage

VALUE CREATION IN HOSPITALITY

Joie de vivre hotel | phoenix

2ndstage

Ritz Carlton, Joie de Vive & Airbnb

CASE STUDY; VALUE CREATION IN NETWORKED HOSPITALITY BUSINESSES

Airbnb

EQuality &

consistency

Strategy &vision

Experience Value

Culture &competences

business model

5 STEPS OF VALUE CREATION; A MODUS OPERANDI

A

BCE

D

AA.Create Strategy

Based on serendipidity & creativityAir-bed & breakfast. “They broke every assumption that we ever made who would stay on an airbed in a strangers house”.

B Live like a local. A taste of authentic neighbourhood lifeThe experience attributes are; explorative, wonder, unique, personal, being trusted

B. The guestExperience Value Proposition

BB. The guestExperience Value Proposition

Studenten Hotelschool Maastricht

B Main motive extra money. 1-Helps them pay the bills. 2-Second meeting other people. Average age 25-44, 80% rents out the home they live in. Higher educated, 45% bachelors degree. Rents out 33 nights per year.

B. The hostExperience Value Proposition

B Young urban citizin. So called Cultural creatives ( Paul Ray2000). Average age app 37(rising), more than average income & education. Average stay 3.8 nights, vs Hotels 1,9. 30% longer than a week

B. Type of guests

B Is this a new market or a so called substitute market?B.

Type of guests

Processes & organisation.

C Experience technologies;Airbnb is a social and networked business. Experience and design driven, easy access, seemless interfaces. Community and crowd management. Data driven. Systemification.Economies of scale.

Processes & organisation.

C Experience technologies;Airbnb is experience and design driven, easy access, based on seemless interfaces, relentless guest centricity. Here is a crucial role for experience design

#1

EXPONENTIAL ORGANISATIONS GROW> 10X MARKET

experiment and innovate

compelling experience value proposition

easy access with high level of Xp design

facilitated by social technology & value networks

engagement community & crowd

#2

#3

#5

#4

#6 leveraged assets by their customers

Culture &competencesleadership

D People who understand the Zeitgeist & social business. Experience Design driven, entrepreneurial mindset & fundamental leadership. and…. public diplomacy

E.Business & revenuemodel

E Capturing value in a two sided market. 13% commission on guests, 6% on hosts. A data driven company. Leveraged assets, seemless interfaces. Hi tech, hi touch

E.Business & revenuemodel

E Capturing value60.000.000 guests, 191 countries43.000 cities, 2.000.000 accomodations. 24.5 Billion $ valide by 2020

E.Business & revenuemodel

E Cost structures;IT, experience design, marketing communication, public policy,

E.Business & revenuemodel

E Strong brands & 4 star hotels no impact. In Austin Texas highest penetration Airbnb impact - 0,2%. *** hotels negative impact 10-15%

Impact on Hotels

E.Business & revenuemodel

E Focus on experiences, build an experience eco system;Focus on local engagement, partnersFocus on place makingPay attention to the social aspectGet guest-data and algorithms in orderOffer extended stay propositions

What can Hotels learn from Airbnb

the phenomenon that consumers/citizins share unused

consumption goods or tools without charges or against a fee

( Meeren/Frenkel 2014)

Key elements;

1.peer 2 peer and C2C( not B2C)

2.temporarily access

3. no transfer of property rights

CENTRE FOR THE

EXPERIENCEECONOMY

Sharing or collaborative economy?

EXPERIENCE IS VALUE

PERSONAL VALUES ARE CHANGING

BUSINESS VALUES ARE CHANGING

!

Read the book with illustrating case studies

experience economyexperience economy

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