1. From Value Chain to Value Constellation:
Designing Interactive Strategy
By Normann, R and Ramirez, R
Group 8
Will Day 40080
Sofia Hjelm 40092
Oskar Karlsson 40104
Julie Miller 40078
SarmadSaleem 70408

2. Interactive value
Strategy is the art of creating value
Knowledge and Relationships/ Competencies and Customers
Constantly reinventing value
Activity based offerings
3. IKEA The Wealth of Realizing New Ideas
Largest furniture retailer in the world extremely successful
HOW??? IKEA how it realizes it?
Invent value by integrating their business systems and the different participants involved
Relationships with customers
Making the visit to IKEA an entertaining one; restaurants, cafes, day-care facilities
IKEA they invent value by enabling customers own value creating activity
Suppliers in more than 50 countries assisted by the IKEA Engineering unit.
IKEA center of services, goods and design and not just a link in a value chain IKEA succeed, Greater value per person, greater profits
4. IKEA The Wealth of Realizing New Ideas (2)
Important points to undertake
Value becomes denser (greater information, greater knowledge leads to innovations)
Value occurs in complex constellations. Mobilise customers to take advantage of the density and create value for themselves
Offerings become more complex and varied ,meaning more than a single company is involved. Reconfiguration of its relationships and business systems are critical from a strategic point of view.
Mobilisation is the key make the system work! Activities are matched to actors that perform it and the role of the final customer is crucial in deciding failure or success! Dialogue between the customers and competencies are the key.
5. Danish Pharmacies Case
Reconsider business potential of key assets
Reposition offerings to create better fit between competencies and value creating activities
Make new business arrangements and social/political alliances to make these offerings feasible and efficient
6. French Concessions: Of Customers and Competencies
Two French Companies: Compagnie Generale des Euax + Lyonnaise Des Euax Dumez in the water business
Using assets to deliver value using core competencies in addition to knowledge + relationships about customers to devise a good fit between competencies and customers and keep that fit current.
Both these companies have subsidiaries and serve a number of segments apart from the proving drinking water(managing historical monuments, parks gardens, handling funerals etc.)
Challenge finding new services as well as serving existing customer base
Strategy: NEVER SAY NO TO A CUSTOMER
Allowed them to gain knowledge to give them strong competitive advantage
7. French Concessions: Of Customers and Competencies (2)
Points to take away
These corporations have learned to master the design and management of co-productive offerings
How to mobilize value chain creation in their customer partners by reconfiguring roles, relationships and structures
Reinventing value in a dialogue between competencies and customers
8. Example in the Media industry
Dell reinvented their strategy in order to deliver greater value , which enabled them to keep up with competition
9. Sources
www.dell.com
Normann, R. & Ramrez, R. From ValueChain to ValueConstellation: Designing InteractiveStrategy, HBR, 71,4, 1993.