This document discusses the concept of value constellations and interactive strategy. It provides examples of how IKEA, Danish pharmacies, and French water companies have reinvented their business models and relationships to create more value. The key points are that value occurs through complex networks of relationships, companies must mobilize customers to cocreate value using core competencies, and successful strategies reconfigure roles and structures through continuous dialogue between competencies and customers.

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. & Ramírez, R. From ValueChain to ValueConstellation: Designing InteractiveStrategy, HBR, 71,4, 1993.