This presentaion argues that all businesses should look at themselves as providers of services. This metaphor is then expanded to investigate the role of products. Finally, a new mapping technique is proposed that highlights shifts in the value network.

1. Mapping Value Migration from a Service Dominant View November 2008

4. iPod Generation (2005)

5. iPod Generation (1889) Source: Wired, http://www.wired.com/science/discoveries/news/2007/11/dayintech_1123#

9. Joseph Schumpeter The defining traits of capitalism are constant change and innovation.

10. A Working Definition Innovation is something new that ensures the ongoing creation of superior value for the organisation’s stakeholders .

11. On Value Creation “ The only true source of competitive advantage is the ability to conceive the entire value creating system and make it work.” Normann & Ramirez (1993) Source: Normann, Ramirez, 1993, Designing Interactive Strategy: From Value Chain to Value Constellation, Harvard Business Revue, July-August

12. Value Creation Cycle Value Proposition Client Intimacy Product Leadership Operational & Service Excellence Learning Knowledge Innovation Change fuels creates breeds accelerates envisions delivers Offerings via Core Capabilities experiences judges signal a need to adapt The Organization and it’s network of stakeholders (incl. customers) Customers and their network Source: See separate slide signal a need to adapt

13. Core Capabilities Stock of knowledge, skills, experience, cultural attributes & resources Culture & Values People Embodied Knowledge Processes & Decision Rights Systems & Infrastructure Capability A Capability B Capability C Capability z … Source: See separate slide Learning Knowledge Innovation Change fuels creates breeds accelerates

14. Source for Value Creation Cycle and Core Capabilities Source: Treacy, M. & Wiersema, F.D. 1997, The discipline of market leaders : choose your customers, narrow your focus, dominate your market, Expand edn, Addison-Wesley Pub. Co., Reading, Mass. Ross, J.W., Weill, P. & Robertson, D. 2006, Enterprise architecture as strategy : creating a foundation for business execution, Harvard Business School Press, Boston, Mass. Birchall, D.W. & Tovstiga, G. 2005, Capabilities for strategic advantage : leading through technical innovation, Palgrave Macmillan, Houndmills, Basingstoke, Hampshire ; New York.

17. Service Dominant View of the Firm A service dominant view of organisations seeks to explain organisations in terms of the application of bundles of knowledge, skills and resources across value networks where value is based on the assessment of the consumer at the point of consumption

18. Cheap Bicycle Rentals in Paris Source: New York Times 13 July 2008 http://www.nytimes.com/2008/07/13/world/europe/13paris.html?_r=1&scp=1&sq=cheap%20bicycke%20rentals&st=cse&oref=slogin

21. Goods and Service Goods are “the physical embodiments of one or more competencies.” People often purchase goods because owning them, displaying them, and experiencing them provide satisfactions beyond those associated with the basic functions of the product. Source: Prahalad, C.K. & Hamel, G. 1990, "The Core Competence of the Corporation", Harvard business review, vol. 68, no. 3, pp. 79-91. Source: Vargo, S.L. & Lusch, R.F. 2004, "Evolving to a New Dominant Logic for Marketing", Journal of Marketing, vol. 68, no. 1, pp. 1-17.

24. Service Value Networks Source: Basole, R.C. & Rouse, W.B. 2008, "Complexity of service value networks: Conceptualization and empirical investigation", IBM Systems Journal, vol. 47, no. 1

26. Music has always been about service (the application of skills, knowledge and resources) … All related products have attempted to “freeze” the consumer experience, resulting in wave upon wave of technologically driven innovation

27. A Brief History of the Recorded Music Industry 1900 1925 1950 1975 2000 1877: First Recording on Tin Foil by Thomas Edison 1889: First Coin-in-Slot Jukebox 1900: Music Recorded onto Wax 1942: First ‘Gold’ Record 1952: First Stereo LPs 1948: Vinyl Records 1906: Victrola Gramophone Released 1920: First Entertainment Radio Broadcast 1935: First Public Demonstration of Magnetic Tape 1960: 8-track Systems 1965: 8mm Cassette Tape Systems 1978: First Compact Disc 1979: First Version of Walkman 1990: First CD-ROM 2001: First iPod 1998: First MP3 Player 2003: iTunes Store Opens 1993: First Browser 1981: First Music Video on MTV

28. Mapping Basics Actors Time Service for service “ Freezing” Point

29. CD Industry circa 1990 Map

30. CD Industry circa 1990 Map Detail

32. iTunes store opens for Mac only iTunes store opens for Windows U2 special edition iPod iTunes store sells music videos and TV shows

34. CD Industry circa 2008 Map New sector of Industry

35. CD Industry circa 2008 Map