The new logic of value
15 years ago!!!, Normann and Ramirez wrote the book “Designing Interactive Strategy: From Value Chain to Value Constellation“. Networks tourism and the ecosystem must been based on this concept.
They explained three strategic implications for the new logic of value:
- In a world where value occurs not in sequential chains but in complex constellations, the goal of business is not so much to make or do something of value for customers as it is to mobilise customers to take advantage of proffered density and create value for themselves. (…) To put it another way, companies do not really compete with one another anymore. Rather, it is offerings that compete for the time and attention and money of customers.
- What is true for individual offerings is also true for entire value-creating systems. As potential offerings become more complex and varied, so do the relationships necessary to produce them. A single company rarely provides everything anymore. Instead, the most attractive offerings involve customers and suppliers, allies and business partners, in new combinations. As a result, a company’s principal strategy task is the reconfiguration of its relationships and business systems.
- If the key to creating value is co-produced offerings that mobilise customers, then the only true source of competitive advantage is the ability to conceive the entire value-creating system and make it work (…) It reshuffles activities among actors so that actor and activity are better matched. To win, a company must write the script, mobilise and train the players and make the customers the final arbiter of success or failure. To go on winning, a company must create a dialogue with its customers in order to repeat this performance over and over again and keep its offerings competitive.
Tourism 2.0: the social Web as a platform to develop a knowledge-based ecosystem
I have written a paper based on the theorical framework of my doctoral thesis and the tourism 2.0 model.
I hope you can give me your feedback to improve the document and future analysis and use it if you want to make your own manuscript or develop your new ideas and concepts. If you want to use it in your references, it can be cited, for example, as:
William, E. & Perez, E. (2008). Tourism 2.0: the social Web as a platform to develop a knowledge-based ecosystem (online). Networks and Tourism. Avalilable at: http://eduwilliam.com/mipdf/Tourism%202.0%20_UK_.pdf
I´ll link all my research works here.
From value chain to value constellation: the tourism ecosystem are networks!
Joe Buhler comments about the Cluetrain Revisited where Docs Searls, ten years later, proposes ten radical and fantastic ideas. One of them is:
“4. The value chain will be remplaced by the value constellation (many connections)”
When I proposed a new tourism ecosystem, I described that the value chain and all their elements must move to a common platform where they can interrelate around a system of networks. Now, we can name it the value constellation.
The Google generation
Rafael González passes me a very interesting paper about the next researchers generation.
“The broad aims of the study are to gather and assess the available evidence to establish:
- whether or not, as a result of the digital transition and the vast range of information resources being digitally created, young people, the `Google generation’, are searching for and researching content in new ways and whether this is likely to shape their future behaviour as mature researchers?
- whether or not new ways of researching content will prove to be any different from the ways that existing researchers and scholars carry out their work?
- to inform and stimulate discussion about the future of libraries in the internet era”
The market has a problem: the “offline elites”
The “offline elites” are people with power in the business and they think only the offline live is real. Internet is not important. So, the market is 2.0 and the business 1.0! It is the real digital divide now. I posted it about the tourism sector too: travel 2.0 is the network model on demand side. We need a network tourism market: tourism 2.0.
And, as Karin said, the directors not read the reviews! Yes, the current “reviews model” has some defects, but there are a network conversation, an explicit and hosted conversation, open always everybody,… and only talk one side!.
Business based on participation
From Massimo Menichinelli I read the magnifc Bauwen´s model about businees based on participation and its differents levels.
- Consumption
- Self service
- DIY Do it yourself
- Co-design
- Co-creation
- Direct peer production of use value with no concern for monetization
- Direct peer production of use value with concern for equitable monetization
- Direct production of use value by groups with commons-oriented business ecology
- Direct production of use value by individuals with monetization of attention through proprietary platforms
- Direct production of exchange value by groups: cooperative production
- Direct production of exchange value by individuals
What do you think about the more interesting level for a sustainable tourism?.
Opinion & reviews platforms: the debate starts to mature
Hotrec has developed ‘Ten Commandments’ of how, according to the managers and owners, the opinions systems should function. Congratulations for the initiative. Without doubt, it shows some understanding of current trends, and pays service to this important associate of which there is surely much ignorance. Far from ‘hiding’ from the unknown, and faced with a model that is being developed primarily on the customer side, the owners and managers have started to seek solutions that develop the model rather than refusing to recognize its usefulness.
It’s true that the “reviews” model, where the customer becomes highly active in providing other customers with information about the hotel (or other service), is still in its infancy and has some defects in how it is formed. However, it is not just a fad, it’s the natural tendency and will continue to be so, so that instead of focusing on its defects in order to show the sector that the model has no use, the intelligent action is to open a debate on how to develop it and correct its defects. Why? Because, although the model displays some incongruence at a business level, the customer will continue to use it unless an improved model is proposed. The customer likes its transparent form and will use it more and more: it’s that simple.
It must be said that the opinions model is much more developed at the demand level (like everything related to travel 2.0) for the simple reason that, until now, no importance has been attached to it at a business level. The Commandments proposed by Hostrec aim to alter a tool in favor of the hotels; a tool that they are late in recognizing. It seems to me that they want this new medium to include the traditional concept that they value. Not only must the model mature in terms of tools, the entrepreneurs and customers must also mature in this new environment and in this transparent market model on the Web.
Personally, I think that 10 do’s and don’ts a bit over the top (but if they want to call them ‘Commandments’, there’s no other option…:D) and some, like numbers 5 and 8, are out of context. In most of them, I would clarify some concepts, but I prefer to focus on providing what I believe are essential to an optimum “reviews” system and simply propose three characteristics (CAC):
- Customer: anyone who reads the opinions must be able to know whether the writer was a customer or not. In my opinion, this means that these platforms cannot ‘go their own way’, they must be linked to the reservations platforms, either as an ‘own service’ or simply as an agreement between platforms so that only those who have made reservations on such-and-such platforms can give an opinion, or see the opinions of others highlighted on tripadvisor (obviously, the platform that has most agreements and does not act alone will be more popular and most useful).
- Abundance: formulae and averages are OK…but as complementary information for anyone who wants it. They cannot cut back or substitute the abundance of opinions that must appear on a platform. The only suitable filter is that which each user imposes. Each user has his/her own formula and average. In other words, the system must allow total personalization of results. Customers are all different when planning their trips and have different expectations, they also differ when reading commentaries and looking for other expectations. There must be every possible tool for each user to personalize their reading and assessment of opinions. By means of social networking, screening by specific items, characteristics of customers that have contributed…
- Conversation: customers give opinions, assess (but not audit or pass sentence. There must be intervention only in the case of offensiveness or insults…) and the entrepreneurs must also enter the conversation: they must respond and give opinions. Both on the platform itself and on the house website: it is essential for opinions to have RSS. Then, the mature customer who reads can leave an opinion and draw his/her own conclusions. A definite challenge to entrepreneurs is to begin to adapt to the medium through action and conversation rather than legal requirements.
(This posts was published in spanish on 30th October, 2007)
What is Tourism 2.0? definition and key concepts
From travel 2.0 to tourism 2.0
Travel 2.0 is the model 2.0 applied to demand side: tourists and travelers networks. So, now we have a market with the demand on networks and the supply on vertical integration. Here is the GAP!
Digitals natives drive the sector to a network model. But only on demand side. It is necesary to drive all value chain, the tourist ecosystem, on networks: the tourism 2.0.
