Designing Interactive Strategy From Value

Strategy is the art of creating value. It provides frameworks, conceptual models, and governing ideas that allow a company's managers to identify opportunities for bringing value to customers and for delivering that value at a profit. This book illustrates how new ways of creating value are being created by current global competition, changing markets, and new technologies. It shows how the focus of strategic analysis should not be the company or the industry, but the value-creating system itself, within which suppliers, business partners, allies, and customers work together to co-produce value.

Richard Normann, SMG France.

Rafael Ramírez is currently Professor of Management at HEC, the leading French business school. Dr Ramírez, who holds a PhD from the Wharton School, has extensive consulting experience, working with companies such as Hewlett-Packard, Nissan Europe, Shell International, Rockwool, Telespazio, Wärtsilä -NSD, and Sonera. He was the Managing Director of SMG France prior to joining HEC. Dr. Ramírez co-authored the Harvard Business Review lead article From Value Chain to Value Constellation, which was elected one of the ten most requested strategy reprints by the Review's readers. The follow-up book on value constellations, Designing Interactive Strategy, which he wrote with Richard Normann, has been widely translated. In 1998 he was elected 'individual member' of the Global Business Network.

Foreword

vii

Donald Schon

Foreword to the paperback edition

xiii

Preface

ixx

Acknowledgements

xxiii

PART ONE: THE HISTORICAL AND TECHNOLOGICAL DRIVING FORCES SHAPING BUSINESS TODAY

1

(102)

Introduction

3

(3)

Competitive dominance in the world of business

6

(3)

Economies versus sectors

9

(4)

The microprocessor

13

(12)

PART TWO: VALUE CONSTELLATIONS

Co-Production

23

(2)

What is a product?

25

(3)

Density of offerings and value creation

28

(3)

Examples of co-production

31

(2)

The customer's customer

33

(2)

What is a business?

35

(4)

Shifting activities among actors: reconfiguration

39

(3)

Innovative co-production relationships

42

(5)

Offerings and Value-Creation Logics

45

(2)

Introduction

47

(2)

The micro level-a first look at its architecture

49

(5)

From value chain to value constellation

54

(2)

The offering as code carrier

56

(3)

Leverage

59

(3)

Value-creation logics

62

(3)

Inherent dimensions of offerings

65

(8)

Reconfiguration

71

(2)

What is reconfiguration?

73

(4)

Why reconfigure?

77

(13)

Examples of reconfiguration

90

(9)

The need for continuous improvement: reconfiguring as a process

99

(4)

PART THREE: ILLUSTRATIVE CASES

103

(49)

Introduction

105

(45)

Example 1: IKEA and the `what'

107

(11)

Example 2: Ryder System and the reconfiguration of the truck leasing industry and the `what'

118

(14)

Example 3: Danish pharmacists and their national association and the `how'

132

(9)

Example 4: The Compagnie Generale des Eaux and the Suez Lyonnaise des Eaux: the `Why'

141

(9)

References

150

(2)

Glossary

152

(3)

Index

155

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Designing Interactive Strategy From Value Chain to Value Constellation

Summary

Author Biography

Table of Contents

Supplemental Materials