Page 8 - The European Business Review

Transformation Economy

Table1-Paradigms in value creation
Overview of value creation from a ‘people’ as well as a business perspective
1950>> 1980>> Unfolding Future
Industrial Experience Knowledge Transformation
economy economy economy economy
Captivating idea Product ownership Experience Self Actualisation Meaningful Living
Mindset View Local Global Contextual Systemic
Modernising one’s life
Individual empowerment
Quest
Explore lifestyle identities
Address collective issues
Work hard play hard
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Meaningful contribution
Develop your potential
Productivity & family life
People Skills Specialisation Experimentation Creativity Transformative thinking
Follow cultural codes
Break social taboos
Pursue Aspirations
Approach
Empathy & cooperation
Economic driver Mass production Marketing & branding Knowledge platforms Value networks
Mindset Focus Product function Brand Experience Enabling creativity Enhancing meaning
Enabling open-tools
Product-service mix
Quality
Inclusive value networks
Products
Business Value proposition Commodities Targeted experiences Enable self-development Ethical value exchange
Approach
Leverage cooperation
Enable to participation
Promote brand lifestyle
Persuade to purchase
Profit
Development
Transformation
Growth
Goal
Source: Brand, R. and Rocchi, S., Rethinking value in a changing landscape. A model for strategic reflection and business transformation, 2011.
https://pdfs.semanticscholar.org/c34a/3e300f1b9d1d4eb45e2af3cf7e2aa3d0344b.pdf
the realisation that despite economic progress, the world’s The size of the challenge – and the opportunity – is
population is facing persistent socio-economic inequality huge. According to one estimate by the United Nations
(especially in emerging markets) and mounting environ- Conference on Trade and Development (UNCTAD), the
2
mental challenges. People are looking for solutions to SDGs could cost between USD 2.5 and 4.5 trillion a year
global issues that affect their quality of life, and this is between 2015 and 2030. However, complex global issues
opening new business spaces. (See Table 1) cannot be solved by any single company or stakeholder.
Recognising this shift, certain brands are directing In this new paradigm, business value is associated with
some of their value creation efforts in new directions, in LQFOXVLYH YDOXH QHWZRUNV WKDW FDQ GHYHORS FRQWH[W VSHFLÀF
particular towards the UN’s 17 Sustainable Development solutions. The way ahead lies in a variety of venturing and
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Goals (SDGs). The quest for answers and opportunities cooperation models that share complementary capabili-
LQ VRFLHWDO JRDOV DQG FROOHFWLYH QHHGV LV LQÁXHQFLQJ UHVHDUFK ties, resources, investment risks and return on investments
development and design in companies as diverse as Danone, – networks which together can amplify positive social,
DSM, Interface, Johnson & Johnson, Tesla, Unilever, economic and environmental impact.
Vodafone, and Royal Philips, to name a few. This is not Such networks may include Private-Public-Partnerships
philanthropy or Corporate Social Responsibility. These 333V DV ZHOO DV D YDULHW\ RI )RU 3URÀW DQG 1RW IRU 3URÀW
companies are following a commercial rationale to re-direct cooperation platforms. But these PPPs differ from their
part of their investments in innovation towards new mean- traditional task-oriented, transactional “contract-out” coun-
ingful solutions that can drive business development. terparts in which private companies are seen as vendors used
to save costs rather than as partners in helping to maximise
outcomes. The new PPPs are collaborative, value-sharing
PEOPLE ARE LOOKING FOR ecosystems of governments, large companies, start-ups,
SOLUTIONS TO GLOBAL ISSUES THAT NGOs, and international and academic institutions. They
mobilise multiple stakeholders around a common goal
AFFECT THEIR QUALITY OF LIFE. DQG VSHFLÀF WDUJHWV IRU LQVWDQFH UHGXFWLRQ RI PDWHUQDO

8 The European Business Review January - February 2018