Defining a value co-creation based business model:case ice wall service

• Main Author: Kauhanen, K. (Kaisa)
• Format: Dissertation
• Language: English
• Published: University of Oulu 2015
• Subjects: Marketing
• Online Access: http://urn.fi/URN:NBN:fi:oulu-201502191105; http://nbn-resolving.de/urn:nbn:fi:oulu-201502191105

It has been emphasized that companies can maximize the value in target customer segments by successfully managing the value co-creation. However, it has been argued that there is a lack of researches in academic literature focused on providing theoretical frameworks to help organizations to manage the value co-creation. This study provides an understanding on how value co-creation with key participants of a service affects the form of business model and its elements. The aim of this study is to create the value co-creation based business model. To be able to form an understanding of the elements related the value co-creation based business model, it is first essential to take into consideration the core elements from which the business model forms. Second step is to research from which parts the synthesis of value co-creation is consisted of. The core elements of the business model and synthesis of the value co-creation create a theoretical framework. In the third part, there is analyzed through the theoretical framework how the value co-creation with the key participants affects to the elements of business model and come up with the results that describes from which parts the value co-creation based business model consists of. Because the aim of the study is to provide understanding on the specific phenomenon, the research is conducted as a qualitative single case study, in which the case of the Ice wall service is analyzed. The study is conducted as an abductive research, in which the theory and empirical data are in interaction. The data collection of this research consists of semi-structured interviews by interviewing different actors in a value network relating to the case service Ice wall. In addition, by managing a survey for the users of the Ice wall at the Valoa festival in Tampere, Finland and by observing assemble and use of the service during the event. There was also arranged an Internet-survey for the potential customers of the Ice wall. According to the results of this study all the core elements of the value co-creation based business model are interconnected with each other. The core elements from which the value c-creation based business model consists of are actors, resources and mechanisms. The actor’s ability to co-create value for the end customer and actor’s ability to capture value from these investments affects to its willingness to be a part of the value network of the service. To support the co-creation of value the impact of the business strategy affects from the outside-in of the business model. This helps to understand, in which processes different kinds of actors, sufficient resources and mechanisms are needed. According to empirical findings of this study, changes that happen in the value network have impacts to all actors and their ability to function. Value co-creation based business model helps to understand an effect of entire value network and avoids to get in stuck in the dyadic relationship of different actors. Created model provides a tool to analyze and communicate strategic choices and understand clearly how the business is consisted of and which kinds of elements have an impact to possibilities to succeed.