Friday, May 24, 2013

Understanding the changing needs of customers: Akolade

I am giving a presentation at a Financial Analytics for Business Management (for Akolade) conference in Melbourne next week, and provide the presentation (pdf 6Mb; May 2011; Understanding consumer value; other presentations) below:

Key points:
- let's measure value alongside other accounting measures
- Value is complex
- measuring value is complex
- some approaches to measuring value in practice: the Australian National Data Service (where I work: I was interested to know the process ANDS has in place to know what customers value)
- value theory: the 3G mobile phone study (my PhD):

The conference is interested in: Identify[ing] ways to measure and maximize the value of intangible assets...
The presentation in text (and your comments as always are welcome... questions, examples, critique is also welcome as this helps flush out and improve the Value Theory)....

Draft of presentation: (references below)

Understanding the change in customer needs
Jobs to be done theory...

   1.Understanding what customers value in a service environment: Australian National Data Service
    2.Measuring perceived customer value; sensing customer value
    3.Exploring what value means for your customers: Case Study - 3G Mobile phones 2004 - 2009

Business Analytics:
- Statement of Accounting concepts; reliable, measureable; objective

What is value?
- Aristotle: utility, exchange, conspicuous consumption (Gordon 1964)
- Marx (1865): labour theory of value
- Bailey (1838): in the eye of the beholder; subjective
- Vargo and Lusch (2004): co-construction, value conversation

Who are ANDS.org.au: Australian National Data Service?
- customers: Public Sector and Universities, Department
- goal: more researchers reusing research data more often
- funding: $75 million from Dept. of Industry, Innovation, Climate Change, Science and Research
- resources: 50 staff, five states


Measuring Value at ANDS
- Customer contribution: co-investment
- subjective: customer satisfaction
- examples:

Process of tracing Value at ANDS
- Issues Register; documenting issues (245)
- Client Liaison Officers; face to face
- GoTo Meeting; webinars,
- Monthly Informals
- eResearch Australasia annual conference

Issues Register: Value Management in action
- from Progress and Final Reports
- Section to comment on:
- issues needing ANDS facilitation
- issues need direct advice and support
- achievements to share
- Director's review; traffic lights, keywords, weekly review, follow up action
- next steps: status by customer, Business Intelligence, current issues

Understanding Consumers: 3G mobile phones: Value is complex
- what do they value?
- 12 value meanings;
- 80 value elements; Appendix of thesis (Ferrers 2013)
- a simple example
- Consumer quotes

Consumer quotes:

Understanding your customers;
- B2B or B2C
- Value Management
- Value Leadership
- Value Conversation


Key References:

Aust Accounting Research Foundation (1995). SAC4: Definition and Recognition of the Elements of Financial Statements. Viewed online at: http://www.aasb.gov.au/admin/file/content102/c3/SAC4_3-95.pdf

 Bailey, S. (1825). A Critical Dissertation on the Nature, Measures and Causes of Value. London School of Economics (1931), viewed 30.06.2009 at http://books.google.com/books?id=onJnPnLxPcMC&printsec=frontcover&dq=bailey+1825+value &source=gbs_book_other_versions_r&cad=8#v=onepage&q=&f=false

 Ferrers, R. (2011). Value as a resolution of forces. Viewed online at: http://valman.blogspot.com.au/2011/05/value-as-resolution-of-forces.html

 Ferrers, R. (2011). Beyond Innovation Management: Towards Value Management. Viewed online at: http://valman.blogspot.com.au/2007/01/beyond-innovation-management-towards.html

 Ferrers, R. (2013). A consumer 'value' theory of innovation: a grounded theory approach . figshare. PhD thesis. http://dx.doi.org/10.6084/m9.figshare.680002 Retrieved hh:mm, mmm dd, 20xx (GMT)

 Gordon, B. (1964) Aristotle and the Development of Value Theory. The Quarterly Journal of Economics, 78, 1, 115-128; viewed online at http://qje.oxfordjournals.org/content/78/1/115.full.pdf.

 Kim, W. & Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant. Harvard Business School Press. More at: http://en.wikipedia.org/wiki/Blue_Ocean_Strategy

 Marx, K. (1865/1919). Value, Price and Profit. Melbourne: The Workers Intelligence Bureau.

 Sveiby, E (1997). The New Organisational Wealth: Measuring and Managing Intangible Assets. Berrett-Keohler See summary at: http://ptarpp2.uitm.edu.my/silibus/neworgan.pdf

Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of marketing, 1-17. Available online at: http://courses.ischool.berkeley.edu/i210/f07/readings/VargoLusch.pdf

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