I submitted my PhD on 01.12.11: Now to family....

In the race to submit my PhD or become a father, the PhD won by six weeks. We are due to have our first child on 14.01.12.

My supervisor asked me to write journal articles now. The Academy of Management papers are due 10 Jan, and the 2012 theme is The Informal Economy. The Informal Economy is that part of the economy which is not taxed, not legal, not controlled by the Government, and not included in GDP.

I am thinking about how value might be relevant, and how my new job at the Australian National Data Service (ANDS) might be relevant. ANDS is a Dept of Innovation (Aust) project to encourage researchers to share, find and reuse each others' data. ANDS works with all the Australian Universities, and public sector agencies to encourage data management, data sharing and reuse. Current ANDS funding (about $70 million) is up to June 2013. Our database of shared data collections is at about 40,000.

I am thinking about a paper called: ANDS, Innovation and Value: an Informal analysis.
The idea being that value captures much that is not in GDP, and that ANDS is building value through knowledge and relationship creation, both of which are part of the Informal Economy. The Informal Economy is not just illegal, black market, and third world commerce. The Informal Economy is innovating without promise of revenue, volunteering for social rather than financial benefit, unpaid family work such as parenting, caring and other volunteering. The informal economy that I am interested in is not an illegal black economy but a virtuous black, white or rainbow value economy.

Thus I argue that:
1. we all (or nearly all) participate in the informal value-creating volunteering economy
2. $ are not the only goal of the informal economy, but also value creation.
3. Value drives activity where there are no $ drivers. For instance, artists, musicians, family work, non-profit associations, volunteers and other unpaid work.
4. The informal economy is not all about $, law and tax. It's about value.

Where does value fit in innovation?

Figure 1 shows the black box of value in the context of innovation theory. Value sits between the innovators creation of an innovation, and the process of diffusion of innovation. I argue consumer value acts as a hurdle to diffusion (see Section 6.3, Proposition 1).

Proposition 1. Value drives consumer action. Consumers adopt new technology when they see value.

Figure 1: What is consumer value? This thesis opens the black box of consumer value.

Complex Value Model

I have produced a complex value model, indicating all the grounded concepts developed in the thesis. The thesis emphasises a more simple value model in the text.

The simple model abstracts from the complex model, reducing the number of dimensions considered. Value meanings are reduced to a single element, rather than 12 meanings, and Value practices are reduced to a social and physical split. The Telco and Social Value Conversations are combined into Social Practices.

The Simple model emphasises Value at the centre of innovation, and emotion at the centre of value. As always, comments welcome.

Defining Value

Tim Cook rallies the troops as Steve Jobs steps down as Apple CEO, just as Apple passes Exxon (XOM) as the most valuable company in the world (again). Tim says,

Team:

I am looking forward to the amazing opportunity of serving as CEO of the most innovative company in the world. Joining Apple was the best decision I’ve ever made and it’s been the privilege of a lifetime to work for Apple and Steve for over 13 years. I share Steve’s optimism for Apple’s bright future.

Steve has been an incredible leader and mentor to me, as well as to the entire executive team and our amazing employees. We are really looking forward to Steve’s ongoing guidance and inspiration as our Chairman.

I want you to be confident that Apple is not going to change. I cherish and celebrate Apple’s unique principles and values. Steve built a company and culture that is unlike any other in the world and we are going to stay true to that—it is in our DNA. We are going to continue to make the best products in the world that delight our customers and make our employees incredibly proud of what they do.

I love Apple and I am looking forward to diving into my new role. All of the incredible support from the Board, the executive team and many of you has been inspiring. I am confident our best years lie ahead of us and that together we will continue to make Apple the magical place that it is.

Tim

From: http://mashable.com/2011/08/25/tim-cook-apple-emai/

The underlined passage is about as close to defining value as we are going to get.

Value is "what delights customer and makes employees proud of what they do".

Strategyn gets value

See recent presentation from Strategyn's Tony Ulwick, as cited in Christensen's The Innovator's Solution. For Value Consulting on these issues, contact me at www.thejoie.com.

Ulwick suggests:

- not listening to the voice of the customer
- customers have 50 to 150 needs per task they are performing. I call these value elements.
- his approach increases new product development success from 17% to 86%. Sign up here to see the research.

See his slides from his recent April webcast below. See his blog post here.

Silence the Voice of the Customer (VOC)

View more presentations from Strategyn.

Who is doing Value Management?

Three Value Managers came to my attention today:

1. Following the Port Phillip Council : Have your Say page, lead me to Bang the Table, a private group building community engagement websites. Partly driven by Dr Crispin Butteriss PhD New England (Stakeholder engagement in public policy 1997 - 2003)

2. Bang the Table had created an interest group on Linked In (Online Community Engagement), which lead to NCDD.org (no not the North Dallas Chamber of Commerce, but) National Centre for Dialogue and Deliberation, established 2002, and now in 39 countries.


3. Lastly, the Victorian Churchill Club described one of their recent sessions (28 April) as Member Value Management. Collingwood membership manager described Value management processes. See a couple of quotes on the ValueMgmt twitter feed for details.

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On a separate note, some Telstra / broadband problem / solution notes:


BAG 2002 Report: Broadband Advisory Group Report to Govt broadband Goals and Vision:
(see also background info at: Intro to FTTH)

Australia should adopt the following national vision for broadband:
"Australia will be a world leader in the availability and effective use of broadband, to deliver enhanced outcomes in health, education, commerce and government and to capture the economic and social benefits of broadband connectivity."

Goals (Section 3)
"2. Australia should adopt the following national goals for broadband:
(a) Broadband should be available to all Australians at fair and reasonable prices."

Encouraging Take-up
"17. The Government, in cooperation with state and territory governments and industry stakeholders, should develop and provide detailed information to key sectors about the benefits of broadband applications, such as educational opportunities, improved health care, business process improvement, productivity gains and better government services."

So far, so good. What's the problem?


The problem comes from Paul Fletcher's (2009) book Wired Brown Land which suggests:

"Telstra was able to suppress the take-up of broadband in Australia for many years…. Telstra said that Australia's low broadband penetration was a symptom of an over-regulated industry.... In fact, Australia's low broadband take-up had a much simpler explanation. Telstra kept prices sky high. Once they fell, take-up rocketed." Fletcher 2009, p.227

Are Telstra doing Value Management? Well yes and no. Telstra were protecting their $8B annual landline revenue. SO Telstra were protecting their SHV (shareholder value), but unfortunately it came at the price of consumer/customer revenue, through delay, and higher prices. This thesis argues consumers adopt new technology when consumers see value, but high prices will delay adoption. Telstra provides evidence of this.

Final Thesis Review presentations

Title: A consumer value theory of innovation: a grounded theory approach

Find links to the PDF presentations:

Final thesis presentation 2.7Mb

Fourth draft, focussing on results 2.1Mb

http://www.mediafire.com/file/1w6xn386vab49lk/thesisReview2011A.pdf (few pics) 2.5Mb

http://www.mediafire.com/file/i8l5xuxy5jikwh1/thesisReview2011B.pdf (more pics) 4.5Mb

A third briefer simpler version follows:..... here (fewer slides and pics) 2.4Mb

For completeness, older presentations:

• To follow: DRUID 2008, HBS 2008, UQBS Colloquium 2008...
  
• Confirmation presentation Mar 2007 0.1Mb, 5 pages.
  
• Nov 2006 - pre-confirmation musing 0.4Mb, 11 pages, B&W
  
• May 2005: Academic methods class 0.1Mb, 2 page, colour
  
• STEPS conference 2004 (Science, Technology and Economic Progress) PhD students 1.2Mb, 9 pages
  
• Prior PhD home page 2004 - 2007

References Draft 4.

• Advisory Committee on Measuring Innovation in the 21st Century Economy. [ACIMO] (2008). Innovation Measurement: tracking the state of innovation in the American economy. Viewed 28.02.2008 at: http://www.innovationmetrics.gov/Innovation%20Measurement%2001-08.pdf .
  
• McKinsey & Company. [McKinsey] (2010). National Broadband Network Implementation Study. Viewed 06.05.2010 at: http://data.dbcde.gov.au/nbn/NBN-Implementation-Study-complete-report.pdf
  
• Rogers, E. M. (2003). Diffusion of innovations (5th ed.). New York: Free Press. (Earlier editions in 1962, 1971, 1983, 1995).
  
• Woodruff R., & Flint, D. (2006). Marketing’s Service-Dominant Logic And Customer Value. In R. F. Lusch, & S. L. Vargo (Eds.), The Service Dominant Logic of Marketing: Dialog, Debate, And Directions (pp. 183–195). New York: M.E. Sharpe

References early draft:

• Advisory Committee on Measuring Innovation in the 21st Century Economy. [ACIMO] (2008). Innovation Measurement: tracking the state of innovation in the American economy. Viewed 28.02.2008 at: http://www.innovationmetrics.gov/Innovation%20Measurement%2001-08.pdf .
  
• Bass, F. (1969). A new product growth model for consumer durables. Management Science, 15, January, 215-227.
  
• Bijker, W. (1995). Of Bicycles, Bakelites, and Bulbs: Toward a Theory of Sociotechnical Change. Cambridge, Mass.: MIT Press.
  
• Christensen, C. (1997). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston, Mass.: Harvard Business School Press.
  
• Drucker, P. (1999). Management Challenges for the 21st Century. Harper Business: New York, NY.
  
• Fagerburg, J. (2005). Innovation: a guide to the literature, in Fagerburg, J, Mowery DC, & Nelson, RR (eds.) The Oxford Handbook of Innovation, Oxford University Press, Oxford.
  
• Flint, D., Woodruff, R., & Gardial, S. (2002). Exploring the phenomenon of customers' desired value changes in a business to business context. Journal of Marketing, 66, (October) 102-117.
  
• Glaser, B. (1978). Theoretical Sensitivity: Advances in the Methodology of Grounded Theory. Mill Valley CA: Sociology Press.
  
• Glaser, B. (1992). Emergence vs Forcing: Basics of Grounded Theory Analysis. Mill Valley CA: Sociology Press.
  
• Glaser, B. (2001). The Grounded Theory Perspective: Conceptualization Contrasted with Description. Mill Valley CA: Sociology Press.
  
• Glaser, B. & Strauss, A. (1967). The Discovery of Grounded Theory: Strategies for Qualitative Research. New York: Aldine De Gruyter.
  
• Hamel, G. & Prahalad, C.K. (1994). Competing for the Future. Harvard Business School Press: Boston MA.
  
• Holbrook, M. (1996). Customer Value - A framework for analysis and research (Special Session Summary). Advances in Consumer Research, 23, 138-142.
  
• Kim, W. & Mauborgne, R. (1997). Value Innovation : The Strategic Logic of High Growth. Harvard Business Review, 75, 1, 103-112.
  
• Kim, W. & Mauborgne, R. (1999). Strategy, Value Innovation, and the Knowledge Economy. Sloan Management Review, 40, 3, 41-54.
  
• Kim, W. & Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston, MA: Harvard Business School Press.
  
• Moore, G. (1991/2002). Crossing The Chasm : Marketing and Selling High-Tech Products to Mainstream Customers. (Rev. ed.). New York: Harperbusiness Essentials.
  
• McKinsey & Company. [McKinsey] (2010). National Broadband Network Implementation Study. Viewed 06.05.2010 at: http://data.dbcde.gov.au/nbn/NBN-Implementation-Study-complete-report.pdf
  
• Porter, M. (1990). The Competitive Advantage of Nations. Free Press: New York.
  Porter, M. & Kramer, M. (2011). Creating Shared Value: How to Reinvent Capitalism and Unleash a Wave of Innovation and Growth. Harvard Business Review, 1, 62-77.
  
• Prahalad, C.K., Ramaswamy, V. (2004). The future of competition: Co-creating unique value with customers. Boston, MA: Harvard Business School Press.
  
• Prahalad, C.K. & Krishnan, M. (2008). The New Age of Innovation: Driving Co-created Value through Global Networks. McGraw-Hill: New York.
  
• Rogers, E. M. (2003). Diffusion of innovations (5th ed.). New York: Free Press. (Earlier editions in 1962, 1971, 1983, 1995).
  
• Schumpeter, J. (1934). The Theory of Economic Development: an Enquiry into Profits, Capital, Credit, Interest and the Business Cycle. Cambridge MA: Harvard University Press.
  
• Woodruff, R. (1997). Customer Value: the next source for competitive advantage. Journal of the Academy of Marketing Science, 25, 2, 139-153.
  
• Woodruff R., & Flint, D. (2006). Marketing’s Service-Dominant Logic And Customer Value. In R. F. Lusch, & S. L. Vargo (Eds.), The Service Dominant Logic of Marketing: Dialog, Debate, And Directions (pp. 183–195). New York: M.E. Sharpe
  
• Zeithaml, V.A. (1988). Consumer perceptions of price, quality and value: a means-end model and synthesis of evidence. Journal of Marketing, 52, (July) 2-22.
  
• Zuboff, S. & Maxmin, J. (2002). The Support Economy: why corporations are failing individuals and the next episode of capitalism. New York: Viking.

Value as a resolution of forces

Value can be considered the process and outcome of three value concepts (forces), resolving as action. Dynamic tension between and within the concepts drives the process. The currency of the process is emotion and the outcome emotion and action.

Metaphors. I use three metaphors: (1) the infinity symbols, (2) the rose, and (3) the rose window. I use the infinity symbol to represent the dynamic tension within a value concept with the consumer at the centre, the subject of the tension.

The infinity symbol represents dynamic tension between aspects of a value concept focussed on a consumer.

I use the rose as a second metaphor to indicate the multiple forces affecting value. The multiple forces I visualise as multiple overlapping infinity signs (slightly turned), forming an eight petalled rose. I therefore use a rose window (though a flower could be used) to visualise multiple forces acting on the consumer at the centre (the stamen) of the rose. I use four colours to distinguish the forces: red (action), blue (value meanings), green (value practices), and yellow (value conversations). As an aside, the flower metaphor contrasts the petals and the stamen. The petals collect energy (information and emotion) to channel to the consumer (the stamen and the stem).



The three value concepts in the rose are: (1) the value conversation, (2) the value practices and (3) the value meanings.

Dynamic Tension
The value conversation reflects tension between sources of information; telco or social information, external (power) and internal (beauty) information.


Value practices reflect tension in accepting new value information for consideration. Value practices gather or reject new value information in a process of filtering.



Value meanings reflect tension in the importance, weight or value consumers give collected value information. Value Meanings reflect tension in what consumers value.



These three sets of tension are resolved as action. But action is itself a tension between waiting (inaction) and action.



Thus value is four forces, powered by the dynamic tension (emotion), resolved as action.



However, inherent or within this model are two further, if not forces then dimensions. Firstly, value(ing) occurs in relation to a value target of which we have many. Rokeach (1973) for instance says consumers have dozens of values (value meanings), but thousands of attitudes (value targets). Attention is a tension between competing value targets. Secondly, the whole value process also takes place through time. It is currently unclear (at least to me from my data) to what extent value (or attitude) can change spontaneously without new value information. The fading of grief ("time heals all wounds") is one colloquial expression of spontaneous change in value (attitude) over time at consumer level. Over a broader time scale, new value meanings emerge. Examples are equal rights (1960s), and more recently concern about global warming.

I visualise all six forces (calling time and value target forces for ease) as the rose window moving through space and time to a value target.



Conclusion. Thus I see value as the resolution of forces on the consumer, driven by dynamic (emotional) tension, expressed and resolved as action (buying, waiting; even recommending), as consumers navigate their contextual world.



Contrasting Figure 8 from my thesis (below) with the rose window model shows strong similarity. The value conversations are split between internal and external, while the telco and social conversation are merged. Figure 8 shows a strong cyclical nature to show the dynamics, while the rose window model emphasises the centrality of the consumer, with multiple forces acting upon them. Both models have emotion (attitude) as an important central aspect of value.


Figure 8:A value theory of innovation. An emotional theory of value. Value is at the core of innovation. Emotion is at the core of value.p.156

Surprising absences. Absent from this model (of value), and missing from the data are two things. Firstly, consumers are not goal-driven. Secondly, consumers do not talk about decisions in my data. Action arises more spontaneously from accumulated emotional tension.

As an observation, since value is emotional, the value process is significantly individual. Though Collins (1999) cites shared emotion as an important driver and sustainer of group action. For instance, church groups and separated work groups use ritual to bind and motivate group members separated by distance and time. Families and partners are also likely affected by such rituals. Workgroups, religious groups, families and partners are likely to have different levels of goal importance, shared and communicated. Workgroups and churches will have stronger shared goals which bind their groups and give them value. Families and partners have value without goals.

For completeness, the value meanings as a rose window are shown below.


References:
Rokeach, M. (1973). The Nature of Human Values. Free Press: New York.
Collins, R. (1999). The Sociology of Philosophies: A Global Theory of Intellectual Change. Belknap Press: Cambridge, MA.

Defining Value Meanings

I am working on definitions for the Value Meanings. The meanings are cluster names from value elements mentioned by 3G consumers during the course of their interviews. The definitions are not saturated in a grounded theory sense, but do come from 2000 data points, of which 60% were about value meanings. Meanings are more inclusive (X includes A, B, C) than definitional (X means Y), and include oppositions (X contrasts with Y). Saturation is recommended in future work for emotion as a central concept and driver of value, and need, which seems particularly atomic. The diagram lines are not meaningful, but indicate primary and secondary colours. Connection between value meanings is unsubstantiated, though value elements combine value meanings to form new instances of value. For instance, safety combines duty, power, time, fun, community. Particularly difficult value elements are sexy and cool. Though I tend to think cool is just colloquial for good. Updates on the meanings to follow...

Draft definitions include:

1.Function: benefits as of a tool, something useful, with potential, including accessories, and contrasted with more frivolous use like fun.

2.Price: benefits and costs relating to payments, credit, bonus or free offers, including tax deductions.

3.Time: benefits and costs relating to convenience, quickness or timely service, and contrasted with delay, interruptions or lack of time.

4.Service/reliability: benefits including personalise, solutions, warranty, phone coverage and contrasted with problems.

5.Newness: including not previously known or used, something learned, or of interest, something important, relevant and with potential, and contrasted with the known, past, and the old.

6.Emotion: feeling or state derived from internal, external or social context, distinct from thoughts, including stress, love, surprise, trust, or excitement.

7.Need: including wants, desires, necessity, or necessary evil.

8.Simplicity; valuable benefits including something easy, with clarity, or certainty, lack of doubt or uncertainty.

9.Duty: including parental or familial, contractual commitments, and contrasted with choice, or own interests.

10.Power: includes control, potential, flexible, freedom and unlimited access to functions, while contrasted with limits.

11.Beauty: sensual benefits including aesthetics, colours, size, style, and looks.

12. Connection/community: social benefits of inclusion, including brand, status symbol, and contrasted with privacy.

What is Richard Ferrers up to?!

Does anyone on planet Earth...apart from Richie himself, actually know what Richie is up to??? In fact...does Richie even know?????

Measuring Innovation in the Fortune 500

I have been examining movement in the Fortune 500, to identify innovation.

Looking at the Fortune 500 shows several groups of companies, including:

Steady performers:
IBM, Bank of America, Exxon, Microsoft, Boeing

Fast Fallers:
Lehman Brothers, Merrill Lynch, Halliburton, Altria

Fast Risers:
Apple, Amazon, L-3 Comms, CVS, Rite Aid, Murphy Oil

Slow Risers:
Nike

What this graph doesn't show is growth through acquisition. Such acquisitions would show as strong growth, when it is purchased rather than innovated growth. Apple is a standout for its growth, and Amazon seems two years behind. At&T has also grown significantly into the top 10, from the same time the iPhone came to market.

See Data Table.


See Graph below. The Graph shows the changing ranking of companies within the Fortune 500 (measured by revenue), and just some from each type of movement in the Top 200.
(1)Fast growers are diagonal downward lines to the right, while many companies especially big companies are steady.
Nike and Apple start at about the same place in 2006 (around 160) and Nike (in Pink) grows slowly, while Apple (in Orange) grows quickly. (2) Merrill Lynch (in dark blue) drops 100 spots in 2009 before disappearing. Lehman Bros dies while in the Top 50. (3) Amazon catches Google in 2010.

Thesis at a glance: Wordle.net

Two word pictures of the thesis (wordle.net) text.


Also pictures by chapter....here.




Removing: value, 3G, consumer/s, innovation.



Removing: phone, technology, grounded, theory, meanings...
leaves words describing value meanings, and value in practice. Click to expand picture in new window.

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A birthday Newton Ferrers Wordle montage from muchfoolishness

NBN Value Management

The Australian is reporting that Brunswick, Melbourne residents don't know enough about the NBN to sign up yet.

"In reality, people aren't going to sign up until they know how much this is going to cost them," said Ms Ratnakar, whose association represents 544 businesses on the Sydney Road strip. "Getting together with service providers and mapping out what's going to be available and how much it's going to cost is really at the end of the day going to swing it."

In response, I have created a sample flyer for NBN Brunswick residents to compare NBN prices in Tasmania, to indicate prices in Melbourne. These are subject to change, and not yet available. Yet this information is important to allow residents to decide whether to sign up for the NBN.

Sample flyer below. Revised copy now with Telstra and Internode prices here (109k pdf). Now revised with logo here (240k pdf). Comments appreciated.