Framework for the Business Reinvention Methodology

Framework for the Business Reinvention Methodology

DOI: 10.4018/978-1-7998-1550-1.ch002

Abstract

To begin the section on Business Reinvention Methodology, Chapter 2 provides the methodological framework containing three dimensions that underly the development of the methodology's key components. The three dimensions are the meaningful customer value, the business priority on the value ecosystem, and the digital business strategy to achieve value ecosystem flexibility and business sustainability. Each dimension features a set of stages with increasing levels of wellbeing. In addition, this chapter describes two running scenarios (regional-tourism and city-district prosperity development) that will be used to demonstrate the methodological components in the remaining chapters of Part 2.
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Introduction

For the betterment of QoL well-being, a service provider playing the initiating role (hereafter called “focal B”) can embark on business reinvention that refers to a process through which the focal B is changed to drive its growth featuring a human-centered, innovation-driven, and business-sustainable approach toward the improved QoL or well-beings through a service ecosystem. The focal B has to empathetically create the well-being value at the level of individual customers as well as at the level of stakeholders, and the focal B is regarded as the focal B’s ecosystem. This well-being value is then regarded as the ecosystem value, and the ecosystem with the well-being value is referred to as a value ecosystem.

In addition, such value ecosystem could be innovatively architected into a digital business capable of enabling the focal business and stakeholders toward ecosystem flexibility and business sustainability (i.e., the flexible configuration of stakeholders for a productive and sustainable way of delivering the ecosystem value). To further business productivity and sustainability, the focal B could also dynamically engage and empower customers and stakeholders by innovatively utilizing digital technologies in value co-creation to achieve ecosystem empowerment (i.e., customers and stakeholders are empowered with the capabilities to execute designated courses of action with designated levels of performance).

To this end, a systematic business reinvention methodology will be provided in this book and this chapter will first outline the methodological framework. The following chapters in Part 2 will detail the methodology.

The business reinvention methodology framework has three dimensions (Figure 1), including meaningful customer value (i.e., empathetic well-being value to be designed and created), business priority on the value ecosystem (i.e., strategic decisions for priority business objectives on the assessments of stakeholders and their benefit exchanges to emphasize), and the digital business strategy to achieve flexibility in the value ecosystem and business sustainability (i.e., the strategy about innovative digital operants and architectures that can dynamically engage and empower customers and stakeholders in value co-creation toward a flexible strategic ecosystem and business sustainability). The details associated with each dimension will be provided in chapters three through six. That is, each of the chapters will provide the respective design method, preceded by its foundational theories and basic concepts, and will be intertwined with exemplars of method demonstrations.

Figure 1.

Framework of business reinvention methodology

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Each dimension features a set of stages for increasing levels of well-being in the direction from the origin outward, as shown in Figure 1. The stages in the dimension of meaningful customer value include the functional, the emotional, and the life-style changing that address different kinds of impacts as a result of value co-creation on the part of the customers. The stages in the dimension of the business objective priority on the value ecosystem include efficiency, sustainability, and creation; these address the objective of integrating stakeholders and resources to realize value co-creation. The stages in the dimension of digital business strategy on ecosystem flexibility and business sustainability include hard/soft (H/S) robotics, distributed ledger, and (AI-)DAO that address the types of digital architectures and operants developed to facilitate value co-creation. Focal B’s selected stages along the three dimensions also interact with each other (e.g., a functional customer value often goes with an efficiency-oriented ecosystem utilizing H/S robotics). The following sections will briefly overview the respective dimension descriptions.

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