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Paper info: Convergence of value propositions: developing new business models through networking

Title


Convergence of value propositions: developing new business models through networking

Authors


Chiara Cantu
Catholic University
Italy
Chiara Cantu , francesca montagnini,
Marco Paiola
University of Padova
Italy
Marco Paiola and
Roberta Sebastiani
Catholic University
Italy
Roberta Sebastiani

Place of Publication


The paper was published at the 24th IMP-conference in Uppsala, Sweden in 2008.

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Abstract


In recent years, the competitive edge has changed in many businesses. In our paper we point out two main causes of this evolution: significant modifications, concerning the characteristics of demand and the way the critical resource "knowledge" can be shared among operators, force companies to adopt a proactive approach in order to redefine the business they operate in and to innovate their business models and organisational structures. The increasing complexity of the scenario (often defined as "hypercompetition" and "blur economy") offers new challenges and opportunities in markets that can be defined as "contiguous", from competence and resource points of view, as well as in a customer based perspective. New hybrid sectors came to light and companies have opened facing unexpected competition from operators that were previously very distant. In this sense one of the constructs that better accomplish this perspective is convergence.In this paper we want to focus on the relationship between processes of convergence among sectors and the recourse to networking. We argue that networking becomes the "enabling factor" for the redefinition of effective companies' value propositions, when operating in complex contexts, generated by the customer's determinants and competitive features. In particular, we want to focus our analysis on this phenomenon, considering the Health Industry, in which we are witnessing a strong acceleration of convergence processes, regardless of the heterogeneous business areas it is composed of. We identify two relevant, but different, businesses within this macro-aggregate, the thermal sub-sector and the telemedicine-telehealth: they can show different paths that could be pursued by companies operating in this area. This enable us to better understand the convergence processes and the role of networking (and cooperative strategies) in an empirical perspective.