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VALUE CREATION THROUGH EXPERIENCE

AALBORG UNIVERSITY 4 NOVEMBER 2016

TWO PERSPECTIVES

demystifying of the

concept of experience

business/ societal

perspective

by exploring new

forms of value creation

BA

experience

perspective

Structural changes in

society

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STRUCTURAL CHANGES IN FOUR PERSPECTIVES

Simultaneously on macro and micro level, there

is a shift from hierarchical to horizontal value structure

economical

philosophical

sociological

technological

€

WE NEED TO UNDERSTAND THESE CHANGES…

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philosophical

security & protection

natural

system

competences & function

social

regulatory system

meaning & insights

communication

self direction

crea tive

obe dient

hid den

sociological

self actualisationexperience explore meaning& purpose

economic impetus

captivating idea prospertity & modernity

NOW

manufacturing driven marketing brand driven people/network driven responsible business

20’s90’s80’s

technological

internet of things

cyber physical systems that monitor & control behavior & environments

digitalisation

uberi-fication across other services

artificial intelligence

singularity wearables, quantified self

€ economical

servicesgoodsmeaningful experiencescommodities

transaction

based

purpose

based

valu

e

time

#1 value is being co created

from ownership to access

monetary value becomes social value> scarcety of time

technology is enabling & democratising society

value is shared & accelerated through networks

#2

#3

#5

#4

FROM SCARCITY TO ABUNDANCE

EProcess &

organisation

Strategy &vision

Experience Value

Culture &competences

business model

5 STEPS OF VALUE CREATION; A MODUS OPERANDI

A

BCE

D

AA.Create Strategy

What is the purpose? What is the leading idea?Strategic options

B Experience Value What is the value the customer will experience?What is the role of experience design?

B. Experience ValueProposition

Processes & organisation.

C The toolbox of experience technologies; processes, scripts, protocols, touchpoints, placemaking, creating platforms of engagement, narratives story telling, moodmanagement .Systems to ensure quality and consistency of the experience.

Processes & organisation.

C The toolbox of experience technologies; everything that can be digitalised can be personalised

Culture &competencesleadership

D How to create a high performing culture & encourage fundamental leadership. Which new competences need to be developed?

E.Business & revenuemodel

E How to capture your value? Where do you make money? What are your profit zones? What are your investments and what are your cost structures?

SUMMARY

Eproces &

organisationexperienced value

culture &competences

business model

A

BCE

DStrategy &vision

It will be your challenge to create a unique balance between an inviting environment, offering (personalised) value propositions executed by people that love their job creating a significant experience for your guests & customers

VALUE CREATION IN HOSPITALITYRitz Carlton, Joie de Vive & Airbnb

Ritz Carlton

1ststage

VALUE CREATION IN HOSPITALITY

Joie de vivre hotel | phoenix

2ndstage

Ritz Carlton, Joie de Vive & Airbnb

CASE STUDY; VALUE CREATION IN NETWORKED HOSPITALITY BUSINESSES

Airbnb

EQuality &

consistency

Strategy &vision

Experience Value

Culture &competences

business model

5 STEPS OF VALUE CREATION; A MODUS OPERANDI

A

BCE

D

AA.Create Strategy

Based on serendipidity & creativityAir-bed & breakfast. “They broke every assumption that we ever made who would stay on an airbed in a strangers house”.

B Live like a local. A taste of authentic neighbourhood lifeThe experience attributes are; explorative, wonder, unique, personal, being trusted

B. The guestExperience Value Proposition

BB. The guestExperience Value Proposition

Studenten Hotelschool Maastricht

B Main motive extra money. 1-Helps them pay the bills. 2-Second meeting other people. Average age 25-44, 80% rents out the home they live in. Higher educated, 45% bachelors degree. Rents out 33 nights per year.

B. The hostExperience Value Proposition

B Young urban citizin. So called Cultural creatives ( Paul Ray2000). Average age app 37(rising), more than average income & education. Average stay 3.8 nights, vs Hotels 1,9. 30% longer than a week

B. Type of guests

B Is this a new market or a so called substitute market?B.

Type of guests

Processes & organisation.

C Experience technologies;Airbnb is a social and networked business. Experience and design driven, easy access, seemless interfaces. Community and crowd management. Data driven. Systemification.Economies of scale.

Processes & organisation.

C Experience technologies;Airbnb is experience and design driven, easy access, based on seemless interfaces, relentless guest centricity. Here is a crucial role for experience design

#1

EXPONENTIAL ORGANISATIONS GROW> 10X MARKET

experiment and innovate

compelling experience value proposition

easy access with high level of Xp design

facilitated by social technology & value networks

engagement community & crowd

#2

#3

#5

#4

#6 leveraged assets by their customers

Culture &competencesleadership

D People who understand the Zeitgeist & social business. Experience Design driven, entrepreneurial mindset & fundamental leadership. and…. public diplomacy

E.Business & revenuemodel

E Capturing value in a two sided market. 13% commission on guests, 6% on hosts. A data driven company. Leveraged assets, seemless interfaces. Hi tech, hi touch

E.Business & revenuemodel

E Capturing value60.000.000 guests, 191 countries43.000 cities, 2.000.000 accomodations. 24.5 Billion $ valide by 2020

E.Business & revenuemodel

E Cost structures;IT, experience design, marketing communication, public policy,

E.Business & revenuemodel

E Strong brands & 4 star hotels no impact. In Austin Texas highest penetration Airbnb impact - 0,2%. *** hotels negative impact 10-15%

Impact on Hotels

E.Business & revenuemodel

E Focus on experiences, build an experience eco system;Focus on local engagement, partnersFocus on place makingPay attention to the social aspectGet guest-data and algorithms in orderOffer extended stay propositions

What can Hotels learn from Airbnb

the phenomenon that consumers/citizins share unused

consumption goods or tools without charges or against a fee

( Meeren/Frenkel 2014)

Key elements;

1.peer 2 peer and C2C( not B2C)

2.temporarily access

3. no transfer of property rights

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Sharing or collaborative economy?

EXPERIENCE IS VALUE

PERSONAL VALUES ARE CHANGING

BUSINESS VALUES ARE CHANGING

!

Read the book with illustrating case studies

experience economyexperience economy

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