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Working with THEORETICAL and CONCEPTUAL TOOLS: PowerPoint PPT Presentation

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Working with THEORETICAL and CONCEPTUAL TOOLS:. Reconceptualization. Information. Network. Relationship/Community. Network theory of technological innovation:.

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Network theory of technological innovation:

  • Castell’s theory of the informational mode of development = focus on understanding that managing information has replaced traditional production.

The informational mode of production

The infrastructure of modern economies is (and has always been) about information management:

  • The clock = regulation of work day

  • Double entry book-keeping, then office technologies

  • Government by record keeping (census, statistics, then social security, taxation, etc.)

The informational mode of production

  • Information management has been labor intensive, therefore high cost, high overhead.

  • Castells: The IT revolution makes knowledge work productive through automation.

  • Knowledge work produces new language to:

    • Configure Customers (as Brand)

    • Configure Products (as Network)

“network marketing”

  • The scope of marketing is limited by the speed with which information, messages, and products/services can be transported.

  • When inbound and outbound messages are transported at network speed, and production is decentralized, the result is:

    • MICROSCOPIC VISIBILITY (individualization)

    • FLEXIBILITY W/O TIME (versioning in communication, production, pricing, distribution)

Why does a company like Carrier do E-Marketing?

The Product: A Internet-Enabled Comfort Choice Thermostat

What are the Benefits for Consumers?

1) Web-Enabled Micromanagement of


2) Added-Value Through Cost Saving.

And for Carrier?

1) Bundling Smart Services allows

to Maintain Prices in Competitive


2)Carrier, a B2B Company, is now VERY Close to

the Customer (User Data).

3)Last but not Least: Image of Being Cutting-Edge

Does Carrier Make Anyone Else Happy?

Yes, Connecticut Light & Power (Northeast Utilities system) with 1.1 million customers

Get 45,000 customers into the Carrier program and it'll conserve the equivalent of a small power plant…

Based on Carriers Competitive Advantages –

Network and Relationship –

What Should Come Next?

Wireless Remote Control

Lessons to be learned from Carrier?

  • Network your product: THINK Motorola ROKR!

  • Form a relationship to network partners.

  • Reconceptualize your product.

    • What is the value proposition Carrier is trying to sell?

    • How can the Internet add value?

Network Products in Networked Markets

  • The last decade has witnessed a shift from a focus on the value created by a single product to an examination of the value created by networks of products (product ecosystems or NETWORKED PRODUCT).

  • Network products emerge at the intersection of three types of networks:

    • User network

    • Complements network

    • Producer network

      Key Claims:

  • Any or all of these networks add value or enhance the attractiveness of the associated focal product.

  • Consumers allocate resources among competing products based on the perceived value added of any or all of these networks.

  • The strength/quality of these three networks mediate the relationship between stand-alone product performance and resource allocation.

AI Agentz from KazTrix

  • Easy to use

  • Can read aloud

  • Can search the Internet for answers they don’t know

  • Variety of “brains” available – several can be merged and used at the same time

  • No need to categorize entered information

  • Can be trained by user and the resulting “brains” can be cloned with set parameters and shared with others

  • Runs locally – no need to access server resources

  • Multiple visual personalities

I want you to think about these products as networked products:

  • Car

  • Canada (as tourist destination)

  • Computer game Everquest

  • Online dating services

  • Schulich

  • Refrigerator

  • On Demand Service Delivery (e.g., IBM, HP, Sun)

  • One of your choice…

  • What is the focal product?

  • What constitutes the:

    • User network

    • Complements network

    • Producer network

  • Which one adds most value to the focal product?

  • What are the marketing implications of your analysis?

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