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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
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 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 production1
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
“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)

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
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
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
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
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?