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Transcript
What S-D Logic Might Be S-D Logic Presentation for the Otago Forum on ServiceDominant Logic November 23, 2005 Robert F. Lusch, University of Arizona Stephen L. Vargo, University of Hawaii at Manoa What S-D Logic Might be S-D Logic Foundation of a paradigm shift in marketing Basis for a General Theory of Marketing Reorientation for economic theory Foundation for theory of the firm Perspective for understanding role of markets in society—Theory of Markets Co-creation at Core of S-D Logic S-D Logic All institutions co-created Market Values Norms Language From Operand to Operant Resources Market Exchange Shapes Institutions Exchange Creates Change Marketing Assists Change & Evolution S-D Logic Division of Labor Exchange Increasing Degree of Change in Society Change Commercial Society Institutions S-D Logic Commercial or Civil Society Division of Labor Institutions Institutions Markets Goods Service for Service Money Organizations Goods, Money, Organizations are Intermediaries Intermediaries S-D Logic Goods = Tools & Appliances Money = Option on Service(s) & Relationships Organizations = Service Aggregators, Integrators & Transformers Commercial Relationships S-D Logic Relationship Self Commercialization Books, Seminars, Counseling, Apparel, Beauty, Spirituality Family Eating, Entertainment, Childcare, Eldercare Friends Romance, Clubs, Apparel, Church Work Jobs, Education & Training, Childcare, Healthcare, Retirement Neighbors Gated Communities, Clubs, Architecture, Shopping Strangers Security Systems, Charitable Giving, Insurance, Credit, Investing Reversing Fundamental Assumptions S-D Logic The Old Thinking S-D Thinking Profit Maximization Performance Improvement Uncontrollable External Environments External Environments Are Resources Market To Customers Market With Customers Value-in-Exchange Value-in-Use Exchange is Fundamental Co-creation is Fundamental Draw Upon Resources (internal & external) S-D Logic Co-Create Service Offering Co-Create Value Proposition Collaborate Collaborate: With & Customers Customers Partners& Co-Create Partners Value Co-Create Processes & Conversation Network & Dialogue S-D Logic as a Theory of Marketing Overcome Resistances The Nature & Scope of Marketing S-D Logic Commercial Society World of Work World of Consumption Condition Specialized Competences Specialized Competences Specialized Competences Means Exchange Labor Market End Change Value Consumer & Business Market Value Toward an S-D Curriculum S-D Logic S-D View of Markets & Marketing Co-Creating Value Propositions Co-Creating the Service Offering Competency Building and Competitive Advantage Co-Creating Conversation & Dialog Consumers as Resource Integrators Collaborating on Cross-Functional Processes Co-Creating Value Processes & Networks Marketing and Society Frontiers in Research S-D Logic Co-Creation & Collaboration Dialog & Conversation Value Propositions & Networks Consumer Centric Thinking Business Processes & Service Flows Knowledge & Competitive Advantage Meaning of Consumption & Work Theory of Markets Marketing, Macromarketing & Public Policy Concluding Observations S-D Logic Should we develop an open-source S-D L Theory of Markets, Marketing, and Society? By embracing: Cocreation Transparancy Dialog Resource Development Value-in-use How do we? Will we? S-D Logic Thank You! For More Information on S-D Logic visit: sdlogic.org We encourage your comments and input. If you would like your working papers or teaching material and/or links to your research displayed on the website, please e-mail us Steve Vargo: [email protected] Bob Lusch: [email protected] How Foundational is S-D Logic? S-D Logic • • • To a general theory of the firm? To a general theory of markets & marketing? To a general theory of society? S-D Logic and a Theory of Organizations S-D Logic Work as Co-creation Individuals Applying Mental & Physical Competences Organizations What is Purpose of Firm? Primary Functions = Aggregation, Integration, Transformation Consumption as Co-creation Management Tools Needed Because of Intermediaries S-D Logic Credit Management Branding Decentralized Organization Planning & Control Systems Total Quality Management Marketing Concept Profit Sharing Supply Chain Management Customer Relationship Management The Emerging Reform of Marketing Service Dominant Goods Logic Goods Less Global Sustainability More Services Tangibles Intangibles Operand Resources Operant Resources Asymmetric Symmetric Propaganda More Customer Alienation Less Conversation Value Added Value Propositions Transactional Relational Maximize Profits Financial Feedback Less Respect for Marketing In Firm More S-D Logic Markets and the Family Institution: Transforming Relationships Tribal Society Age is paramount Gender determines role Children are producers Property rights limited Marriage is controlled Credit is limited Success is granted People do not try to advance Market Society Youth is valued Gender relatively unimportant Children are consumers Property rights widespread Marriage is open Credit is pervasive Success is earned People try to advance
