Deconstructing the value proposition of an innovation exemplar
Abstract
Purpose
Research into the identification and development of value propositions has recently been identified as a key research priority by the Marketing Science Institute. The purpose of this article is to identify and develop a process for value proposition deconstruction that can help organizations transform their value propositions in order to gain an improvement in their competitive position.
Design/methodology/approach
A case study of an exemplar organization in the health care sector is used to develop an approach for value proposition deconstruction. Using the business system concept as a theoretical framework, the key value-adding elements that comprise this organization's value proposition are identified. A leading financial services firm is used to demonstrate how this learning approach can be successfully applied in developing a new and innovative value proposition.
Findings
Using the business system framework, a structured process for deconstructing value propositions is developed. This framework is extended to explicitly acknowledge the value-in-use that results from different encounters, to incorporate learning processes and to recognize its interactive and recursive nature.
Practical implications
The authors provide practitioners with insight into how to formulate new or improved value propositions.
Originality/value
This work addresses two important and previously unaddressed research questions: how can the process of deconstruction of an exemplar organization's value proposition provide a more comprehensive understanding of the elements that comprise a superior value offering; and how can this process be applied to other organizations seeking to improve their value proposition?
Keywords
Acknowledgements
The authors wish to thank Daryl Urquhart, Business Development Director, Shouldice Hospital and Gary Stott, Managing Director – Corporate Partnerships, AXA Insurance for their assistance in developing this paper and the reviewers for their helpful comments on earlier drafts.
Citation
Payne, A. and Frow, P. (2014), "Deconstructing the value proposition of an innovation exemplar", European Journal of Marketing, Vol. 48 No. 1/2, pp. 237-270. https://doi.org/10.1108/EJM-09-2011-0504
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited