Archive for the ‘Uncategorized’ Category

Be careful when you laugh about your competitor’s strategy

Tuesday, July 3rd, 2012

Companies that are  in a predominant position in the marketplace, usually look at new entrants as non-dangerous. For instance, Steve Ballemer laughed about a new phone in the market called the iPhone because was too expensive. However, nowadays the iPhone is the best-selling smartphone displacing incumbents like Nokia. Sometimes, the dominant logic of a company do not let see other opportunities that are emerging. Moreover, they may seen as ridiculous by incumbent companies as we can see in the following video:

Egon Lüftenegger

PhD, service and business models

Thursday, May 5th, 2011

An interesting quote of Jim Sphorer and Paul Maglio on PhDs, service and business models:

“Q: what new types of PhDs might be needed to build a world-class, corporate services research organization?


A quick survey of the PhDs within IBM’s services division revealed a three-way split among technology, business-related, and social science PhDs.

Also, it was clear that the existing research organization was dominated by technology PhDs. For a research organization focused on technology systems, the shift to services would require a shift toward innovation aimed at improving sociotechnical business systems.

For example, nowadays clients rarely buy an IT system simply because of its technical capabilities (faster, more capacity, etc.) but instead require a business model (return on investment) and an organizational change model (reengineered processes and job roles) that will make the technology an effective solution to their business problems.” Jim Sphorer and Paul Maglio

Co-creation in Starbucks

Tuesday, April 6th, 2010
Starbucks is co-creating with customers through My-Starbucks-Idea. A 2.0 Web-site that let customers share their ideas (Fig. 1). The users enable the company to get an outside-in view to innovate in products, experiences and the relationship between the company with the world.
Fig-1 : My-Starbucks-idea
People can support current ideas or propose new ones. The process is very transparent, you can even see implemented ideas like a mobile payment card as an iPhone application (Fig.2).
Fig-2 : My cards

Starbucks is involving customers in their social responsibility with the environment. They are giving away 10,000 US dollars to the winner of a “more recyclable coffee cup” (Video : Betacup from the betacup on Vimeo).

More companies are using social tools to interact directly with the customer. This is the first step to get a customer view inside the company. Companies not only need to listen the customer, but take actions on the popular ideas, like the iPhone application. As Tom Davenport complains about the lack of lemon slices in Starbucks. They should not only listen, but also implement the new ideas to avoid unsatisfied customers.

Egon Lüftenegger

Publication : The state of the art of innovation-driven business models in the financial services industry

Monday, March 22nd, 2010


Title : The state of the art of innovation-driven business models in the financial services industry

Authors : E. Lüftenegger, S. Angelov, E. van der Linden and P. Grefen

BETA Working Paper Series WP 310, Eindhoven University of Technology, March 2010.

ISBN : 978-90-386-2226-2

Abstract :

Emerging innovation-driven business models are changing the financial services landscape. Most companies are using innovation to sustain their business models. However, new entrants into the financial services market innovate in a way that disrupts the industry. Typically, directions for innovation initiatives in financial services are absent.

In this report, we present a structured method to analyze innovation initiatives and their impact on the financial services in dustry. Our method is based on innovation and business model frameworks that let us analyze business models driven by different kinds of innovations.

We apply our method to emerging innovation-driven business models providing an overview of the financial services industry. Companies in financial services can use this report as an overview of the state of the art and as a guiding tool for their innovation initiatives. We contribute to the innovation and business models research fields, presenting a unified method to analyze business models driven by innovation in financial services.

Publisher Download link :

Egon Lüftenegger

Amazon’s Kindle service strategy and the iPad

Thursday, January 28th, 2010

Almost everybody in the blogosphere is talking about the death of Kindle. They forgot that Kindle is not a product, it’s a service. Kindle is the e-book service that is already in many platforms including iPhone and iPod touch, Blackberry and PC (Figure 1).

Figure 1 : Kindle e-book service for multiple platforms

The iPad will be another platform that pushes the kindle service that carries the biggest selection of e-books on the earth. This service strategy already saved Amazon from the disruption of the market with the arrival of new devices. The kindle e-reader device its a niche device for e-books lovers who spend lot of their time reading, for them the kindle and the e-ink still provide to them a better customer experience since the measure of the value is related with the low strain in the eyes of the readers thanks to the e-ink technology.

Fan service : The utimate fan co-created experience

Sunday, January 17th, 2010

The future of the music is not only in the production and selling music, the artists must take care about the fan experience engaging their customers (fans) to co-create content like Trent Reznor did with remixes and video”- Egon Lüftenegger

I’ve been a Nine Inch Nails (NIN) fan for more than ten years, giving me the opportunity to follow Trent Rezonr’s evolution. Trent is pushing the innovation in the music industry. He left Interescope Records to become fully in charge of the NIN trademark, letting him to control the whole customer (fan) experience. He owns his songs, letting him to do whatever he thinks is appropriate. Owning the content and the distribution channel is like to having control of hardware and software just like Apple does.

Trent Reznor launched viral marketing in 2007. Reznor used private torrent sites to distribute videos, raw song materials and resulting remixes from the album Year Zero. Trent, also distributed free USB drives containing unreleased songs and pictures from Year Zero, these USB drives were hidden in the bathrooms of concert venues where the fans found them and then shared the content through the Internet (see Figure 1) .

Figure 1. USB stick found in Spain.

Trent did many innovations to enhance the experience of his fans. We can summarize some Nine Inch Nails innovations as follows:

  • Free Albums : Ghosts I and The Slip.
  • Digital formats: Though Reznor had apparently been contemplating ditching his label for years, Nine Inch Nails’ Ghosts I-IV came second, causing reporters to describe the no-label release as Radiohead-style. The disc was priced $5 for better-sounding 320 Kbps MP3, FLAC lossless or Apple Lossless (all DRM-free). First eight songs are free.
  • Nine Inch Nails left Interscope/Universal Music Group and blew off traditional retailers, distributing the CD version of Ghosts I-IV only through the band’s website.
  • Advised Australian fans to steal his music after Universal priced it at AU$30. Praised Oink file sharing network.
  • Remixing policy : One of the reasons Reznor hated being signed to a label was that Universal wouldn’t let his fans remix his songs. Now that he’s on his own, Nine Inch Nails’ remix policy involves making raw materials available for use with Pro Tools or other audio programs. Bonus points if Reznor releases fan remixes on BitTorrent like last time.
  • Premium Tickets at : NIN offered premium tickets in some tours, these tickets were personalized with your own name letting you to access to the stadium earlier than regular tickets and enjoy the band testing their instruments before the concerts.
  • Iphone application :, Nine Inch Nails website, is also available on the iPhone, where the fans can interact and access to music, videos, pictures and news about the band (see Figure 2).
  • Ultimate Concert Experience: In 2008, Trent offered the Lights in the Sky tour using the state of the art in LED screens and sensors to provide an ultimate user experience for his fans.
Figure 2. NIN’s iPhone application.

The latest innovation experiment driven by Nine Inch Nails was the release of 450GB of raw High Definition footage. The fans co-created a professional release of the film using the official and fan made footage that is freely available on youtube, PS3 and DVD as well. A full HD Bluray version of the concert with 5.1 surround sound will be available to download (see Video 1).

Video 1. Co-created video.

ECOWS 2009 Dinner at the Van Abbe museum

Friday, November 13th, 2009

At ECOWS 2009 We had a nice dinner with Chilean wine and a guided tour at the Van Abbe museum. Grefen at ECOWS 2009 Dinner Grefen at ECOWS 2009 Dinner

Guided tour at the Van Abby Museum

Guided tour at the Van Abbe Museum

ECOWS 2009  participants enjoying the guided tour at the Van Abby Museum

ECOWS 2009 participants enjoying the guided tour at the Van Abbe Museum

ECOWS 2009 Keynote : Cloud Computing by Dr. Mahmoud Naghshineh

Wednesday, November 11th, 2009
Cloud Computing

Cloud Computing

There are major opportunities at all levels of the Cloud stack were identified by Dr. Mahmoud Naghshineh.

Infrastructure Services Layer  :  As systems innovators the opportunities are in helping to solve the out-of-space, out-of-power and lower costs.

Platform Services  Layer : The opportunities are in the development and management of technologies for overcoming the potential complexities and downsides of clouds.

Applications  Services Layer : We have opportunities establishing industry specific cloud platforms through which customers can develop and offer their services.

Business Services Layer : As composer and integrator using deep customer knowledge to design composite cloud solutions that combine disparate information.

People Services Layer : Providing knowledge enabler technologies that break the linear relationship between revenue and headcount and exploiting crowd-sourcing.

The cloud will grow rapidly specially at the Applicantion, Business and People services layers.

Dr. Mahmoud Naghshineh

Dr. Mahmoud Naghshineh

IBM is using Cloud Computing for this research centers to learn by doing.  Dr. Mahmoud Naghshineh identified 7 research challenges in Cloud computing:

  1. Simplicity and Consumability
  2. Service Compilation ad Delivery
  3. Scalability
  4. Security and Assurance
  5. Systems Design and Low Energy
  6. Service Chain Management
  7. Service Quality

ECOWS 2009 Keynote : LiquidPub by Dr. Fabio Casati

Wednesday, November 11th, 2009

At the  first day of the  IEEE European Conference on Web Services we had the opening  keynote by Dr.Fabio Casati from the University of Trento chaired by the founder of the IEEE Computer Society Technical Community for Services Computing Dr. Liang-Jie Zhang.

Liang-Jie Zhang and Fabio Casati

Dr.Liang-Jie Zhang and Dr. Fabio Casati

Dr. Fabio Casati presented the LiquiPub European project that aims to explore new models for research journals. LiquiPub innovate in the way how the papers journals are reviewed and published.

Liquidpub presentation by Dr.Fabio Casati

“The LiquidPub project proposes a paradigm shift in the way scientific knowledge is created, disseminated, evaluated and maintained. This shift is enabled by the notion of Liquid Publications, which are evolutionary, collaborative, and composable scientific contributions. Many Liquid Publication concepts are based on a parallel between scientific knowledge artifacts and software artifacts, and hence on lessons learned in (agile, collaborative, open source) software development, as well as on lessons learned from Web 2.0 in terms of collaborative evaluation of knowledge artifacts” [1].

LiquidPub introduce the concept of Liquid Journals : ” Once a set of papers has been identified as worthy of inclusion in a journal, their liquid version as opposed to their static snapshot is added to the journal. So if a new version of a paper in a journal is published by the authors, it is now the new version that belongs to the journal . We call these as liquid journals. The number and kind of papers are static, but the journal evolves with the included papers. We may still have the notion of “issue”, though it begins to be decoupled with time” [1].



Stakeholder focus is the new era of branding

Sunday, August 9th, 2009

“The social interaction is global. If you don’t like a service, post it on twitter”-  Egon Lüftenegger

The branding has evolved to a stakeholder view of the brand. It’s not focused only on the customer, but in all stakeholders. “The brand value co-creation process is a continuous, social, and highly dynamic and interactive process between the firm, the brand, and all stakeholders” is how the branding works in the Stakeholder-Focus Brand Era (Merz, 2009).

This is evolution of the brand, it’s a natural consequence of the evolution of the business. The business focus is not in the firm anymore, is in the network.The strategy is focused in the role of the firm in the business network. The brand is now in a network environment where all stakeholders co-create it.

Today, the brand is co-created on the Web. Social interactions reached global scale powered by services like Facebook or Twitter, where it’s easier to build the cult or the disappointment of the brand. These tools, specially Twitter, due to the openness of the way the interaction flow, facilitate the discussion. The social interaction is global. If you don’t like a service, post it on twitter. Firms are using that information to be aware of what the community among other stakeholders are saying about their brand.

Figure 1 – The cult of mac is a book about the strong mac community of Apple.

The most illustrative case in this branding era is Apple, the company that have the cult on mac ( Fig 1) , the cult on ipod and most recently the cult of iPhone. Their stakeholders includes software developers, universities, partners, product owners and communities of bloggers and fans that not necessary own the product but want to own one (just look that dell laptop with a Apple sticker of your office mate ). All these stakeholders dynamically co-create the apple brand, driven by social interactions (Fig.2).

Figure 2 – In the diagram we can see the firm and some stakeholders* (to simplify it) interacting, Google is a developer, TechCrunch is a blog, Apple fans is a community in Facebook and Twitter is a social platform where conversations and opinions take place. All of them are co-creating the brand in this continuous, social, and highly dynamic and interactive process

The speed and reach that modern social interactions provide to the stakeholders could be used to co-create the erosion of the brand. The recent issue on the Google voice application being rejected by the apple store is clearly stakeholder brand damage. That issue caused the reaction of community leaders, like the founder of TechCrunch blog, who leaved the cult of mac, quitting the iPhone in favor to an Android based phone to use actively Google Voice, co-creating branding value for Google Android instead of the iPhone.

Apple is a stakeholder co-created brand with much more followers than detractors in the community. The Google voice incident shows us how the community react to incidents that are seen as unfair. Specially when the stakeholder, the software developer in this case, is another powerful co-created brand like Google.

(Merz, 2009) Merz, Michael A., Yi He, and Stephen L. Vargo (2009), “The evolving brand logic: a service-dominant logic perspective”, Journal of the Academy of Marketing Science