Transcript Document

1
LET ME OPEN WITH A NOTE ON MY PERSONAL
JOURNEY FROM THE PAST TO THE PRESENT:
1960s-present Marketing management of consumer goods
plus
1970s-present Services marketing and management
plus
1980s-present Quality management, excellence, value, satisfaction
plus
1990s-present Relationship marketing, CRM, one-to-one
adding up in the
2000s- S-D logic, service science, many-tomany networks
E. Gummesson 2009
2
It’s simply UNIQUE!
E. Gummesson 2009
3
E. Gummesson 2009
4
Complexity,
network theory &
many-to-many marketing
Professor Evert Gummesson
Stockholm University School of Business
Sweden
[email protected]
E. Gummesson
2009
www2.fek.su.se/home/eg/
5
ON MY TERMINOLOGY:
The noun “complexity” stems from the Latin
complexus meaning “network” accompanied by the verb
complecti meaning ”to twine together”.
The word “system” is derived from the Greek
systema, meaning “a whole composed of many parts”.
“Context” comes from Latin contexere, “to join
together”.
These words and several others, like ”ecology” and
”holism”, obviously belong to the same family.
I use the word system in its generic and general
sense, for example “service system”, but let networks
through network theory (and case study research) be
the basis for analysis and discussion.
E. Gummesson 2009
6
Throughout my research the overriding key variables are
relational in three ways:
relationships,
networks &
interaction
E. Gummesson 2009
DEVELOPMENT OF THE RELATIONAL APPROACH TO MARKETING
1960s-present
1990s-present
2000s-
Traditional American
marketing management
and marketing mix
Relationship marketing
CRM
One-to-one marketing
Many-to-many marketing
Customer centric
Centered on one party
Relationship centric
Centered on two parties
Network centric
Centered on many parties
Customer
E. Gummesson 2009
Customer
Supplier
7
8
Definition:
“Many-to-many marketing
describes, analyzes and utilizes
the network properties of marketing.”
E. Gummesson 2009
9
Marketing as Complex Networks: Many-to-Many Marketing
From one-to-one to many-to-many in the marketing of the valuecreating network economy
PRELIMINARY CHAPTERS:
1 From One-to-One to Many-to-Many
2 B2B: Networks in Business-to-Business
3 B2C/C2B: Networks in Business-to-Consumer and Consumer-toBusiness
4 C2C: Customer-to-Customer Networks
5 B2B2C2C2B2B... Everything Is Linked to Market, Mega and Nano
Networks
6 Infrastructure and Mega Networks
7 High Tech/High Touch: Human Beings Are Not Obsolete!
8 Many-to-Many Management: From CEO to NEO, from CMO to NMO,
from ROI to RON
9 Traveling the Land of Theory and Research
10 Many-to-Many: Science, Internet – or Innernet?
E. Gummesson 2009
10
Network theory:
both methodology
and a theory of life
E. Gummesson 2009
11
E. Gummesson 2009
12
The topology of Capri –
going from a photo to a
network and fractals
model
E. Gummesson 2009
13
Air Canada
Air China
Air New Zealand
Adria
ANA All Nippon Airways
19 FULL
PARTNERS
3 REGIONAL
PARTNERS
Blue 1
Asiana Airlines
Croatia Airlines
Austrian
bmi british midland
Star Alliance
LOT Polish Airlines
Lufthansa
11 SPECIAL
SAS PARTNERS
SAS Scandianvian Airlines
Shanghai Airlines
air Baltic
Air China
air greenland
Air One
Atlantic Airways
Cimber Air
City Airline
Estonian Air
Qantas
Skyways
Wideroe
Singapore Airlines
South African Airways
Spanair
SWISS
THE STAR ALLIANCE,
FEBRUARY 2008
E. Gummesson 2009
TAP Portugal
Thai
United
US Airways
14
WHAT IS NETWORK THEORY?
DECENTRALIZED NETWORK
CENTRALIZED NETWORK
HUB
LINK
NODE
DISTRIBUTED NETWORK
E. Gummesson 2009
15
E. Gummesson 2009
16
E. Gummesson 2009
Neural networks:
Bundles of nerve fibers running to various organs
and tissues of the body.
Computer representation of the human
brain that tries to simulate its processes.
E. Gummesson 2009
17
18
E. Gummesson 2009
19
5 doctors
prescribing
9+2 pills
55 specialists
23 diagnosed
disorders
11 therapies
comprising
41 components
an endless amount
of capital goods
and disposables
Patient ANNA, 82
Network & systems manager
ambulance and
taxi drivers
nurses
social insurance
people
masseurs
social assistants
E. Gummesson 2009
Based on Akner, G. (2004). Multisjuklighet hos äldre. Malmö, Sweden: Liber.
20
5 doctors
prescribing
9+2 pills
23 diagnosed
disorders
55 specialists
11 therapies
comprising
41 components
an endless amount
of capital goods
and disposables
Patient ANNA, 82
Network & systems manager
ambulance and
taxi drivers
nurses
social insurance
people
masseurs
social assistants
E. Gummesson 2009
21
This is not a customer-oriented
service system!
It is too complex to work.
How do we find the necessary
simplicity to make it work?
We are facing a huge challenge!
E. Gummesson 2009
THIS IS ABOUT MARKETING, SO WHERE DOES
MANY-TO-MANY MARKETING AND NETWORKS COME IN?
WE HAVE TO ANSWER SEVERAL FUNDAMENTAL QUESTIONS:
Who are the customers and who are the suppliers?
What do suppliers do best?
What do customers do best?
What do third parties do best?
What should be one-party (individual) action?
What should be two-party (dyadic) interaction?
What should be multiparty (network) interaction?
What should be C2C interaction?
What should be face-to-face interaction, ear-to-ear interaction, email
interaction, Internet interaction, text messaging, and interaction with
automatic machines?
What do human beings do best?
What does technology do best?
Is there a no-man’s land where service is neglected?
E. Gummesson 2009
22
23
In the new service logic the customer and supplier roles have
merged, although they perform different tasks in differnet context
(“value-in-context”). The following categories of suppliers are
found in the market:
business enterprises
governments on a national, regional and local level and
increasingly on a mega, supra-national level, such as the EU
NGOs and voluntary organizations which arise where the first
two have failed, or act as supplementary to them
In B2B, the suppliers are also customers. In B2C/C2B we find
consumers
citizens
who are also co-creators, that is suppliers.
E. Gummesson 2009
Properties of case study research
and network theory.
They can accomodate:
Complexity
Context
Change
Non-linearity
Both parts & the whole
Both structure, hierarchy & process
Both tech & human aspects
E. Gummesson 2009
No other research methods in
social sciences can do that!
24
C
O
M
P
L
E
X
I
T
Y
T
H
E
O
R
Y
25
STATISTICAL SURVEYS
Usually low quality data
Superficial
Cannot handle complexity
Pseudo-preciseness
Low validity, high reliability
Non-interactive
CLAIMED TO BE
SCIENTIFIC: ”SURVEYDOMINANT LOGIC”
CASE STUDY RESEARCH
Verbal narratives
High validity, low reliability
Interactive
CLAIMED TO BE ONLY
ANECDOTAL AT SOME
BUSINESS SCHOOLS,
HIGH ACCEPTANCE
AT OTHERS
E. Gummesson 2009
NETWORK THEORY
Verbal
Graphical
Mathematical
Interactive
ONLY SPECIAL
APPLICATIONS AT
BUSINESS SCHOOLS
26
But this is not enough. Scientific methodology is not a technique;
it is techniques in the context of a philosophy and worldview.
Researchers who just become technicians are not scholars. To
be a scholar and true scientist you have to consider other
dimensions as well:
common sense
intuition
sound judgment
wisdom
insights
hunches
experience
instincts
visions...
Without these additional aspects, scientific method is empty!
E. Gummesson 2009
27
“Networks are
the fundamental
stuff of which new
organizations are
and will be made.”
Source: Manuel Castells, Professor of
Sociology, in The Rise of the Network Society.
Oxford, UK: Blackwells, 1996.
Quotation from p. 168
E. Gummesson 2009
28
“Physicists have entered into a new stage of their science
and have come to realize that physics is not only about
physics anymore, about liquids, gases, electromagnetic
fields, and physical stuff in all its forms.”
“At a deeper level, physics is really
about organization –
it is an exploration of the laws of pure form.”
Source: Mark Buchanan, physicist and former Editor of Nature
and New Scientist, in Small World, Phoenix, London, 2003.
Quotations from p.165
E. Gummesson 2009
29
“…understanding network effects becomes the
key to survival in a rapidly evolving new economy.”
“In reality, a market is nothing but a
directed network.”
(as opposed to a random, scale-free network)
Source: Albert-László Barabási, Professor of Physics, in
Linked: The New Science of Networks, Perseus, Cambridge,
MA, 2002.
Quotations from pp. 200 and 208
E. Gummesson 2009
30
A SAMPLE OF
CONCEPTS AND
ISSUES FROM
NETWORK THEORY:
E. Gummesson 2009
* Nodes and links
* Hubs
* Random networks
* Planned networks
* Clusters
* Connectors
* Preferential attachment
* Rich gets richer
* Fitness
* Fit-get-rich
* Winner-takes-all
* Scale-free networks
* Power laws
* Phase transition
* Robustness, error tolerance
* Cascading failure
* Tipping points
* Thresholds
* Spreading rates
* Self-organizing
* Six degrees of separation
* What is the Internet, really?
31
A SAMPLE OF
CONCEPTS AND
ISSUES FROM
NETWORK THEORY:
E. Gummesson 2009
* Nodes and links
* Hubs
* Random networks
* Planned networks
* Clusters
* Connectors
* Preferential attachment
* Rich gets richer
* Fitness
* Fit-get-rich
* Winner-takes-all
* Scale-free networks
* Power laws
* Phase transition
* Robustness, error tolerance
* Cascading failure
* Tipping points
* Thresholds
* Spreading rates
* Self-organizing
* Six degrees of separation
* What is the Internet, really?
32
CEO
Chief Executive Offcier
or...
E. Gummesson 2009
NEO
33
Network Executive Officer
E. Gummesson 2009
34
CMO
Chief Marketing Officer
or...
E. Gummesson 2009
35
E. Gummesson 2009
36
Traditional indicator:
Return on Investment (ROI)
New indicator:
Return on Networks (RON)
is a measure of the profitability
of a company’s networks
E. Gummesson 2009
BIBLIOGRAPHY ON RELATIONAL APPROACHES (SELECTED)
Articles:
Gummesson, E. (1987), "The New Marketing – Developing Long Term Interactive Relationships".
Long Range Planning, Vol. 20/4, No. 104, August.
Lovelock, C. and Gummesson, E. (2004), ”Whither Services Marketing? In Search of a Paradigm and
Fresh Perspectives,” Journal of Service Research, vol. 7, no.1, pp. 20-41. Winner of the 2005
American Marketing Association Best Services Article Award.
Gummesson, E. (2006), “After Relationship Marketing, CRM and One-to-One: Many-to-Many
Networks,” Finanza Marketing e Produzione, no.1, pp. 138-144.
Gummesson, E. (2007), “Exit Services Marketing – Enter Service Marketing”. Journal of Customer
Behaviour, Vol. 6, No. 2, pp. 113-141.
Gummesson, E. (2007), “Case study research and network theory: Birds of a feather”, Qualitative
Research in Organizations and Management, Vol. 2, No. 3, pp.226-248.
Gummesson, E. (2008), “Extending the New Dominant Logic: From Customer Centricity to Balanced
Centricity.” Commentary for Special Issue of The Journal of the Academy of Marketing Science
(JAMS) on the New Dominant Logic, 36 (1), pp.15-17.
Gummesson, E. (2008), “Quality, service-dominant logic and many-to-many marketing.” The TQM
Journal, 20 (2), pp.143-153.
Gummesson, E. and Polese, F. (2009), “B2B is not an island”, The Journal of Business & Industrial
Marketing 24 (5-6).
Gummesson, E. (2009), “The future of service is long overdue”, in Maglio, P. P., Kieliszewski, C. A.,
and Spohrer, J., Eds.. Handbook of Service Science. New York: Springer.
Book:
Gummesson, E. (2008), Total Relationship Marketing, Oxford, UK: Elsevier/ Butterworth-Heinemann
(3rd ed.).
E. Gummesson 2009
37
38
OVERLOAD?
E. Gummesson 2009
39
E. Gummesson 2009
40
E. Gummesson 2009