Hybrid Value Creation

Hybrid Value Creation
Project status: running

Global market scenarios allow the easy comparison of products and services for consumers. In such a comparable supply situation, often price leadership is the key for gaining market shares. Enterprises which gain their market shares predominantly through price leadership tend to have a small scope for further development. A strategically significant way to differentiate from competitors in comparable markets is the provision of hybrid service bundles (Burr, 2002). Hybrid service bundles are an integrated combination of physical products and immaterial services and have the goal to solve a specific customer’s problem (Hirschheim, Klein, & Lyytinen, 1995).

Current research indicates that the management of hybrid service bundles in information systems presents new challenges to already established business processes. For example, hybrid service bundles in business processes, as described in the Supply Management System, can only be presented insufficiently (Schrödl, Gugel, & Turowski, 2010;  Schrödl, Gugel, & Turowski, 2011). Research in the field of hybrid value creation focuses on models and methods for the creation of hybrid service bundles. The discussion about the provision of hybrid service bundles in value creation networks is still pending (Bensch, Schrödl, & Turowski, 2011). A close provider-supplier-relationship is necessary in order to achieve process improvements for the provision as well as cost reduction, which can then be divided between the provider and the supplier  (Carr & Smeltzer, 1999). Thus, value creation networks are especially suitable for the realization of operational and strategic aspects.

Whereas the provision of tangible goods in supply networks has a long research history, the supply of services and service in the sense of offerings that can be obtained on demand via internet, raises a multiplicity of questions that have not yet been sufficiently answered (Bensch & Schrödl, 2011; Bensch, Schrödl, & Turowski, 2012). Due to this reason, questions of Service Level Agreements (SLA’s), which consist of several components, still remain unanswered. Further topics are guarantee benefits for services in the sense of quality guarantees, availability qualities, responsibilities for complex service provisions, or topics such as risk management. Since the response to those topics in the context of service features was not sufficient, this is especially valid for hybrid service bundles as a complex combination of tangible accomplishments and service features .

Especially the field of risk management in the context of hybrid value creation currently is hardly examined (Schrödl, Geier, Latsch, & Turowski, 2011b). Due to the increasing specialization of providers, the establishment of hybrid offers causes an efficient integration of suppliers for the service generation and service provision. Hereby the risk observation plays a central role. Since there are different types of suppliers, it is often difficult for the providers of hybrid service bundles to evaluate new and existing suppliers according to their risk features. Risk models for supplier evaluation are currently used in enterprises. But existing models are strongly applied to the procurement management of material goods and not sufficiently analyzed according to the specific demands of hybrid value creation.

The aim of this project  is the establishment of a risk management model which is designed for and can be applied to the specific demands of hybrid value creation. Therefore, a comparative framework for the well-structured comparison of already existing risk management models was established (Schrödl & Geier, 2012). Through the application of this comparative framework it becomes obvious that no currently documented risk management model is suitable for hybrid value creation. The best possible measure appears to be the point evaluation method. Based on this method, a new technique has been established in order to fill the gap to the applicability in hybrid value creation (Schrödl, Geier, Latsch, & Turowski, 2011 a). These methods have been evaluated in the context of a laboratory test. This project uses the design science approach (Hevner, March, Park, & Ram, 2004).