Within the ng Connect Program, we aim to develop service concept ideas that have strong value propositions. These value propositions are one of the most important elements of the business models that we define for each service concept in parallel to the technical implementation. The value proposition is a cornerstone of a service concept business model. Without a strong value proposition a service concept would simply be an interesting demonstration, and without a realistic business model there is little or no commercial value.
The ng Connect Program, too, has a value proposition. It’s a bit more complex, but I’ll break it down and relate it to some classic economics.
In a classic Nobel Prize winning economics paper by Ronald Coase titled “The Nature of the Firm”, Coase looks at why firms (large enterprises), and the market (small, specialized enterprises and individuals) exist and work together.
Firms tend to be vertically integrated and perform certain functions more efficiently than smaller businesses and individuals. However, due to hierarchies and processes, innovative functions are done more efficiently by small firms and individuals.
If the right mix of large and small enterprises is put together, new service costs and time to market can be minimized. This orchestrated mixing serves as a catalyst to bring innovative services to market sooner and at a lower cost than would occur if left to happen in some other manner.
The mixing of different types of business entities can be called a “virtual” enterprise, made up of different parts but working towards a goal as one. We coined the term “symbiotic firm” which is a federated group of entities with mutual dependencies for market success.
That is the ng Connect Program value proposition. By bringing together a broad set of businesses, ideating to create new service concepts, and collectively developing those ideas into commercially viable solutions we create value for the members.
Join us in an ideation session and become part of a symbiotic firm!