Network Value Creation through Marketing

Abstract

Purpose: The article is devoted to critical refl ection on the commonly used value chain model taking the perspective of contemporary role of client and technological advancement in multifaceted organizational development and management. It attempts to outline and thoroughly describe the new perspective of value creation and value management taking into account digital technologies and social media platforms.

Methodology: Deductive approach have been implemented, secondary data and sources have been used. Finally, the model of Value chain 2.0 was presented, conceptualized and described from both theoretical and practical sides.

Design: The fi rst part of the article is focused on the explanation of present potential of client for any enterprise. The second part attempts to explain the role of virtualization processes, exemplifi ed by social media, semantic web approach or virtual organization in the shift of value creation. Finally, the concept of value chain 2.0 is proposed and discussed.

Findings: There is a rapid transformation of value creation where linearity, control and inter organizational resources are gradually being replaced by network value creation where clients’ activities play pivotal role in organization performance and where value is defi ned in much broader way.

Practical implications: The conclusions have profound meaning for companies and organizations striving for engagement of clients, partners and employees in value creation processes. The paper presents both theoretical foundations along with practical implications for value co-creation.

Originality: The thorough and detailed analysis and interpretation of multifaceted shift and transformation of value creation and value management is presented. The article describes the ways the social media, digital technologies and contemporary marketing influence the way organization.