Management Review

›› 2019, Vol. 31 ›› Issue (7): 110-122.

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The Key Value Drivers of User Value Creation in Internet Products: Products or Connections? A Case Study of WeChat During 2011-2018

Jiang Jihai, Liu Rui   

  1. School of Economics and Business Administration, Chongqing University, Chongqing 400030
  • Received:2018-09-03 Online:2019-07-28 Published:2019-07-28

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Abstract:

Compared with the industrial era, the value creation logic and business model innovation of Internet product have undergone great changes in the digital age. The business model innovation of Internet products emphasizes the reconstruction of supply and demand connection methods to realize user value creation. This paper takes Internet products as the research object. Firstly, two kinds of value drivers are abstracted by means of the classic business model canvas:product and connection; then the mechanism of the value drivers of Internet products on user behavior and user value is analyzed from the aspects of product combination and connection dimension; finally, a single case study is used to explore the specific role of WeChat's product portfolio and connectivity attributes in user value. The findings show that products and connections are the value drivers that create rapid growth in user value. Value creation follows the logic of "value drivers → user behavior → user value". Internet companies need to enrich product functions and focus on the combination of products and services. More importantly, enterprises need to use network effects, communities, etc. to strengthen the connection with users, to provide users with accurate "solutions" to achieve the use value, entertainment value and social value multiplication.

Key words: business model innovation, value creation, Internet products, product portfolio, connection