The wonderful world of Co-creation and why every business will learn to adopt the principles of Co-creation and Engagement

I feel like I am on a trip down memory lane, having posted recently on Engagement after going through some charts from 2004 and a post we made on Co-creation

Today it is the paper written by C.K. Prahalad and Venkatram Ramaswamy called

The Co-Creation Connection

This was an important milestone for me in the research we were undertaking at that time.

For more than 100 years, a company-centric, efficiency-driven view of value creation has shaped our industrial infrastructure and the entire business system. Although this perspective often conflicts with what consumers value - the quality of their experiences with goods and services - companies see value creation as a process of cost-effectively producing goods and services. Now information and communications technology, the Internet in particular, is forcing companies to think differently about value creation and to be more responsive to consumer experiences. In fact, the balance of power in value creation is tipping in favor of consumers. How do companies co-create valuable experiences with consumers? The traditional company-centric view says: (1) the consumer is outside the domain of the value chain; (2) the enterprise controls where, when, and how value is added in the value chain; (3) value is created in a series of activities controlled by the enterprise before the point of purchase; (4) there is a single point of exchange where value is extracted from the customer for the enterprise.

The consumer-centric view says: (1) the consumer is an integral part of the system for value creation; (2) the consumer can influence where, when, and how value is generated; (3) the consumer need not respect industry boundaries in the search for value; (4) the consumer can compete with companies for value extraction; (5) there are multiple points of exchange where the consumer and the company can co-create value.

Alan Mitchell once wrote: "If marketing were a thing in its own right would anyone want to buy it?" And I think its a very good question. If marketing can re-imagine how it creates value, then perhaps marketing will become more effective and be seen as delivering more value?

The authors also state

And therein lies a fundamental challenge for business. Companies have grown used to viewing consumers as passive target markets for what they create. But, interestingly, markets are not passive; they are now becoming more like forums, largely because of the Internet. In the “market as a forum,” consumers actively define value the way they see value — as experiences — and push companies to see it the same way. Today’s companies know just how dramatically 40 million consumers networking with each other and challenging the status quo online, in categories as different as music and mortgages, are shaking up the business world. In this environment, we believe companies need to embrace a new approach to value creation, one in which the basis for value shifts from products to experiences

The 5 Powers of the connected consumer

1.Information Access: the end of information feudalism
2. Global View: the collapse of space and time
3. Networking: The wealth of networks and a We Media for a We Species
4. Experimentation: Consumers use the Internet to experiment with and develop products, especially digital ones
5).Activism: Psychological self-determination

Four building blocks for co-creating value say the authors.
1. Dialogue at every stage of the value chain encourages not just knowledge sharing, but, even more importantly, understanding between companies and customers. It also gives consumers more opportunity to interject their view of value into the creation process.
2. Access challenges the notion that ownership is the only way for the consumer to experience value. By focusing on access to value at multiple points of exchange, as opposed to simply ownership of products, companies can broaden their view of the business opportunities creating good experiences.
3. Risk reduction assumes that if consumers become co-creators of value with companies, they will demand more information about potential risks of goods and services; but they may also have to bear more responsibility for handling those risks.
4. Transparency of information is required to create the trust between institutions and individuals.

Ethics will also play a more critical role.

As we like to say Nobody is as clever as everybody and people embrace what they create.

The future as I so passionately believed in 2002 and still do today is built out of: understanding the human condition, putting experience and the customer P&L at the heart of what a company does rather than seeing it as a mere by-product. That marketing must evolve to become part of the principles of engagement, co-creation, shared experience where Reputation, Acknowledgement, Belonging and the Harnessing of Collective Intelligence become facts of life within the Architecture of the PULL organisation.

Comments

[web design company]

You got a point here. Very interesting.

[prada]

Stavo navigando per i blog legati per il mio progetto di ricerca e mi è capitato di scoprire il vostro. Grazie per l'informazione eccellente!

[Lancel]

Blog Grande Je suis certifié sur votre blog Parce que j'ai cherché et visité le contenu de blog sont uniques. Si votre blog ne sont pas uniques message pour que je ne poste mon commentaire.

[Abercrombie]

Governo primo ministro greco George Papandreou, sull'orlo del collasso, time pronto any incontrare l'opposizione su richieste di not governo di transizione. Che haya gettato inside piani dubbio every not referendum sul cello di salvataggio UE di Grecia. Il voto minacciata l . a . scorsa settimana tanto atteso accordo every ridurre debito greco elizabeth rafforzare not fondo di salvataggio della zona pound male impotence è stato effettivamente visto appear not referendum every l'adesione della Grecia nel blocco dell'euro.

[mafya]

enjoy and make the most of the holiday season. What a beautiful destination!

[Bellevue dental]

Thanks a lot for enjoying this warning compute with me. I am appreciating it unyielding oft! Unranked sassy to somebody hot penalisation. Echt acquisition to the communicator! all the humanlike!