Co-creating value

Chris Lawer points to Prahalad’s new book, The Future of Competition: Co-creating Unique Value with Customers. The blurb for this says it’s about

the evolving role of the consumer from passive recipient to active co-creator of value. Managers need a new framework for value creation. This book is about the emerging “next practices” in value creation.

Increasingly individual customers interact with a network of firms and consumer communities to co-create value. No longer can firms autonomously create value. Neither is value embedded in products and services per se. Products are but an artifact around which compelling individual experiences are created. As a result, the focus of innovation will shift from products and services to experience environments that individuals can interact with to co-construct their own experiences. These personalized co-creation experiences are the source of unique value for consumers and companies alike.

Beyond Branding is on to this already; for instance there’s a chapter “Whose Brand is it Anyway” about co-creation, as well as thinking about how valuation methods must change to reflect a changed, connected economy.

Coincidentally, Ton Zijlstra does a clear diagnosis of an event that does not seem to have figured out the co-creation of value. Commenting on last years KM Europe event, Ton unravels why it didn’t work to well for all involved. It’s a good example of the way thinking needs to change.

2 thoughts on “Co-creating value

  1. Rich

    Eastern Philosphy? Hardly! This is what the future is all about! The concept of the experience is just as strong as the product. That’s the essence of “brand”! Wal-mart will give me good prices. Target wil give me neat stuff at a good price. Radio Shack is the only place to go for a sub-miniature dip-switch. The key is understanding and optimizing the relationship between “brand” and “mass-personalization”. Burger King was one of the first to recognize this. Take a Micky-D buger and give it to your “your way”. What’s the value? The burger? Nope! it’s the “your way” experience. They managed to break into a highly competetive market and make it to the #2 spot in short order. I’m still waiting for my supermarket to do somethign (ANYTHING!) with all that data they’ve been collecting from me ever since I got my “preference card”. Technology rules! To hell with privacy – I want micro-targeted marketing! Have you seen “Minority Report”? If not, it’s worth the rental. Take a look at the billboards and ads that “recognize” you and pander…excuse me…cater… to you particular interests.

    You think this is “eastern philosophy” then fear for the fall of the west!

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