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+ Value Co-Creation: A New

Business Logic?
+ What does it buy consumers
and organizations?
Access and transparency – informed choices
Dialogue and risk assessment – debate and co-develop policy
Access and dialogue – thematic communities
Transparency and risk assessment – co-develop trust

Prahalad and Ramaswamy (2004)


+

Current forms of co-


creation
Emotional engagement

Self service

Concurrent experience

Self select

Co design
+ Tethered around consumer
experiences
+ What will some next
practices look like?
+
Next practices?
Customer-facing business models in EMs

!  Pay-Per-Use
!  consumers pay lower costs for each use of a group-owned facility,
product, or service; limits impact on their cash flow while
customer volume makes it sufficiently attractive for suppliers.

!  Paraskilling
!  combines a No Frills model with disaggregating product into
simple standardized tasks that can be undertaken by consumers
without specialized qualification (the IKEA model?)

!  Shared Channels
!  reach into remote markets via piggybacking products and
services through existing customer supply chains, thus enabling
rural consumers gain access.

Monitor Group, Emerging Markets, Emerging Models, 2009


+
Next practices?
Supplier-facing business models in EMs

!  Contract Production
!  directly involve small-scale farmers or producers in rural supply
chains; organize supply chain, provide critical inputs,
specifications, training, and credit; supplier provides assured
quantities of specialty produce at fair and guaranteed prices.

!  Deep Procurement
!  bypass traditional middlemen, enable direct purchases from large
networks of smallholder producers, provide training for quality

!  Demand-Led Training
!  pay third-party to identify, train, and place employees for job
openings at the edges of the formal and informal sectors.

Monitor Group, Emerging Markets, Emerging Models, 2009


Closely follow what consumers want

Use cutting-edge technology

+ Non-traditional partnerships
Build local capacity

Design for usage situation

Add to value portfolio


+
Not Co-Creating Value
What are the costs?
+

Marketing and Consumer behavior


Marketing as ‘facilitator’ and ‘structurer’ of mutual creation and enjoyment
of value

Customer is always a co-creator of value: there is no value until an


offering is used – experience and perception are essential to value
determination

Value embedded in customers’ practices; supplier’s motivation should be


to improve these practices – occupy a valuable role in cust. activities

Payne, Storbacka and Frow (2008)


+
Co-Creating Value
An idea yet to gain big currency in business world

!  Opposite to ‘restricting’ flow of info to consumers

!  Opposite to ‘appropriating’ value

!  Opposite to planning for the ‘lack of interactions’

!  Anchor-point of value creation: individuals, community

!  Requires roles of producing and consuming to blur

!  Many current variants without requisite commitment to


involve

!  Can we re-learn from ancient forums or marketplaces?


+ Prof Julie Cohen,
Georgetown Law School
“start by looking at the relationships between self and culture, self
and community, and identify what’s really necessary for human
flourishing”

http://cyber.law.harvard.edu/events/luncheon/2010/01/cohen
+ Bringing People In:
“Inclusion”
+
Web links

!  http://www.theindiastreet.com/2007/12/video-airplane-
experience-for-indias.html
!  Inclusive markets
http://www.youtube.com/watch?v=KW5FKNpgg6I

!  Inclusive democracy
http://video.google.ca/videoplay?docid=512339375514796163

!  HSBC ad lassi in washing machine


http://adoholik.com/2008/09/27/hsbc-bank-washing-machine-
and-lassi/
!  Non-traditional partnership
http://www.hoise.com/vmw/05/articles/vmw/LV-
VM-08-05-3.html