Co creation of value

In todays economy, businesses need

to continuously reinvent themselves
in order to adapt to increasingly
complex and dynamic market
realities. (Coates 2009).
Standardisation makes it hard for
companies to differentiate
themselves from competitors.
Today, markets are more
fragmented; consumers have
unprecedented access to information
and networks.
 The interaction between the firm and
the consumer is becoming the locus
of value creation and value
extraction. As value shifts to
experiences, the market is becoming
a forum for conversation and
interactions between consumers,
consumer communities and firms.
What we need to create is an
experience environment within which
individual patients (consumers) can
create their own unique personalized
experience.
 Technologies have created new
modes of production and innovation
that enable and encourage a greater
degree of participation and
collaboration.
Aim of co-creation is to enhance
organisational knowledge processes
by involving the customer in the
creation of meaning and value.
Co-creation also transforms the
consumer into an active partner for
the creation of future value.
 Co-Creation: Importance
1. Creative: co-creation is a form of
collaborative creativity, thats initiated by
firms to enable innovation with, rather than
simply for their customers.
2. A rich mix: co-creation draws on a
combination of management and marketing
approaches, the psychoanalytic tradition,
and processes related to innovation,
knowledge and group decision-making.
3. A facilitated process: co-creation thrives on
fantasy, play and creativity, but the role of
the facilitator or facilitating organisation is
4. All about relationships: we stress the
importance of focusing on the quality of
the interactions between people rather
than on technologies per se
5. A learning process: we need to intertwine
knowledge and processes in an overall
co-creation framework, rather than just
enabling co-creativity, if we want to
achieve wider organisational impact.

From Co-creation: New pathways to value, An

overview, by Nick Coates, Research Director,
Promise, 2009.
 Co-creation of Value
Has become a dominant idea.
Occurs whenever consumers interact
with companies or products and
thereby have an active role in the
shaping of their experience and
ultimately value perception.
Co-creation between firms and
customers, as well as production and
consumption, is about tapping
successfully into the collective
intelligence of consumers.
Co-creation as an active, creative and
social process entails:
1. Connections: interactions between
people, such as companies and
customers, not interactions between
consumers and products only.
2. Collaboration, rather than just
involvement.
3. Co-creativity, not simply co-
construction or co-production.
Moving Customers...
From To

Passive buyers
Active agents
Listening
Dialogue
Consumers as
Consumers as
buyers
resources
Researching need.
Understanding
experiences
Reliance on
Consumer
experts.
knowledge
9
Questions to Consider
Co-creation stands for creative
collaboration processes between an
organisation and its customers.
Depending on the size and market
positioning of the firm, the ways in which
this collaboration takes place may vary.
Any company considering a co-creation
1.strategy
Who will needs
be to consider the following
4. How much
six questions:
involved? involvement?
2. Whats the 5. For how long?
purpose? 6. How do you
3. Where does it incentivise?
10
occur?
 Examples
Tanishq
Tanishq, the jewellery arm of the Tata
Group,has launcheda promotion drive
under the name My Expression, which
invites consumers in a co-creation activity.
Participants are invited to submit an idea
for Mia the new Working Womens line
from Tanishq, of which the winner will get
to collaborate with designers at Tanishq to
design the latest collection.
 The New Pepsi Challenge
The Pepsi Challenge was for the
social media audience, the campaign
came to India during the IPL giving
consumers a chance to create
commercials for the brand.
 Learning
Co creation of value is important for service
system design.
Approach should based on service dominant
logic.
Users are seeking personalised experiences
that are derived from relationships rather than
products/services.
Users are seeking organisations that allow
them to create experience where they can be
actively involved and are personally
meaningful to them.
Users are more interconnected and intelligent