What is value co-creation? For me :)

VALUE CO-CREATIONMonika Mačiulienė

Mykolo Romerio Universitetas

SETTING THE SCENE: WISDOM OF CROWDS

classic experiment

collective judgment

intuition of crowd

TED TALK BY LIOR ZOREF

There were 500 estimates, and the results were:

-The lowest guess was 308 lbs.

-The highest was more than 8000 pounds.

-The average was 1792 pounds.

And the real weight? The ox weighs 1795 pounds. Three pounds off.

Customers = Passive audience Active players

Time frame 1970s and early 1980s Late 1980s and early 1990s 1990s Beyond 2000

Managerial mindset The customer is an

average statistic.

The customer is an

individual statistic in a

transaction.

The customer is a

person.

The customer is not only

individual but also part

of an emergent social

and cultural fabric.

How companies are

interacting with

customers?

Traditional market

research and inquiries.

Identify problems from

customers, and then

redesign products and

services based on

feedback.

Making adjustments on

products based on

deep understanding of

customers.

Customers are

developers of

personalized

experiences.

Flow of communication One-way Data base marketing Relationship marketing Active dialogue with

customers. Multilevel

access and

communication.

Source: adapted from Prahalad and Ramaswamy (2000)

ROLE OF SOCIAL TECHNOLOGIESProblem solving in virtual environments

ROLE OF SOCIAL TECHNOLOGIES

Media clutter Always in beta Sea of niches

OLD VS NEW MODEL

consumers

observation

respondents

messages

campaigns

one size

firm-centric

transactions

people

immersion

partners

relationships

stories

niche tailored

experiences

dialogue with customers

SO WHAT IS CO-CREATION?

customer is the one who defines thevalue.

This value is based on the experiencesand perceptions while producing,consuming or using the service

generation and ongoing realization ofmutual firm-customer value

customer organization

WHY ARE CUSTOMERS INTERESTED IN CO-CREATING?

http://trendwatching.com/trends/CUSTOMER-MADE.htm

Social status Job opportunitiesCash Fun and involvement


CROWD OF PEOPLE/CROWDSOURCING

Anyone can join

Masses

Big numbers

Power of masses

GOLDCORP CHALLENGE

BROOKLYN MUSEUM’S CLICK! A CROWD-CURATED EXHIBITION

AIRBNB NEIGHBORHOOD GUIDES

citizen scientist at NASA

OPEN IDEO

COMMUNITY OF KINDRED SPIRITS

When developing something for the greater good

Groups of people with similar interests and goals can come together and create.

This model - so far - works mostly in software development and leverages the potential force of a large group of people with complementary areas of expertise.

WIKIPEDIA

platform for

artists,

designers, and

engineers to

share digital

design files via

Creative

Commons or

General Public

Use licenses

CLUB OF EXPERTS

A very specific challenge is needing expertise and breakthrough ideas.

Contributors are found through a selection process.

Quality of input is what counts.

HEINEKEN OPEN DESIGN EXPLORATIONS EDITION 1: THE CLUB

Global brewer Heineken recruited a virtual team of 19 young emerging designers from fourdifferent continents to develop a concept club of the future, which was brought to life as a pop-upclub in Via Bugatti in Zona Tortona, Milan 2012. The co-creation team of fashion, product, motion,interior and graphic designers came from Milan, Sao Paolo, New York and Tokyo. To stimulateideas, the co-creation team had access to an online panel of 100 clubbers.

COALITION OF PARTIES

each parties bring specific asset or skill to the party

sharing knowledge

creating a common competitive advantage

BEERTENDERby Heineken and Krups

The SLoCaT Partnership on

Sustainable Transport

(SLoCaT) is a multi-

stakeholder partnership of

over 80 organizations

(representing UN

organizations, Multilateral

and Bilateral development

organizations, NGOs and

Foundations, Academe and

the Business Sector). SLoCaT

promotes the integration on

sustainable transport in

global policies on sustainable

development and climate

change.

WHERE COMPANIES COULD USE CO-CREATION?

DIY advertising

Product development

Ongoing development

Create and sell

Ongoing conversations



DIY ADVERTISING



PRODUCT DEVELOPMENT


Nokia concept loungeElectrolux Design Lab


ONGOING DEVELOPMENT


P&G platform for moms


CREATE AND SELL


Lego FACTORY Danish Vores Øl (‘Our Beer’) world's first open-source beer


ONGOING CONVERSATIONS


Orange customers can tell what they think about the brand


Co-creation partnership• Increased company loyalty

• Stronger customer relationships

Direct value outcomes• Product and firm performance

• Positive word of mouth

Halo effects on mass market

• Perceptions and performance

• Perceived as more customer oriented

WHERE IT CAN BE USED?

Research & Development

Marketing, Design & Idea

Collective Intelligence & Prediction

HR & Freelancers platforms

Open innovation software

Intermediary open innovation services

Creative Co-creation

Product Ideas crowdsourcing

Branding & Design crowdsourcing

Peer Production & P2P

Public Crowdsourcing

WHAT CAN GO WRONG?

Content editing co-creators get smarter and realise how much they're worth

LITHUANIAN EXAMPLES

MY RESEARCH FIELD

customer organization

Butscher (2002)

Grayson & Humphreys (2008)

Kaulio (1998)

Füller, Mühlbacher, Matzler., Jawecki (2009)

Zwick et al (2008)

Mohaghar, Jafarnejad, Mirkazemi Mood &

Youshanlouei

Von Ahn (2006)

Rowley, Kupiec-Teahan, Leeming, (2007)

Arvidsson (2008)

Etgar (2008)

Dong, Evans, Zou (2007)

Linstone & Turoff (2002)

van Daelen (2005

Kaulio (1998)

Maguire et al. (2007)

Greer & Lei (2011)

Nuttavuthisit (2010)

Payne, Storbacka & Frow (2008)

Grissemann, Stockburger-Sauer (2012)

Potts et al (2008)

Ryssel et al. 2004

Prahalad & Ramaswamy (2004)

Tapscott &Williams (2006)

Walter & Ritter (2003)

Thomke &Von Hippel (2002)

RESEARCH QUESTIONS

How to improve organizational performance and enable new means of value creation?

THOUGHT LEADERS IN THE FIELD

C.K. Prahalad and V. Ramaswamy The Future of Competition

Don Tapscott's and Anthony D. Williams's Wikinomics: How Mass Collaboration Changes Everything

J. Howe The Rise of Crowdsourcing, Wired magazine

James Surowiecki The Wisdom of Crowds

The Service-Dominant Logic of Marketing: Dialog, Debate, And Directions Paperback by Robert F. Lusch (Author, Editor) , Stephen L. Vargo (Editor), M.E.Sharpe (February 28, 2006)

Service-Dominant Logic: Premises, Perspectives, Possibilities by Robert F. Lusch and Stephen L. Vargo, Cambridge University Press (January 31, 2014)

NO ONE KNOWS EVERYTHING, EVERYONE KNOWS SOMETHING, ALL KNOWLEDGE RESIDES IN HUMANITY. LEVY 1997

What is value co-creation? For me :)

Education

Transcript of What is value co-creation? For me :)