1. Co-creation with Customers
Will this Marketing Tool survive ?
Contributed by
Aviroop Banik
SAKSHAM 2010
Rizvi Institute of Management
Studies

2. Competition is intensifying & profit margins are shrinking

3. Active
Connected Informed
The changing role of the consumer

4. Consumer
(Co-Creator)
VALUE
CREATION
Company

5. T h e C o - C r e a t i o n
E x p e r i e n c e

7. Consumer-Company Interactions
The emerging reality of Value Creation
Doctor Centric Patient Centric

8. Co-Creation of value

10. Primary doctorPrimary doctor
Medical specialistsMedical specialists
Scan & diagnostic
clinic
Scan & diagnostic
clinic
Doctors on call at
out-of-town hospital
Doctors on call at
out-of-town hospital
Emergency servicesEmergency services
Pacemaker
manufacturer
Pacemaker
manufacturer
Patients with similar
condition
Patients with similar
condition
Patient

13. D A R T
Dialogue, Access, Risk assessment &
Transparency

15. Eli Lilly and Company launched the research venture InnoCentive in June 2001.Via
its website, this venture brings together companies & researchers from around the
world to solve specific scientific problems. Researchers who offer the solution judged
best by the company posting the problem receive significant cash incentives.

16. A C C E S S
The traditional focus of the firm & its value chain was to create & transfer ownership of
products to consumers. Increasingly, the goal of consumers is access to
desirable experiences-not necessarily
ownership of the product.
Access begins with information & tools

17. Risk here refers to the probability of harm to the consumer. When
communicating with consumers, marketers have focused almost entirely
on articulating benefits, largely ignoring risks.
R I S K A S S E S S M E N T

18. T R A N S P A R E N C Y
Firms can no longer assume opaqueness of prices, costs & profit margins. And as
information about products, technologies & business systems become more accessible,
creating new levels of transparency becomes increasingly desirable.

19. D A R T
D A R T
D A R T
C O M B I N A T I O N
enables companies to better engage customers as collaborators

20. Consumer –Company interactions in co-creating value
The Sumerset Houseboats

21. Advantages

22. Points of
Interaction
Company
Think
Company
Think
Consumer
Think
Consumer
Think
Co-creation of value
exposes the disconnect
between company think &
consumer think at points
of consumer-company
interaction

23. Price-Experience Relationship
in
C o - C r e a t i o n
where consumers judge economic value

24. FedEx and both senders and receivers can mutually manage internal
efficiencies and quality of customer experiences, further expanding the
totality of the price-experience relationship.
Customers both shippers & receivers, can log on & check the progress of packages in
real time, viewing the same information that the FedEx employees have. While pace
this system has reduced the burden on FedEx call centers trimmed cost, it
simultaneously allows for an individual-centric view of interactions.

25. Traditional Exchange Vs Co-creation Experiencethe goal of the interaction is
value extraction.
value extraction &
Value creation

26. Traditional Exchange Co-creation Experience
Company-consumer
relationship
Transaction based Set of interactions &
transactions focused on a series
of co-creation experiences
Pattern of interaction between
company & consumer
Passive, firm-initiated, one-on-
one
Active, initiated by either
company or consumer, one-on-
one or one-to-many
Focus of quality Quality of internal processes &
company offerings
Quality of consumer-company
interactions & co-creation
experiences
Migrating to co-creation experiences

27. Experience Personalization
So, this example suggests that firms must often invest in new technologies if they want to create experience
environments. OnStar has invested heavily in understanding & using wireless telephony, satellite
communication, vehicle integration system & internal sensors as well as the technologies to integrate the
vehicle diagnostics into public networks, call center operations & emergency services.

28. Spectrum of co-creation experiences
Firm
Co-creation experience
(DART), quality of
interactions
Co-creation experience
(DART), quality of
interactions
ConsumerConsumer
FirmFirm
Co-creation experience
(DART), quality of
interactions, levers for
experience innovation
Co-creation experience
(DART), quality of
interactions, levers for
experience innovation
Multiple
Consumers:
experience
variety
Multiple
Consumers:
experience
variety
FirmFirm
Co-creation experience
(DART), quality of
interactions, levers for
experience innovation,
elements of personalized
experience
Co-creation experience
(DART), quality of
interactions, levers for
experience innovation,
elements of personalized
experience
Multiple
Consumers:
experience
personalizati
on
Multiple
Consumers:
experience
personalizati
on
Network of
Firms
Consumer
communities

29. Consumer as a source
of
C O M P E T E N C E
If suppliers are a critical part of the competence base available to the
firm, why are not consumers?
Suppliers, manufacturers, partners & “consumers”

30. Los Alamos National Laboratory
Fostering intellectual
diversity

31. SuppliersSuppliers FirmFirm ChannelsChannels
Consume
r
segments
Consume
r
segments
Nodal networks
of firms
Individual Consumer communities
Consumer
Individual
consumer
Experience environment
The basic transformation in co-creating value
Shifting from Firm-centric to
Individual centric experience

32. Joining the gap
Managers
consumers

33. M A N A G E R
C O N S U M E R
as

34. Through these devices, technical & human
intelligence of the firm is available to the technician
at the customer’s site. For example, the technician
can print out up-to-the minute bill.
Imagine each technicians being able to access the
expertise of other technicians & employees in the
company. The employee becomes a co-creator of
knowledge that is contextualized around specific
service events.

35. To co-create value continually, we must continually
CO-CREATE NEW KNOWLEDGE

36. “Help me solve the
problem.”
the question is posed not just to that employee but to the entire
organization.

37. Knowledge in the mind of
the employee
CONSUMERS
To meet these challenges, the firm must
develop an environment
where knowledge can be co-created &
shared continuously.

38. Yes, the process of Co-Creation with customers will survive.

39. Firms cannot co-create value
without an active collaboration
agenda.

41. The critical role of management in co-creating value

42. Product
Innovation,
Supply chains
Solutions innovation
Experience networks
,
Experience
Innovation
Locus of competence
Enhanced
network of
competence
Extended
enterprise
Firm & its
supply base
Product Space
Solutions Space
Experience Space
Locus of Innovation
New Competitive Space

43. Co-creation , is it
only helpful for
business?

44. centrality of the
individual

45. Abraham Lincoln
Social legitimacy
It may ultimately portend the
emergence of a truly democratic global
society in which human rights, needs &
values are predominant.
Of the people, by the people & for the people

46. T h a n k Y o u
in
G r a t i f i c a t i o n