1) Co-creation with external networks can impact business models by reducing costs of customization, ideation, and design or increasing brand awareness and sentiment. 2) Different levels of commitment in co-creation include visitors, testers, participants, creators, and collaborators, motivated by factors like engagement, influence, uniqueness, and respect. 3) Communities that support co-creation can include brand communities focused on marketing, subcultures interpreting brands locally, and neotribes building skills around products/services.

1. Innovatio
n
through
the explo
of value itation
networks
Fabrizio Maria Pini
Head of Marketing Programmes
MIP Business School
Politecnico of Milan

2. Agenda
• Call for co-creation: business model
implications
• The different levels of commitment
• Defining the different kind of communities
to support co-creation
• Brand and company role in supporting
different co-creation communities

3. Call for co-
creation: business
model implications

4. The role of co-creation in defining company’s competitive
advantage depends on the kind of business model that supports
corporate strategies

5. The Long Tail

6. The distribution and inventory costs of businesses successfully
applying this strategy allow them to realize significant profit out of
selling small volumes of hard-to-find items to many customers
instead of only selling large volumes of a reduced number of popular
items. The total sales of this large number of "non-hit items" is
called the Long Tail.

8. Cost of services in
customisation might
erode inventory cost
reductions

9. Exploit co-creation to reduce
cost of services

10. The minimal incremental
cost of inventory in long
tail business models could
also be exploited reducing
cost of product ideation
and design....

11. By explioting external
networks

14. In other cases, external
networks are used to
increase brand
awareness and
sentiment...

15. •Where have you had a Coke lately?
“It was taken from the peak of the Iztaccihuatl, Mexico's third highest
mountain. [At 5,230m... you can guess why was the bottle half-full! :-)]
“Les Grand Montets near Mont Blanc French Alps 3275m”
“NEVADO DEL TOLIMA KOLOMBIA 5.800 MTS...CHARLYTOONS”
15

16. 120 Photos of Your Next Coke…
16

17. 5,800 Times of day to enjoy a Coke…
17

18. Or run customer
surveys under different
shapes...

23. The different levels
ofmitment
com

24. Individuals show
different levels of
commitment in co-
creation practices

25. Role Activities Motivations to co-
crete and
satisfaction drivers
Visitor
visit, browsing, without high feedbac
k and awareness and education
interaction with peers and company
Tester
trial of products, services and solution
s and engagement and influence
interaction with the company and in
some
cases with community members
Participant
contribution to discussions with com
munity insight and engagement
members and company, comments and
voting
Creator
creation and personalisation for self
uniqueness of the experience, quality
of
personal output
Collaborator
generation for self and for others, inst
ead of influence and respect
company

27. The different kinds
of community to
support co-

28. individuals belonging to more
than a community
individual link between different
communities
individual
community
individual
individual individual
individual individual
individual individual individual
community
individual individual
individual
individual individual
individual community
community
individual
community individual
individual

29. Different kind of
communities
consumption subculture:
nature of the interactions
border line
subgroups
within the community
value interpreted on the basis of local groups
individual transformation process
brand community:
neotribe:
Marketing goal
built around product or brand brand is the subject of the group
linking value is based on skills and competencies brand is the core of conversations
developed around products, services, brands consciousness of kind linked to the right use of the
brand

30. Community roles
R&D communication
production and pre and post
and
distribution sale services
design promotions
communinty as community as community as
internal resource consultant promoter

31. Brand and company
role in supporting
different co-
creation
communities

32. Type of Brand and Expected co-
community company role creation output
Provide contents Awareness
Brand community Reward the right use of Sentiment
brand Brand evangelists
Provide technical Service amelioration
support Incremental product
Subculture of consumption
Show competence innovation
Reward problem solving Customer support
Brand re-interpretation
Brand democratisation
Product innovation
Acceptance of border
Neotribe New contexts of use
line behaviours
New meanings and
Ready to change
needs