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)
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
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
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.
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
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
http://trendwatching.com/trends/CUSTOMER-MADE.htm
DIY ADVERTISING
http://trendwatching.com/trends/CUSTOMER-MADE.htm
PRODUCT DEVELOPMENT
http://trendwatching.com/trends/CUSTOMER-MADE.htm
Nokia concept loungeElectrolux Design Lab
ONGOING DEVELOPMENT
http://trendwatching.com/trends/CUSTOMER-MADE.htm
P&G platform for moms
CREATE AND SELL
http://trendwatching.com/trends/CUSTOMER-MADE.htm
Lego FACTORY Danish Vores Øl (‘Our Beer’) world's first open-source beer
ONGOING CONVERSATIONS
http://trendwatching.com/trends/CUSTOMER-MADE.htm
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
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)