Download - The Future of Competition
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THE FUTURE OF COMPETITION
CK PrahaladVenkat Ramaswamy
Rahul Don Rudy P09054
Silambarasan P09070
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CO-CREATIONChanging role of consumer
From Isolated to Connected
From unaware to informedFrom passive to active
Information AccessGlobal View
NetworkingExperimentationActivism
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WHAT CO-CREATION IS NOT?
Not transfer of duties
Not out-sourcing of activities
Not a marginal customization of products &services
Not scripting or staging of customer eventsof the firm s various offering
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SUMMARY
WHAT CO-CREATION IS NOT WHAT CO-CREATION IS
Customer focus Customer is king or customer is always right
Delivering good customer service orpampering the customer with lavish customerservice
Mass customization of offerings that suit theindustry s supply chain
Transfer of activities from the firm to thecustomer as in self-service
Customer as product manager or co-designingproducts and services
Product variety Segment of one Meticulous Market research
Staging experiences
Demand-side innovation for new productsand services
Co-creation is about joint creation of value by thecompany and the customer. It is not the firm trying to
please the customer
Allowing the customer to co-construct the serviceexperience to suit her context
Joint problem definition and problem solving
Creating an experience environment in whichconsumers can have active dialogue and co-constructpersonalized experiences; product may be the sameBut customers can construct different experiences
Experience variety Experience of one Experiencing the business as consumers do in real
time Continuous dialogue
Co-constructing personalized experiences
Innovating experience environments for new co-creation experiences
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IMPORTANCE OF CO-CREATIONTO MODERN MARKETING
Traditional system is becoming obsolete
In the emerging economy, competition willcenter on personalized co-creationexperiences.
Co-creation supplants the exchange process
Co-creation experience is unique to eachindividual
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TRADITIONAL FRAMEW ORK OFVALUE CREATION
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NEW FRAME W ORK OF VALUECREATION
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BUILDING BLOCKS OF VALUECREATION - DART
DialogueFocuses on issues of interest to both consumer & firmRequires a forumRequires rules of engagement
AccessNo more transfer of ownershipNeed not necessarily own a product
Risk AssessmentGive us the information, the tools & the freedom to chooseW e ll take responsibility for our choices
TransparencyTo create trustFacilitates collaborative dialogue
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EXPERIENCE ENVIRONMENTAre characterized by robustness, the capacity to
accommodate a wide range of context-specificexperiences of heterogeneous individuals
The experience mustoffer opportunities using their own experiencesaccommodate a heterogeneous group & involvement of
consumer communitiesrecognize that every consumer does not want to co-
createfacilitate new opportunities using emerging
technologiesengage emotionally & intellectually