Daniël J.E. Giesen

Innovate Business Models for Successful Co-creation

A Research on the Successful Match between the Co-creation Partner and the Company’s Business Model

MSc Thesis

MSc Thesis | Daniël J.E. Giesen

RationaleIn order to sustain Open Innovation, changes or innovations in the business model are vital. A business model should be open for customer involvement in NPD. Open business models enable organizations to be more effective in creating as well as capturing value. They help create value by leveraging many more ideas and allow greater value capture by utilizing a firm’s key asset, resource, or position. Open business models enhance the success of co-creation as well as the performance of the NPD project.

RationaleIn order to sustain Open Innovation, changes or innovations in the business model are vital. A business model should be open for customer involvement in NPD. Open business models enable organizations to be more effective in creating as well as capturing value. They help create value by leveraging many more ideas and allow greater value capture by utilizing a firm’s key asset, resource, or position. Open business models enhance the success of co-creation as well as the performance of the NPD project.

Research offeringThis research explores and identifies the factors that determine successful co-creation between company and business customer by providing an understanding of the forces that drive partner selection and the relation with the company’s business model

Research offeringThis research explores and identifies the factors that determine successful co-creation between company and business customer by providing an understanding of the forces that drive partner selection and the relation with the company’s business model

Research

Business Innovation develops and implements unique added value (which customers adopt) by means of an integrated change of internal/external factors

What differentiates this researchOpen Innovation theory indicates the relevance

and need for sharing and collaborating. It also

suggests a critical review on business models.

The aim is to understand the choice for a specific

customer in co-creation, to understand the

relation between customer and the project’s

business model, and to understand what

determines the success in co-creation.

What differentiates this researchOpen Innovation theory indicates the relevance

and need for sharing and collaborating. It also

suggests a critical review on business models.

The aim is to understand the choice for a specific

customer in co-creation, to understand the

relation between customer and the project’s

business model, and to understand what

determines the success in co-creation.

MSc Thesis | Daniël J.E. Giesen

Conceptual Research Model

Business Model Innovation

Co-creation Partner Selection

Successful Co-creation

1

3

2

4

MSc Thesis | Daniël J.E. Giesen

Research Questions

Main research question

‘What are the success factors for a match between the co-creation partner and

The company’s business model?’

Sub questions:

1. What are the ‘driving forces’ in the selection of a customer for co-creation?

2. Which partner selection criteria determine successful co-creation?

3. Which elements of the company’s business model change because of co-creation?

4. What kinds of business model innovations lead to successful co-creation?

MSc Thesis | Daniël J.E. Giesen

Co-creation Partner Selection

Co-creation a vertical NPD-project involving a company and business customer, which both actively, directly cooperate in the NPD process, regardless of the degree of formality of this cooperation.

Driving Forces in Selecting a Co-creation Partner Value created in the co-creation

Benefits for company and customer

Knowledge exchanged

Interaction & involvement

Network competences

Searching for Alignment to Create Maximum Value Business model alignment

Technological alignment

Technical capability, resource complementarity, overlapping knowledge base

Strategic alignment

Motivational correspondence, goal correspondence

Relational alignment

Compatible cultures, propensity to change, long-term orientation

MSc Thesis | Daniël J.E. Giesen

Business Model InnovationResources

PROFIT

Distribution Channels

CostStructure

RevenueStreams

CustomerOffer

Financial Performance

CustomerRelationship

Value PropositionCustomerSegment

Core Capabilities

PartnerNetwork

Co-creation

BusinessFunctionsValue

Configuration

Business Model a conceptual tool containing a set of objects, concepts, and their relationships to express the business logic of a specific firm (how a company creates, sells, and delivers value).

MSc Thesis | Daniël J.E. Giesen

Successful Co-creation

Co-creation objectives Increase profitability

Shorten time to market

Enhance innovation capability

Create greater flexibility in R&D

Expand market access

Cost reduction

Shared risks

Fit with customers’ desire

Objectives of Co-creation in accordance with objectives NPD

Successful Co-creation Influence of co-creation partner selection

Influence of business model innovation

MSc Thesis | Daniël J.E. Giesen

Propositions

Searching for Success Factors for a Match Between the Co-creation Partner and

the Company’s Business Model

1. Selecting a customer for co-creation on specific criteria leads to more success in co-creation

2. Business model innovation with the aim to ‘align’ business models leads to a higher success of the co-creation

MSc Thesis | Daniël J.E. Giesen

Possible Companies

Search for companies that co-create in NPD projects with customers Co-creation between company and business customer Vertical and dyadic relation Reason for co-creation: New Product Development (NPD) Technological and/or market focused Interview of one hour Involvement of the respondent in the co-creation process

Possible cooperating companies Ahold Akzo Nobel DSM Nutritional Products (Switzerland) Eaton Friesland Foods KPN Nedap Nokia (Finland) Philips

MSc Thesis | Daniël J.E. Giesen

Why now?When Capgemini’s Business Innovation develops

knowledge on understanding co-creation and its

implications, they can translate it into concrete

service offerings for clients.

Clients (companies) need support in their

innovation programs. When companies are more

able to co-create value and to innovate, together

in the Collaborative Experience of Capgemini,

they can serve customers better and it will

increase business performance.

Why now?When Capgemini’s Business Innovation develops

knowledge on understanding co-creation and its

implications, they can translate it into concrete

service offerings for clients.

Clients (companies) need support in their

innovation programs. When companies are more

able to co-create value and to innovate, together

in the Collaborative Experience of Capgemini,

they can serve customers better and it will

increase business performance.

Why me? MSc Student Business Administration

Specialization: Innovation ManagementUniversity of Twente, Enschede, the Netherlands

Member E-Commerica USA Study tour 2005Organizational consequences of E-commerce

Cooperator ‘Patterns in NPD’ research projectISPA University Lisboa, PortugalInvolvement of suppliers in NPD

Why me? MSc Student Business Administration

Specialization: Innovation ManagementUniversity of Twente, Enschede, the Netherlands

Member E-Commerica USA Study tour 2005Organizational consequences of E-commerce

Cooperator ‘Patterns in NPD’ research projectISPA University Lisboa, PortugalInvolvement of suppliers in NPD

Why this research?Gain new insights in co-creation in B2B environments

Understand the Business Model (and its innovation) in supporting successful co-creation

Why this research?Gain new insights in co-creation in B2B environments

Understand the Business Model (and its innovation) in supporting successful co-creation

Urgency

Question to the organization In what way do you determine successful co-creation?