the future of competition

8/4/2019 The Future of Competition

1/9

THE FUTURE OF COMPETITION

CK PrahaladVenkat Ramaswamy

Rahul Don Rudy P09054

Silambarasan P09070


2/9

CO-CREATIONChanging role of consumer

From Isolated to Connected

From unaware to informedFrom passive to active

Information AccessGlobal View

NetworkingExperimentationActivism


3/9

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


4/9

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


5/9

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


6/9

TRADITIONAL FRAMEW ORK OFVALUE CREATION


7/9

NEW FRAME W ORK OF VALUECREATION


8/9

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


9/9

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

the future of competition

Documents