The Future of Competition: Co-Creating Unique Value With CustomersIn this visionary book, C. K. Prahalad and Venkat Ramaswamy explore why, despite unbounded opportunities for innovation, companies still can't satisfy customers and sustain profitable growth. The explanation for this apparent paradox lies in recognizing the structural changes brought about by the convergence of industries and technologies; ubiquitous connectivity and globalization; and, as a consequence, the evolving role of the consumer from passive recipient to active co-creator of value. Managers need a new framework for value creation. Increasingly, individual customers interact with a network of firms and consumer communities to co-create value. No longer can firms autonomously create value. Neither is value embedded in products and services per se. Products are but an artifact around which compelling individual experiences are created. As a result, the focus of innovation will shift from products and services to experience environments that individuals can interact with to co-construct their own experiences. These personalized co-creation experiences are the source of unique value for consumers and companies alike. In this emerging opportunity space, companies must build new strategic capital—a new theory on how to compete. This book presents a detailed view of the new functional, organizational, infrastructure, and governance capabilities that will be required for competing on experiences and co-creating unique value. |
Contents
| 1 | |
| 19 | |
The CoCreation Experience | 35 |
Experience Innovation | 51 |
Experience Personalization | 75 |
Experience Networks | 93 |
The Market as a Forum | 119 |
Building New Strategic Capital | 137 |
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Common terms and phrases
ability action active allows approach basis become brand building challenge channels chapter choice co-create value co-creation experience collaboration communities company’s competence competitive connect consider consumer context continuous cost create critical customers demand develop dialogue effective efficiency emerging employees enable engage event evolving example experience environment experience network facilitate figure firm focus functions global groups heterogeneous important individual industry infrastructure innovation integration interaction internal investment involved knowledge learning managerial managers manufacturing meaning move multiple nodal offerings operating opportunities organization patient personalized practices problem products and services questions recognize relationship requires response risk role sharing shift social sources space specific strategy structure suppliers supply technical tion traditional transparency understand unique units value creation variety
Popular passages
Page 5 - The most basic change has been a shift in the role of the consumer — from isolated to connected, from unaware to informed, from passive to active.
Page 251 - Communities of creation: managing distributed innovation in turbulent markets", California Management Review, summer, VOL.43, NO.4, pp.24-54, 2000 4.
Page 8 - The use of interaction as a basis for co-creation is at the crux of our emerging reality.
Page 6 - Twenty years ago, the two car dealerships (General Motors and Ford) in small towns in North America would probably have influenced the driving aspirations of a local teenager. Today, a teen anywhere can dream about owning one of more than seven hundred car models listed on the Internet, creating a serious gap between what is immediately available in the neighborhood and what is most desirable.
Page 11 - CareLink system goes beyond the cardiac device itself and unleashes opportunities for an expanding range of value creation activities. For example, each person's heart responds to stimulation slightly differently, and the response can change over time. In the future, doctors will be able to respond to such changes by adjusting the patient's pacemaker remotely. Furthermore, Medtronic's technology platform can support a wide range of devices...