Co-Creative Working (Part 2)
A History Lesson
In part 1 we discussed briefly the benefit of working collaboratively or Co-Creatively. Let’s look at why we got to this point and how the market works. We are at the start of the next industrial revolution and as businesses we need to adapt, change and innovate.
How we got to this point
Over the last century manufacture has moved on a massive scale from the home or local community to global supply:
- Supply and demand,
- Market matures customers and markets are created or identified,
- Working with customers – Co-creation (Lusch, 2007).
Source Tobias Kohler
The organisation delivering products and services to the consumer market or controlling sales channels for the exchange. The firm creating value and the consumer on the outside – the “value chain” Porter (1980) confirms in Prahalad and Ramaswamy (2004). From exchange and goods dominant logic to the service dominant logic of today (Vargo & Lusch. 2004).
The start of the paradigm shift “a new business landscape” (Mack, 2009. P: 6).
How the Co-creation market works
A Market – a conceptual space where products and services are sold to customers at a balanced price (credoreference.com).
The Co-Creation market – a fluid consideration more to do with effectuation expertise, not cause and effect (we produce, and you buy) the players effectuate, Co-Create using network, suppliers and customers (Sarasvarthy, 2008). Co-Creation markets constantly change (Storbacka & Nenonen, 2011) as unique concepts and resources are created and received.
Vargo and Lusch (2004) consider there are two ways of involvement. Initial creation and invention described as the “fuzzy front end” (Fuller et al, 2009. p: 82) and the creation of changes brought about by experience and use of a product or service.
Narver et al (2004) is detailed by Kristensson defining reactive and proactive market orientation (Kristensson et al, 2008). Kristensson considers that proactive orientation (discovering and understanding underlying needs) is a pre-requisite to involve customers in Co-Creation resulting over time to value and fulfillment (Vega-Vazquez et al, 2013).
In Roser et al (2013) it is cited that Sawhney et al, 2005; Prandelli et al, 2006; von Stamm, 2004, Fuller et al., 2007, Nambisan and Baron, 2007 consider Co-Creation reduces market research, R&D costs and establishes customer relationships, customer satisfaction and better quality products.
Generating ideas is better with Co-Creation than conventional market research (Witell et al, 2010). Consumers interact with the company and each other settling their own brand issues (Pongsakornrungsilp, 2010).
So that is some of what the experts, PhD’s etc. have to say on the matter after years of research. What does it boil down to? We would suggest a very basic thing “talk and engage with your customers, suppliers and other businesses” Do this in an open and honest way. Be clear and let the others tell you – so listen and contribute.
Part 3 coming soon.