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Cocreating unique value with customers

Cocreating unique value with customers The traditional system of companycentric value creation that has served us so well over the past 100 years is becoming obsolete. Leaders now need a new frame of reference for value creation. In the emergent economy, competition will center on personalized cocreation experiences, resulting in value that is truly unique to each individual. The authors see a new frontier in value creation emerging, replete with fresh opportunities. In this new frontier the role of the consumer has changed from isolated to connected, from unaware to informed, from passive to active. As a result, companies can no longer act autonomously, designing products, developing production processes, crafting marketing messages, and controlling sales channels with little or no interference from consumers. Armed with new tools and dissatisfied with available choices, consumers want to interact with firms and thereby cocreate value. The use of interaction as a basis for cocreation is at the crux of our emerging reality. The cocreation experience of the consumer becomes the very basis of value. The authors offer a DART model for managing cocreation of value processes. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategy & Leadership Emerald Publishing

Cocreating unique value with customers

Prahalad, C.K.; Ramaswamy, Venkat
Strategy & Leadership , Volume 32 (3): 6 – Jun 1, 2004
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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1087-8572
DOI
10.1108/10878570410699249
Publisher site
See Article on Publisher Site

Abstract

The traditional system of companycentric value creation that has served us so well over the past 100 years is becoming obsolete. Leaders now need a new frame of reference for value creation. In the emergent economy, competition will center on personalized cocreation experiences, resulting in value that is truly unique to each individual. The authors see a new frontier in value creation emerging, replete with fresh opportunities. In this new frontier the role of the consumer has changed from isolated to connected, from unaware to informed, from passive to active. As a result, companies can no longer act autonomously, designing products, developing production processes, crafting marketing messages, and controlling sales channels with little or no interference from consumers. Armed with new tools and dissatisfied with available choices, consumers want to interact with firms and thereby cocreate value. The use of interaction as a basis for cocreation is at the crux of our emerging reality. The cocreation experience of the consumer becomes the very basis of value. The authors offer a DART model for managing cocreation of value processes.

Journal

Strategy & Leadership – Emerald Publishing

Published: Jun 1, 2004

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