The Co-creative Enterprise

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The Co-creative Enterprise

  1. 1. The Co-Creative Enterprise Venkat Ramaswamy©  2010,  Venkat  Ramaswamy     venkatr@umich.edu;  www.venkatramaswamy.com    
  2. 2. Today, You are are not only informed and connected,but empowered and active Conventional You Enterprise Customers Suppliers Partners Employees 2
  3. 3. TIME Person of the Year 2006 3
  4. 4. 2000-2004: “Co-Creation” as the Next Paradigm of Value Creation Best Article Award Winner 2003 4
  5. 5. Today, a Google Search of “Co-Creation” yields over 25 million hits October 2010 5
  6. 6. What  is  Co-­‐Crea@on?  Enterprises   Individuals   Co-­‐Crea7on   Customers   Suppliers   Partners   Employees      Experiences      Interac7ons      Engagement      Network  Rela7onships  
  7. 7. 7
  8. 8. The mouth that roared: blogger Jeff JarvisDear Mr. DellCC: Michael George, chief marketing officer andvice president for the U.S. consumer business, DellGentlemen, Your customer satisfaction is plummeting, your marketshare isshrinking, and your stock price is deflating. Let me give you some indication of why, from one consumer’s Jeff Jarvisperspective. I won’t bore you with all the details of my saga of Dellhell; you can read Associateall about it here and here. The bottom line is that a low-price professor andcoupon may have gotten me to buy a Dell, but your product was alemon and your customer service was appalling. director of the I shipped back my computer today and only — only — because interactiveI wrote an email to you, Mr. George, did I manage to get a refund. journalismI’m typing this on an Apple Powerbook. I also have bought twomore Apples for our home. program at the But you didn’t just lose three PC sales and me as a customer. City UniversityToday, when you lose a customer, you don’t lose just that of New York’scustomer, you risk losing that customer’s friends.And thanks to the internet and blogs and consumer rate-and-review Graduateservices, your customers have lots and lots of friends all around the School ofworld. Journalism
  9. 9. The stages of Dell’s response1.  Denial Comment from Dell spokesperson on the firestorm caused by Jeff Jarvis’s blog: “With our direct model, we feel like we already have a good, two-way communications channel with our customers…The best process for getting issues addressed is to contact us directly.”2.  Shutdown Dell’s explanation of why it subsequently closed its online Customer Forums: “As for the Customer Care board, many of the non- technical issues posted there can only be addressed by authorized Dell representatives with access to customer information – not by peers as the Forum is designed to facilitate. That said, these questions are best handled through other secure online tools.”
  10. 10. The stages of Dell’s response3. Anger Post left on Jeff Jarvis’s blog from a PR person working for Dell(!): “Hey Jarvis. I honestly think you have no life. Honestly? Do you have a life, or do just spend it trying to make Dell miserable. Ive been working with Dell the past three weeks researching trashy blogs that worms like you leave all over that frigen blogosphere and I cant honestly say that Dell is trying to take a step towards fixing their customer service. They hire guys like me to go on the web and look through the blogs of guys like you in hopes that we can find out your problem and fix it. But honestly I dont think you have a problem Dell can fix. Your problem is you have no life. “
  11. 11. Coincidence?Jeff Jarvis Jarvis’s blog beginsbegins drawing widespreadblogging attentionabout Dell Dell shuts down its online customer Dell issues a profit forums warning 11
  12. 12. Dell Quote“If we don’t do this at Dell.com, it’s going to be on CNET orsomewhere else. I’d rather have that conversation in my livingroom than in somebody else’s.”Michael Dell 13
  13. 13. Real People are Here and We’re ListeningTue. Jul 11, 2006Lionel Menchaca, Digital Media ManagerYesterday was the first official day of Dell’s one2one weblog andalready Jeff Jarvis and Steve Rubel were kind enough to tell us whatwe’re doing wrong. Thanks for the feedback, guys. Well keepworking to get it right…Our intention with this blog is to address issuesthat are important to our customers. Give us some time and wellprove it. Robert Scoble told us to listen, and to link to the folks whodont like us. First step was to launch Dells one2one. Check. We’reexcited to be here, and we welcome your ideas.174 Comments venkatr@umich.edu
  14. 14. Dell IdeaStorm 15
  15. 15. IdeaStorm is for specific suggestions by customersCustomers post ideas, other customers comment and vote. Dell tracks ideas and decides which to pursue. 16
  16. 16. IdeaStorm visitors can raise any issue they want  8,859 ideas submitted by site visitors as of mid-April 2008.   613,638 votes.   66,882 comments.  Dell had implemented 20 of the ideas.
  17. 17. Dell Quote #2 "Im sure theres a lot of things that I cant even imagine, but our customers can imagine. A company this size is not going to be about a couple of people coming up with ideas. Its going to be about millions of people and harnessing the power of those ideas." Michael Dell 18
  18. 18. Jeff Jarvis, 2007  After giving Dell hell two years ago, I may well be accused of throwing them a wet kiss now. It’s a positive piece. But it’s hard not to praise them when they ended up doing everything I was pushing in my open letter to Michael Dell. I’m not saying that I caused that, just that we ended up agreeing and they ended up seeing the value in listening to and ceding control to customers. They reached out to bloggers; they blogged; they found ways to listen to and follow the advice of their customers. They joined the conversation. That’s all we asked.  Dell realized that engaging in the conversation wasn’t just a way to stop blogging customers like me from harming the brand. We, the customers, bring them great value besides our money: We alert them to problem. We will tell them what products we want. We share our knowledge about their products. We help fellow customers solve problems. We will sell their products. But this happens only if you have a decent product and service and only if you listen to us.
  19. 19. Becoming  a  Co-­‐Crea7ve  Enterprise   Co-­‐Crea7ve   Individuals   Enterprise   Co-­‐Crea7on   Customers   Suppliers   Partners   Employees    Build  pla)orms  to  engage  people  to  create  value  together    Engage  in  a  dialogue  about  experiences  to  generate  new  types   of  valuable  insights    Design  products  and  services  together  with  stakeholders  in  the   ecosystem    
  20. 20. Starbucks
  21. 21. The Return of Howard Schultz as CEO in Jan 2008“Welcome toMyStarbucksIdea.com. Thisis your invitation to help ustransform the future ofStarbucks with your ideas –and build upon our history ofco-creating the StarbucksExperience together…So, pull up a comfortablechair and participate in MyStarbucks Idea. We’re here,we’re engaged, and we’retaking it seriously.”
  22. 22. MyStarbucksIdea.com
  23. 23. Hi,  my  name  is  Katie.    I  am  a  registered  dietician  and  senior  nutritionist  for  Starbucks.    I  have  the  pleasure  of  working  with  a  group  of  passionate  partners  who  are  dedicated  to  bringing  nutritious  food  &  beverage  options  to  your  Starbucks  store.      As  a  Starbucks  Idea  Partner,  I’ve  enjoyed  reading  your  posts  and  getting  a  better  understanding  of  what  our  customers  want.    I’m  thrilled  to  see  the  overwhelming  requests  for  nutritious  options  –  more  whole  grains,  more  Eiber  &  protein,  smaller  portions,  etc.  as  well  as  other  options  like  gluten-­free  and  vegan-­friendly.    Let  me  tell  you:  WE  HEAR  YOU!  
  24. 24. 28
  25. 25. 29
  26. 26. The  Powerful  Benefits  of  Co-­‐Crea@on   Increased  Strategic   New  Experiences  of   Capital  and  Returns   Value  to  Individuals   to  Enterprises   Co-­‐Crea7ve  Enterprise   Co-­‐Creators   Co-­‐Crea7ve   Customers   Co-­‐Crea7on   Engagement   Suppliers   PlaAorms   Partners   Employees   Lower  Risks  &  Costs   Lower  Risks  &  Costs   for  Enterprises   for  Individuals   The  Co-­‐Crea@ve  Enterprise  Engages  People  to  Create  Valuable  Experiences  Together,     while  Enhancing  Network  Economics      
  27. 27. Marc Benioff, CEO of Salesforce.com:I believe that these days, the rapid communication that isenabled by wikis, blogs, Twitter, YouTube and you name itensures that no matter what kind of company you are,your customers are having a conversation about yourproducts and practices.The question that every company has to ask is: ‘Do I wantto be part of this conversation? Do I want to learn from it?Am I willing to innovate on the basis of it?’ If you harnessthe power of this community, you will benefit. If you turnyour back on it, you get further and further out of touchwhile competitors flourish. So yes, I think this is a newkind of communication for a new age of customerengagement.
  28. 28. Starbucks Volunteer Service
  29. 29. HandsOn Network
  30. 30. Starbucks,  Korea  
  31. 31. Starbucks  Shared  Planet  
  32. 32. Ethical  Sourcing  
  33. 33. Environmental  Stewardship  
  34. 34. Becoming  a  Co-­‐Crea7ve  Enterprise  ENTERPRISE   x   =   CO-­‐CREATIVE   ENTERPRISE   Engagement   PlaAorms  
  35. 35. Starbucks  and  Social  Media  “We  don’t  view  social  media  as  a  marke@ng  play,  but  rather  as  a  customer  engagement  channel  where  we  can  have  real  connec@ons  with  our  customers,  engage  them  in  the  brand  and  answer  their  ques@ons.  We  are  in  constant  dialogue  with  customers,  par@cipa@ng  in  the  communi@es  of  MyStarbucksIdea.com,  TwiVer  and  Facebook.  Our  engagement  allows  us  to  understand  their  needs,  stay  top-­‐of-­‐mind  in  an  increasingly  compe@@ve  retail  environment  and  share  interes@ng  news  about  the  company  with  a  cap@ve  audience.”  
  36. 36. Making  Engagement  PlaAorms  Co-­‐Crea7ve   Experience   Mindset   Increased  Strategic  Capital  and   New  Experiences  of  Value   Returns  to  Enterprises   to  Individuals   Network   Transparency   Context  of  Rela7onships   Dialogue   Co-­‐Crea7on   Interac7ons   Access   Lower  Risks  &  Costs   Lower  Risks  &  Costs   for  Enterprises   for  Individuals   Engagement   PlaAorms  
  37. 37. Opening  up  App  Development  
  38. 38. APP-­‐le   Inside-­‐out  Co-­‐Crea7on  Global  Network   Resources   APP   Global   Community   Store   Resources   PlaAorm   Individuals   Outside-­‐in  Co-­‐Crea7on  
  39. 39. The Product as an Interaction Platform venkatr@umich.edu
  40. 40. Nike Quote “In the past, the product was the end point of the consumer experience. Now it is the starting point.” Stefan Olander, Nike Global Director of Digital Media August 2006HSM Sao Paulo 64© 2009 ECC PartnershipAll rights reserved.
  41. 41. Nike+
  42. 42. Nike+ platform engages runners and communities through value-generating interactionsRun Mapping andTracking Sharing Runs Listening to MusicChallenge & PublishingOthers Playlists for Running Nike Running Clubs andRunning Nike-SponsoredResolutions EventsTraining witha Running Running blogCoach, and discussionInteracting boardswith aRunning Star
  43. 43. Nike+ Quote “In more ways than one, the genius of the Nike+ system is the software that allows generation of deep insights and facilitating social connections among the community of runners.” Mike Parker, Nike CEO June 2009HSM Sao Paulo 67© 2009 ECC PartnershipAll rights reserved.
  44. 44. Nike+ Results  More than 600,000 runners signed on the first year  More than 160 countries in the first year  Over 40 million miles uploaded the first year  Visit 3-4 times a week  Nike captured 57% of the $3.6 billion U. S. running shoe market in 2007 compared with 47% in 2006  Nike has a goal of having 15% of the world’s estimated 100m+ runners using the system  In August 2008, nearly 800,000 runners logged on and signed up to participate in a single event: Nike’s Human Race 10K help simultaneously in 25 cities from Chicago to Sao Paulo. These connections have grown into new communities (e.g., running for charity)  Near the end of 2008, runners logged the 100th million mile on Nike+  By August 2009, over 150 million miles had been logged…
  45. 45. venkatr@umich.edu
  46. 46. Local web sites enable sharing of local content(ex RunLondon by Nike UK) venkatr@umich.edu
  47. 47. Nike+ Quote “The more we can open up Nike+, the better. The only reason to close it out is because you actually don’t believe that you have a strong enough product for others to want to take it and do good things with it.” Stefan Olander, Nike Global Director of Digital Media June 2009HSM Sao Paulo 72© 2009 ECC PartnershipAll rights reserved.
  48. 48. Nike iD Choose: •  Base color •  Tip color •  Heel color •  Swoosh color •  Tongue top color •  Lining color •  Lace color •  Sidewall color •  Outsole color
  49. 49. The Nike iD Design Contest
  50. 50. NikeiD Custom Design Studio 75
  51. 51. Nike ID iPhone App
  52. 52. Nike iD •  Your Icons •  Your Mascot •  Your Name •  Your Team Colors
  53. 53. Choose a country flag … 80
  54. 54. Nike Joga Bonito
  55. 55. The community was the judge of the contest, not Nike
  56. 56. Members could search the site by users, videos, communities, team…
  57. 57. Leveraging Assets and Resources as Engagement Platforms• Smart Products• Websites and Social Media•  Retail Stores•  Mobile Devices•  “Live” Meetings•  Call Centers•  Private Community Spaces•  Open Community Spaces
  58. 58. Expanding  the   Space  of   Experiences   Increased  Strategic  Capital  and   New  Experiences  of  Value   Returns  to  Enterprise   to  Individuals   Expanding   Stakeholder   Expanding  Rela7onships   the  Scope   in  the   and  Scale  of   Ecosystem   Interac7ons   Lower  Risks  &  Costs   Lower  Risks  &  Costs   for  Enterprise   for  Individuals   Expanding   Linkages  Among   Engagement   PlaAorms  
  59. 59. ITC  e-­‐Choupal  
  60. 60. ITC-­‐IBD  as  a  Nodal  Company  in  its  Social  Ecosystem   Mandi   Choupal   Sagar   Agricultural  Farmer   ITC   -­‐  IBD   Educa@on   Sanchalak   Samyojak   Nodal  Company   Village   Town   “Pla)orm  Tier  1”   “Pla)orm  Tier  2”   “Pla)orm  Tier  3”  
  61. 61. E-­‐Choupal  Engagement  Pla[orms  
  62. 62. ITC-­‐IBD  as  a  Nodal  Company  in  its  Social  Ecosystem   Farm  Input   Mandi   Health   care   Choupal   Sagar   Agricultural  Farmer   ITC   -­‐  IBD   Educa@on   Sanchalak   Samyojak   Nodal  Company   Village   Town   FMCG   Banks,     and   MFIs,  and   Durables   Insurance   “Pla)orm  Tier  1”   “Pla)orm  Tier  2”   “Pla)orm  Tier  3”  
  63. 63. E-­‐Choupal   Year 2005: Year 2013: Kiosks: 5,400 Kiosks: 20,000 Villages: 31,000 Villages: 100,000 Farmers: 3.5 million Farmers: 10 millionSource:  Shivakumar,  ITC  
  64. 64. Becoming  a  Co-­‐Crea7ve  Enterprise   Co-­‐Crea7ve   Individuals   Enterprise   Co-­‐Crea7on   Customers   Suppliers   Partners   Employees    Build  pla)orms  to  engage  people  to  create  value  together    Engage  in  a  dialogue  about  experiences  to  generate  new  types   of  valuable  insights    Design  products  and  services  together  with  stakeholders  in  the   ecosystem    Grow  by  expanding  the  space  of  experiences,  scope  and  scale   of  interacFons,  and  linking  engagement  pla)orms  in  new  ways    CulFvate  trust  and  social  legiFmacy  through  more  inclusive   and  sustainable  growth.    
  65. 65.  As  business  and  society  evolves,    so  do  our  collec@ve  experiences…   Social.   Profit.   ORG   COM   Public.   GOV   Human.EXP
  66. 66. Hospital  Moinhos  de  Vento  (Brasil):   Co-­‐Crea7ng  Strategy  
  67. 67. Strategic  Challenge  at  Hospital  Moinhos  de  Vento   Rethink  Strategy  by  considering  the  point  of  view  of  different  stakeholders   (nurses,  doctors  pa@ents,  families,  companies,  health  insurance   companies)   Co-­‐Crea/on   Current  Strategy   New  “Co-­‐Created”  Strategy  
  68. 68. Co-­‐Crea@on  Process  Current  Strategy   Co-­‐Crea7ng  new  ideas  with   Innova7ve  Strategies  /     Map   different  stakeholders  (e.g.   Ini7a7ves   pa7ents,  doctors,  families)  
  69. 69. Ideas  were  “prototyped”  and  “experienced”  in  an  interac7ve   manner  
  70. 70. Co-­‐Crea@on  Process   Current  Strategy   Co-­‐Crea7ng  new  ideas  with   Innova7ve  Strategies  /     Map   different  stakeholders  (eg.   Ini7a7ves   pa7ents,  doctors,  families  Build  a  new  Value  Proposi7on   New  objec7ves  for   New  “Co-­‐Created”   New    Innova7ve  Strategic   together   the  Strategy  Map   Strategy   Ini7a7ves      (core  of  the  strategy  map)  
  71. 71. Advance  Praise  for  Book  "About  half  of  our  strategic  ini@a@ves  at  HMV  now  come  from  a  co-­‐crea@on  process  of  interac@ons  with  our  key  stakeholders  -­‐-­‐  pa@ents  and  their  families,  physicians  and  nurses,  our  employees,  business  enterprises,    and  the  health  insurance  companies.”  Dr.  João  Polanczyk  CEO  Hospital  Moinhos  de  Vento  
  72. 72. Best  wishes  in  Co-Creating     the  Future!  

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