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Co-creation in an Exconomy world


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By Prof. Dr. Bjorn Cumps, Digital Banking, Vlerick Business School‎

Published in: Economy & Finance
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Co-creation in an Exconomy world

  2. 2. © Vlerick Business School CO-CREATION: WHY ?
  3. 3. © Vlerick Business School CO-CREATION: WHY ?
  4. 4. © Vlerick Business School
  5. 5. © Vlerick Business School CO-CREATION: WHY 99,9% of the world’s smartest people do not work for BNP Paribas
  6. 6. © Vlerick Business School We are blind to the things that do not matter to us or that we do not understand.
  7. 7. © Vlerick Business School THIS IS EXPENSIVE “A mismatch of 9 to 1 between what innovators think consumers want and what consumers actually want.” (Gourville, 2006)
  8. 8. © Vlerick Business School STUDY SETUP Literature study Selection of employee interviews In-depth project with clients
  10. 10. © Vlerick Business School OUTSIDE-IN INSIDE-OUT
  11. 11. © Vlerick Business School CO-CREATION
  12. 12. © Vlerick Business School IT CAN GET MESSY !
  13. 13. © Vlerick Business School CO-CREATION DEFINITION Engaging customers on their terms. Creating value jointly through collaboration between the company and the customer. Allowing the customer to co-construct the experience to suit their context. Joint problem definition and joint problem solving. Customer having a say in defining their relationship. Continuous dialogue. Creating an experience environment in which consumers can have active dialogue and a co-construct a personalised experience. Experiencing the business in the manner customers do in real time. Co-creation is an active, creative and social process, based on collaboration between producers and users, that is initiated by the company to generate value for customers. (Based on Ramaswamy, V.)
  15. 15. © Vlerick Business School SOME WELL-KNOWN CASES
  16. 16. © Vlerick Business School CRÉDIT AGRICOLE - ALPHA In-branch co-creation At least 15-20 workshops /year > 100 participants yearly Embedded in the project management structure
  17. 17. © Vlerick Business School CRÉDIT AGRICOLE Focused on both developers and customers Customers propose and select ideas Developers use APIs to develop app
  18. 18. © Vlerick Business School BBVA (CO-CREATION WITH DEVELOPERS)
  19. 19. © Vlerick Business School ERSTE – S-LAB
  20. 20. © Vlerick Business School CBA – INNOVATION LAB IdeaBank no longer exists. Co-creation absorbed in new innovation lab
  21. 21. © Vlerick Business School FIRST DIRECT (HSBC) Asking for input and ideas ≠ Co- creation, If you do it wrong it will turn against you.
  22. 22. © Vlerick Business School BARCLAYS - YOURBANK Ideation platform Still active but low activity Takes long for feedback
  23. 23. © Vlerick Business School ABN AMRO – CORPORATE PROSPECTS Internal co- creation 1-day workshop to create new campaign Centered around RMs Personalized video
  24. 24. © Vlerick Business School24
  25. 25. © Vlerick Business School25
  26. 26. © Vlerick Business School NEW TYPES OF STAKEHOLDERS EMERGE 26 Digital Giants Fintech Startups Traditional Banks Google & Lending Club Alibaba & Lending ClubApple & Banks (Apple Pay) BNPP & Google, Facebook, LinkedIn, Twitter Santander & Funding Circle BNPPF & MyMicroinvest ING & Kabbage ING & Zervant
  27. 27. © Vlerick Business School STAKEHOLDER CO-CREATION
  29. 29. © Vlerick Business School MAIN BUILDING BLOCKS Co- Creation Which problem can we better solve together? Which stakeholders to connect? Which platform is needed? What new interactions will members engage in? Which valuable new experiences will member get? What value will your organisation get? clients, non-clients, accountants, mid & back-office, relationship managers, IT, … IT platform, F2F-workshops, on- site visits, panels, interview, … “You cannot map out the full structure of a co-creation system at the start. You must piece it together gradually, like a jigsaw puzzle.” Gouillart & Douglas, HBR – 04/2013 1-on-1, 1-to-many, which stakeholders should interact, … Measure outcome and results: content measures, engagement measures, …
  30. 30. © Vlerick Business School CHOICES TO MAKE Internal External Online Offline Fixed topic Free-flowing topic Temporary Continuous Support innovation Facilitate innovation Open Closed (Debruyne, 2010)
  31. 31. © Vlerick Business School DIFFERENT APPROACHES ARE POSSIBLE Continuous, open platform 1-time collect platform Day-to-day RM- central co- creation Delivery focussed co-creation process Continuous Small-scale Project Large-scale Digital platform driven No Yes Collecting (Community) Connecting (1-on-1)
  32. 32. © Vlerick Business School WHEN TO INVOLVE YOUR PARTNER(S)? Idea Generation Product Concept Development Project Definition Engineering Prototype Testing Market Launch Co-creation effectiveness varies by process stage Gruner & Homburg (Journal of Business Research) If you have to choose:  Steps with highest impact: product concept development & prototype testing  Effectiveness drops when not involving partner(s) early on
  33. 33. © Vlerick Business School BUILDING CO-CREATION PORTFOLIO Different types of co-creation projects exist: the ones that take away dissatisfiers in existing services and the ones create new “delighter” services. Both are important.
  35. 35. © Vlerick Business School NEW MINDSET “It is not your company. It is our company.“
  36. 36. © Vlerick Business School LIMITED FOCUS
  37. 37. © Vlerick Business School WHERE IS BNPP SITUATED ? Market Research Co-creation
  38. 38. © Vlerick Business School 3 BASIC STEPS Preparation Client engagement After-care • Clear, linked objectives • Make sure you can follow-through afterwards • Manage expectations • Secure budget • Select meticulously for purpose • Prepare thoroughly • ACT on feedback • Follow-up with client • The more intense the engagement, the more important the after-care
  39. 39. © Vlerick Business School The Marriage CLIENT ENGAGEMENT 39 The Steamy Affair The Quicky LAT Short Long Time of Engagement HighLow IntensityofEngagement
  40. 40. © Vlerick Business School CO-CREATION MODES@BNP PARIBAS HQ RM Front Clients 1 2 3
  41. 41. © Vlerick Business School Give and Take FINDING THE BALANCE 41 The Butler’s Trap (Watch out !) NO GO Hit and Run (Watch out !) Low High Value for the Bank HighLow ValuefortheClient
  42. 42. © Vlerick Business School REUSE AND SCALE
  43. 43. © Vlerick Business School SEGMENTATION
  44. 44. © Vlerick Business School 3 MAIN TYPES OF INTERACTION Lead UsersClients Employees Co-creationUser engagement Co-creation
  45. 45. © Vlerick Business School ATTRIBUTES Clients Lead Users Employees Indicate pain points Generate ideas Generate ideas Focussed on problems Focussed on solutions Focussed on solutions Behind the curve Ahead of the curve On the curve User Expert User Expert Incremental Leap Incremental Large groups Limited group Leverage effect Go broad Go deep Go deep Citizens Ambassadors Ambassadors Scalable Not scalable Less scalable
  46. 46. © Vlerick Business School YOU COULD EVEN GO FURTHER
  47. 47. © Vlerick Business School WHAT WORKS BEST ? Engagement intensity Group size Type of platform Continous interaction whith large group on digital platform Interactive workshop Face-to-face discussion Digital collaboration tool One process step Several process steps All process steps 1 Fixed panel Large group Broad group of stakeholders
  48. 48. © Vlerick Business School PICK YOUR TOOL
  50. 50. © Vlerick Business School STUDY SETUP Literature study Selection of employee interviews In-depth project with clients
  51. 51. © Vlerick Business School BENEFITS FROM LITERATURE Access to new experiences/brainpower/creativity Products & services closer to reality Higher client adoption rates (commercial potential) Better implementation quality Higher commitment and involvement from clients Relationship building Better customer retention Positive attitude towards product Better fit to needs Better differentiation Reduced risk and building cost Higher internal commitment/intrinsic motivation
  52. 52. © Vlerick Business School BENEFITS FROM INTERVIEWS All clients were positive about the co-creation initiative Clients have a more positive image of BNPPF after the co-creation session. They listen to us They work more professional than I thought They are serious about client centricity They do more than the competition Main perceived client benefits (ranked): 1. Client gets a better product/service 2. Client gets a product more tailored to his specific needs 3. Client learns from this process and can even apply it to their own clients
  53. 53. © Vlerick Business School LEARNINGS FROM INTERVIEWS Expectation management for both clients and employees involved First focus on straight funnel or short cycle projects to ensure buy-in and avoid demotivation. Go in very focussed. Know what you want to get out of it. Not an open chat. Co-creation does not work as an add-on. Needs to be integrated (time, budget, …) from the start of the project. Employees are not clients Clients know your products best Big difference between what people say and how they act. Focus on action. Do not overpromise/underdeliver
  55. 55. © Vlerick Business School CONCLUSIONS
  56. 56. © Vlerick Business School GET TO WORK ! (20 MIN) Discuss with your neighbour: How do you currently connect with customers and external stakeholders? How can these interactions be made more co-creative? When and how can employees in the organisation be engaged more co-creatively? Ideation/crowdsourcing assignment: How can you involve clients/stakeholders more closely in your work? How do you think it would make a difference?
  57. 57. © Vlerick Business School THANK YOU ! E-Mail: LinkedIn: Twitter: @bjorncumps Bjorn Cumps, PhD Professor of Digital Banking