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Integrated Customer Innovation F02 11 01 2010


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creationInstead of setting up customer communication from a marketing perspective, co-creation with your customers means true involvement from both customer as well as company side. The key to success is creating mutual benefits by adapting co-creation within organizational behaviors

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Integrated Customer Innovation F02 11 01 2010

  1. 1. Integrated Customer Innovation By Maikel² Capgemini Consulting
  2. 2. By obtaining your customers on the required level of involvement, they will become valuable resources Advantages of co-creation • Enabling users’ ability and providing opportunities to invent solutions, which have personal value and meaning for them and offer businesses the opportunity to accelerate their own learning • Allows the company to tap into customers’ intelligence and to leverage their creativity and problem-solving capabilities • Facilitates the creation of knowledge about key features or functions of products that will assure product success in the market What are the challenges you face Important is to keep the customer involved, • Find the right customer and get them involved • Prevent legal risks (privacy/ branding) • Have a win-win relationship with your customer Instead of setting up customer communication from a marketing • Receive the effort required from your perspective, co-creation with your customers means true customer involvement from both customer as well as company side. The key to success is creating mutual benefits by adapting co-creation within organizational behaviors. CE v6.3 © 2008 Capgemini - All rights reserved 2
  3. 3. Challenges in co-creation include creating process ownership and sustaining the value creation but still keeping tab on costs Challenge Implications • Lack of standards in internalisation • Although the companies have defined a platform for the process will have a direct affect on process interaction with clients they do not have a clear internal replication for co-creation Internalisation of co-creation process for co-creation process • It would also enhance the visibility of the • The current state within the organisation links the organisation while co-creation consumers with the manufacturing, marketing and sales team • Procurement is interlinked with the manufacturing team, suppliers and logistics • Companies and customers can violate the software • Co-creation can create potential legal risks for the company and the customer copyrights or other intellectual-property covenants or Legal libel laws by submitting content to a company involved • Brand name of the company would be at in the process of co-creation stake in case of any product trademark • Companies have a high risk of product trademark infringement or unhappy co-creators infringement • Co-creation in various sectors would • Co-creation among consumers of industries such as enhance customer satisfaction and banking who have a ‘don’t care’ attitude will pose to be a revenues Co-creation in new sectors challenge • Traditional methods need to be broken by • Breaking traditional methods and to integrate customers introduction of co-creation with in in the process of creation could be a challenge organisational teams, departments, divisions and their suppliers Capgemini’s suggested approach will tackle these challenges and incorporate co-creation within the standard business processes while making it part of the company’s organizational behaviour and strategy CE v6.3 © 2008 Capgemini - All rights reserved 3
  4. 4. Enabling a company to involve customers effectively in the design phase, contains several steps which result in an ongoing process 1. Community Six steps guide the process to become ready for the new customer customer Idea 1. A customer community is created and customer (potential) customers are invited to visit the complain community and deliver input. customer 2. The input gathered will be controlled and question delivered in coherent portions. 3. A linking pin inside the company should determine whether the customer requirements are feasible within the supply chain, by checking internal and external availability 2. Community control 4. From a financial perspective, strategic insight is given by analyzing profitability and by applying value control. 6. Market 3.Feasibility 5. The selected design characteristics are applied in the production process / service offering and run though the supply chain 6. Product / service offering is brought to market 5. Supply 4. chain Profitability Cagemini’s collaborative way of working, its experiences in multidiscipline projects, and its innovative approach of making co-creation profitable is a unique combination! CE v6.3 © 2008 Capgemini - All rights reserved 4
  5. 5. Enable the customer to communicate and contribute Three levels of customer contact enablers Community control Community 1.0 Account management will have a extended role with controlling the community. face-2-face client interviews Community control manages all the different levels of customer contact. Bases on the ambitious and abilities of the company either level will supply great information to the Community 2.0 company. Besides company controlled communities the community control also has internet community the task to scan other potential information sources, f.e. Customer forums. Key to make the community a success it the willingness of the community control to supply Community 3.0 information and support community processes. virtual world community A successful community control finds the true need of the customer without explicitly mentioned CE v6.3 © 2009 Capgemini - All rights reserved 5
  6. 6. Performing the feasibility check is done by the linking pin responsible for connecting customer demand and suppliers in the supply chain Requirements of the linking pin Internal Engineering R&D 1. Customers needs must always be the main focus during the feasibility check Linking HR Marketing 2. Establishment of a strategic fit between your Pin company and the supplier to enable upfront involvement of supplier in the design phase 3. Management commitment of all parties involved and sponsorship is key to make the program a success Merger & Acquisition Purchase of Co development 4. The linking pin his main task is to enable 24/7 innovation communication between all parties Purchase of New product Imitation development innovation • Take over • Procuring • Design of a Decision making process innovations directly from new product observed with inventor with supplier involvement Innovate internal or external other firms • Commissionin g the development Internal innovation (outsourcing) 1. Setting up the internal engineering process Mergers & 2. Acquire the required materials Improvement acquisitions • Take-over • Refinement of External innovation entire firm and an existing 1. Innovation is partly or completely external benefit from production included ideas process or 2. Partly external innovation enhances setting up a co product development supplier help 3. Completely external innovation means acquire a firm or acquire a external developed product or service CE v6.3 6
  7. 7. The profitability of customer driven innovation is guaranteed by proven methodologies and tools Business Case • Capgemini’s business case method will Business Case Method lead to a financial justification of the investments needed for ICI. •Benefits will be identified by developing a benefit logic ® that shows how the innovation solutions, lead to positive cash flows Benefits Costs Analysis Customer Profitability Management The objective of CPM is to increase the ‘value of the customer’ in order to Customer Cost to provide increase long term value for the High Revenue • Material / company. Customer’s value can be Value for the customer • Volume Production costs increased within three dimensions: • Product Mix Creating • Pricing Cost to serve Long-term • Increase relationship value • Distribution cost customer Increase customer spending, reduce cost value to serve / cost to deliver Proces Cost to acquire Low optimization • Increase the acquisition value • Volume • Marketing / Acquire profitable customers by ignoring • Partner network acquisition costs Low High leads with low future value • Proces Value of the customer alignement Cost to retain • Increase relationship length • Discounts Retention actions at high value customers, raise exit barriers CE v6.3 7
  8. 8. Implementing three building blocks enables your company to integrate customers in the design process Three step approach A three step approach is suggested to make your company ready for the new customer. 1. Enable your •Step 1: Enable your customer to co-create. Create a customer to co-create win-win situation for both customer and company •Step 2: Check whether the client ideas are feasible. Develop a linking pin inside the company to perform an 2. Enable feasibility check internal and external feasibility check. •Step 3: Check whether the client ideas are profitable. Build a business case and check the CPM (client profit 3. Enable profitability check margin) Implementing one of the three step also proved to be beneficial Project Approach Level of customer Involvement Level 4 Ready for the new customer The project approach to make a company ready for the Level 3 new customer, depends on the maturity state of the client Managing the supply chain company in the different focus areas. Level 2 An AS-IS study is therefore critical to define the company’s opportunity areas and structure the business Aligned internal processes transformation project. This AS-IS study will be drawn up during a workshop and focus interviews. Level 1 Capgemini can offer the INNOVATE NL as accelerator to Stand alone company bring stakeholders together for vision and strategy development Maturity level of company CE v6.3 © 2008 Capgemini - All rights reserved 8
  9. 9. Contact Details Maikel² Consulting Services Consulting Services Maikel Lieste Maikel Miggelbrink Supply Chain Management Financial Transformation Capgemini Nederland B.V. Capgemini Nederland B.V. Papendorpseweg 100, P.O. Box 2575, Papendorpseweg 100, P.O. Box 2575, 3500 GN Utrecht - The Netherlands 3500 GN Utrecht - The Netherlands T. +31 30 6895199 - F. +31 30 689 55 60 T. +31 30 6895844 - F. +31 30 689 55 60 Mob. +31 6215 030 462 Mob. +31 622481284 CE v6.3 © 2008 Capgemini - All rights reserved 9