Networkinnovation 2011


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paper presented at the conference on business model co-creation at Alto university service factory. November 2011, Helsinki.

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Networkinnovation 2011

  1. 1. Innovatio nthrough the explo of value itation networks Fabrizio Maria Pini Head of Marketing Programmes MIP Business School Politecnico of Milan
  2. 2. Agenda• Call for co-creation: business model implications• The different levels of commitment• Defining the different kind of communities to support co-creation• Brand and company role in supporting different co-creation communities
  3. 3. Call for co-creation: businessmodel implications
  4. 4. The role of co-creation in defining company’s competitiveadvantage depends on the kind of business model that supports corporate strategies
  5. 5. The Long Tail
  6. 6. The distribution and inventory costs of businesses successfully applying this strategy allow them to realize significant profit out of selling small volumes of hard-to-find items to many customersinstead of only selling large volumes of a reduced number of popular items. The total sales of this large number of "non-hit items" is called the Long Tail.
  7. 7. Cost of services incustomisation mighterode inventory cost reductions
  8. 8. Exploit co-creation to reduce cost of services
  9. 9. The minimal incremental cost of inventory in longtail business models couldalso be exploited reducing cost of product ideation and design....
  10. 10. By explioting external networks
  11. 11. In other cases, external networks are used to increase brand awareness and sentiment...
  12. 12. •Where have you had a Coke lately?“It was taken from the peak of the Iztaccihuatl, Mexicos third highest mountain. [At 5,230m... you can guess why was the bottle half-full! :-)]“Les Grand Montets near Mont Blanc French Alps 3275m”“NEVADO DEL TOLIMA KOLOMBIA 5.800 MTS...CHARLYTOONS” 15
  13. 13. 120 Photos of Your Next Coke… 16
  14. 14. 5,800 Times of day to enjoy a Coke… 17
  15. 15. Or run customersurveys under different shapes...
  16. 16. The different levels ofmitment com
  17. 17. Individuals show different levels ofcommitment in co- creation practices
  18. 18. Role Activities Motivations to co- crete and satisfaction drivers Visitor visit, browsing, without high feedbac k and awareness and education interaction with peers and company Tester trial of products, services and solution s and engagement and influence interaction with the company and in some cases with community members Participant contribution to discussions with com munity insight and engagement members and company, comments and votingCreator creation and personalisation for self uniqueness of the experience, quality of personal outputCollaborator generation for self and for others, inst ead of influence and respect company
  19. 19. The different kinds of community to support co-
  20. 20. individuals belonging to more than a community individual link between different communities individual community individual individual individual individual individual individual individual individual community individual individual individualindividual individual individual community community individual community individual individual
  21. 21. Different kind of communities consumption subculture: nature of the interactions border line subgroups within the community value interpreted on the basis of local groups individual transformation process brand community: neotribe: Marketing goal built around product or brand brand is the subject of the grouplinking value is based on skills and competencies brand is the core of conversations developed around products, services, brands consciousness of kind linked to the right use of the brand
  22. 22. Community roles R&D communication production and pre and post and distribution sale services design promotions communinty as community as community asinternal resource consultant promoter
  23. 23. Brand and company role in supporting different co- creation communities
  24. 24. Type of Brand and Expected co- community company role creation output Provide contents Awareness Brand community Reward the right use of Sentiment brand Brand evangelists Provide technical Service amelioration support Incremental productSubculture of consumption Show competence innovation Reward problem solving Customer support Brand re-interpretation Brand democratisation Product innovation Acceptance of border Neotribe New contexts of use line behaviours New meanings and Ready to change needs