The document discusses the rapidly changing landscape of value creation driven by new technologies and connected consumers. It notes that [1] businesses are feeling unsettled as the rules have changed, with consumers now able to co-create value through social networks and mobile devices. [2] Traditional internal approaches to growth are insufficient, and innovation must involve collaboration both within and outside organizations. [3] Leaders must learn to share control with consumers and think of their organizations as inclusive networks in order to guide their businesses through this dramatic change.

1. Value
Co-Creation
The Rapidly
Emerging Role of
the Consumer in
Value Creation
May 2012
© The Clarion Group, Ltd., May 2012

2. It Feels Chaotic!

3. At a deep level, business leaders
are feeling very unsettled.

4. Explosion of internet enabled devices and
engagement with social media
It’s not just a headache but an anxious
headache as market activities are
moving at a rapidly accelerating rate.

5. The challenge to successfully
lead an organization to desired levels of
growth has never, in our lifetime,
been more difficult.

6. The historic internal approaches to enhancing value
and driving organic growth are insufficient.

7. Finding better ways
to explore market
opportunities
is on the minds of
most leaders…

8. ….and asking
more of your
people has its
limits.

9. Innovation
AND
Collaboration
...is the mantra.

10. We have entered into a new era of
rapidly expanding complexity
and opportunity that requires new
leadership mindsets and execution
capabilities to enable growth.

11. Looking Back
The Rear View Mirror

12. 70’s and 80’s…mass consumption
“build it and they will come”

13. An era of relative

14. Complex Adaptive Systems
Vast and
Growing
VARIABLES TO CONSIDER
Many
Operations Level
Innovation “TQM”
Few
Clear
Low Moderate High and
Epic
DEGREE OF UNCERTAINTY

15. Mid to late 90’s and into
the first
decade of the 21st
century, businesses
became more
complicated and
leaders began to think
more holistically across the
value chain, looking for
growth and efficiency.

16. Complex Adaptive Systems
Vast and
Growing
VARIABLES TO CONSIDER
Many Organization
Innovation
“Transformation”
Operations Level
Innovation “TQM”
Few
Clear
Low Moderate High and
Epic
DEGREE OF UNCERTAINTY

17. Clear and Complicated characterized by

18. Looking Forward
The Windshield View

19. Our society has changed….we are:
Mobile
Global
Technically capable
Independent
Willing to share information
Highly interconnected

20. The tectonic
forces have
shifted the ground
underneath our feet.
Mass customization comes to the consumer experience.

21. A new era of rapid,
market-led value creation
…think nature, evolution, mutation

22. The intersection of digitally educated
people and advanced technology has
created the opportunity for a unique
experience with each consumer
…access to products and services
when, where and how they want it.

23. The Shifting Balance towards Value Co-Creation
Vast and Market Enabled
Growing Innovation
VARIABLES TO CONSIDER
“Value Co-Creation”
Many Organization
Innovation Balance
“Transformation”
of Power
Operations
Level
Innovation
“TQM”
Few
Clear
Low Moderate High and
Epic
DEGREE OF UNCERTAINTY

25. Examples
Medicine The Way
It Should Be
Consumer Buying
Power
Common Interest
Who
Needs An New Product
Insurance Development
Agent?

26. …is a dramatic
The Consequence rethinking of
organizations and
of shift in these how they function
tectonic forces to create value
and get work done.

27. Rapidly forming networked “communities”

28. Business leaders must learn to share control
– “the steering wheel” – with consumers.

29. Do you have “Gen-Net™” leadership who
think this way and can guide your
organization through this dramatic change?
Where to Begin?

30. Some Guiding Principles
• Don’t fight it: embrace complexity, the network and the rapidly
developing consumer behaviors.
• Think of your organization structure as inclusive of the messy
external network of person-to-person consumers and communities.
• Anticipate and reward a culture of exploration. You’ll be more
effective at attracting and retaining Gen-Net leaders.
• Begin to shift your mindset about leadership from “top down” to
“bottom up” to support the innovation on the edge of your
organization.
• Quickly prepare for and start to take greater market risks than you
are comfortable with because your business is likely at greater risk
than you realize.

31. Ready, or
Not?
www.theclariongroup.com