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

1. Integrated Customer Innovation
By Maikel²
Capgemini Consulting

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.
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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
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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!
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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
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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
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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
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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
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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
maikel.lieste@capgemini.com maikel.miggelbrink@capgemini.com
www.nl.capgemini.com www.nl.capgemini.com
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