Presentation of value co-creation to my colleagues @ Lithuanian Society of Young Researchers (LSYR)

1. VALUE CO-CREATION
Monika Mačiulienė
Mykolo Romerio Universitetas

2. SETTING THE SCENE: WISDOM OF CROWDS
classic experiment
collective judgment
intuition of crowd

3. TED TALK BY LIOR ZOREF
There were 500 estimates, and the
results were:
-The lowest guess was 308 lbs.
-The highest was more than 8000
pounds.
-The average was 1792 pounds.
And the real weight? The ox weighs
1795 pounds. Three pounds off.

7. Customers =
Passive audience
Active players
Time frame
1970s and early 1980s
Late 1980s and early 1990s
1990s
Beyond 2000
Managerial mindset
The customer is an
average statistic.
The customer is an
individual statistic in a
transaction.
The customer is a
person.
The customer is not only
individual but also part
of an emergent social
and cultural fabric.
How companies are
interacting with
customers?
Traditional market
research and inquiries.
Identify problems from
customers, and then
redesign products and
services based on
feedback.
Making adjustments on
products based on
deep understanding of
customers.
Customers are
developers of
personalized
experiences.
Flow of communication
One-way
Data base marketing
Relationship marketing
Active dialogue with
customers. Multilevel
access and
communication.
Source: adapted from Prahalad and Ramaswamy (2000)

8. ROLE OF SOCIAL TECHNOLOGIES
Problem solving in virtual environments

10. ROLE OF SOCIAL TECHNOLOGIES
Media clutter
Always in beta
Sea of niches

11. OLD VS NEW MODEL
consumers
observation
respondents
messages
campaigns
one size
firm-centric
transactions
people
immersion
partners
relationships
stories
niche tailored
experiences
dialogue with customers

12. OLD VS NEW MODEL
consumers
observation
respondents
messages
campaigns
one size
firm-centric
transactions
people
immersion
partners
relationships
stories
niche tailored
experiences
dialogue with customers

13. SO WHAT IS CO-CREATION?
customer is the one who defines the
value.
This value is based on the experiences
and perceptions while producing,
consuming or using the service
generation and ongoing realization of
mutual firm-customer value
customer
organization

14. WHY ARE CUSTOMERS INTERESTED IN CO-CREATING?
Social status
Cash
Job opportunities
Fun and involvement
http://trendwatching.com/trends/CUSTOMER-MADE.htm

16. CROWD OF PEOPLE/CROWDSOURCING
Anyone can join
Masses
Big numbers
Power of masses

17. GOLDCORP CHALLENGE

18. BROOKLYN MUSEUM’S CLICK! A CROWD-CURATED
EXHIBITION

19. AIRBNB NEIGHBORHOOD GUIDES

20. citizen scientist at NASA

21. OPEN IDEO

22. COMMUNITY OF KINDRED SPIRITS
When developing something for the greater good
Groups of people with similar interests and goals can come together and create.
This model - so far - works mostly in software development and leverages the
potential force of a large group of people with complementary areas of expertise.

23. WIKIPEDIA

24. LINUX

25. platform for
artists,
designers, and
engineers to
share digital
design files via
Creative
Commons or
General Public
Use licenses

26. CLUB OF EXPERTS
A very specific challenge is needing expertise and breakthrough ideas.
Contributors are found through a selection process.
Quality of input is what counts.

27. HEINEKEN OPEN DESIGN EXPLORATIONS EDITION
1: THE CLUB
Global brewer Heineken recruited a virtual team of 19 young emerging designers from four
different continents to develop a concept club of the future, which was brought to life as a pop-up
club in Via Bugatti in Zona Tortona, Milan 2012. The co-creation team of fashion, product, motion,
interior and graphic designers came from Milan, Sao Paolo, New York and Tokyo. To stimulate
ideas, the co-creation team had access to an online panel of 100 clubbers.

30. COALITION OF PARTIES
each parties bring specific asset or skill to the party
sharing knowledge
creating a common competitive advantage

31. BEERTENDER
by Heineken and Krups

32. The SLoCaT Partnership on
Sustainable Transport
(SLoCaT) is a multistakeholder partnership of
over 80 organizations
(representing UN
organizations, Multilateral
and Bilateral development
organizations, NGOs and
Foundations, Academe and
the Business Sector). SLoCaT
promotes the integration on
sustainable transport in
global policies on sustainable
development and climate
change.

33. WHERE COMPANIES COULD USE CO-CREATION?
DIY advertising
Product development
Ongoing development
Create and sell
Ongoing conversations
http://trendwatching.com/trends/CUSTOMER-MADE.htm

34. DIY ADVERTISING
http://trendwatching.com/trends/CUSTOMER-MADE.htm

35. PRODUCT DEVELOPMENT
Nokia concept lounge
Electrolux Design Lab
http://trendwatching.com/trends/CUSTOMER-MADE.htm

36. ONGOING DEVELOPMENT
P&G platform for moms
http://trendwatching.com/trends/CUSTOMER-MADE.htm

37. CREATE AND SELL
Lego FACTORY
Danish Vores Øl (‘Our Beer’) world's first open-source beer
http://trendwatching.com/trends/CUSTOMER-MADE.htm

40. ONGOING CONVERSATIONS
Orange customers can tell what they think about the brand
http://trendwatching.com/trends/CUSTOMER-MADE.htm

42. Co-creation partnership
• Increased company loyalty
• Stronger customer relationships
Direct value outcomes
• Product and firm performance
• Positive word of mouth
Halo effects on mass
market
• Perceptions and performance
• Perceived as more customer oriented

43. WHERE IT CAN BE USED?
Research & Development
Marketing, Design & Idea
Collective Intelligence & Prediction
HR & Freelancers platforms
Open innovation software
Intermediary open innovation services
Creative Co-creation
Product Ideas crowdsourcing
Branding & Design crowdsourcing
Peer Production & P2P
Public Crowdsourcing

44. WHAT CAN GO WRONG?
Content editing
co-creators get smarter and realise how much they're worth

45. LITHUANIAN EXAMPLES

46. MY RESEARCH FIELD
customer
organization

47. Butscher (2002)
Arvidsson (2008)
Payne, Storbacka & Frow (2008)
Grayson & Humphreys
(2008)
Etgar (2008)
Grissemann, Stockburger-Sauer (2012)
Dong, Evans, Zou (2007)
Potts et al (2008)
Linstone & Turoff (2002)
Ryssel et al. 2004
Kaulio (1998)
Füller, Mühlbacher,
Matzler., Jawecki (2009) van Daelen (2005
Prahalad & Ramaswamy (2004)
Zwick et al (2008)
Kaulio (1998)
Tapscott &Williams (2006)
Mohaghar, Jafarnejad,
Mirkazemi Mood &
Maguire et al. (2007)
Walter & Ritter (2003)
Greer & Lei (2011)
Thomke &Von Hippel (2002)
Youshanlouei
Von Ahn (2006)
Rowley, Kupiec-Teahan,
Leeming, (2007)
Nuttavuthisit (2010)

48. RESEARCH QUESTIONS
How to improve organizational performance and enable new
means of value creation?

49. THOUGHT LEADERS IN THE FIELD
C.K. Prahalad and V. Ramaswamy The Future of Competition
Don Tapscott's and Anthony D. Williams's Wikinomics: How Mass Collaboration
Changes Everything
J. Howe The Rise of Crowdsourcing, Wired magazine
James Surowiecki The Wisdom of Crowds
The Service-Dominant Logic of Marketing: Dialog, Debate, And Directions Paperback
by Robert F. Lusch (Author, Editor) , Stephen L. Vargo (Editor), M.E.Sharpe (February
28, 2006)
Service-Dominant Logic: Premises, Perspectives, Possibilities by Robert F. Lusch and
Stephen L. Vargo, Cambridge University Press (January 31, 2014)

50. NO ONE KNOWS EVERYTHING, EVERYONE KNOWS
SOMETHING, ALL KNOWLEDGE RESIDES IN HUMANITY.
LEVY 1997