the co-creative enterprise
DESCRIPTION
Today, You are are not only informed and connected, but empowered and active.TRANSCRIPT
The Co-Creative Enterprise
Venkat Ramaswamy
© 2010, Venkat Ramaswamy [email protected]; www.venkatramaswamy.com
2
Today, You are are not only informed and connected, but empowered and active
Conventional Enterprise
You Customers Suppliers Partners
Employees
3
TIME Person of the Year 2006
4
2000-2004: “Co-Creation” as the Next Paradigm of Value Creation
Best Article Award Winner 2003
5
Today, a Google Search of “Co-Creation” yields over 25 million hits
October 2010
Enterprises Individuals Customers Suppliers Partners Employees
Co-‐Crea7on
What is Co-‐Crea@on?
Experiences Interac7ons Engagement Network Rela7onships
7
The mouth that roared: blogger Jeff Jarvis Dear Mr. Dell CC: Michael George, chief marketing officer and vice president for the U.S. consumer business, Dell
Gentlemen, Your customer satisfaction is plummeting, your marketshare is shrinking, and your stock price is deflating. Let me give you some indication of why, from one consumer’s perspective. I won’t bore you with all the details of my saga of Dell hell; you can read all about it here and here. The bottom line is that a low-price coupon may have gotten me to buy a Dell, but your product was a lemon and your customer service was appalling. I shipped back my computer today and only — only — because I wrote an email to you, Mr. George, did I manage to get a refund. I’m typing this on an Apple Powerbook. I also have bought two more Apples for our home. But you didn’t just lose three PC sales and me as a customer. Today, when you lose a customer, you don’t lose just that customer, you risk losing that customer’s friends. And thanks to the internet and blogs and consumer rate-and-review services, your customers have lots and lots of friends all around the world.
Jeff Jarvis Associate professor and director of the interactive journalism program at the City University of New York’s Graduate School of Journalism
The stages of Dell’s response
1. Denial Comment from Dell spokesperson on the firestorm caused by Jeff
Jarvis’s blog: “With our direct model, we feel like we already have a good, two-way communications channel with our customers…The best process for getting issues addressed is to contact us directly.”
2. Shutdown Dell’s explanation of why it subsequently closed its online Customer
Forums: “As for the Customer Care board, many of the non-technical issues posted there can only be addressed by authorized Dell representatives with access to customer information – not by peers as the Forum is designed to facilitate. That said, these questions are best handled through other secure online tools.”
The stages of Dell’s response
3. Anger
Post left on Jeff Jarvis’s blog from a PR person working for Dell(!): “Hey Jarvis. I honestly think you have no life. Honestly? Do you have a life, or do just spend it trying to make Dell miserable. I've been working with Dell the past three weeks researching trashy blogs that worms like you leave all over that frigen blogosphere and I cant honestly say that Dell is trying to take a step towards fixing their customer service. They hire guys like me to go on the web and look through the blogs of guys like you in hopes that we can find out your problem and fix it. But honestly I don't think you have a problem Dell can fix. Your problem is you have no life. “
Coincidence?
Jeff Jarvis begins blogging about Dell
Dell shuts down its online customer forums
Jarvis’s blog begins drawing widespread attention
Dell issues a profit warning
11
“If we don’t do this at Dell.com, it’s going to be on CNET or somewhere else. I’d rather have that conversation in my living room than in somebody else’s.”
Michael Dell
Dell Quote
13
Real People are Here and We’re Listening Tue. Jul 11, 2006 Lionel Menchaca, Digital Media Manager Yesterday was the first official day of Dell’s one2one weblog and already Jeff Jarvis and Steve Rubel were kind enough to tell us what we’re doing wrong. Thanks for the feedback, guys. We'll keep working to get it right…Our intention with this blog is to address issues that are important to our customers. Give us some time and we'll prove it. Robert Scoble told us to listen, and to link to the folks who don't like us. First step was to launch Dell's one2one. Check. We’re excited to be here, and we welcome your ideas. 174 Comments
Dell IdeaStorm
15
IdeaStorm is for specific suggestions by customers
16
Customers post ideas, other customers
comment and vote.
Dell tracks ideas and decides which to pursue.
IdeaStorm visitors can raise any issue they want
8,859 ideas submitted by site visitors as of mid-April 2008. 613,638 votes. 66,882 comments.
Dell had implemented 20 of the ideas.
"I'm sure there's a lot of things that I can't even imagine, but our customers can imagine. A company this size is not going to be about a couple of people coming up with ideas. It's going to be about millions of people and harnessing the power of those ideas."
Michael Dell
Dell Quote #2
18
Jeff Jarvis, 2007
After giving Dell hell two years ago, I may well be accused of throwing them a wet kiss now. It’s a positive piece. But it’s hard not to praise them when they ended up doing everything I was pushing in my open letter to Michael Dell. I’m not saying that I caused that, just that we ended up agreeing and they ended up seeing the value in listening to and ceding control to customers. They reached out to bloggers; they blogged; they found ways to listen to and follow the advice of their customers. They joined the conversation. That’s all we asked.
Dell realized that engaging in the conversation wasn’t just a way to stop blogging customers like me from harming the brand. We, the customers, bring them great value besides our money: We alert them to problem. We will tell them what products we want. We share our knowledge about their products. We help fellow customers solve problems. We will sell their products. But this happens only if you have a decent product and service and only if you listen to us.
Co-‐Crea7ve Enterprise
Individuals Customers Suppliers Partners Employees
Co-‐Crea7on
Becoming a Co-‐Crea7ve Enterprise
Build pla)orms to engage people to create value together Engage in a dialogue about experiences to generate new types of valuable insights
Design products and services together with stakeholders in the ecosystem
Starbucks
The Return of Howard Schultz as CEO in Jan 2008
“Welcome to MyStarbucksIdea.com. This is your invitation to help us transform the future of Starbucks with your ideas – and build upon our history of co-creating the Starbucks Experience together…
So, pull up a comfortable chair and participate in My Starbucks Idea. We’re here, we’re engaged, and we’re taking it seriously.”
MyStarbucksIdea.com
Hi, my name is Katie. I am a registered dietician and senior nutritionist for Starbucks. I have the pleasure of working with a group of passionate partners who are dedicated to bringing nutritious food & beverage options to your Starbucks store.
As a Starbucks Idea Partner, I’ve enjoyed reading your posts and getting a better understanding of what our customers want. I’m thrilled to see the overwhelming requests for nutritious options – more whole grains, more Eiber & protein, smaller portions, etc. as well as other options like gluten-free and vegan-friendly. Let me tell you: WE HEAR YOU!
28
29
Co-‐Crea7ve Enterprise
Co-‐Crea7on Co-‐Crea7ve Engagement PlaAorms
New Experiences of Value to Individuals
Increased Strategic Capital and Returns
to Enterprises
Lower Risks & Costs for Enterprises
Lower Risks & Costs for Individuals
The Powerful Benefits of Co-‐Crea@on
Co-‐Creators Customers Suppliers Partners Employees
The Co-‐Crea@ve Enterprise Engages People to Create Valuable Experiences Together, while Enhancing Network Economics
I believe that these days, the rapid communication that is enabled by wikis, blogs, Twitter, YouTube and you name it ensures that no matter what kind of company you are, your customers are having a conversation about your products and practices.
The question that every company has to ask is: ‘Do I want to be part of this conversation? Do I want to learn from it? Am I willing to innovate on the basis of it?’ If you harness the power of this community, you will benefit. If you turn your back on it, you get further and further out of touch while competitors flourish. So yes, I think this is a new kind of communication for a new age of customer engagement.
Marc Benioff, CEO of Salesforce.com:
Starbucks Volunteer Service
HandsOn Network
Starbucks, Korea
Starbucks Shared Planet
Ethical Sourcing
Environmental Stewardship
x = ENTERPRISE
Becoming a Co-‐Crea7ve Enterprise
CO-‐CREATIVE ENTERPRISE
Engagement PlaAorms
“We don’t view social media as a marke@ng play, but rather as a customer engagement channel where we can have real connec@ons with our customers, engage them in the brand and answer their ques@ons. We are in constant dialogue with customers, par@cipa@ng in the communi@es of MyStarbucksIdea.com, TwiVer and Facebook. Our engagement allows us to understand their needs, stay top-‐of-‐mind in an increasingly compe@@ve retail environment and share interes@ng news about the company with a cap@ve audience.”
Starbucks and Social Media
Co-‐Crea7on Context of Interac7ons
Network Rela7onships
Engagement PlaAorms
New Experiences of Value to Individuals
Increased Strategic Capital and Returns to Enterprises
Lower Risks & Costs for Enterprises
Lower Risks & Costs for Individuals
Experience Mindset
Making Engagement PlaAorms Co-‐Crea7ve
Transparency Dialogue Access
Opening up App Development
Global Network Resources
Global Community Resources
Individuals
APP Store
PlaAorm
APP-‐le
Inside-‐out Co-‐Crea7on
Outside-‐in Co-‐Crea7on
HSM Sao Paulo © 2009 ECC Partnership All rights reserved.
64
“In the past, the product was the end point of the consumer experience. Now it is the starting point.”
Stefan Olander, Nike Global Director of Digital Media
August 2006
Nike Quote
Nike+
Run Tracking
Challenge Others
Mapping and Sharing Runs
Running Resolutions
Listening to Music & Publishing Playlists for Running
Training with a Running Coach, Interacting with a Running Star
Nike Running Clubs and Nike-Sponsored Events
Running blog and discussion boards
Nike+ platform engages runners and communities through value-generating interactions
HSM Sao Paulo © 2009 ECC Partnership All rights reserved.
67
“In more ways than one, the genius of the Nike+ system is the software that allows generation of deep insights and facilitating social connections among the
community of runners.”
Mike Parker, Nike CEO June 2009
Nike+ Quote
Nike+ Results
More than 600,000 runners signed on the first year More than 160 countries in the first year Over 40 million miles uploaded the first year Visit 3-4 times a week Nike captured 57% of the $3.6 billion U. S. running shoe market in
2007 compared with 47% in 2006 Nike has a goal of having 15% of the world’s estimated 100m+ runners
using the system In August 2008, nearly 800,000 runners logged on and signed up to
participate in a single event: Nike’s Human Race 10K help simultaneously in 25 cities from Chicago to Sao Paulo. These connections have grown into new communities (e.g., running for charity)
Near the end of 2008, runners logged the 100th million mile on Nike+ By August 2009, over 150 million miles had been logged…
HSM Sao Paulo © 2009 ECC Partnership All rights reserved.
72
“The more we can open up Nike+, the better. The only reason to close it out is because you actually don’t believe that you have a strong enough product for others to want to take it and do good things with it.”
Stefan Olander, Nike Global Director of Digital Media
June 2009
Nike+ Quote
Choose:
• Base color • Tip color • Heel color • Swoosh color • Tongue top
color • Lining color • Lace color • Sidewall color • Outsole color
Nike iD
The Nike iD Design Contest
NikeiD Custom Design Studio
75
Nike ID iPhone App
• Your Icons • Your Mascot • Your Name • Your Team Colors
Nike iD
Choose a country flag …
80
Nike Joga Bonito
The community was the judge of the contest, not Nike
Members could search the site by users, videos, communities, team…
Leveraging Assets and Resources as Engagement Platforms
• Smart Products
• Websites and Social Media
• Retail Stores
• Mobile Devices
• “Live” Meetings
• Call Centers
• Private Community Spaces
• Open Community Spaces
New Experiences of Value to Individuals
Increased Strategic Capital and Returns to Enterprise
Lower Risks & Costs for Enterprise
Lower Risks & Costs for Individuals
Expanding the Scope and Scale of Interac7ons
Expanding Stakeholder Rela7onships
in the Ecosystem
Expanding Linkages Among Engagement PlaAorms
Expanding the Space of
Experiences
ITC e-‐Choupal
Nodal Company
Agricultural Educa@on Farmer ITC -‐ IBD
Sanchalak
Village
Town Town
Mandi
Choupal Sagar
Samyojak
“Pla)orm Tier 1” “Pla)orm Tier 2” “Pla)orm Tier 3”
ITC-‐IBD as a Nodal Company in its Social Ecosystem
E-‐Choupal Engagement Pla[orms
Nodal Company
Banks, MFIs, and Insurance
Farm Input
FMCG and
Durables
Health care
Agricultural Educa@on Farmer ITC -‐ IBD
Sanchalak
Village
Town Town
Mandi
Choupal Sagar
Samyojak
“Pla)orm Tier 1” “Pla)orm Tier 2” “Pla)orm Tier 3”
ITC-‐IBD as a Nodal Company in its Social Ecosystem
E-‐Choupal
Kiosks: 5,400 Villages: 31,000
Farmers: 3.5 million
Year 2005: Kiosks: 20,000
Villages: 100,000 Farmers: 10 million
Year 2013:
Source: Shivakumar, ITC
Co-‐Crea7ve Enterprise
Individuals Customers Suppliers Partners Employees
Co-‐Crea7on
Becoming a Co-‐Crea7ve Enterprise
Build pla)orms to engage people to create value together Engage in a dialogue about experiences to generate new types of valuable insights
Design products and services together with stakeholders in the ecosystem
Grow by expanding the space of experiences, scope and scale of interacFons, and linking engagement pla)orms in new ways
CulFvate trust and social legiFmacy through more inclusive and sustainable growth.
As business and society evolves, so do our collec@ve experiences…
Public.
GOV
Profit.
COM
Social.
ORG
Human.EXP
Hospital Moinhos de Vento (Brasil): Co-‐Crea7ng Strategy
Strategic Challenge at Hospital Moinhos de Vento
Rethink Strategy by considering the point of view of different stakeholders (nurses, doctors pa@ents, families, companies, health insurance companies)
Co-‐Crea/on
Current Strategy New “Co-‐Created” Strategy
Co-‐Crea@on Process
Co-‐Crea7ng new ideas with different stakeholders (e.g. pa7ents, doctors, families)
Current Strategy
Map
Innova7ve Strategies /
Ini7a7ves
Ideas were “prototyped” and “experienced” in an interac7ve
manner
Co-‐Crea@on Process
Co-‐Crea7ng new ideas with different stakeholders (eg. pa7ents, doctors, families
Current Strategy
Map
New “Co-‐Created”
Strategy
Build a new Value Proposi7on
together
(core of the strategy map)
New objec7ves for
the Strategy Map
New Innova7ve Strategic Ini7a7ves
Innova7ve Strategies /
Ini7a7ves
"About half of our strategic ini@a@ves at HMV now come from a co-‐crea@on process of interac@ons with our key stakeholders -‐-‐ pa@ents and their families, physicians and nurses, our employees, business enterprises, and the health insurance companies.”
Dr. João Polanczyk CEO Hospital Moinhos de Vento
Advance Praise for Book
Best wishes in
Co-Creating
the Future!