The Future of Competition: Co-Creating Unique Value With Customers

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Harvard Business Press, Feb 18, 2004 - Business & Economics - 272 pages
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In this visionary book, C. K. Prahalad and Venkat Ramaswamy explore why, despite unbounded opportunities for innovation, companies still can't satisfy customers and sustain profitable growth. The explanation for this apparent paradox lies in recognizing the structural changes brought about by the convergence of industries and technologies; ubiquitous connectivity and globalization; and, as a consequence, the evolving role of the consumer from passive recipient to active co-creator of value. Managers need a new framework for value creation. Increasingly, individual customers interact with a network of firms and consumer communities to co-create value. No longer can firms autonomously create value. Neither is value embedded in products and services per se. Products are but an artifact around which compelling individual experiences are created. As a result, the focus of innovation will shift from products and services to experience environments that individuals can interact with to co-construct their own experiences. These personalized co-creation experiences are the source of unique value for consumers and companies alike.

In this emerging opportunity space, companies must build new strategic capital—a new theory on how to compete. This book presents a detailed view of the new functional, organizational, infrastructure, and governance capabilities that will be required for competing on experiences and co-creating unique value.

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User Review  - Nean042 - Borders

This book looks at the world of electronic media and communication. Thanks to technology, customers and companies have access to information at their finger tips. Due to the boom of the internet ... Read full review

The future of competition: co-creating unique value with customers

User Review  - Not Available - Book Verdict

According to this turgid volume of business metaphysics, dwindling profit margins caused by intensified competition, a glut of commodity production and knowledgeable, web-empowered consumers will ... Read full review


CoCreation of Value
Building Blocks of CoCreation
The CoCreation Experience
Experience Innovation
Experience Personalization
Experience Networks
The Market as a Forum
Building New Strategic Capital
Manager as Consumer
Rapid Knowledge Creation
Strategy as Discovery
Building New Capabilities for the Future
Aids to Exploration
About the Authors

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Page 5 - The most basic change has been a shift in the role of the consumer — from isolated to connected, from unaware to informed, from passive to active.
Page 251 - Communities of creation: managing distributed innovation in turbulent markets", California Management Review, summer, VOL.43, NO.4, pp.24-54, 2000 4.
Page 8 - The use of interaction as a basis for co-creation is at the crux of our emerging reality.
Page 6 - Twenty years ago, the two car dealerships (General Motors and Ford) in small towns in North America would probably have influenced the driving aspirations of a local teenager. Today, a teen anywhere can dream about owning one of more than seven hundred car models listed on the Internet, creating a serious gap between what is immediately available in the neighborhood and what is most desirable.
Page 11 - CareLink system goes beyond the cardiac device itself and unleashes opportunities for an expanding range of value creation activities. For example, each person's heart responds to stimulation slightly differently, and the response can change over time. In the future, doctors will be able to respond to such changes by adjusting the patient's pacemaker remotely. Furthermore, Medtronic's technology platform can support a wide range of devices...

About the author (2004)

C. K. Prahalad is the Harvey C. Fruehauf Professor of Business Administration at the University of Michigan Business School and co-author of the landmark best seller, Competing for the Future. His research, for over twenty years, has consistently focused on "next" practices. Venkat Ramaswamy is the Michael R. and Mary Kay Hallman Fellow of Electronic Business and Professor of Marketing at the University of Michigan Business School. His research focuses on new frontiers in co-creating value.

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