HANDING OVER THE SOURCE CODE

IIM Calcutta

January 2, 2012
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Customer-Made: here to stay

Not because everything will be co-created in the future But because tapping into the global brain is a huge departure from industrial age brand management

Once upon a time

WHAT IS CO-CREATION?

Co-creation is about joint creation of value by the company and the customer They jointly define the problem and solve it Thus creating an experience environment in which consumers can have active dialogue and co-construct personalized experiences; the product may be the same, but customers can construct different experiences
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WHAT CO-CREATION IS NOT

Delivering great customer service or pampering the customer with lavish extras Mass customization of offerings that suit the industrys supply chain Transfer of activities from the firm to the customer as in self-service Staging experiences DIY Customer voting
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WE LIVE IN FASCINATING TIMES

The world we live in now The world of business and brands

EXPANDING UNIVERSE

There are more people to meet , more places to go, more things to do, more dreams to dream, more experiences to discover than ever before

MEDIA MEDIATED REALITY

Media and communication increasingly shaping consumer identity and perceptions of the world Boundaries between the real and virtual are becoming fluid Societys collective imagination at work and play

MOVING PEOPLE MOVING PICTURES

Multiplicity of cultures Media plural world Increasingly content is consumed in a specific context The marketer is no longer in charge, the consumer is
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Consumers are now using brands to give greater meaning and purpose to their lives

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WHAT BUSINESS ARE WE IN?

Were in meaning management business Brands are magnets of meaning Communication ideas are about meaning making, creation of meaning portals

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MANAGEMENT OF MEANING

The marketer is no longer in charge managing meaning across media and contexts virtually impossible The consumer is in charge he is a cocreator, citizen artist. Consumer generated content, media, ideas more important than ever before
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OPEN SOURCE VIEW OF THE WORLD

Successful companies/brands will be open source companies/brands The trick lies in cracking the source code and putting it in the hands of the consumer 3M - $146M vs $18M

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CO-CREATION IN PRACTICE

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STORY 1

Reviving an iconic bubble gum brand: BAZOOKA

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STORY 2

Inspiring Body wash conversations: OLD SPICE

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STORY 3

Everyone has a Maggi story: MAGGI

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More DIY advertising

LOreals You make the commercial JetBlues Travel stories Mastercards Write a priceless ad

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STORY 4

Great beer delivery: SPEIGHTS

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STORY 5

Create your own wrist band watch: NIKE

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STORY 6

They allow you to make the shoes you want: ADIDAS

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STORY 7

Insanely great apps: APPLE

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STORY 8

Co-creating new products: LEGO

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STORY 9

What is your nickname? Who is your heartthrob? What is your pets name? STAPLES

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STORY 10 Nokia Concept Lounge Asked designers from Benelux to design the next cool phone Tamer Nakiscis wrist band style phone became Nokia 888
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STORY 11 Nespresso Design Contest Yielded ideas like in-car coffee machines And Nespresso Chipcard

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STORY 12

Electrolux Design Lab More than 3000 entries Household appliances for 2020
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STORY 13
Vores Ol Our beer Worlds first open source Beer Customers download original recipe, and create derivatives And sell them under the Vores Ol branding New recipe also published
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Customer-made co-creation
Co-creation is an essential part of innovation today Indispensible for companies to develop truly innovative and user-centric products Innovation, which these days is the sole factor determining a companys fortune or downfall Innovation CUSTOMER-MADE style implies the end of traditional producer/consumer relationships, implies letting go of control, and realising that the entire world could be your advisor
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End Word

Co-creation also implies re-innovating innovation itself Scary stuff for not-invented-here laggards But heaven for those obsessed with truly involving smart consumers before they take their talent elsewhere

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Questions, anyone?

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Thank you