The Co-Creation Paradigm

356 Pages·2014·2.019 MB·English

by  Venkat Ramaswamy, Kerimcan Ozcan

advance praise for The Co-Creation Paradigm
“In the decade since co-creation was mooted, technological platforms have
enabled human engagement at deeper levels and on an infinitely broader scale.
As a consequence, businesses can and must expand their strategies to encompass
a profitable engagement with all stakeholders. The powerful idea that ‘we can
do even better for ourselves, if we do well for others’ encompasses the way that
successful organizations will contribute to wealth, welfare, and wellbeing in society.
The Co-Creation Paradigm is a beacon for this new way of doing business.”
—anand g. mahindra, Chairman and Managing Director,
Mahindra & Mahindra
“Building collective knowledge with stakeholders is no longer a privilege, but a
must for organizations to survive in complex environments. The Co-Creation
Paradigm presents the foundation for this thinking, and the concepts and tools
to make it happen. Working co-creatively with the Brazilian public sector has
showed me this is the only way forward.”
—paulo fresneda, Advisor to the President,
Brazilian Corporation for Agricultural Research
“As a sequel to The Future of Competition and The Power of Co-Creation, Venkat
Ramaswamy and co-author Kerimcan Ozcan provide a compelling case of how
companies that engage customers and develop an ecosystem of capabilities transform
value creation in R&D, supply chains, and marketing to create sustainable
competitive advantage.”
—jagdish n. sheth, Emory University
“Creating and maintaining a competitive advantage is a race towards an ever
moving target. Co-creation is the latest lever to get ahead by involving business
partners, directly drawing upon their skills and efforts. Doing this requires a new
business paradigm, which is well captured in Ramaswamy and Ozcan’s practical
and inspiring book.”
—hans læssøe, Senior Director, Strategic Risk Management,
The LEGO Group
“Co-creation is possibly the fastest growing innovation phenomenon of our time.
Recognizing, appreciating, and participating in it is no longer optional. This book is
replete with references, insights, and illustrations that provide an exceptional breadth
and depth of understanding of the constructs that underlie the co-creative process.”
—bill fischer, IMD
“A stimulating look around the corner that reveals how network interactivity is
transforming organizations and engaging customers. Readers will be challenged to
rethink the very meaning of value, realized through intense and rewarding experiences.”
—george s. day, University of Pennsylvania and coauthor of
Strategy from the Outside In
“The Co-Creation Paradigm represents the next wave of strategic marketing and
management. We need to train our students and re-train our executives to think
in terms of co-creation and platform building. Inviting all stakeholders to co-
create our businesses will lead to competitive insights and advantages that are
unimaginable in traditional companies.”
—philip kotler, Northwestern University
“Firms are no longer the center of value creation, which now pivots around the
human experience, interactions, and platforms of engagement. The Co-Creation
Paradigm is a multi-layered view of strategy that opens up new insights and points
toward profits that are not attainable using conventional tools.”
—venki rajah, Vice President of Infrastructure Insight,
Oracle Corporation
“Patients nowadays are connected and networked in ways that were unthinkable
a decade ago. Allowing the patient to co-construct medical solutions to suit their
conditions, symptoms, level of comfort, and experience with specific medications
should be the aspiration of every pharmaceutical company. Yet, health systems
and authorities need a roadmap for co-creating value. Venkat Ramaswamy and
Kerimcan Ozcan show us the way.”
—humberto c. antunes, President & CEO, Galderma S.A.
“In the last decade, we began to recognize that firm-centric organizations are losing
ground, and a new way of co-creating value is taking hold. Paradigm shifts are
necessarily slow revolutions. But, this book neatly synthesizes all that we know
today, facilitating steps forward in the next generation of value creation. Whether
you want to build a co-creative enterprise, or are intellectually curious about the
shifting world of business, this book is for you.”
—s. sivakumar, Chief Executive, ITC Agri Business
“The Co-Creation Paradigm is an important read for those who are interested in
the consequences of co-creation. It shows how co-creation is changing the agenda
for how to run our organizations—which deeply involves how we relate to other
organizations, groups, and customers. The authors provide compelling cases and
examples that highlight pertinent concerns for practitioners and academics alike.”
—rex degnegaard,
Copenhagen Business School
T h E C O - C R E A T I O N
P A R A D I G M
Venkat Ramaswamy and
Kerimcan Ozcan
stanford business books
An Imprint of Stanford University Press
Stanford, California
Stanford University Press
Stanford, California
© 2014 by Venkat Ramaswamy and Kerimcan Ozcan. All rights reserved.
No part of this book may be reproduced or transmitted in any form or
by any means, electronic or mechanical, including photocopying and
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Printed in the United States of America on acid-free, archival-quality paper
Library of Congress Cataloging-in-Publication Data
Ramaswamy, Venkatram, author.
The co-creation paradigm / Venkat Ramaswamy and Kerimcan Ozcan.
pages cm
Includes bibliographical references and index.
isbn 978-0-8047-8915-8 (cloth : alk. paper)
1. Customer relations. 2. Relationship marketing. 3. Product
management. 4. Business networks. I. Ozcan, Kerimcan, author.
II. Title.
hf5415.5.r354 2014
658.5′75—dc23
2013043601
isbn 978-0-8047-9075-8 (electronic)
Typeset by Newgen in 10/15 Sabon
To Brahman and Swami Krishnananda,
Ishvara and Shivashankar,
Bhumi Devi and Soulmate Bindu,
Prakriti and Joyful Adithya and Lalitha,
Matrudevo Bhava and Pitrudevo Bhava,
And co-creators of the future everywhere.
In loving memory of my father, Shri A. V. Ramaswamy,
whose soul departed this earthly world during the co-creation
of this book.
God bless his soul.
—Venkat Ramaswamy
To Pana for love,
Dora and Jülide for purpose,
Belgin, Gürbüz, and Elbe for encouragement,
And my teachers and students for wisdom and humility.
—Kerimcan Ozcan

c o n t e n t s
Tables and Figures ix
Acknowledgments xi
Preface xv
1 Introduction to the Co-Creation Paradigm 1
2 Innovating Co-Creation Platforms of Engagements 32
3 Enabling and Connecting with Co-Creation Experiences 49
4 Leveraging Co-Creation Ecosystems of Capabilities 82
5 Building Co-Creative Management Systems 99
6 Crafting Co-Creative Enterprise Architectures 144
7 Co-Creating Transformational Change 187
8 Evolving Economies and Societies through Co-Creation 222
9 Wealth-Welfare-Wellbeing and Private-Public-Social
Sector Co-Creation 248
10 Embracing the Co-Creation Paradigm 279
viii contents
Notes 293
Bibliography 305
Index 319
t a b l e s a n d f i g u r e s
tables
1-1 Shift in perspective on resources, opportunities,
and value creation 23
1-2 Strategic need and managerial manifestation of co-creation
thinking 28
figures
1-1 Value creation as co-creation 2
1-2 From conventional enterprises to co-creative enterprises 17
1-3 The co-creation paradigm of value creation 29
2-1 Engagement platforms 34
2-2 Crafting a strategic architecture of co-creation platforms 46
3-1 Domains of experiences 53
4-1 Ecosystem of capabilities 83
6-1 IT as enabling co-creation platforms 151
8-1 Contours of a co-creative economy and society 223