Co-creation is
another powerful method that if applied correctly can reduce costs and develop
better products with less internal resources.
Is this new? Using surveys for
opinions is a form of co-creation for new product development for a traditional
company but not in the context of how new online companies do so. Co-creation makes the product, not as a
secondary feedback mechanism to an already finished one.
While similar to
crowdsourcing, organisations use co-creation in a different manner. As crowdsourcing is more generic, co-creating
is more deliberate and thus a smaller crowd takes part. Linden Lab’s Second Life is about co-creation
where the co-creator (user) creates value for himself but rubs off on Second
Life, a site. Away from the online
world, others such as a shoe designer, John Fluevog allows customers to submit
designs. The best ones get put into
production, thus co-creating a new shoe.
And it has gone to Hollywood. The movie ’Snakes on a Plane’ actually
engaged its audience from scripting to marketing. It could also be applied to something as
simple as a comic strip. Applied
correctly, it is a powerful business tool.
It engages your customers and potential customers to co-create an
experience they want. Thus it can be
employed by a restaurant to engage their patrons in coming up with creative
dishes or a magazine for a section that is created by its readers.
Taken on a larger
context, co-creation generates mutual value from an organisation view. It involves co-creative engagement among
stakeholders of its eco-system of partners, clients, consumers, regulators and
employees. These opportunities add value
and extend the life cycle of the product.
It makes an impact with fewer resources. It scales in ways that
centrally designed systems cannot as it benefits from constructive
feedback. It innovates swiftly, making
it harder for competitors to react.
Co-creation is
sometimes executed via a method called an Open Platform model, itself in time
could become an economic production model on its own. This as the term implies is a mode of an
organisation to openly allow outside access to its content. It in fact deliberately taps into the crowds
of consumer, partners and customers. The
Guardian newspaper in Britain,
Google, Yahoo uses this unusual business means.
Introduced recently, the municipality
of London uses it in a hope
to catalyse social-economic development.
They even make significant efforts in an endeavour that traditional
businesses would be scratching their head figuring why. They organise their data, building engagement
platform for outsiders, making tools available to access the data and provide
training. It is indeed strange
considering that content has value. If
he has any hair left, the answer lie in the insight to the open culture of the
internet that translates to a business model.
If you think about it, the internet is a case study in itself. The reason why it is what it is today is
derived from it being an open platform, its greatest strength. In this brave
new world, the Open Platform model is a new way to improve client relationship,
innovate, create new products and lower costs.
It improves organisation productivity but ultimately it is to be more
competitive.
The Guardian.allows
access to their articles and applications, many developed by others and all
integrated within the Guardian network. They even allow applications based on Guardian
content to be available on other online platforms. They are adapting. Amazon recognised this new model early and
uses it to better its business. It is
now a global leader for cloud computing.
The model that works in the old world, of closely guarding its property,
is changing as power shifts to the consumers.
In execution, the
organisation needs to identify the area for external collaboration. It may be a product, a software module, a
transaction engine, a data set, a service.
Not everything should be open though and to make this model work, there
should be some trial and error and letting it evolve trying out various schemes
until a viable business model emerge.
Success lies in ‘closing up’ the right parameters. The aim is a progressive platform without
destroying the characteristics of the product for example. Bear in mind that participation will only
remain viable for as long as all the stakeholders are appropriately compensated
for their contributions, be it monetary or other means. Don’t expect perpetual gratis. The ultimate objective is about building a
loyal base of contributors that make your ecosystem stronger than your
competitor by continuously creating new value for the users. If well managed, over the long term the
organisation evolves with trends, comprehending customers’ requirements in
situ, that is, it provides a degree of future proofing and in a natural manner
being always on top of industry dynamics.
The Open Platform thus used becomes a powerful business system.
If you were to ask
me to single out only one ‘rule’, I would, after two decades studying internet
business models, say the open platform model.
Now, let’s switch
to something more practical in the next blog.
LinkedIn – dr tommi
chen (goggle + profile not completed)
©Chen Thet Ngian, InternetBusinessModelAsia.blogspot.com
(2012, 2013). Unauthorized use and/or
duplication of this material without express and written permission from this
blog’s author and/or owner is strictly prohibited. Excerpts and links may be
used, provided that full and clear credit is given to Chen Thet Ngian and InternetBusinessModelAsia.blogspot.com
with appropriate and specific direction to the original content.
No comments:
Post a Comment