These days companies are so focused towards attracting and satisfying their customers that their strategy slips to incorporate stakeholders employees, suppliers, and distributors efforts too. By focusing on improving the experience of everyone involved in corporate practices can help in achieving breakthrough insights, lower cost, new revenues, and new business models. Now the latest initiative to invite everyone to give their valuable insight through social media is also changing the working style of companies. Stakeholders have little or no say in the product development and people don’t want the product to be imposed on them. They want to make an equal contribution in product development and work co creatively with the organization. Thanks to technology, it is now getting easier to communicate and share ideas. In late 1995s many companies opened two way communication to let consumers participate in product development. Dominos for example invited customers to make recommendations in flavoring pizzas according to their taste. Similarly Dell, Starbucks, PNG have also galvanized consumers into their product development.
Classical way to approach any problem is through addressing and asking questions like how to redesign the process so as to reduce cost, manpower and time. Designing team can interview some customers so as to analyze demand and can reduce redundant steps. This way they will end up with more efficient and streamlined products and processes. Customer experience would have been defined as a minimum threshold to make it more competitive and the right choice.
While in co-creation different results come out because it involves experiences of different kinds of stakeholders to design products and services. The interior designing company organised workshops in which several kinds of employees like manager, designer, raw material procurer, investor and advisor participated. They had an open discussion and at the end they involved customers to analyse past problem issues and the answer was the problem was in raw material. Co-creation helps every party involved in discussions to acquire a deeper understanding of what is happening on the other side. In the workshop it became clear that a good quality raw materials cost so high that only high end users can afford it. This led only to a small market group targeted by the company.
4 principles of co-creation:
Any stakeholder would participate in co-creation until they feel it will add value to them. Value can be in any form like life satisfaction, appreciation opportunity, increased revenues and many more.
- In 1998 when Parley tried to expand its business, it found three obstacles: unmotivated pollers, dissatisfied customers and exhausted local managers. Parleys’ leaders redefined strategies, and designed an unhindered style of polling to get reviews and reduced waiting hours of customers. By the end of 2000s productivity increased 37% and customer satisfaction also improved.
- Another way to enhance value at corporate is through focus on the experience of all stakeholders: Allow stakeholders to take a central role in the corporate work process. Involving HR, marketing team, colleagues and suppliers in interaction can remove mediocre ways of doing any work. Active participation can improve the overall process as it allows exchange of past experiences, successful ideas in re-engineering the services.
- Companies should build an environment where stakeholders can easily interact with each other. There are several problems whose solutions are not obvious and taking approval to meet each other can create a complex working environment. Solving difficult problems requires arduous effort and expertise.
- Scheduling data, organising big meeting rooms and inviting participants in co-creation activity is an old method. Social media, internet and advanced IT Technology have created a virtual platform for the interaction of stakeholders which is cheaper and faster too. Starbuck, Idclick, and Meditree are encouraging their employees to submit ideas on social platforms through blogs and other active sites.
Strategizing working style
Redesigning the value chain on the basis of economic merit such as where to cut costs in the process and where to cut steps which leads to the formation of the effective business model. Strategizing involves removing inefficient areas from the value chain. It is highly focused towards the company economy and it is designed to gain competitive advantage in the business.
Co creating an ecosystem
In 2003 Monsanto India has faced 2 severe problem : first to improve position in global market and other to increase incorporate high quality agri product Mosanto found that quality of crops producing in India of low quality and there is inefficient market supply chain.
Magento derived new strategies, it indulged farmers, leaders, suppliers and government to design quality farming and to improve farming practices among the farmers. In this way Mosanto indulged everyone in co-creating the ecosystem to make advancement in the organisation.