A Model for Building and Implementing Customer Value Co-creation Agendas

Abstract

Engaging customers to co-create value is a key strategy for businesses that are competing to fulfil custom-made demands and to gain competitive edge. Nevertheless, research in the field of value co-creation is still in its infant stage. In the search for an innovative competitive strategy, the extant literature on customer value co-creation generally overlooked the implementation of the concept in the world of business. To fill the gap, the current paper proposes and discusses a framework of competencies and processes for developing and implementing co-creation programs in business organizations. By offering a modest, easy-to-understand framework, it takes the fear element out of embracing these new value-creation agendas, and advocates that companies should strive to get closer to customers and other stakeholders so as to lessen the distance by promoting participation and co-creation. The paper also discusses a critical precondition for adopting, effectively executing and harvesting the fruits of co-creation programs: a shift in leadership and management’s mind-set. New mind-sets and new cultures are necessary requirements for broadening one’s horizon and promoting creativity. Without that shift, the possibility of collaboration and co-creation is likely to be unconvincing, implausible and leaving customers apathetic and disengaged. This paper is among the first to suggest an implementation framework for the study of collaboration and value co-creation and has the potential to drive future research as well as guide companies interested in implementing the proposed framework.

Keywords: Co-creation, collaboration, customer freedom and choice, interaction, cultivating relationships