Today, you are are not only informed and connected, but empowered and active.

1. The Co-Creative
Enterprise
Venkat Ramaswamy
©
2010,
Venkat
Ramaswamy
venkatr@umich.edu;
www.venkatramaswamy.com

2. Today, You are are not only informed and connected,
but empowered and active
Conventional You
Enterprise Customers
Suppliers
Partners
Employees
2

3. TIME Person of the Year 2006
3

4. 2000-2004: “Co-Creation” as the Next Paradigm of Value Creation
Best Article
Award Winner
2003
4

5. Today, a Google Search of “Co-Creation” yields over 25 million hits
October 2010
5

6. What
is
Co-­‐Crea@on?
Enterprises
Individuals
Co-­‐Crea7on
Customers
Suppliers
Partners
Employees

Experiences

Interac7ons

Engagement

Network
Rela7onships

7. 7

8. The mouth that roared: blogger Jeff Jarvis
Dear Mr. Dell
CC: Michael George, chief marketing officer and
vice president for the U.S. consumer business, Dell
Gentlemen,
Your customer satisfaction is plummeting, your marketshare is
shrinking, and your stock price is deflating.
Let me give you some indication of why, from one consumer’s Jeff Jarvis
perspective. I won’t bore you with all the details of my saga of Dell
hell; you can read Associate
all about it here and here. The bottom line is that a low-price professor and
coupon may have gotten me to buy a Dell, but your product was a
lemon and your customer service was appalling.
director of the
I shipped back my computer today and only — only — because interactive
I wrote an email to you, Mr. George, did I manage to get a refund. journalism
I’m typing this on an Apple Powerbook. I also have bought two
more Apples for our home. program at the
But you didn’t just lose three PC sales and me as a customer. City University
Today, when you lose a customer, you don’t lose just that of New York’s
customer, you risk losing that customer’s friends.
And thanks to the internet and blogs and consumer rate-and-review Graduate
services, your customers have lots and lots of friends all around the School of
world.
Journalism

9. The stages of Dell’s response
1. Denial
Comment from Dell spokesperson on the firestorm caused by Jeff
Jarvis’s blog: “With our direct model, we feel like we already
have a good, two-way communications channel with our
customers…The best process for getting issues addressed is to
contact us directly.”
2. Shutdown
Dell’s explanation of why it subsequently closed its online Customer
Forums: “As for the Customer Care board, many of the non-
technical issues posted there can only be addressed by
authorized Dell representatives with access to customer
information – not by peers as the Forum is designed to facilitate.
That said, these questions are best handled through other
secure online tools.”

10. The stages of Dell’s response
3. Anger
Post left on Jeff Jarvis’s blog from a PR person working for Dell(!):
“Hey Jarvis. I honestly think you have no life. Honestly? Do you have
a life, or do just spend it trying to make Dell miserable. I've been
working with Dell the past three weeks researching trashy blogs that
worms like you leave all over that frigen blogosphere and I cant
honestly say that Dell is trying to take a step towards fixing their
customer service. They hire guys like me to go on the web and look
through the blogs of guys like you in hopes that we can find out your
problem and fix it. But honestly I don't think you have a problem Dell
can fix. Your problem is you have no life. “

11. Coincidence?
Jeff Jarvis Jarvis’s blog begins
begins drawing widespread
blogging attention
about Dell
Dell shuts down its
online customer Dell issues a profit
forums warning
11

13. Dell Quote
“If we don’t do this at Dell.com, it’s going to be on CNET or
somewhere else. I’d rather have that conversation in my living
room than in somebody else’s.”
Michael Dell
13

14. Real People are Here and We’re Listening
Tue. Jul 11, 2006
Lionel Menchaca, Digital Media Manager
Yesterday was the first official day of Dell’s one2one weblog and
already Jeff Jarvis and Steve Rubel were kind enough to tell us what
we’re doing wrong. Thanks for the feedback, guys. We'll keep
working to get it right…Our intention with this blog is to address issues
that are important to our customers. Give us some time and we'll
prove it. Robert Scoble told us to listen, and to link to the folks who
don't like us. First step was to launch Dell's one2one. Check. We’re
excited to be here, and we welcome your ideas.
174 Comments
venkatr@umich.edu

15. Dell IdeaStorm
15

16. IdeaStorm is for specific suggestions by customers
Customers post
ideas, other
customers
comment and
vote.
Dell tracks ideas and decides
which to pursue. 16

17. IdeaStorm visitors can raise any issue they want
 8,859 ideas submitted by site visitors as of mid-April 2008.
 613,638 votes.
 66,882 comments.
 Dell had implemented 20 of the ideas.

18. Dell Quote #2
"I'm sure there's a lot of things that I can't even imagine, but
our customers can imagine. A company this size is not going
to be about a couple of people coming up with ideas. It's going
to be about millions of people and harnessing the power of
those ideas."
Michael Dell
18

20. Jeff Jarvis, 2007
 After giving Dell hell two years ago, I may well be accused of throwing
them a wet kiss now. It’s a positive piece. But it’s hard not to praise
them when they ended up doing everything I was pushing in my
open letter to Michael Dell. I’m not saying that I caused that, just that
we ended up agreeing and they ended up seeing the value in listening
to and ceding control to customers. They reached out to bloggers;
they blogged; they found ways to listen to and follow the advice of their
customers. They joined the conversation. That’s all we asked.
 Dell realized that engaging in the conversation wasn’t just a way to
stop blogging customers like me from harming the brand. We, the
customers, bring them great value besides our money: We alert them
to problem. We will tell them what products we want. We share our
knowledge about their products. We help fellow customers solve
problems. We will sell their products. But this happens only if you have
a decent product and service and only if you listen to us.

22. Becoming
a
Co-­‐Crea7ve
Enterprise
Co-­‐Crea7ve
Individuals
Enterprise
Co-­‐Crea7on
Customers
Suppliers
Partners
Employees
 Build
pla)orms
to
engage
people
to
create
value
together
 Engage
in
a
dialogue
about
experiences
to
generate
new
types
of
valuable
insights
 Design
products
and
services
together
with
stakeholders
in
the
ecosystem

23. Starbucks

24. The Return of Howard Schultz as CEO in Jan 2008
“Welcome to
MyStarbucksIdea.com. This
is your invitation to help us
transform the future of
Starbucks with your ideas –
and build upon our history of
co-creating the Starbucks
Experience together…
So, pull up a comfortable
chair and participate in My
Starbucks Idea. We’re here,
we’re engaged, and we’re
taking it seriously.”

25. MyStarbucksIdea.com

27. Hi,
my
name
is
Katie.
I
am
a
registered
dietician
and
senior
nutritionist
for
Starbucks.
I
have
the
pleasure
of
working
with
a
group
of
passionate
partners
who
are
dedicated
to
bringing
nutritious
food
&
beverage
options
to
your
Starbucks
store.
As
a
Starbucks
Idea
Partner,
I’ve
enjoyed
reading
your
posts
and
getting
a
better
understanding
of
what
our
customers
want.
I’m
thrilled
to
see
the
overwhelming
requests
for
nutritious
options
–
more
whole
grains,
more
Eiber
&
protein,
smaller
portions,
etc.
as
well
as
other
options
like
gluten-­free
and
vegan-­friendly.
Let
me
tell
you:
WE
HEAR
YOU!

28. 28

29. 29

35. The
Powerful
Benefits
of
Co-­‐Crea@on
Increased
Strategic
New
Experiences
of
Capital
and
Returns
Value
to
Individuals
to
Enterprises
Co-­‐Crea7ve
Enterprise
Co-­‐Creators
Co-­‐Crea7ve
Customers
Co-­‐Crea7on
Engagement
Suppliers
PlaAorms
Partners
Employees
Lower
Risks
&
Costs
Lower
Risks
&
Costs
for
Enterprises
for
Individuals
The
Co-­‐Crea@ve
Enterprise
Engages
People
to
Create
Valuable
Experiences
Together,
while
Enhancing
Network
Economics

37. Marc Benioff, CEO of Salesforce.com:
I believe that these days, the rapid communication that is
enabled by wikis, blogs, Twitter, YouTube and you name it
ensures that no matter what kind of company you are,
your customers are having a conversation about your
products and practices.
The question that every company has to ask is: ‘Do I want
to be part of this conversation? Do I want to learn from it?
Am I willing to innovate on the basis of it?’ If you harness
the power of this community, you will benefit. If you turn
your back on it, you get further and further out of touch
while competitors flourish. So yes, I think this is a new
kind of communication for a new age of customer
engagement.

38. Starbucks Volunteer Service

39. HandsOn Network

40. Starbucks,
Korea

42. Starbucks
Shared
Planet

43. Ethical
Sourcing

44. Environmental
Stewardship

47. Becoming
a
Co-­‐Crea7ve
Enterprise
ENTERPRISE
x
=
CO-­‐CREATIVE
ENTERPRISE
Engagement
PlaAorms

48. Starbucks
and
Social
Media
“We
don’t
view
social
media
as
a
marke@ng
play,
but
rather
as
a
customer
engagement
channel
where
we
can
have
real
connec@ons
with
our
customers,
engage
them
in
the
brand
and
answer
their
ques@ons.
We
are
in
constant
dialogue
with
customers,
par@cipa@ng
in
the
communi@es
of
MyStarbucksIdea.com,
TwiVer
and
Facebook.
Our
engagement
allows
us
to
understand
their
needs,
stay
top-­‐of-­‐
mind
in
an
increasingly
compe@@ve
retail
environment
and
share
interes@ng
news
about
the
company
with
a
cap@ve
audience.”

49. Making
Engagement
PlaAorms
Co-­‐Crea7ve
Experience
Mindset
Increased
Strategic
Capital
and
New
Experiences
of
Value
Returns
to
Enterprises
to
Individuals
Network
Transparency
Context
of
Rela7onships
Dialogue
Co-­‐Crea7on
Interac7ons
Access
Lower
Risks
&
Costs
Lower
Risks
&
Costs
for
Enterprises
for
Individuals
Engagement
PlaAorms

54. Opening
up
App
Development

57. APP-­‐le
Inside-­‐out
Co-­‐Crea7on
Global
Network
Resources
APP
Global
Community
Store
Resources
PlaAorm
Individuals
Outside-­‐in
Co-­‐Crea7on

63. The Product as an Interaction Platform
venkatr@umich.edu

64. Nike Quote
“In the past, the product was the end point of the
consumer experience. Now it is the starting point.”
Stefan Olander, Nike
Global Director of Digital Media
August 2006
HSM Sao Paulo 64
© 2009 ECC Partnership
All rights reserved.

65. Nike+

66. Nike+ platform engages runners and communities through
value-generating interactions
Run Mapping and
Tracking Sharing Runs
Listening to Music
Challenge & Publishing
Others Playlists for
Running
Nike Running
Clubs and
Running Nike-Sponsored
Resolutions Events
Training with
a Running Running blog
Coach, and discussion
Interacting boards
with a
Running Star

67. Nike+ Quote
“In more ways than one, the genius of the Nike+
system is the software that allows generation of deep
insights and facilitating social connections among the
community of runners.”
Mike Parker, Nike CEO
June 2009
HSM Sao Paulo 67
© 2009 ECC Partnership
All rights reserved.

68. Nike+ Results
 More than 600,000 runners signed on the first year
 More than 160 countries in the first year
 Over 40 million miles uploaded the first year
 Visit 3-4 times a week
 Nike captured 57% of the $3.6 billion U. S. running shoe market in
2007 compared with 47% in 2006
 Nike has a goal of having 15% of the world’s estimated 100m+ runners
using the system
 In August 2008, nearly 800,000 runners logged on and signed up to
participate in a single event: Nike’s Human Race 10K help
simultaneously in 25 cities from Chicago to Sao Paulo. These
connections have grown into new communities (e.g., running for
charity)
 Near the end of 2008, runners logged the 100th million mile on Nike+
 By August 2009, over 150 million miles had been logged…

69. venkatr@umich.edu

70. Local web sites enable sharing of local content
(ex RunLondon by Nike UK)
venkatr@umich.edu

72. Nike+ Quote
“The more we can open up Nike+, the better. The only
reason to close it out is because you actually don’t
believe that you have a strong enough product for
others to want to take it and do good things with it.”
Stefan Olander, Nike
Global Director of Digital Media
June 2009
HSM Sao Paulo 72
© 2009 ECC Partnership
All rights reserved.

73. Nike iD
Choose:
• Base color
• Tip color
• Heel color
• Swoosh color
• Tongue top
color
• Lining color
• Lace color
• Sidewall color
• Outsole color

74. The Nike iD Design Contest

75. NikeiD Custom Design Studio
75

76. Nike ID iPhone App

78. Nike iD
• Your Icons
• Your Mascot
• Your Name
• Your Team Colors

80. Choose a country flag …
80

81. Nike Joga Bonito

82. The community was the judge of the contest, not Nike

83. Members could search the site by users, videos, communities, team…

91. Leveraging Assets and Resources as Engagement Platforms
• Smart Products
• Websites and Social Media
• Retail Stores
• Mobile Devices
• “Live” Meetings
• Call Centers
• Private Community Spaces
• Open Community Spaces

92. Expanding
the
Space
of
Experiences
Increased
Strategic
Capital
and
New
Experiences
of
Value
Returns
to
Enterprise
to
Individuals
Expanding
Stakeholder
Expanding
Rela7onships
the
Scope
in
the
and
Scale
of
Ecosystem
Interac7ons
Lower
Risks
&
Costs
Lower
Risks
&
Costs
for
Enterprise
for
Individuals
Expanding
Linkages
Among
Engagement
PlaAorms

93. ITC
e-­‐Choupal

94. ITC-­‐IBD
as
a
Nodal
Company
in
its
Social
Ecosystem
Mandi
Choupal
Sagar
Agricultural
Farmer
ITC
-­‐
IBD
Educa@on
Sanchalak
Samyojak
Nodal
Company
Village
Town
“Pla)orm
Tier
1”
“Pla)orm
Tier
2”
“Pla)orm
Tier
3”

95. E-­‐Choupal
Engagement
Pla[orms

96. ITC-­‐IBD
as
a
Nodal
Company
in
its
Social
Ecosystem
Farm
Input
Mandi
Health
care
Choupal
Sagar
Agricultural
Farmer
ITC
-­‐
IBD
Educa@on
Sanchalak
Samyojak
Nodal
Company
Village
Town
FMCG
Banks,
and
MFIs,
and
Durables
Insurance
“Pla)orm
Tier
1”
“Pla)orm
Tier
2”
“Pla)orm
Tier
3”

98. E-­‐Choupal
Year 2005: Year 2013:
Kiosks: 5,400 Kiosks: 20,000
Villages: 31,000 Villages: 100,000
Farmers: 3.5 million Farmers: 10 million
Source:
Shivakumar,
ITC

99. Becoming
a
Co-­‐Crea7ve
Enterprise
Co-­‐Crea7ve
Individuals
Enterprise
Co-­‐Crea7on
Customers
Suppliers
Partners
Employees
 Build
pla)orms
to
engage
people
to
create
value
together
 Engage
in
a
dialogue
about
experiences
to
generate
new
types
of
valuable
insights
 Design
products
and
services
together
with
stakeholders
in
the
ecosystem
 Grow
by
expanding
the
space
of
experiences,
scope
and
scale
of
interacFons,
and
linking
engagement
pla)orms
in
new
ways
 CulFvate
trust
and
social
legiFmacy
through
more
inclusive
and
sustainable
growth.

100. As
business
and
society
evolves,
so
do
our
collec@ve
experiences…
Social.
Profit.
ORG
COM
Public.
GOV
Human.EXP

101. Hospital
Moinhos
de
Vento
(Brasil):
Co-­‐Crea7ng
Strategy

102. Strategic
Challenge
at
Hospital
Moinhos
de
Vento
Rethink
Strategy
by
considering
the
point
of
view
of
different
stakeholders
(nurses,
doctors
pa@ents,
families,
companies,
health
insurance
companies)
Co-­‐Crea/on
Current
Strategy
New
“Co-­‐Created”
Strategy

103. Co-­‐Crea@on
Process
Current
Strategy
Co-­‐Crea7ng
new
ideas
with
Innova7ve
Strategies
/
Map
different
stakeholders
(e.g.
Ini7a7ves
pa7ents,
doctors,
families)

104. Ideas
were
“prototyped”
and
“experienced”
in
an
interac7ve
manner

105. Co-­‐Crea@on
Process
Current
Strategy
Co-­‐Crea7ng
new
ideas
with
Innova7ve
Strategies
/
Map
different
stakeholders
(eg.
Ini7a7ves
pa7ents,
doctors,
families
Build
a
new
Value
Proposi7on
New
objec7ves
for
New
“Co-­‐Created”
New
Innova7ve
Strategic
together
the
Strategy
Map
Strategy
Ini7a7ves
(core
of
the
strategy
map)

106. Advance
Praise
for
Book
"About
half
of
our
strategic
ini@a@ves
at
HMV
now
come
from
a
co-­‐crea@on
process
of
interac@ons
with
our
key
stakeholders
-­‐-­‐
pa@ents
and
their
families,
physicians
and
nurses,
our
employees,
business
enterprises,
and
the
health
insurance
companies.”
Dr.
João
Polanczyk
CEO
Hospital
Moinhos
de
Vento

107. Best
wishes
in
Co-Creating
the
Future!