The document discusses the changing role of consumers and the emergence of co-creation of value between consumers and firms. It argues that firms must shift from traditional exchange models to experience-based models where consumers co-create value with the firm. This requires building experience networks and infrastructures that facilitate personalized, continuous interactions and knowledge sharing between consumers and firms. Managers must develop new capabilities focused on experience design, collaboration, rapid knowledge creation and strategy as continuous experimentation and discovery.

1. Summary of Key Ideas

3. The New Frame of Reference for Value Creation The new starting premise is that the consumer and firm Co-Create value, and so the Co-Creation experience becomes the very basis of value. The value creation process centers on individuals and their Co-Creation experiences.

5. The New Dynamics of Co-Creation Co-creation challenges the traditional roles of the firm and the consumer. New framework is required for handling the emerging dynamics at the Points of Interaction between the consumer and the company.

8. Innovating the “Experience Environment” Business managers can compete in myriad ways by discovering new opportunities through an individual centric lens of choice in consumer-company interactions, and carefully managing the quality of co-creation experience.

12. Unique Value for Each Individual To innovate experience environments that allow for co-creation of unique value for each individual, we must appreciate what constitute personalized co-creation experience.

15. Infrastructure for Personalized Co-Creation What kind of experience network do we need? What would such network look like, and how would it function? This infrastructure should enable managers to compete on experience.

18. Changing Perspective of the “Market” Is the traditional marketplace still the locus for exchange between the firm and the consumer, and place where the firm extracts value from the consumer? How does meaning of market change in the light of the new paradigm?

21. Experience based view of Economic Theory The new frame of value creation challenges the traditional economic view of the market. It also creates new competitive space for firms and the need for building new strategic capital.

23. Changing Role of Manager What are the challenges & opportunities the new competitive space presents? What are the constituents of the strategic capital that need to be created? What are the new capabilities that will be required?

26. Knowledge Environment When heterogeneous customers interact with a firm, they will make demands that cannot be predicted. How can the organization combine the experience and skills of its employees to co-create new knowledge?

29. Strategy – a Process of Innovation & Discovery In the world of co-creation, strategy is a process of continuous experimentation, risk reduction time compression, and minimizing investment while maximizing market impact.

33. New Capacity to Govern and Compete We must re-examine every functional skill in the organization and ask: Are the assumptions behind this function and its management consistent with the new requirement. What new capabilities are needed?

36. Welcome to the Future of Competition A world of co-creation is emerging on the horizon with opportunity to co-shape and co-create the future.