Innovation, cocreation and societal changes towards the experience economy

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Innovation, co-creation and societal changes
towards the experience economy
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Societal changes
External oriented motifs of the production society
Internal oriented motifs of the experience society
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Societal changes
External oriented motifs of the production society
Internal oriented motifs of the experience society
Kilde Schultze 1992 Die Erlebnisgesellschaft
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Experiences defined

• Experiences have to be
• Engaging
• Entertaining
• Boundary breaking
• Value creating
• Educational
• Emotional appealing

Generation C
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The new competitive space for innovation
Experience networks
Experience personalization
Supply networks
Experience integration
Systems integration
Supply chains
Experience innovation
Solutions innovations
Product innovation
Product space
Solutions space
Experience space
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Traditional vs. Experience Innovation
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Traditionan vs. Experience Innovation
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The concept of co-creation
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The concept of co-creation
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The concept of co-creation
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Transformation of the Relationship between firms
and consumers
From
To

• One-way
• Firm to consumer
• Controlled by firm
• Consumers are prey
• Choice buy/not buy
• Firm segments and target consumers consumers
  must fit into firms offerings

• Two-way
• Consumer to firm
• Consumer to consumer
• Consumer can hunt
• Consumer wants to/can impose her view of choice
• Consumer wants to/is being empowered to
  co-construct a personalized experience around
  herself, with firms experience environment

Prahalad Ramaswamy 200412
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Customer driven innovationCustomer-made
Planetfeedback.com
Thecomplaintstation.com

• The new trend Customer-made
• The phenomenon of corporations creating goods,
  services and experiences in close cooperation
  with consumers, tapping into their intellectual
  capital, and in exchange giving them a direct say
  in what acutally gets produced, manufactured,
  developed, designed, serviced, or processed.
  TRENDWATCHINS.COM 2006

About.com
Epinions.com
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Customer driven innovationCustomer-made
Ipodlounge.com (5 million hits a day!!)

• Customer-made is about the truly empowered
  consumer and it is apparently a new mega trend.
• It is powered by the Generation C the creative
  generation and the internet, new technology made
  available to people around the world
• Customer-made is taking consumers seriously and
  accepting that they definitely know what kind of
  service they need, and what constitutes a good
  exprience!

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Customer driven innovationCustomer-made
Niketalk.com (200 million visits and 3.5 million
posts!!!)
Mini2.com - Fuel for your MINI Obsession

• In 2005, 120,000 people around the world signed
  up to join Boeings World Design Team, an
  internet-based global forum that encourages
  participation and feedback while the company is
  developing its new airplane.
• Activities include message boards, conversations
  with Boeing design team, and extensive
  discussions on what members like and dont like
  about air travel today, as well as features
  theyd like to see in their dream airplane.
  TRENDWATCHING 2006

Theforce.net
Sourceforge.net
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Customer-madeA way of evaluating and designing
experiences in real time

• True customer-made involves co-created goods,
  co-created services, co-created expriences.
• There are hundreds of thousands of experts,
  innovators, inventors and so on outside company
  walls and research labs, and innovation units at
  large corporations are increasingly NOT going it
  alone. TRENDWATCHING 2006

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IKEA CONTEST A way of evaluating and designing
experiences in real time

• The IKEA contest fiffigafolket (ingenious
  people) asked amateur outsiders to send in clever
  designs for storing home media in the living
  room.
• Out of 5,000 ideas submitted, fourteen winners
  went to the IKEA headquaters to participate in a
  workshop and receive EUR 2,500, and the designs
  will actually get produced and end up in IKEA
  stores for all to see, buy and assemple.
  TRENDWATCHING 2006

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Co-creating experiences in destinations
Context shelter, cuisine, environmental,
historical and cultural identity
Mix
The experience space
Room for experience exchange and co-creation of
experiences
Core experiences Experiences that the destination
perceives to be core identity bearing experiences
Support experiences Experiences that the
destination perceives to be supportive of the
core experiences
Destination Experience Profile People, cities,
culture, nature etc.
Content core and support experiences
Infrastructure technical and organizational
arrangements food and beverage etc.
Tourists wish for core and support experiences
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The Market as a Forum

• The firm and the consumer converge the relative
  roles of the moment cannot be predicted
• Demand and supply are emergent and contextual.
  Supply is associated with facilitating a unique
  consumer experience on demand.

• Value is co-created at multiple points of
  interaction. Basis of value is co-creation
  experience.
• Consumers and consumer communities can also
  initiate a dialogue among themselves.

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The Market as a Forum

• Consumer chooses the nodal firm and the
  experience environment to interact with and
  co-create value. The nodal firm, its products and
  services, employees, multiple channels, and
  consumer communities come together seamlessly to
  costitute the experience environment for
  individuals to co-construct their own experience.

• Consumers can extract the firms surplus. Value
  is co-extracted. Consumers expect a 360-degree
  view of the experience that is transparent in the
  consumers language. Trust and stickiness emerge
  from compelling experience outcomes. Consumers
  are competitors in extracting value.

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The Market as a Forum

• The experience is the brand. The brand is
  co-created and evolves with experiences.