The shift in power from businesses that determine what customers need and then manipulate demand to meet their offerings to networks of customers and producers who jointly create value may be the defining shift in market structure in the first part of the twenty-first century.
As usual, C. K. Prahalad, along with co-author Venkat Ramaswamy, has gotten there first and offered the first guide for navigating the ‘decentered’ value creation processes of the future.”
Founding Chair of the Society for Organizational Learning,
Senior Lecturer, Leadership and Sustainability, MIT
Author, The Fifth Discipline
Release of a “visionary book” The Future of Competition on the revolutionary concept of co-creation (Harvard Business School Press).
To respond to forces that are shaping consumer behavior, corporations may need to partner with their customers, say C.K. Prahalad and Venkat Ramaswamy in The Future of Competition: Co-Creating Unique Value with Customers (Harvard Business School Press). Only by letting individual corporate customers and consumers fashion products and services will business leaders escape the trap in which their products' only distinction is price, say the two professors at the University of Michigan Business School.
Reviewer Steve Hamm found that the "provocative" book lays out "how to change organizational behavior to make co-creation natural rather than an isolated, heroic act." The authors have sweeping change in mind: Alterations must be made to every corporate function, from product development to sales and marketing. Indeed, what the duo contemplates is nothing less than the democratization of commerce.
In an excellent new book, The Future of Competition: Co-Creating Unique Value with Customers, authors C.K. Prahalad and Venkat Ramaswamy describe the consumer's new role: "from isolated to connected, from unaware to informed, from passive to active." In the bottom-up economy, presuming you know what the customer wants is the ultimate error. Prahalad and Ramaswamy instead call for "co-creation of value": The successful products and services from now on will be those developed jointly -- company and customer working hand in hand.
Engaged with Business Today editors and journalists on “The Future of Competition”, together with C. K. Prahalad.
—George S. Day
Geoffrey T. Boisi Professor and Co-Director of the Mack Center for Technological Innovation,
The Wharton School of the University of Pennsylvania