Monday, January 20, 2014
The concept taught through the following slide in class, showing end customer as a part of supply chain management, was very new.
But developing on this concept and reading the Businessweek article on TATA Nano introduces its reader to one of the outcomes of innovative processes – making customers a part of supply chain, like co-creation. This concept is new but it is spreading fast with a very positive feedback companies are getting as a result of consumers’ participation in innovation and design of new products. It is engaging all stakeholders by making them a part of product creation and product development.
All leading enterprises like Apple, Coca-Cola, Microsoft and FedEx are using this strategy for business development and have reported to be very successful. Infosys’s “Innovation Co-Creation” is also a very successful example of use of this process to look for innovative solutions to various corporate and organizational problems. Infosys has given this process form of a lifecycle connecting various stakeholders to share ideas and experiences to innovate using three steps – Inspire, Engage and Realize.
The concept of customer interaction and co-creation is helping organizations becoming more efficient and effective for all stakeholders. This process has been supported by the modernization in the field of information technology as that has made this interaction possible in the most cost-effective and less time consuming manner. Information is no more controlled by the organizations only but consumers have been very interactive with the help of easy access to internet and this fact has made organizations very much responsive to the needs and requirements of the consumers. Organizations like BMW are using this tool as a mode of design innovation by providing customers with an option to test their ideas in virtual labs. In this way companies are benefiting from the skills of creative customers – proving for them a great resource for free. At the same time, this strategy is making the consumers more empowered and bringing them exactly what products they are looking for.
§ The Power of Co-Creation by Venkat Ramaswamy