Co-Creation Connection

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Essay (book?) on Co-Creation by C.K. Prahalad and Venkatram Ramaswamy:


"The balance of power in value creation is tipping in favor of consumers. How do companies co-create valuable experiences with consumers?

The traditional company-centric view says:

(1) the consumer is outside the domain of the value chain; (2) the enterprise controls where, when, and how value is added in the value chain; (3) value is created in a series of activities controlled by the enterprise before the point of purchase; (4) there is a single point of exchange where value is extracted from the customer for the enterprise.

The consumer-centric view says:

(1) the consumer is an integral part of the system for value creation; (2) the consumer can influence where, when, and how value is generated; (3) the consumer need not respect industry boundaries in the search for value; (4) the consumer can compete with companies for value extraction; (5) there are multiple points of exchange where the consumer and the company can co-create value." (

Alan Moore further summarizes the insights of the above authors:

"The 5 Powers of the connected consumer

  • 1. Information Access: the end of information feudalism
  • 2. Global View: the collapse of space and time
  • 3. Networking: The wealth of networks and a We Media for a We Species
  • 4. Experimentation: Consumers use the Internet to experiment with and develop products, especially digital ones
  • 5. Activism: Psychological self-determination

Four building blocks for co-creating value say the authors.

1. Dialogue at every stage of the value chain encourages not just knowledge sharing, but, even more importantly, understanding between companies and customers. It also gives consumers more opportunity to interject their view of value into the creation process.

2. Access challenges the notion that ownership is the only way for the consumer to experience value. By focusing on access to value at multiple points of exchange, as opposed to simply ownership of products, companies can broaden their view of the business opportunities creating good experiences.

3. Risk reduction assumes that if consumers become co-creators of value with companies, they will demand more information about potential risks of goods and services; but they may also have to bear more responsibility for handling those risks.

4. Transparency of information is required to create the trust between institutions and individuals." (