Co-Creation

History

The economic phases up to co-creation, summarized by the Co-Creation blog.

1. Small Scale (Bespoke) Production

Before the industrial revolution and the emergence of mass production in the mid 1800s production was small scale. Depending on the type of product, it would be made on a small scale or bespoke.

2. Mass production / Transactional Marketing

During the first half of the 19th century the industrial revolution started in the UK and spread throughout the world. With it came mass production, making many products available to the masses that had been previously been the privilege of the rich. Mass production first popularized by Henry Ford’s Model T in the early 20th century continued to develop and dominate for much of the century. With increasing labour and production prices in Western Europe and North America, production was shifted to the Far East and later Eastern Europe in an attempt to maintain low production costs for mass produced products. With mass production came mass standardization and uniform products.

3. Mass Customization / Customer relationship marketing (customer retention)

With continued development standardized products lost their original appeal and a movement towards customization started. Mass customization only went mainstream in the 1980s and 1990s. Consumers, driven by the desire for choice and personalized products, demanded more than just one model or type of product. The company that could best satisfy consumers’ demand would remain ahead of the game and benefit financially. Still, companies seemed unable to satisfy their customers, who were unable to find products that they really wanted.

4. Co-created Products

Unsatisfied with mass customized products, consumers are looking for more input into the products they buy. With the development of the internet’s communication channels they are able to communicate these desires not only with their fellow consumers, but also with the companies they expect to make these products. What was true for mass customization also applies to co-created products – companies that can better satisfy their customers will stay ahead of the game. However, the step from mass production to mass customization was infinitely smaller than the step from mass customization to co-created products. The reason for this lies in the fact that this step requires not only business processes to change (considerably), but also for the managers’ mindsets to change who lead this change.

5. The Co-created Business

The co-created business follows on logically from co-created products. And indeed, why stop at products, if you can co-create the entire business. Let consumers have a say in creating the business that will be creating “their” products.

Example: he Ladybank Company of Distillers Club

6. Post co-creation = Small scale production?? (http://www.co-creators.co.uk/?page_id=25)