Normann, 2001 Ch. 7 - Co-Production: Towards Increased Density - quite good deck Flashcards
Why co-produce?
It is not a new phenomenon to co-produce. What is new is the role pattern and modes of interactivity. Today we reshape co-producers. The distinction between ‘producer’ and ‘customer’, is less clear, since the business landscape goes towards an even more ‘service’ mode. The new role pattern is that industries defy classifications such as ‘value chain’ and ‘competitors’. Relationship and position in a value-creating system become crucial. Knowledge about how to create relationship and patterns of co-production is an even more valuable asset.
What do monetarize mean?
Verb monetarize (third-person singular simple present monetarizes, present participle monetarizing, simple past and past participle monetarized) 1. (transitive) To assign monetary status to; to start circulating and accepting as currency. to monetarize gold Trading with money instead of value.
What is a prosumer?
Dual roles of producer and consumer, and there is a strong trend towards ‘self-service’ = tools are cheaper than peoples time.
What is barter currencies?
Instead of a transaction which involves a product and service in one direction and money (and information) in the other, the customer puts some (but less) money on the table, plus time, plus skills, plus perhaps other assets that he or she already possesses. Therefore self-service about barter!
What does customer mean?
Consume means destroy, consummate means complete, perfect (as verbs). We therefore have a close connection with customers and destroy. Normann looks on customer as a value creator instead of a value destroyer, and has therefor stopped to use the term customer.
What role do “customer” (or Prosumer) have in a value-creating system?
Normann looks on the customer as a value creator instead of a value destroyer and has, therefore, stopped to use the term customer. Instead of outputs from a firm, you should look at it as input in the value-chain! The customer can be involved in all phases of a business process. They can contribute with physical work, intellectual work, and they can also become emotionally involved! Tangiable = påtaglig.
Reliving, what is that?
Relieving means that the specialized provider does things for the customers which the provider can do better. This is the philosophy behind outsourcing! This is also the most dominating one, especially in the industrial era. The company can focus more on their core business.
Enabling, what is that?
Enabling, is deliberately aimed at expanding the scope of what a customer can do. Providing the customer with more competences, broadening the offers he can offer.
What happens if we as a company do not know, and the customer do not know? (model)
The cloud represent things, for example MacBook, where customers did not know they wanted it, and the market did not know they wanted it. And competitors did not do the computer, but apple did.
What is customers communities?
Banks and insurance companies are created from the idea of customers communities. But often these organizations think that money is the most important resource, and by combining many small pounds of cash you can create an ocean, which helps the individuals within the organization. Today, on the other hand, knowledge, competence and bargaining power is seen as more valuable, but the traditionally customers communities haven’t changed yet. But some have, for example ‘Weight Watcher’. The company can also create customer communities, by getting customers together so that they can learn from each other. People with the same illness at the same facility to exchange experience is one example.
What is the logic of value constellations?
We are dealing with innovation, we create markets that did not exist before.
We merge resources that is under-utilized and so far not connected/linked resources.
Often the idea comes first, the idea and knowledge, and they create value out of the other resources.
The prime mover makes the actor wealthier by making non-monetarized assets valuable for others. (but instead of monetarize assets you can barter between them).
Value constellations
Identify economic actors and link them together in new patterns which allow the creation of new business that did not exist previously.
There is three dimensions of the co-production opportunity space:
Client participation (‘prosumption’)
Customer cooperation (‘communities’)
Value constellations
