Interesting article from HBR, investigating the possibilities in co-creation through a couple of real life examples: Apple, Lending Club, AriBnB.
Today, however, by exploiting new digital technologies, firms like Apple, Lending Club, and AirBnB have made customer co-creation of value central to their business models and in doing so now rank among the world’s most innovative and valuable firms. Our research indicates that companies that make their customers partners, and share the value created, lead the pack on revenue growth, profit margins, capital efficiency, and enterprise value. We call these companies Network Orchestrators. By leveraging customer networks and their tangible (e.g. homes and cars) and intangible (e.g. expertise and relationships) assets, firms can gain these advantages of the Network Orchestration business model.
Interesting test was made by BOLT, they investigated what is the real total “manufacturing” cost of a Beats headphone and how this compares to the market price.
So the difference is 182,11 dollars, which is quite a big difference compared to the market price: 1178%
I think Beats made a great job and this example clearly shows that they were able to differentiate on the market! I am only speaking about differentiation when consumers are willing to pay more money for the same think. I am so -so super tired with all this bullshit differentiation you can see on the market, when the CEO of an absolute boring company speaks how successfully they will differentiate on the market!
The measure is clear for everyone, my differentiation formula: differentiation = willing to pay more!
I estimate that the COGS without labor or shipping is $16.89 – yet Beats is able to successfully retail these headphones for $199+. This is the power of brand; Dr. Dre and Jimmy Iovine have leveraged their personal backgrounds and a sleek design to launch a remarkable brand that’s become fundamental to music pop culture.
Inspiring interview with Jony Ive from the Vogue. The article really made me think about multinational culture and about the so often observable failure in innovation.
In the clutter of contemporary culture, where hits and likes threaten to overtake content in value, the purity of an idea takes on increasing currency. “I think now more than ever it’s important to be clear, to be singular,” he says, “and to have a perspective, one you didn’t generate as the result of doing a lot of focus groups.” Developing concepts and creating prototypes leads to “fascinating conversations” with his team, says Ive. “It’s a process I’ve been practicing for decades, but I still have the same wonder.”
Great advertisment idea from SMART, to promote safety. That pedestrians also need to stop at red light! It is an other question how can we make this idea sustainable and turn it to something that can help day by day.