co-creation is the need of company in present market place

Businesses in today’s economy have to continuously reinvent
themselves in order to adapt to increasingly complex and dynamic
market realities. Standardisation makes it difficult for companies
to differentiate themselves from competitors. Markets are more
fragmented than they used to be; and consumers have unprecedented
access to information and networks. At the same time technologies
have created new modes of production and innovation that enable
and encourage greater degrees of participation and collaboration.

The aim of co-creation is to enhance
organisational knowledge processes
by involving the customer in the creation
of meaning and value. Co-creation
blurs the boundaries of the firm by
‘outsourcing’ innovation and value
creation to the customer. Co-creation
transforms the consumer into an active
partner for the creation of future value.
This mutual relationship affects both
consumer and company. It re-shapes
the way in which we think, interact and
innovate. Customers are increasingly
becoming change agents of the firm,
as well as the actual owners of
organisations’ main means of production:
knowledge. For the firm, involving
consumers in the value-chain leads
to a blurring of boundaries between
research and development.

Co-creation is an active,
creative and social process,
based on collaboration
between producers and
users, that is initiated by
the firm to generate value.


Ref.Prahalad & Ramaswamy (2000) , op. cit., p. 83