|
Consumers have greater product variety than
ever, yet they are less satisfied. Top management has more
strategic options, yet they deliver less value. What do
these paradoxes suggest about the future of competition?
C. K. Prahalad, coauthor of the landmark bestseller Competing
for the Future, and Venkat Ramaswamy argue that we are
on the cusp of a very different world -- one in which the
distinct roles of firm and consumer converge and the sources
of value creation change dramatically.
Prahalad and Ramaswamy show that the traditional,
firm-centric view of value creation is being challenged
by active, connected, and informed consumers -- coupled
with the mingling of technologies and industries. No longer
does value lie in products and services created by firms
and delivered to customers. Increasingly, say the authors,
value is being jointly created by the consumer and
the company.
Based on a wide range of ongoing experimentation
in co-creation across many industries, The Future of
Competition presents a new approach to value creation.
In this new approach to value creation. In this framework,
consumer-company interactions and personalized co-creation
experiences -- enabled by technical and social infrastructures
-- allow each consumer to co-create unique value with a
network of companies and consumer communities.
To compete effectively, CEOs and senior
managers must focus on building new strategic capital. This
involves enabling managers to enhance their effectiveness
by experiencing the business as consumers do, creating new
knowledge rapidly, managing experience quality, selectively
accessing competence on demand, flexibly and rapidly reconfiguring
resources, and collaborating to co-create value through
experience networks.
This book sets the agenda for top management
for co-creating the future, by revealing unprecedented opportunities
for value creation and innovation.
C. K. Prahalad is the Harvey C. Fruehauf
Professor of Business Administration at the University of
Michigan Business School.
Venkat Ramaswamy is the Michael R. and
Mary Kay Hallman Fellow of Electronic Business and Professor
of Marketing at the University of Michigan Business School.
| 
