CO-CREATION AND

LEAPFROGGING
Agenda

New Product Development

Process

Product Life Cycle

Co-creation

Leapfrogging

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Co-creation strategy

The strategy of Co-creation was developed by C. K. Prahalad and Venkat Ramaswamy.

 Co-creation is a form of economic strategy, that brings different parties together (for
instance, a company and a group of customers), in order to jointly produce a
mutually valued outcome.

 It brings a blend of ideas from direct customers or viewers (who are not the direct
users of the product) which in turn creates new ideas for the organization.

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Co-creation Strategy

1. Consumers are gaining the upper hand (demanding).

2. They are demanding CVAL & CSAT.
3. Firms now are giving consumers the opportunity to influence part
of the production process and involve them by listening to their
ideas.
4. The supplier/ producer listens to the customer and takes on their
ideas and creative involvement.
5. The consumer plays an active role in the final product by doing so.

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Process of Co-Creation

The process of co-creation essentially

involves 2 core steps:

Contribution: Submission of
contributions by the Customers to the
firm.

Selection: Selection of the most

promising and appealing
contributions/submissions.

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Types of Co-Creation

Customer exercises control over the contribution activity while the firm
TINKERING
exercises control over the selection activity.

SUBMITTING Firm exercises complete control over both the activities.

Firm exercises control over the contribution activity while the public exercises
CO-DESIGNING
control over the selection activity.

COLLABORATING Public exercises complete control over both the activities

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Types of Co-Creation

TINKERING

Tinkering is a customer co-creation model that involves

1. procurement of contributions from the customer by the firm,
2. a comprehensive and scrupulous examination of the contributions,
3. selection of the most promising and enterprising contributions by the firm
4. and finally implementation of the contributions.

It allows the gamers to create their own levels in the game.

The created levels can then be shared with other gamers or
submitted to Sony. Owing to this "Create and Share" feature,
this game has the tagline 'Play, Create, Share'.

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Types of Co-Creation

SUBMITTING

 In the case of submitting, the firm exercises control over the contribution activity.
 It does so, by placing constraints on the basic design, contribution size etc. and also
the selection activity by selecting the winning contributions.

Example: by means of a contest, consumers can send their ideas/ designs to producers.
The winning concept is then usually developed and taken to production.
Examples include fashion chains that allow consumers to design their favourite cocktail
dress.

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Types of Co-Creation

CO-DESIGNING

 Co-designing involves placement of constraints by the firm on the contribution activity and
selection of the winning contributions by the contributors themselves.
 For example, Local Motors employs the co-designing model of customer co-creation to
develop its vehicles.
 In 2010, Local Motors developed a car named Rally Fighter in a record 18 months, which is
about 5 times faster than what a conventional car manufacturing process takes.
 By empowering a community of over 2000 designers to submit their designs while still
placing some constraints on the basic design, color schemes etc., Local Motors effectively
utilized the co-designing model of customer co-creation.
 The winning design (By Sangho Kim) was chosen as the winning design by the designer
community through voting.

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Types of Co-Creation

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Types of Co-Creation

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Types of Co-Creation

COLLABORATING

 Also known as open sourcing, collaborating involves releasing the source code of the
product and making it accessible to the general public.

 The released source code is then open to modification as per the requirement of the users.

 Examples like Mozilla Firefox, Apache and Linux are all based on collaborating.

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Agenda

New Product Development

Process

Product Life Cycle

Co-creation

Leapfrogging

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Concept of Leapfrogging

Leapfrogging refers to the ‘breakthrough innovations’

leading to ‘creative destruction’, as opposed to smaller,
incremental innovation steps.

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Concept of Leapfrogging

CONCEPT

 The new breakthrough innovation often comes to swipe away the

previous technology consequently becoming obsolete.
 In most cases, the new breakthrough comes in at a time where the
current technology has already saturated the market.
 Think of electrical locomotives replacing steam locomotives, or mobile
phones replacing landline phones (in developed countries).

But with leapfrogging, the breakthrough comes in even before the current technology
has reached market saturation or has even been introduced at all.
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Concept of Leapfrogging

CONCEPT

Mobile Vs Landline penetration…

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Concept of Leapfrogging

TYPES

TECHNOLOGICAL:
During the expansion of mobile telephony in India, parts of the country
which never saw landlines directly moved to the latest technology of
wireless telephones. In other words, we ‘leapfrogged’, skipping a stage
or two in the evolution of the technology.

DEVELOPMENTAL:
This means learning from the experiences of other countries in the
development cycle and avoiding those stages which may have become
redundant.
So, these stages are superseded by other stages which are more current,
efficient, or cost-effective.
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Thank you
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