Reflections on Co-creation (Dr. CK Prahalad)

Dr. C.K. Prahalad observes that value is not created by the organization and sold to the customer; rather value is co-created along with the customers. In the new paradigm, organizations will have to learn to adapt and be agile to the emergence of new possibilities which are beyond the vision of the founders, and the strategies of the executive team.

Organizations operate as networks of stakeholders. Possibilities are discovered when members of the network engage in dialogue. They may not have the same vision, but they become ready to share, and even go to the extent of being selfless, because in some mysterious way that establishes a connection with their deeper aspirations.

Management in the co-creation paradigm is mutual and collaborative. The focus moves to management of relationships rather than resources.

Co-creation does not happen through restructuring or re-engineering. In fact often there is no need to tinker with the organization structure or hierarchy. Even flattening the organization may not be required. What is required for co-creation to happen is an openness to working together. It is mutual respect. Look at how a parent and child co-create a sand castle on the beach. See how they enjoy it! In the process they both derive value -- an enjoyable evening on the beach.

Co-creation is not customization. Customization is getting a different dressing for your sandwich. But it would be co-creation if you could get into the kitchen and stand by, occasionally giving your suggestions for the recipe, or tasting the item and giving feedback. In fact traditional kitchens are the best places of co-creation.

Co-creation is not choosing a different set of options when you buy a Dell computer. But it is co-creation when a child walks into a Build-a-Bear Workshop, builds her own teddy bear and walks out with unspeakable excitement. It makes her the happiest person on earth.

Choosing a different elective for your University course is not co-creation. But it would be co-creation if you had opportunities to collaborate with the teachers and make use of the resources at the University to put together a course for you as an individual learner. Co-creation is not choosing from a menu, it is creating the menu.