Three keys (plus one) to maximize value co-creation with your customers
Fifteen years ago, scholars C. K. Prahalad and Venkat Ramaswamy popularized the concept of co-creation as a way for companies and their customer to create joint value, allowing the customer to co-construct the service experience.
Prahalad and Ramaswamy introduced then insightful keys on how making your business more efficient, your customers more loyal and your profits healthier. Since then, our world has experienced a profound transformation. And value co-creation has achieved a new meaning.
September 2019
New technologies and increased digitalization have enabled us to witness developments that seemed unimaginable a decade ago. Only in the mining industry, driverless trucks and flying drones are entering the operation to maximize safety and new possibilities such as deep-sea mining broadening the frontiers for natural resources extraction.
These developments are only possible by constantly innovating, by working closely with our clients, and by having in mind that value creation must be the sole purpose of a company.
And at that, there are three clear keys to success:
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1. Always bear in mind that value creation goes way beyond profit
Value creation cannot be understood just in financial terms. On the contrary, there are many other dimensions that are extremely relevant. Preserve our environment, guarantee occupational health and safety and contribute to the progress of our society are essential components of a company value creation. In fact, the financial dimension should be nothing but a consequence of the formers. We need to seek value propositions that go beyond the short term, always thinking in the long-term.
2. Your organizational structure must be conceived, designed and implemented placing your customer at the center
It is of fundamental importance how you organize the innovation processes within the organization, fostering collaborative environments where innovation emerges spontaneously.
Over the past years, at MAXAM we have developed and instituted an advanced organizational model, with the client at the center. Our business units and subsidiaries, that are closer to the client, are responsible of identifying any arising or potential needs and make sure that the full organization works to address these needs; applying our best in class technology and constantly innovating.
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3. Without measurement there is no focus
Generating value in a sustainable way with our customers is clearly our objective. And to reach our goal, we need to be sure that we do not lose focus and that we are generating the value that both the client and the society need. For that, measuring value creation is of paramount importance.
And how do you measure a value that is not just financial value? Well, at MAXAM we have devoted ourselves to structure different categories (social, financial, environmental, quality and safety) and to make sure that we periodically track all innovation projects according these value creation dimensions. We can therefore make sure that we are constantly creating value and that we put the most effort in the projects that will have the biggest impact.
4. It really takes two to tango
When we say co-creation we are speaking about real co-creation . Your customer needs to be an actual part of your company’s innovation ecosystem. Client consultation and periodical inputs are not enough. To be really successful, the company innovation processes must be open and must integrate R&D professionals, product experts, R&D centers, partnering institutions… and your customers.
We can no longer just speak about value creation. It’s time to make our clients part of our innovation ecosystem and to really devote ourselves to value co-creation.
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