The customer as co-producer
Solveig Wikström - College of Organization, Stockholm School, Stockholm, Laxa, sweden
A glance at what is happening in the world of business today shows that primary of organization development is currently gradually getting off products and industries. Instead, interest is concentrated on the various processes taking place about the customer. This orientation can be not fresh. Concepts such as " client orientation”, " close to the customer”, " customer segmentation” and " specific niche market marketing” happen to be well-known and much tested, along with tips about " direct marketing”, " database marketing” etc. The common denominator in all these kinds of concepts is known as a greater concentrate on the customer. An additional step forward is a conception in the customer since co-producer. The phrase by itself – the consumer as co-producer – occurs increasingly frequently in the materials (Davidow and Malone, 1992; Grönroos, 1990; Gummesson, 1991; 1993; Pine, 1993; Toffler, 1980; 1983), and we need to ask themselves whether this can be simply a variation on previous attempts to achieve the customer, or whether a routine of actions is emerging that is distinct, involving real rethinking and in many cases new thinking. The most important stage, of course , can be how much extra value is this procedure capable of producing, and exactly how much determination and action is required of both the celebrations involved. And naturally problem also arises: how large is the range of this new business logic? Could it be restricted to industrial markets with few buyers and sellers and a well-established interactive way of doing work, and to assistance markets the place that the customer by definition is definitely part of the production process? Or perhaps could it be applied to consumer markets as well? From this paper primary is for the co-production logic applied to client markets, and relating this kind of to the experience and know-how gained from industrial markets. If we want to identify the basic ingredients in this thought of the customer since co- manufacturer, we should probably look at an empirical case in which these ingredients are extremely prominent. But first, some clarification is required regarding the differences between the logic of co-production which of the classic transaction. The idea is that if the customer is conceived because co-producer, the inter- action between the celebrations should make more value than a traditional deal process, when seller and buyer fulfill briefly, exchange finished products and services and then get their separate ways. Especially the new business logic presupposes a very a lot longer relationship between buyer and seller, and a highly refined distribution of roles. It is assumed that this will make more value in many ways. Especially it is assumed that the deeper romance will create possibilities for obtaining more know-how, thus making the company better suited adapt to the customer and to present higher quality (Badaracco, 1991; Darkish, 1991; Christopher et approach., 1991; Milgrom and Roberts, 1990; Wikström et approach. 1994; Wikström and Lundkvist, 1995; Womack et al., 1990). The entire process may move more quickly, since the distinct stages in the sequential deal process (idea creation – production – marketing – consumption) change ground and assume a brand new shape. Furthermore, the more deeply interaction between seller and buyer improves the level of creativity on both sides; this in turn probably will give birth to fresh ideas and new ways of doing business. In other words co-production is seen as a way of acquiring generative knowledge as well. It sounds a seductive idea. But what can it mean in purely tangible terms – " the consumer as co-producer”? What are customer and distributor supposed to do? How exactly does the customer-market relation change, and precisely what is the effect in production and organization inside the company? We are able to illustrate this with the case of a company which we might not have anticipated to have any kind of particularly advanced ideas regarding business logic, namely a...
References: Badaracco, J. L. (1991), The ability Link: Just how Firms Remain competitive through Tactical Alliances,
Harvard Business Institution Press, Cambridge, MA.
Baden-Fuller, C. and Stopford, L. (1992), Rejuvenating the Adult Business, Routledge, London.
Becker, G. (1965), " A theory with the allocational time”, The Economical Journal, Volume. LXXV Number 299,
Bouchet, Deb. (1994) " Rails devoid of tries: the social imaginery and postmodern culture. May
postmodern ingestion replace modern questioning? ”, International Log of Research in
Brownish, J. S i9000. (1991), " Research that invents the corporation”, Harvard Business Assessment, January-
Christopher, M., Payne, A. and Ballantyne, D. (1991), Relationship Marketing, Butterworth/
David, P. A. (1991), " Computer and dynamo. The present day productivity paradoxon in a not too isolated
future”, The task to Economic Policy, Paris, france.
Davidow, Watts. H. and Malone, Meters. S. (1992), The Electronic Corporation, HarperCollins, New York, NEW YORK.
Ekström, B. and Smitt, S. (1995), " Active value creation in buyer markets”, (in Swedish),
Masters thesis, Stockholm University.
Firat, T., Dhala/kia, N. and Venkatesh, A. (1995), " Marketing in a postmodern world”, European
Record of Marketing, Vol
Fornell, C. (1981), " Increasing the organizational influence of company consumer affairs
departments”, The Journal of Consumer Affairs, Vol
Fornell, C. and Westbroak, A. (1984), " The bad circle of consumer complaints”, Journal of
Freeman, C. (1991), " The nature of development and the analysis of the fruitful system”,
Technology and Efficiency in the Problem for Financial Policy, OECD, Paris.
Grabher, G. (Ed. ) (1994), The Inserted Firm. Around the Socioeconomics of business Networks,
Grönroos, C. (1990), Service Supervision and Advertising. Managing the Moments of Fact in
Support Competition, Lexington Books, Toronto.
Gummesson, At the. (1991), Kvalitetsstyrning i Tjänste- och serviceverksamheter, (Quality Control in
Support Businesses), CTF Högskolan i Karlstad.
Gummesson, E. (1993), Quality Administration in Service Businesses, ISQA.
Haglund, G. and Öberg, M. (1995), " Konsumentkontakt”, (" Customer contact”), Master's thesis,
Håkansson, L. (Ed. ) (1982), Worldwide Marketing and Getting of Industrial Products, John
Wiley & Sons, New York, NEW YORK.
Håkansson, L. and Östberg, C. (1975), " Commercial marketing: an organizational problem”,
Industrial Marketing Management, Vol
Hirschmann, In. (1970), Quit, Voice and Loyalty, Harvard University Press, Cambridge, MOTHER.
Holmström, N. R. (1991), " Remarks to Yates”, in Temin, P. (Ed. ), Inside Business Enterprise.
Lundvall, B. Å. (1993), " Explaining interfirm cooperation and innovation: restrictions of the transactioncost
approach”, in Grabher, We
Milgrom, L. and Roberts, J. (1990), " The economics of modern manufacturing; technology,
strategy and organization”, American Economic Assessment, Vol
Normann, R. and Ramirez, L. (1990), Business Logics for Innovators, Publication manuscript, part of
Designing Active Strategy, John Wiley (1994).
Nyström, They would. (1990), Scientific and Market Innovations, Steve Wiley, Ny, NY.
Potatoes, D. and Rodgers, Meters. (1993), The One to One Foreseeable future. Building Human relationships. One Consumer
at a Time, Doubleday, Garden City, NY.
Pine B. T. II (1993), Mass Personalization. The New Frontier in Business Competition, Harvard
Organization School Press, Cambridge, MOTHER.
Pine, M., Peppers, G. and Rogers, M. (1995), " Do you need to keep your customers forever? ”,
Harvard Organization Review, March-April.
Porter, M. E. (1990), Competitive Approach. Techniques for Examining Industries and Competition,
Cost-free Press, Nyc, NY.
Rapp, S. and Collins, To. (1990), The Great Marketing Turn-around, Prentice-Hall, Englewood
Rohlin, M., Skärvad, S. -H., and Nilsson, S. E. (1994), Strategic Leadership in the Learning Society,
(in Swedish), MIL-Publishers, Dalby, Sweden.
Senge, L. (1990), The Fifth Self-control. The Artwork and Practice of the Learning Organization,
Doubleday & Money, New York, BIG APPLE.
Toffler, A. (1980), Another Wave, Bill Morrow, Ny, NY.
Toffler, A. (1983), Previews and Premisses, Skillet Books, London and Sydney.
Van Raaij, F. (1993), " Postmodern consumption”, Diary of Economic Psychology, Volume. 14,
Wikström, S i9000. and Lundkvist, A. (1995), The Part of Information Technology in Interactive
Business Creation, Book manuscript in Swedish.
Wikström, H., Normann, Ur. Anell, M., Ekvall, G., Forslin, M. and Stearad, P. H. (1994), Know-how and
Womack, T. P., Smith, D. Big t. and Roos, D. (1990), The Machine that Changed the World, Macmillan,
New york city, NY.
Yates, J. A. (1991), " Investing in information: supply and demand. Pushes in the utilization of information
in American firms”, in Temin, P