engaging customers and other stakeholders: becoming a co-creative enterprise
DESCRIPTION
Apresentação feita por Francis Gouillart, durante workshop realizado pela empresa de consultoria Symnetics, na HSM ExpoManagement 2010. Francis é um dos mais renomados consultores internacionais de inovação, coidealizador dos métodos de Inovação de Valor (Estratégia do Oceano Azul) e da Cocriação. É também cofundador da ECC Partnership, empresa representada no Brasil pela Symnetics.TRANSCRIPT
November 9, 2010
Email: [email protected] blog: francisgouillart.com book web site: powerofcocreation.com
Francis J. Gouillart The Experience Co-Creation Partnership 27 Main Street, Suite 8 Concord, MA 01742 Concord, MA 01742 Phone: +1 978 369 6040
The enclosed material is proprietary to the ECC Partnership and is for the internal use of the addressee only.
Engaging Customers and Other Stakeholders:
Becoming a Co-Creative Enterprise
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
What We Will Cover Today
1. Zombies No More (Nike, Camiseteria)
2. The Heart of Strategy (ITC e-choupal)
3. The Emerging Country Advantage (24/7 Customer, CNI)
4. From Dead Processes to Live Interactions (Crushpad)
5. The Method Behind the Madness (La Poste)
6. The Platforms of Co-Creation (Starbucks, Dell, IBM)
7. Set My People Free (Santander Brazil)
8. The New Humanity of Business (Caja Navarra)
1
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Classic Marketing Makes Customers into Zombies
2
Needs-based … … segmentation … … and targeting
Company marketing and sales Individuals passively receive value from enterprise
Customers
ZOMBIES NO MORE
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Nike+ Creates New Interactions with CustomersZOMBIES NO MORE
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
You Can Track Your Runs
4
ZOMBIES NO MORE
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
You Can Map and Share Your Runs
5
ZOMBIES NO MORE
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
RunTracking
ChallengeOthers
Mapping andSharing Runs
RunningResolutions
Listening to Music& PublishingPlaylists for Running
Training witha RunningCoach,Interactingwith a Running Star
Nike RunningClubs andNike-SponsoredEvents
Running blogand discussionboards
Nike+ Platform Engages Runners and Communities Through Eight New Interactions
ZOMBIES NO MORE
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Nike+ Results Have Been Spectacular
• Nike captured 57% of the $3.6 billion U. S. running shoe market in 2007 compared with 47% in 2006 More than 600,000 runners signed on the first year.
• Nike has reduced its marketing expenses by 57%.
• More than 160 countries in the first year.
• Over 40 million miles uploaded the first year.
• Visit 3-4 times a week.
• Nike has a goal of having 15% of the world’s estimated 100m+ runners using the system.
7
ZOMBIES NO MORE
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
New experiences
of value to individuals
Nike +Platform
Lower risks and costs for
individuals
Lower risks and costs for the company
Increased strategic capital and return to the company
Lesser cost of joining club57% reduction in marketing
cost
Nike Runners
Learn how people use the products in the field
Nike + Engages Runners and Changes its Own Economics in the Process
Lesser risk of falling off the wagon
Feed that learning into design and customer management
Motivation to run
Ease of tracking my performance
Fun of having peers
Four Powers Model
8
ZOMBIES NO MORE
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
A Brazilian Example of Customer Co-Creation: Camiseteria
www.camiseteria.com.br
9
ZOMBIES NO MORE
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
80 thousand registered users
More than 15.000 unique designs
150 T-shirt models
No professional fashionista hired
Buzz, word of mouth communication lowers marketing costs
Low risk, high fit to the market demand
ZOMBIES NO MORECamiseteria Is Successful
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Strategy Has Long Been About War
11
THE HEART OF STRATEGY
© 2010 Francis GouillartAll rights reserved.
HSM Sao Paulo 2010-11-09 – FJG
The New View of Strategy: Connect New Experiences Through New Interactions
12
Co-Creative EnterpriseIndividuals participate in value
creation through personal engagement
CustomersSuppliersPartners
Employees
Co Creation
THE HEART OF STRATEGY
© 2010 Francis GouillartAll rights reserved.
HSM Sao Paulo 2010-11-09 – FJG
ITC e-Choupal Built an Entire Eco-System to Change the Experience of the Indian Farmer
1. Build kiosks in villages, with a
sanchalak providing coaching with help of computer (choupal)
2. Provide grain market in neighboring towns
(“hub facilities’), competing with “mandi”
Better pricesFairer transactions
Better information on global crop prices and
weather
3, Develop distribution centers providing agricultural inputs (Choupal Saagar)
Affordable inputs for farming
4. Expand retail space to provide all kinds of goods and services to the farmer, including
insurance and healthcare
Affordable goods and services tailored to the
farmer
FARMEREXPERIENCE
ITC E-CHOUPALPLATFORM
13
THE HEART OF STRATEGY
© 2010 Francis GouillartAll rights reserved.
HSM Sao Paulo 2010-11-09 – FJG
The Conventional Strategy Model Relies on Owning a Piece of the Value Chain
FarmersWholesale markets
Trading Food manufacturing
Farming in India
Consumers
Food retailing
Fragmented industry: average farm in India is 3.3 acres, producing:• Diseconomies of scale• Low crop yields
Structured industry: average farm in US is
420 acres
ITC’s business at the outset
Farming in US
In the US, food companies have forced a consolidation of the farm industry through:
• Acquisitions (creation of corporate farms)
• Farming contracts that require a professionalization of farm practices
THE HEART OF STRATEGY
15HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
1. Paint a picture of the vision best you can
Vision
Experiment 1
Co-Creation Strategy Builds a Stairway to Heaven …
Experiment 2
Experiment 3
Interaction 1
Interaction 2
Interaction 3
Interaction 4
Interaction 5
3. Design a small number of co-creation experiments within each interaction-based theme
2. Define some high-level interaction-based themes on the way there
THE HEART OF STRATEGY
© 2010 Francis GouillartAll rights reserved.
HSM Sao Paulo 2010-11-09 – FJG
… And Launches Interaction-Based Experiments THE HEART OF STRATEGY
FarmersWholesale markets (mandis)
Trading Food manufacturing
Consumers
Food retailing
ITC’s business at the outset
Individual farmer
Saagar wholesale manager
Choupal Saagars wholesale, challenging government
mandis
Individual farmer Sanchalak
E‐choupal kiosk
New businesses for ITC
Saagar retail manager
Choupal Saagars retail
Individual farmer
Dramatically improved
experience for farmers, sanchalaks
and other stakeholders
Lesser cost and risk for ITC
Reduced cost and risk for farmers,
sanchalaks and other stakeholders
New sources of revenue from the new businesses
for ITC
Benefits of ITC co‐creation platforms
17HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Why Emerging Countries Are Good at Co-Creation
The thinking is fresher.• Less to unlearn.• Excitement about new experiences is worth a lot.
There is innovation power in large markets and low-cost requirements.• Bottom of the pyramid innovation
The future is about building infrastructure-based eco-systems.• The West’s focus on single firm strategy carries the genes of its own
economic limitation.
There is greater social consciousness in emergingcountries.• Greater collective sense of economic development
and social responsibility.• Sustainability.
THE EMERGING COUNTRY ADVANTAGE
18HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
24/7 Customer in India: From Call Centerto Remote Reengineering
THE EMERGING COUNTRY ADVANTAGE
19HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
1.RECRUITING NEW
SERVICE REPS AS A GROUP
Reduced cost of attracting candidates
Less intimidating recruiting
experience
RECRUIT
24/7 CUSTOMER
2.SELF- SCHEDULINGOF SERVICE REPS
Less absenteeism
SaferFun to work with
friendsI manage my
own schedule
EMPLOYEE
24/7 CUSTOMER
3.SOLVING
PROBLEMS WITH CUSTOMERS
Less time on the phone per
call
Better issue resolution
CUSTOMER
24/7 CUSTOMER
More fun in job
EMPLOYEE
4.DEVELOPING
NEWSERVICES
New sources of revenue for the
firmBetter strategic
positioning
Receiving more strategic answers
CUSTOMER
24/7 CUSTOMER
Advancing my career
EMPLOYEE
Solving my strategic issues
CLIENT OF 24/7 CUSTOMER
IMPROVED EXPERIENCE
FOR THE INDIVIDUAL
IMPROVED ECONOMICS
FOR THE COMPANY
ENGAGEMENT PLATFORMS
24/7 Customer Co-Creation Strategy: From Internal to External Co-Creation
THE EMERGING COUNTRY ADVANTAGE
20HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
CNI in Brazil: Co-creation Applied to the Design of a Social Network Platform
• How to increase the mobilization of industry actors around national issues? • How to promote more interaction among stakeholders?• How to build stronger positions to the government?
THE EMERGING COUNTRY ADVANTAGE
21HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
“Rede social da indústria” is a Platform Designed to Engage Multiple Stakeholders
THE EMERGING COUNTRY ADVANTAGE
22HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Understanding Stakeholders Dreams and Concerns
THE EMERGING COUNTRY ADVANTAGE
23HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Three InteractionsWithin the Social Network
“Rede Social da Indústria” Design
Mobilizing and engaging entrepreneurs and engaging for
national causes.
MOBILIZATIONENVIRONMENT
Articulate and build together political
positioning.
FORUMENVIRONMENT
Increase the competitiveness
of industry through best practice sharing
TRENDSENVIRONMENT
THE EMERGING COUNTRY ADVANTAGE
24HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
I See Dead ProcessesFROM DEAD PROCESSESTO LIVE INTERACTIONS
25HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Yellow Tail Wine (Casella Wines) Creates a New Experience for Wine Lovers
High
Low
Qua
lity
of e
xper
ienc
e
Ease of drinking
Wine complexity
4
2
6
8
10
Mid-market wines
Price Heritage and prestige of vineyard
Experience curveBuyer’s perspective
ImageWine science,
connoisseur dimension
Aging quality
Key elements of the customer’s experience
Ease of selection
Fun and adventure
Range of products
1
3
9
7
5
Yellow Tail
FROM DEAD PROCESSESTO LIVE INTERACTIONS
26HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
LOWER COST
Like Casella, You Can Try To Build a New Experience by Listening To The Customer ….
BETTER EXPERIENCE
Traditional EnterpriseCustomers
… But You Will End Up Guessing Wrong Most of the Time
FROM DEAD PROCESSESTO LIVE INTERACTIONS
27HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
LOWER COST
… or You Can Engage The Stakeholders in Co-Creating The New Experience With You
BETTER EXPERIENCE
Co CreationCo-Creative Enterprise
Individuals participate in value creation through personal
engagementCustomersSuppliersPartners
Employees
Build it With Them
FROM DEAD PROCESSESTO LIVE INTERACTIONS
28HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Crushpad Brings Customers Into WinemakingFROM DEAD PROCESSESTO LIVE INTERACTIONS
29HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Crushpad Has Opened Up The Winemaking ProcessFROM DEAD PROCESSESTO LIVE INTERACTIONS
30HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
1. Lay out steps in as is process
2. Evaluate process customer needs and establish
objectives for the process
3. Streamline steps and design to be process
4. Provides
A better experience for the customer
Lower cost for the companyReduced cycle time
Fewer steps, fewer hand‐offs
The broader experience of internal stakeholders is irrelevant, except for removal of pain points directly linked to operational dysfunctions in the process. It does not create a new source of revenue growth.
Traditional Process Design Delivers Cost-Efficiency, but Little Growth
FROM DEAD PROCESSESTO LIVE INTERACTIONS
31HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Start With the Experiences of Specific Stakeholders, and Connect Them Through New Interactions
2. Map out how the stakeholders interact with each other today
4. Organize workshops where stakeholders make
their experience transparent to each other
3. Characterize the experience resulting
from these interactions for all stakeholders
(good or bad)
6. … that allows them to develop new interactions
Platform
5. Give stakeholders an engagement platform …
7. … that dramatically improve the
experience of all stakeholders …
1. Identify the stakeholders involved on the company and the customer side
8. … and produce new sources of
revenue from the new interactions
… and invite all stakeholders to imagine new interactions
between them
Internal company stakeholders
External stakeholders (e.g., customers)
FROM DEAD PROCESSESTO LIVE INTERACTIONS
32HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
An Unlikely Role Model for Co-Creation: The French Post Office and its 17,000 Post Offices
THE METHOD BEHIND THE MADNESS
33HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
La Poste’s Management Established Five Interaction-Based Themes for its Strategy
Increase ticket
1. ACCESS TO POST OFFICE
Improve profitability
2. ORIENTATION
3. SERVICE DELIVERY
4.ADVICE
5. NEW SERVICES
Reduce network cost Increase sales
FINANCIAL
CUSTOMER
LEARNING AND GROWTH
PROCESS
THE METHOD BEHIND THE MADNESS
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
The Transformation of La Poste Started With the Opening Up of the Employee Scheduling Process
1.CO-CREATED EMPLOYEE SCHEDULE
Post office (Active) post office employees
Engages post office employees in scheduling their own work
Creates post office employees schedule Passive post office employee
receives schedule
Employees schedule their own work (within constraints)
BEFORE
AFTER
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THE METHOD BEHIND THE MADNESS
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Transforming La Poste Through Co-Creation Involved Opening Up More and More of the Firm’s Processes
New experiences of value to individuals
4.CO-CREATED POST
OFFICE PERFORMANCE
MODEL
3.CO-CREATED
SERVICES
2.CO-CREATED
OPENING HOURS FOR EACH LOCAL
POST OFFICE
1.CO-CREATED
EMPLOYEE SCHEDULE
• Customers
• Teller employees
• Post office manager
• “Hierarchy”
• Teller employees
• Post office manager
• “Hierarchy”
• Customers
• Teller employees
• Post office manager
• “Hierarchy”
• eBay
• Local elected officials
• Customers
• Teller employees
• Post office manager
• “Hierarchy”
35
THE METHOD BEHIND THE MADNESS
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Ten Steps Framework to Experience Co-Creation (Bottom-Up)
Fleshing out the CC hypothesesand making the case for them
(hypotheses teams, Strategy Fair)
10a. Business Case
Generating, developingand qualifying CC hypotheses
(External Co-Creation Workshops)
Understanding way things are done today(Executive and Focus Interviews, Internal Co-Creation Workshops)
9. Co-creation Stairway to Heaven
8. Win/Win (Four Powers)
4. Existing Experience
7. Glass House
5. Transparency (DART)1. Protagonists 3. Pain Points
2. Existing Interactions
6. Day in Life of Customer
10b. New Experience
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THE METHOD BEHIND THE MADNESS
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
By and Large, The IT Community Is Still Missing the Point on Co-Creation
The focus is still on one-way process automation.ERPCRMData bases.
The people experience is still largely missing.
The IT community struggles to engage its business clients (B2B) …
… so it struggles even more to engage its business clients with its customers (B2C).
Slowly the IT community is awakening to the need to develop co-creation platforms.
37
THE PLATFORMS OF CO-CREATION
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Some Companies are beginning to Build (Simple) Engagement Platforms
MyStarbucksIdea.com website launched in mid-March 2008.
38© 2010 ECC Partnership
Intro co-creation Waltham 2010-06-14 FJG
THE PLATFORMS OF CO-CREATION
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Dell’s customer ideas forum, Idea Storm, Follows a Similar Approach to Starbucks
39
THE PLATFORMS OF CO-CREATION
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
IBM Jam Sessions Involve a More Sophisticated Process With a Large Number of Stakeholders
40
THE PLATFORMS OF CO-CREATION
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Co-Creation Involves a Personal Transformation
People know better than you what new experiences they aspire to.
People’s wings are often clipped by existing HR processes.
Let them define what their work experience ought to be.Set the context of the firm’s strategy and let them co-create the rest.
Let them engage with other people who are also trying to change their experience.
E.g., customers for customer-facing people, suppliers for supply chain people.
Start by opening up internal HR processes.
41
SET MY PEOPLE FREE
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Santander Brazil Is Becoming a Co-Creative Enterprise
Santander Brazil has been applying
co-creation principles since 2007:
• in business areas such as insurance,
• in internal areas such as:
• Human Development
• Marketing & Communication.
SET MY PEOPLE FREE
42
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Human Development Co-Creation Initiatives at Santander Brazil
Leadership Development Program: co-created with 3000 professionals
New performance management system: co-creation with employees of the 2011 “next practice” of performance management taking into account the individual experience, generating win-win relationships among stakeholders
“Caminhos e Escolhas” (Ways and Choices): collaborative training program engaging NGOs, universities, junior executives and former trainees.
SET MY PEOPLE FREE
43
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
“Juntos” (together) is the core message of Santander current marketing and brand positioning.
“Circulo Colaborativo” (Collaborative Circle) is a internal co-creation platform opened for new ideas and suggestions to various initiatives from all 30,000 employees
https://www.circulocolaborativo.com.br/
Moving From Inside to Outside: Marketing and Communication Initiatives at Santander Brazil
SET MY PEOPLE FREE
44
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Humans Are at the Center of the Business Universe
Business is the art of building connection.
Connecting individuals to your business is key.EmployeesCustomers. SuppliersPartners.
Your business is itself connected to an eco-system you will have to co-create with other private and public entities.
They’re also full of humans longing to connect with your people.They have economic imperatives, as you do.
Ultimately, your role as manager is to make each individual feel at home in the universe.
The enterprise that is the most connected wins.
45
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Caja Navarra Created Civic Banking
46
THE NEW HUMANITY OF BUSINESS
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Customers choose to use the money they generate in CAN for needs and people rather than activities and things.
“You Choose: You Decide” overturned the bank’s allocation of profits to social work
Source: Caja Navarra investors presentation.47
THE NEW HUMANITY OF BUSINESS
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
Caja Navarra Creates Transparency of Earnings
Each Caja Navarra customer receives a statement showing exactly how much money goes to the social projects he or she has chosen.
48
THE NEW HUMANITY OF BUSINESS
Caja Navarra’s customers want the bank to make more money with them, so that they can give more to the charity of their choice.
HSM Sao Paulo 2010-11-09 – FJG
© 2010 Francis GouillartAll rights reserved.
What Have Covered Today
1. Zombies No More (Nike, Camiseteria)
2. The Heart of Strategy (ITC e-choupal)
3. The Emerging Country Advantage
4. From Dead Processes to Live Interactions (Yellow Tail, Crushpad)
5. The Method Behind the Madness (La Poste)
6. The Platforms of Co-Creation (Starbucks, Dell, IBM)
7. Set My People Free (Santander Brazil)
8. The New Humanity of Business (Caja Navarra)
49
THE NEW HUMANITY OF BUSINESS