Innovation Perspectives – A Common Purpose

This is the second of several ‘Innovation Perspectives‘ articles we will publish this week from multiple authors to get different perspectives on ‘How should firms collaborate with customers and/or value chain partners to co-create new products and services?’. Here is the next perspective in the series:

by Yann Cramer

Co-Creation Springs from a Sense of Common Purpose

Innovation Perspectives – A Common PurposeToo often the question of value extraction/retention is a dominant concern for all parties at too early a stage. For the sake of argument, let’s consider a supplier who has to develop a critical component for a customer who will integrate it in the design of a new finished product. The development process has not yet started that the customer plays its cards close to its chest with the conscious objective to retain as much of the value they will get from selling the finished product, and the supplier plays in a similar way with an equally conscious objective to extract as much value as possible from selling their component to the customer.

As a result, the supplier does not share unique knowledge for fear of losing leverage, the customer does not seek what could make the product unique for fear of tying itself to a particular supplier, and a great deal of time and effort is invested in crafting legal frameworks for knowledge sharing that anticipate on everything that could go wrong. But in reality, the biggest risk they run (without recognising it) is that while they position themselves for future negotiations some competitors will move faster and take the market.


This is the second of several ‘Innovation Perspectives‘ articles we will publish this week from multiple authors to get different perspectives on ‘How should firms collaborate with customers and/or value chain partners to co-create new products and services?’. Here is the next perspective in the series:

by Yann Cramer

Co-Creation Springs from a Sense of Common Purpose

Innovation Perspectives - A Common PurposeToo often the question of value extraction/retention is a dominant concern for all parties at too early a stage. For the sake of argument, let’s consider a supplier who has to develop a critical component for a customer who will integrate it in the design of a new finished product. The development process has not yet started that the customer plays its cards close to its chest with the conscious objective to retain as much of the value they will get from selling the finished product, and the supplier plays in a similar way with an equally conscious objective to extract as much value as possible from selling their component to the customer.

As a result, the supplier does not share unique knowledge for fear of losing leverage, the customer does not seek what could make the product unique for fear of tying itself to a particular supplier, and a great deal of time and effort is invested in crafting legal frameworks for knowledge sharing that anticipate on everything that could go wrong. But in reality, the biggest risk they run (without recognising it) is that while they position themselves for future negotiations some competitors will move faster and take the market. Leer más “Innovation Perspectives – A Common Purpose”