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The New Age of
Innovation
The book reveals the necessity of co-creating unique experiences with every consumer by using knowledge, skills and resources available any where across the globe. Over the years, the nature of relationship between firm and the consumer has changed radically; from firm and product-centric view of value to personalised experience of customer’s co- creation view of value. Value is determined by one consumer at a time, the authors call it N = 1 phenomenon. If the companies access resources from large number of sources across the world to give a unique experience to the consumer, this trend is called R = G. The authors have designed a "House of Innovation" to support their argument on innovation. It contains the following elements: Technical Architecture of the firm acts as the foundation. Two vertical pillars that support the ‘House’ are represented by personalized co-created experience i.e. N = 1, which states that companies should co-create products and services with the consumer that reflect the individual needs of each consumer. No company has all the resources to provide that unique experiences to each consumer, N = 1, therefore, firms need to access resources from all over the world which the authors denote by R =G. Social Architecture of the firm forms the roof of the ‘House’. Flexible and resilient business processes and focused analytics are the glue that holds all the elements together. In all fairness, it must be stated that the concept of focus on single consumer to provide any thing and everything of consumer’s choice by using resources available any where in the world, is not something which is not being practiced by many big and small companies all over. There are numerous examples of companies going all out to do just that, however, the authors through their insight and several examples, have given a new dimension to the concept. N=1 should not be confused with mass customisation, it refers to co-creation of a unique product or service in conjunction with each consumer. The authors discuss the fundamental transformation of business and highlight the importance of N=1 and R=G for survival and growth in the competitive battlefields of twenty-first-century business which is ‘high-tech -high-touch’ Examples of Good Year, Pomarfin Nike, ING, ICICI Prudential and Apple bring about the message very clearly that the new transformation is no more a choice with the companies. The first four chapters of the book identify the emerging nature of competition and the value creation process. R=G is mostly about finding the right resource, both internal and external. In this environment, any skilled person anywhere in the world can contribute and make a difference. An interesting example is of InnoCentive which enables any individual or organization anywhere in the world to pose a technical question for which they are seeking a solution to any one in the world. Any one can find the solution to that problem and be compensated for the same, if the solution is accepted. The authors clarify that outsourcing is only one way to reach low- cost high quality talent. In chapters five to eight, the authors explore the process of migration of systems of the firm to N=1 and R=G approach of value creation. Chapter 5 discusses the problems related with present position of the firm and its migration to the new position and linkages Chapter 6, named ‘Efficiency and Flexibility: Managing the Tension’ is about the tension between flexibility and efficiency which cannot be avoided in N=1 and R=G world and business processes are at the heart of managing this tension Chapter 7 deals with the need to access new skills from anywhere in the world to stay competitive. Chapter 8 provides an agenda for managers to move forward in the world of N=1 and R=G. The authors give a key message to the managers, "Fold the future in" and the all important suggestion ‘Embrace the Inevitable’. The authors recommend their book for CEOs, senior executives and managers at every level. It is hoped that CEOs can frame better strategies, senior executives can create better business processes and other necessary support systems and managers at different levels can actualise them more effectively, using this remarkable book.
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This landmark work is the
smartest and perhaps a ground-breaking blueprint for companies of future
to survive and thrive in the new world shaped by consumers’ unique
needs, wants and desires.