The New Age of Innovation
IN THIS SUMMARY
Traditionally, it was assumed that companies created value and offered it to customers. This firm- and product-centric view is being replaced, however, by customers’ personalized experience with products and services, leading to a co-creation view of value. This focus on personal experience extends to industries as diverse as toys, financial services, travel and hospitality, retailing, and entertainment. Even if a company is dealing with a hundred million customers, each manager must focus on one customer experience at a time, with the company providing the platform around which customers co-create their own experiences.
In The New Age of Innovation, authors C.K. Prahalad and M.S. Krishnan focus on the nature of innovation in the 21st century. They believe that the changing dynamic of markets, driven by connectivity, technology, industry convergence, and consumer activism and involvement, has created a need for continuous change.