co-creation of value in partnership with the customer
DESCRIPTION
eye for pharma SFE Europe & Commercial Excellence, Dusseldorf, Germany 2011TRANSCRIPT
Co-creation of value in partnership with the customer
eye for pharma –SFE Europe 2011 & Commercial Excellence
9th Annual Conference 28th to 31st March, Dusseldorf, Germany
Amlesh Ranjan Associate Director, Sanofi-aventis
Pharma
Specialty selling
2
The Buddha at Gaya, Bihar, India
"In the sky, there is no distinction of East and West…"
3
Co-creation of value in partnership with the customer
..the proposal flow…………..
What
we want
to do
The
Changes
Co-Creation
Of
Value
The
Partnership
Roadmap
Disclaimer: Views expressed are mine as a Pharma Professional and not necessarily represent my organization’s views.
4
“This time like all times
is a good one, if we but know
what to do with it.”
Ralph Waldo Emerson
5
a journey to…
..a quest to
*Adapted from a presentation by late Prof.C.K.Prahalad
Manage the
Present
Next
Practices
And what we want to do………
Re-fuel
for the future
Best
Practices
Well
Known
Practices
Learn from
the Past
6
Value creation & Partnership context
Specialty
Rep Physician Patient
7
External oriented motifs of the
PRODUCTION society
Internal oriented motifs of the
EXPERIENCE society
Kilde: Schultze 1992: Die Erlebnisgesellschaft
Expressing Happiness
Primary
objectives
in life
Reasons for working
Obtaining external
material things
Working, contributing,
being economic (saving)
Making money,
Career opportunities,
doing as the others do
Challenges, making life
interesting, making life
meaningful
Consumption,
experiencing,
enjoying, Playing
Obtaining more, better
and more intensive
experiences
The Societal changes
8
Industrial Age
Medicine
Pro
fess
ion
al
Ca
re Tertiary
Secondary
Primary
Individual self-care
Friends & family
Self-help networks
Professionals as facilitators
Professionals as partners
Professionals as authorities
Information Age
Health Care
Pharma > Healthcare Changes
9
Co-Creation of Value
10
Acknowledgements and References
1975 Edward Matchett ‘s book, Creative Action, published by Turnstone Books,
hinted at Co-Creation.
1988 Jack Martin Leith experiences Open Space Technology for the first time and
adopts it as a method for organisations to use as a co-creation tool.
1994 In The Fifth Discipline Field book, co-author Bryan Smith introduces his
Tell–Sell–Test–Consult–Co-create model.
2000 In their Harvard Business Review article, Co-opting Customer Competence,
C K Prahalad and Venkat Ramaswamy write about co-creating with
customers.
2004 Prahalad and Ramaswamy develop their arguments further in The Future of
Competition: Co-Creating Unique Value with Customers, published by
Harvard Business School Press.
11 Ref. Jack Martin Leith, Leith’s guide to Co-Creation Version 18;
The Future of Competition: Co-creating Unique value with Customers, HBS Press by C.K.Prahalad & Venkat Ramaswamy
Integrated efforts over full cycle of care
Compliance / Outcomes / Sustainability
Knowledge / Interaction / Experience
Solutions & activities meeting needs
Clinical value + + + + +
Value
12 Ref. Jack Martin Leith, Leith’s guide to Co-Creation Version 18;
The Future of Competition: Co-creating Unique value with Customers, HBS Press by C.K.Prahalad & Venkat Ramaswamy
Joint creation of value by company & customer
Value creation through personalized experience
Dialogue / Interaction as basis for co-creation
From Products to Solutions to Experiences
From Customer-centric to Network centric logic
Co-creation of value: Concept
13 Ref. Jack Martin Leith, Leith’s guide to Co-Creation Version 18;
The Future of Competition: Co-creating Unique value with Customers, HBS Press by C.K.Prahalad & Venkat Ramaswamy
Value is created at the point of Exchange
Value is embedded in Experiences
Products and Services are carriers
Innovation is about Experiences
Products / Processes are critical but not the goal
Co-creation of value: Assumptions
14
Knowledge, wisdom and creativity of all
Commitment for implementing the plan
More value generated for more people
Results are likely to be sustainable
More fulfilling way of working
Adapted from Jack Martin Leith, Leith’s guide to Co-Creation Version 18
Co-creation of value: Dividends
15
Eliminating a
malfunction- restored
to full working order
Shift from the existing
state of affairs to
the desired state of affairs
Unlocking potential by
leveraging or
by acquiring new
Being something new that
generates
stakeholder value
Co-creation of value: Applications
16
Evidence from healthcare
17
Evidence from healthcare
1. Roter et al 1988;
2. Jayawardehena and Foley 2000;
3. Auh et al. 2007; Bitner 1990; Dellande, Gilly and Graham 2004;
4. Veranec 1999; McStravic 2000; Michie, Miles and Weinman
2003; Ouschan, Sweeney and Johnson 2006;
5. Payne et al 2008;
6. McColl-Kennedy et al 2009:
18
Specialty
Rep Physician Patient
The Partnership Roadmap
19
Partnership Environment
Specialty
Rep Physician Patient
Family Hospital
Company
Self-help
group
Insurance Patient
support
Experience Environment
Physician
group
Govt.
20
Consumer
Centric Exchange
Space
Transactions
Choice
Consumption
Price –
Performance
Ref. The Future of Competition: Co-creating Unique value with Customers, HBS Press by C.K.Prahalad & Venkat Ramaswamy
Partnership Elements
Dia
log
ue
Access
Risk-Benefit
Tra
nsp
are
ncy
Co- Creation of
Value Space
Dialogue
Access
Risk-Benefit
Transparency
21
Adapted from Jack Martin Leith, Leith’s guide to Co-Creation Version 18
Dialogue : Interactivity, Deep Engagement, Empathetic understanding
Access : Information, On-demand resources, Value chain connect
Risk-Benefit : Disclosure, Debate the trade-off, Sharing Responsibility
Transparency: Reduced opaqueness, Transfer understandings
Partnership Elements : D.A.R.T.
22
Ref. The Future of Competition: Co-creating Unique value with Customers, HBS Press by C.K.Prahalad & Venkat Ramaswamy
Dia
logue
Access
Risk-Benefit
Tra
nsp
are
ncy
Co- Creation of Value Space
Community
Innovation Trust
Choice
Partnership Roadmap
23
Choice (Access + Transparency)
Enhance Consumer’s ability to make informed choices
Give understanding with shared options and freedom to choose
Trust (Transparency + Risk-Benefit )
Disclose risk and debate with consumers
Reduce opaqueness of the pricing, financials etc
Partnership Roadmap
24
Innovation (Risk-Benefit + Dialogue)
Enable to develop new policy choices
Facilitate risk assessment based trade-off leading to new practices
Community (Dialogue + Access)
Enhance ability to develop thematic communities
Create engagement and connect with value chain
Partnership Roadmap
25
Sense of Healthcare system & network
Managed care fluency / integration
Strategic influencing abilities
Knowledge: Technical & Commercial
Pharmaco-economic understanding
Partnership capability
26
Customer satisfaction
Compliance & Disease outcome
Quality of Interaction & Experience
Knowledge : Product, Disease area
Need / Group oriented Activities
Partnership Measurement
27
Co-Creation of Value in Partnership with the Customer
Joint creation of value by Company & Customer
Interaction & Experience as basis for co-creation
Elements: Dialogue, Access, Risk, Transparency
Roadmap: Trust, Choice, Innovation, Community
Capability: Techno-commercial, Strategic Influencing…
28
29
All of us want to
create Value,
co-create Value,
add Value….
30
“The Value you add,
comes from
the Values you hold.”
