The practice of co‐creating unique value with customers: an interview with C.K. Prahalad

Purpose – Strategy & Leadership asked the originator of the concept of co‐creation of unique value with customers to explain how it works in theory and practice. Design/methodology/approach – Questions for this interview were prepared by both academics familiar with C.K. Prahalad's concepts and managers struggling to innovate new value propositions. Findings – Co‐creation theory asks a basic question. What if: Consumer ≥ the Firm? Instead of assuming that their firm can innovate unilaterally, managers are learning to depend on the consumers to be involved. They shift from product innovations to experience innovations. Research limitations/implications – Case studies of the development of new experienced‐based value propositions need to address issues such as sustainability of competitive advantage. Practical implications – The theory points the way to new growth opportunities. If we accept the role of the consumers in helping us create their own experience then finding new markets is not all that onerous. Look at Starbucks–coffee, credit cards, music, and wireless. Originality/value – Raises basic and provocative questions about the role of the customer in the future of the firm.