Executive Interviews: Interview with Roland T Rust on Co-Creation
March 2010 - By Dr. Nagendra V Chowdary

Roland T Rust
Distinguished University Professor and David Bruce Smith Chair in Marketing at the Robert H Smith School of Business at the University of Maryland,

• It is quite often argued that customers are the new competitors to the companies? Where has this phenomena been witnessed and how engulfing shall this phenomena be? What precautions do you think companies should take to preempt any such unforeseen competitive threats?
  This can certainly be the case for product distribution, especially with digital content. With music, the customers have already won. The case of movies is now rapidly approaching. What music shows us is that it is not just individual customers who are competitors, but also customers networked together by social media.

• This can certainly be the case for product distribution, especially with digital content. With music, the customers have already won. The case of movies is now rapidly approaching. What music shows us is that it is not just individual customers who are competitors, but also customers networked together by social media.
  Both are examples of two-way information flow between the company and the customer. In the Olayforyou.com example, it is made possible by information technology.

• Both are examples of two-way information flow between the company and the customer. In the Olayforyou.com example, it is made possible by information technology.
  The key is facilitating two-way information flows, and then building a mechanism for customer information to inform what the company is doing. In its purest form, adaptive personalization systems, the interactivity has an immediate effect on the service provided. The service learns and evolves.

• interactivity has an immediate effect on the service provided. The service learns and evolves.
  Ultimately, the company is turned upside down, from product/brandcentered to customer-centered. The organization is structured around customers and customer segments instead of around products and brands. Such a profound transformation is not possible without guidance from the top.

• Did you observe any co-creation attempts from emerging economies’ companies? Do you suggest companies from emerging economies should also look at co-creation as their next frontier of invading through consumer markets?
  In many ways emerging economies will find co-creation more natural than the developed economies do. This is because pre-industrial societies have always had co-creation and personalization, because there was no mass production. The key will be to skip the industrialization step and go directly to a technologyenabled co-creation approach, which is more powerful and efficient.

• When confrontedwith a collective “What’s in it for us” from the potential customers (those who are intended to be tapped for co-creation exercise), what should be the companies’ sales pitch?
  When confrontedwith a collective “What’s in it for us” from the potential customers (those who are intended to be tapped for co-creation exercise), what should be the companies’ sales pitch?

• What would innovation mean in the light of co-creation attempts? What changes do you foresee on companies’ innovation efforts?
  Innovation still requires the creative leap. The only difference is that the information available for making the creative leap is more extensive. The customer’s voice is clearer.