NRI Papers
No.120 August 1 , 2007
  Management Facilitating Net-Based Value Co-Creation
— New Trend of Innovation in the Web 2.0 Era —
 
Ryoichi HARA
   As the term symbolizing next-generation Internet usage, increased attention is being given to Web 2.0. From the mid-1990s to the present, Internet-based venture firms have come to the fore by successfully incorporating technological innovations related to the Internet into their business models. In contrast, the impact that the Internet had on the management of large companies was not as substantial as anticipated.
   Now, however, the situation has been changing. Large companies that are starting to seriously deal with customers endowed with information thanks to the great strides made in information technology (IT) have started to emerge. These companies have begun to involve such customers in their innovative activities such as the development of new products.
   In the future, in addition to "knowledge" available inside the company, innovation using outside "collective wisdom" will become increasingly more important. Nomura Research Institute (NRI) calls the concept of bringing about innovation in such a way Gunsoryoku (which can be described as net-based value co-creation and/or the use of the wisdom of a crowd via the Internet).
   To effectively use the wisdom of a crowd via the Internet, a new management paradigm and the ability to skillfully operate an organization are required. First, "domains" must be identified where the use of external collective wisdom is effective. Second, when a company deals with a "crowd," a new discipline must be established that emphasizes vitalization of the net-based value co-creation environment. Third, rather than tacit rules shared among only specific people, "visible" rules for operating an organization are required. For this purpose, internal rules to apply the standardized PDS (plan-do-see) cycle are essential. In addition to simply establishing frameworks, such as forming web communities, development of the organizational ability to fully use such frameworks is the key factor behind successful innovation.
Contents
I Net-Based Value Co-Creation Brings About New Innovation
II Implementation of Innovation Relying on Net-Based Value Co-Creation
III Three Important Points to Facilitate Net-Based Value Co-Creat

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