N=1; R=G

Written by Harsh Jegadeesan on 12:58 PM


I am currently reading "the new age of innovation" book co-authored by C.K. Prahalad. The book talks about the interesting "equation" which represents the new age of innovation and value-addition through co-creation with customers - N=1; R=G.


N=1 -
is about looking to target a market segment of size 1 with a single customer :0. Confusing? not really. What that means is personalization of a product offering to suit a single customer's need, to have an intimate understanding of a customer's unique requirements and addressing them with flavored offerings for a single customer. Work with the customer (delta revenue channel) to co-create products to address the segment of one. Bottom line, value your customer relationship like never before.

R=G - explains the business environment in the globalized world, where resources leveraged from a global context are used to succeed in business. Does this mean outsourcing to the far east? No it means, sourcing from global supply chains, engaging talent outside organization boundaries through smart crowdsourcing and outsourcing strategies and co-innovation with customers and partners in a business network.

In order to win in the N=1; R=G world, businesses must build strategic and operational capabilities in their business processes through social & IT architectures.

See C.K. Prahalad's interview in Business Standard

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