Information Technology Reference
In-Depth Information
Chapter 6
Virtual Customer Environments: IT-Enabled
Customer Co-innovation and Value Co-creation
Satish Nambisan
Abstract In recent years, the establishment of IT-enabled customer co-innovation
and value co-creation platforms or virtual customer environments (VCEs) has radi-
cally changed the nature and extent of customer involvement in product innovation
and product support activities. VCEs offer facilities ranging from online customer
discussion forums to virtual product design and prototyping centers and enhance the
richness of customers' interactions with one another and with the company. This
chapter provides an introduction to the different research themes and issues that
arise from the emergence of VCEs. Specifically, four broad set of research issues
are discussed. First, what are the different customer co-innovation and value co-
creation roles that are enabled by IT? Second, what are the factors that motivate
customer participation in innovation and value creation in VCEs? Third, what are
the critical dimensions of customers' experience in VCEs? And, fourth, what are
the different types of impact of customer participation in VCEs? Together, these
four broad themes offer a rich and promising set of issues for future research in the
area of IT-enabled customer co-innovation and value co-creation.
6.1 Introduction
Customers can play an important role in the development of new products and ser-
vices. As early as in the 1970s itself, customer involvement was identified as a
critical success factor in product development (Rothwell, Freeman, & Townsend,
1974). The potential for customers to contribute to innovation and value creation
has been acknowledged in other studies as well (e.g., Lengnick-Hall, 1996; von
Hippel, 1988). However, in recent years, the establishment of IT-enabled customer
co-innovation and value co-creation platforms or VCEs has radically changed the
nature and extent of customer involvement in product innovation and product sup-
port activities and made it more feasible and cost-effective (Nambisan, 2002). VCEs
offer facilities ranging from online customer discussion forums to virtual product
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