Apple Case Study: Aspects Of Experience Co-creation
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Apple Case Study Aspects of Experience Co-Creation
June 13, 2007 The enclosed material is proprietary to the ECC Partnership and is for the internal use of the addressee only.
Francis J. Gouillart The Experience Co-Creation Partnership 100 Main Street, Suite 130 Concord, MA 01742 Mobile: +1 781 888 0186 [email protected] [email protected]
Contents What is experience co-creation?
Experience co-creation at the strategic level
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Historically, Business Has Been about Designing, Making and Selling Competitive Products and Services …
Company The Firm
Suppliers
Marketing Channels
Passive Customers
… and Most Functions and Processes Have Largely Been Focused on Creating an “Inside-Out” Efficiency for the Firm
SCM Passive Customers
ERP CRM Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Today, Individuals (Customers) are Highly Connected and Informed, and are No Longer Passive Recipients
Product & Service Offerings
The Firm
Suppliers
Marketing Channels
SCM ERP CRM
Company
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Customer
What Customers Want is a Unique EXPERIENCE in Interacting with the Company …
Back room
Points of customer interaction
EXPERIENCE
Company
Customer
… and the best experience is “co-created” between the company and the customer Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
The Co-Creation Platforms Produce a Dual Set of Benefits for Both Parties
Differentiated experience to customer
Increased knowledge for company
EXPERIENCE Lower cost and risk for company
Lower cost and risk for customer
Customer
Company
Experience CoCreation Platforms Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
In Addition, Customer Communities are Becoming Involved on the Customers and on the Network Side
Back room
Points of customer interaction
EXPERIENCE
Company
Network Resources
Customer
Customer Communities
The Apple music offering is an example of a co-created experience and of the use of a customer community. Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Contents What is experience co-creation?
Experience co-creation at the strategic level
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
With the iPod, Apple Generated A New Environment to Experience the Music (“Music Access and Listening” Experience Environment)
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Source: Venkat Ramaswamy, Francis Gouillart
Through iTunes, Apple Has Opened Up the “Music Management and Downloading” Experience Environment
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Source: Venkat Ramaswamy, Francis Gouillart
Through the iMusic Store, Apple Has Opened Up the Music Browsing Environment
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Through iMix and the Sharing Playlists, Apple Allows Music Fans to Interact With a Community
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Apple Has Added Many Environments to the Original Ones: iPod Photo, iPod Video, iPod Your Car, iTunes Phone
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Apple’s Retail Stores Stand Out And Have Been Highly Successful
• 160+ retail stores • Revenue per square foot: $2,489 • Compared with $971 per square foot at Best Buy. Source: Apple web site , and Company 10Q Report Dec. 2005 Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
The In-Store Testing Environment Enables Hands-On Learning and Product Trial
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Learning How to Do New Things With Apple Products
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Apple’s In-Store “Genius Bar” Provides Interactive Teaching, Advice, and Hands-On Technical Support for Customers
Number one question: “How do I get music inside my iPod?” Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Over a Short Period of Time, Apple Has Redefined Many “Experience Environments” Which Are Smoothly Linked Together 3. iTunes “music browsing” experience
2. iTunes “music management and download” experience
4. iMix sharing playlists experience
1. iPod “music access and listening” experience
5. Apple instore experience 8. Apple phone experience 7. Apple video experience
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
6. iPod photo management experience
Source: Venkat Ramaswamy, Francis Gouillart
June 13, 2007 The enclosed material is proprietary to the ECC Partnership and is for the internal use of the addressee only.
Francis J. Gouillart The Experience Co-Creation Partnership 100 Main Street, Suite 130 Concord, MA 01742 Mobile: +1 781 888 0186 [email protected] [email protected]
Contents What is experience co-creation?
Experience co-creation at the strategic level
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Historically, Business Has Been about Designing, Making and Selling Competitive Products and Services …
Company The Firm
Suppliers
Marketing Channels
Passive Customers
… and Most Functions and Processes Have Largely Been Focused on Creating an “Inside-Out” Efficiency for the Firm
SCM Passive Customers
ERP CRM Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Today, Individuals (Customers) are Highly Connected and Informed, and are No Longer Passive Recipients
Product & Service Offerings
The Firm
Suppliers
Marketing Channels
SCM ERP CRM
Company
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Customer
What Customers Want is a Unique EXPERIENCE in Interacting with the Company …
Back room
Points of customer interaction
EXPERIENCE
Company
Customer
… and the best experience is “co-created” between the company and the customer Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
The Co-Creation Platforms Produce a Dual Set of Benefits for Both Parties
Differentiated experience to customer
Increased knowledge for company
EXPERIENCE Lower cost and risk for company
Lower cost and risk for customer
Customer
Company
Experience CoCreation Platforms Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
In Addition, Customer Communities are Becoming Involved on the Customers and on the Network Side
Back room
Points of customer interaction
EXPERIENCE
Company
Network Resources
Customer
Customer Communities
The Apple music offering is an example of a co-created experience and of the use of a customer community. Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Contents What is experience co-creation?
Experience co-creation at the strategic level
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
With the iPod, Apple Generated A New Environment to Experience the Music (“Music Access and Listening” Experience Environment)
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Source: Venkat Ramaswamy, Francis Gouillart
Through iTunes, Apple Has Opened Up the “Music Management and Downloading” Experience Environment
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Source: Venkat Ramaswamy, Francis Gouillart
Through the iMusic Store, Apple Has Opened Up the Music Browsing Environment
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Through iMix and the Sharing Playlists, Apple Allows Music Fans to Interact With a Community
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Apple Has Added Many Environments to the Original Ones: iPod Photo, iPod Video, iPod Your Car, iTunes Phone
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Apple’s Retail Stores Stand Out And Have Been Highly Successful
• 160+ retail stores • Revenue per square foot: $2,489 • Compared with $971 per square foot at Best Buy. Source: Apple web site , and Company 10Q Report Dec. 2005 Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
The In-Store Testing Environment Enables Hands-On Learning and Product Trial
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Learning How to Do New Things With Apple Products
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Apple’s In-Store “Genius Bar” Provides Interactive Teaching, Advice, and Hands-On Technical Support for Customers
Number one question: “How do I get music inside my iPod?” Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
Over a Short Period of Time, Apple Has Redefined Many “Experience Environments” Which Are Smoothly Linked Together 3. iTunes “music browsing” experience
2. iTunes “music management and download” experience
4. iMix sharing playlists experience
1. iPod “music access and listening” experience
5. Apple instore experience 8. Apple phone experience 7. Apple video experience
Symnetics Bogota ECC 2007-05-20 – FJG © 2007 Venkat Ramaswamy, Francis Gouillart All rights reserved.
6. iPod photo management experience
Source: Venkat Ramaswamy, Francis Gouillart
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