Coimbatore Krishnarao Prahalad (August 8, 1941 – April 16, 2010) was a globally known figure who was consulted by the top management of many of the world's foremost companies. His research specialized in corporate strategy and the role of top management in large, diversified, multinational corporations – Source WIKI
An ardent fan of Sanskrit, some of his contributions are very close to Hindu Mythology, his company name was "Praja" and strong believer of " Manava Seve Madhava Seva" means....who serves people, he will be automatically closer to the god. Isn't it reflect ing every religion's philosophy.- Core Competency
- Bottom of the pyramid
Co-creation
A core competency is a specific factor that a business sees as being central to the way it, or its employees, works. If we extend the wiki definition a core competency can be a specific to an individual or a state or a country, something that other person, business or country cannot easily build. When you drift from core competency, one needs to be sure that over a period of time which would develop as the core competency.
Let us see some Examples...
.........Can a Doctor run a factory instead of a hospital?
..........Can Sachin play basket ball and can he be the legend?
..........Can Pepsi produce computers and be the market leader?
Well these are possibilities, but not sure those people/organizations would give their 100% heart in to it i.e. a deep commitment. So, you find very few people with multiple core competencies.
Bottom of the Pyramid (BOP)
BOP in economics simply means poorest people in the society or the foot Soldiers in an army or front line employees at the bottom organization hierarchy. This idea might have born out of Indian economy in those days for CKP. He preached to focus on at BOP, felt that it would turn countries or organization to a super power or leaders in the markets.
BOP can also bring an impact to social life by eradicating the poverty through profits.
Let us look at no of examples today.
Micro Credit – small amount of loans banks are giving to poor people.
All Hair Care products started selling few rupee sachets (Shampoos, Oils available now in small packages etc)
TATA NANO – Tata understood this concept very well – he brought NANO/Water filter to sell at BOP.
eChoupal - is an initiative of ITC Limited (a large multi business conglomerate in India) to link directly with rural farmers for procurement of agricultural / aquaculture produce
Cell phone companies are bringing pre-paid cards with small amounts led to a boom in Indian market.
Co –Creation
Co-creation is a form of market or business strategy that emphasizes the generation and ongoing realization of mutual firm-customer value. It views markets as forums for firms and active customers to share, combine and renew each other's resources and capabilities to create value through new forms of interaction, service and learning mechanisms. It differs from the traditional active firm - passive consumer market construct of the past.-Source WiKi
Well this is not developing products or services by taking feedback,
It is like a car manufacturers produces car customized to a specific customer or segment of customer with active participation of customer.
Customer Idea forums contributing to a product design
Open Source Software giving full access to source code and empowering customer to change at will.
This philosophy can also be applied in organizations for its employees. Employees design their own salaries and benefits. We can go on........
With this theory, the value will be increasingly co-created by the firm and the customer, rather than being created entirely inside the firm. Co-creation not only describes a trend of jointly creating products. It also describes a movement away from customers buying products and services as transactions, to those purchases being made as part of an experience.
This also paved a way for inclusive growth, where corporates are focusing on a growth with social impact.
CKPs journey from Coimbatore to Harvard via IIM Ahmadabad ...influenced many lives.
Govt. of India honored him with Padma Bhushan award in 2009...
He is a great philosopher and teacher..whom India produced in the recent past.
