124 PART | III ITS business models
(Payne & Holt, 2001). Second, cocreation can enhance its innovation processes
and is the key to unlocking new sources of competitive advantage from an or-
ganization’s perspective (Prahalad & Ramaswamy, 2004). Third, cocreation
highlights the importance of engagement, cocreation and creating compelling
experiences in value creation (Lee, Olson & Trimi 2012). Fourth, cocreation
offers new opportunities for enterprises (McColl-Kennedy et al., 2009). Fifth,
cocreation offers benefits including: better supply chain integration (Jüttner,
Christopher and Godsell, 2010); enhanced engagement of employees; improved
shareholder commitment (Madden, Fehle & Fournier, 2006); and knowledge
sharing with competitors (Kohlbacher, 2007), which occurs especially in “coo-
petitive” contexts, providing major benefits, but also creating risks (Ilvonen &
Vuori, 2013).
10.11 Value cocreation business models
The global economy is entering a new era from technology to demography.
It is therefore important reassess value proposition, value creation, and value
capture that make up the essence of business models. This can open new oppor-
tunities for business to thrive. To cope with this changing era, it is important to
revise our business models. New business models can provide better blueprints
for creating value. The new business model should be based on the co-creation
of value. It is the author’s belief that the model of Storbacka, Frow, Nenonen
and Payne (2012) can be used as a start up for the design of co-creation of value
business models. Subsequent sections give a brief overview of the model.
The framework for business model proposed by Storbacka, Frow, Nenonen
and Payne (2012)is shown in Fig. 10.3. According to these authors, value cre-
ation is no longer perceived to reside within firm boundaries; but rather, value
FIGURE 10.3 A framework for business model.