Value Creation through Customer Derived Revenue

Value Creation through Customer Derived Revenue

Michael Hall (Nakamura Gakuen University, Japan)
Copyright: © 2004 |Pages: 14
DOI: 10.4018/978-1-59140-281-7.ch015
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Abstract

This chapter presents a model that allows customer capital to be incorporated into a company’s human capital in a way that is not now practiced. The model outlines the essential steps necessary to tap into the vast reservoir of a firm’s customer tacit knowledge and this will increase the potential for greater revenues. Companies that take advantage of the advances in IT hardware and software can provide interested loyal customers with the opportunity to enter a company’s inner circle of knowledge and offer innovative ideas, pose questions and provide answers to other customers’ queries. This approach to knowledge acquisition in this chapter is called customer derived revenue (CDR). The essential company architecture necessary to successfully implement CDR is explained and case studies utilizing similar methods are presented to lend support for this new approach to customer capital to be adopted on a wider scale to extract more value for a firm.

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