Cybernetics of Value Co-creation – Espejo and Dominici

Cybernetics of Value Co-creation

Raul Espejo
General Director, World Organisation for Systems and Cybernetics, UK.

Gandolfo Dominici
Scientific Director, Business Systems Laboratory
Associate Professor of Marketing, University of Palermo, Italy.
e-mail: Corresponding author

Research questions and aims of the study
The paradigm shift from value creation to value “co-creation” calls for a deeper grasp of organizational learning in marketing theory. This paper adopts a cybernetic view of the process of value co-creation to shed light on its relevant aspects and to supply a framework to implement operations and strategies to foster this process. Can cybernetics help to better understand the process of value co-creation? Can the Viable System Model (Beer, 1979) be a sound approach to shape a more effective value co-creation process able to achieve higher satisfaction and value?
In this theoretical paper we will show how cybernetic can be effectively used to give a positive answer to both questions above.
To this aim, after describing the issue, we apply a comprehensive systemic approach to:

  • Offer a theoretical framework for value co-creation grounded in second-order cybernetics.
  • Depict value co-creation as a dynamic process through a series of cybernetic loops of interaction. In this perspective the product is considered as a stable recurrent outcome or eigenform (Miles, 2007, von Foerster, 1981a-d) deriving from an on-going dynamic seeking satisfactory complexity management in the co-creation process.
  • Shed light in how consumers and producers can engage in increasingly effective cocreation processes.
  • Supply, through the method of variety balances, a framework to manage and improve the quality of co-creation processes and to explore effective ways to foster collaborative strategies. This implies modelling co-creation relationships as homeostatic loops

underpinned by amplifiers, attenuators and transducers of complexity.

  • Clarify the recursive cognitive and behavioural nature of these loops to support and improve the necessary dynamic stability between enterprises and consumers.

Source: (pdf)