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Competitors will be recast as allies, as rival companies will have to work together to achieve more complex technical innovations. Such “co-opetition” will require leaders to maintain a difficult dual perspective – rivals must be simultaneously seen as both vital partners and market threats.
More and more companies embrace consumers as "co-creation" partners in their innovation efforts, instead of as buyers at the end of a value chain. For example, IBM's co-created product lines account for approximately 20% of its revenue and many of its innovations. It's a shift from keeping people out to letting people in.
Instead of using traditional tools to compete in an environment of clear customers, suppliers, partners, and competitors, we find ourselves in an era of “ Co-opetition.” Bloomberg realized that the ease of information sharing made innovation in consumption a key form of differentiation in the industry.
The way forward is co-opetition, in which entities in the same industries act with what everyone recognizes as partial congruence of interests. Nalebuff have written in their book Co-Opetition , businesses that form co-opetitions become more competitive by cooperating. There [are] lots of co-opetitions.”.
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