Abstract
Value creation is an important issue in product development. Value creation should implement the benefits based on customer needs, and is necessary to recognize real customers in the market. Accurately determining customer needs is difficult to accomplish. In this research, we develop models of the value creation process by examining the design of massage- chair. Specifically, we study how the intangible and ambiguous notions of comfortableness called "momiaji" are transferred into the technical characteristics of the chair. Analysis of case studies resulted in two models called "co-creation synchronization process" and "virtual customer synchronization process". The former process aims to grasp the exact needs of customers as the co-creation partner. The latter process utilizes managers acquainted with the market, who acts as a virtual customer to create the value. The difference in the two processes is in the organizational capabilities used to grasp the customer needs. To avoid the risk of making products divergent from customer needs, the co-creation synchronization process is superior. To create drastically innovative products or reduce production cycle time and cost, the virtual customer synchronization process is superior.
