Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Customer Derived Revenue: A Dynamic Model of Value Creation

Customer Derived Revenue: A Dynamic Model of Value Creation
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Author(s): Michael Hall (Nakamura Gakuen University, Japan)
Copyright: 2003
Pages: 3
Source title: Information Technology & Organizations: Trends, Issues, Challenges & Solutions
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59140-066-0.ch045
ISBN13: 9781616921248
EISBN13: 9781466665330


This paper proposes that customer capital should be considered in a closer relationship to a company’s human capital than is now accepted. Particularly with knowledge companies, the customer has the potential to interact more closely with a firm using the rapidly developing information systems. Communication between customers and the company used to be conducted through the sales staff, but with the technological advances brought about by the IT revolution, loyal customers can directly offer innovative ideas, pose questions and even provide answers to other customer’s queries, all which have the potential to produce what is called in this paper—customer derived revenue (CDR). Two knowledge-based companies and one in the manufacturing industry are presented in this paper to lend support for the argument that this new approach to customer capital needs to be adopted to extract more value from a company.

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