The article discusses the shift in value creation from a product- and firm-centric view to personalized consumer experiences. Consumers today are informed, networked, empowered, and active, and are increasingly co-creating value with firms. The interaction between firms and consumers is becoming the main source of value creation and extraction. The market is now a forum for dialogue and interaction between consumers, consumer communities, and firms. This new approach challenges traditional views of the market as separate from value creation and emphasizes the importance of dialogue, access, risk-benefits, and transparency in co-creation experiences. In the traditional system, consumers were seen as separate from the firm, and value creation occurred within the firm. However, with the rise of informed and empowered consumers, the role of the firm in value creation is changing. Firms must now focus on co-creating value with consumers through personalized interactions and experiences. This involves moving away from a product-centric view and instead focusing on the experiences that consumers seek to co-create. Co-creation experiences are the basis for new sources of competitive advantage. These experiences involve joint creation of value by the firm and the consumer. The article highlights the importance of building a system for co-creation of value, which includes dialogue, access, risk-benefits, and transparency. These elements are essential for meaningful interactions between firms and consumers. The article also discusses the implications of this shift for interactive marketing. The fundamental interaction between the firm and the consumer changes in character and importance. The interaction becomes the locus of value creation, and can occur anywhere in the system, not just at the conventional point of sale or customer service. This new approach challenges traditional economic theory and emphasizes the importance of co-creation experiences in value creation. The article concludes by emphasizing the need for firms to shift from a firm-centric view of value creation to a co-creation perspective. This involves investing in new infrastructure capabilities, as well as new functional and governance capabilities. The future belongs to those that can successfully co-create unique experiences with customers.The article discusses the shift in value creation from a product- and firm-centric view to personalized consumer experiences. Consumers today are informed, networked, empowered, and active, and are increasingly co-creating value with firms. The interaction between firms and consumers is becoming the main source of value creation and extraction. The market is now a forum for dialogue and interaction between consumers, consumer communities, and firms. This new approach challenges traditional views of the market as separate from value creation and emphasizes the importance of dialogue, access, risk-benefits, and transparency in co-creation experiences. In the traditional system, consumers were seen as separate from the firm, and value creation occurred within the firm. However, with the rise of informed and empowered consumers, the role of the firm in value creation is changing. Firms must now focus on co-creating value with consumers through personalized interactions and experiences. This involves moving away from a product-centric view and instead focusing on the experiences that consumers seek to co-create. Co-creation experiences are the basis for new sources of competitive advantage. These experiences involve joint creation of value by the firm and the consumer. The article highlights the importance of building a system for co-creation of value, which includes dialogue, access, risk-benefits, and transparency. These elements are essential for meaningful interactions between firms and consumers. The article also discusses the implications of this shift for interactive marketing. The fundamental interaction between the firm and the consumer changes in character and importance. The interaction becomes the locus of value creation, and can occur anywhere in the system, not just at the conventional point of sale or customer service. This new approach challenges traditional economic theory and emphasizes the importance of co-creation experiences in value creation. The article concludes by emphasizing the need for firms to shift from a firm-centric view of value creation to a co-creation perspective. This involves investing in new infrastructure capabilities, as well as new functional and governance capabilities. The future belongs to those that can successfully co-create unique experiences with customers.