creative genius. extract from new book by peter fisk

17

Upload: peter-fisk

Post on 25-Jun-2015

3.311 views

Category:

Business


0 download

DESCRIPTION

Track 23. Co-Creation. Discovering your customer ubuntu ... with P&G case study

TRANSCRIPT

Page 1: Creative Genius. Extract from new book by Peter Fisk
Page 2: Creative Genius. Extract from new book by Peter Fisk

How can you think differently, better and deeper, and create a

better future for yourself, your business, and the world?

Ideas are the new currency of success

The world is changing at a phenomenal pace. Seismic shifts are

transforming your markets - often invisible, but with immense

implications. New technologies, economics, fashion and culture

have transformed people’s expectations and dreams. Survival

and success requires you to explore places no business has

gone before, to be more curious and creative - to see things

differently, and think different things.

World renowned marketing and innovation expert, Peter Fisk

explains how to drive more radical innovation and defines the

nature of genius in today’s business world.

Page 3: Creative Genius. Extract from new book by Peter Fisk

Start with the impossible,

then work out how to make it possible

Welcome to ―the Genius Lab‖, where inspiration meets perspiration,

with practical toolkits to find the best opportunities, connect insights

with ideas to develop more stretching concepts, and ensure the best

solutions have the most impact in their markets.

Learn from the strategies and processes of today’s most innovative

companies.

From life in the Googleplex, managing the people, projects and

portfolios that make the best innovations happen time after time, to

the creative rigour of Apple and El Bulli, Samsung and Threadless,

IDEO and Wieden+Kennedy – fusing deep insight with commercial

discipline to ensure that innovation delivers profitable growth.

Page 4: Creative Genius. Extract from new book by Peter Fisk

Creativity in business comes in many forms.

Insights and ideas, brands and design, new products and services,

new experiences and business models ... Creative thinking and

disciplined innovation applied to everything you do.

From rockstars to graffiti artists, scientists and entrepreneurs –

Leonardo da Vinci to Alberto Alessi, Donna Karan and Burt Rutan,

John Maeda and Shigeru Miyamoto ...

Creative Genius inspires you to think bigger in today’s complex

world, and to ―stay crazy‖ in practical and profitable ways.

Be bold, be brave, be brilliant.

Genius = intelligence + imagination = extraordinary results

Page 5: Creative Genius. Extract from new book by Peter Fisk
Page 6: Creative Genius. Extract from new book by Peter Fisk
Page 7: Creative Genius. Extract from new book by Peter Fisk

Extract from Track 23

Co-creation

Designing with customer ubuntu

From ―Customer Genius: Innovation from

the future back‖ by Peter Fisk

published in January 2011

Page 8: Creative Genius. Extract from new book by Peter Fisk

―Co-creation‖ is the creative process of development done collaboratively with others. Whilst

these others could be other companies or individuals, employees or experts, the term is most

often associated with customers.

Lego Factory is a co-creation facility, physical and online, where consumers work with others,

and the building-block designers to build future products. Ducati’s Tech Cafe is where bikers

hang out and design the next generation of superbikes. IBM’s Innovation Centres are where

clients run facilitated innovation programmes, and Samsung has a Virtual Product Launch

Center where you can find the coolest newest devices.

Whilst some companies have hi-jacked the ―co-creation‖ word to redefine customer research

techniques such as focus groups and immersion, others recognise that it is a bigger approach,

engaging customers as partners in a journey from ideas to implementation

• Co-thinking. Working with customers to understand their needs and wants, but also to

develop new ideas and possibilities, using collaborative creativity techniques. This is similar to

―crowdsourcing‖, but more personal. P&G take consumers away to hotels for weekends, or go to

their kitchens, to explore better ways to do washing or cleaning.

• Co-designing. Problem-solving together, by better defining the issues and potential solutions,

maybe encouraging people to submit new designs both in terms of the business, and the style

of products in the way Threadless rewards the best submitted t-shirt designs, or Jones Soda

prints your photos on their bottle labels.

• Co-evaluating. Testing ideas with customers, building advance customer networks, getting

their feedback for improvement whilst also turning them into lead-user ambassadors. This

might involve extreme users, for example Nike working with elite athletes to evaluate new

shoes designs, or Gore working on new fabrics with emergency services.

Page 9: Creative Genius. Extract from new book by Peter Fisk

• Co-developing. Customers can be as skilled and fanatical as your own technicians in being

able to develop better products, or specify better services. The Boeing 787 Dreamliner was

developed in partnership with customers, Nike ID design studio is at the heart of Niketown, and

IKEA ―allow‖ you to find your products in the warehouse, and build them yourself.

• Co-communicating. Customers can be your best, and more trusted, advocates. They might

write reviews on your website, or on other directory sites such as hotel customers on

Tripadvisor. They might even develop user-generated advertising for you, like made possible

with Scrmblr, and demonstrated by Converse’s social ads campaigns.

• Co-selling. People are much more likely to buy from friends and others like them, rather than

some anonymous salesman. ―Customer get customer‖ in return for a case of wine or iPod is

familiar to us all, as is the pyramid selling models championed by Avon and Oriflame, which has

even turned some of their most active customers into millionaires.

• Co-supporting. When something goes wrong, particularly when trying to use technological

devices, you need help and fast. User guides are gobbledegook, so you get online and ask other

users for help. Apple have utilised user communities to great effect, ensuring that you get an

answer to your question in minutes and in language which you actually understand.

This is a creative process, tapping into a diversity of customer backgrounds and utilising a

range of innovation techniques. It also needs to be carefully facilitated as it opens your business

to customers in a way they have never seen before, so professionalism and reputation still need

to be managed. It also helps you build relationships that no longer depend on direct mail or

loyalty cards.

And the best bit of all of this, is that customers will often give you all of this free.

Page 10: Creative Genius. Extract from new book by Peter Fisk

Whilst tapping into the resources of passionate customers is cheap and often delivers better

results, customers will increasingly become aware of their value. Incentives and discounts are

increasingly expected in return, and the innovative co-creators will rethink business models in

order to share the longer-term rewards with customers, either through pricing strategies or

profit sharing.

Page 11: Creative Genius. Extract from new book by Peter Fisk
Page 12: Creative Genius. Extract from new book by Peter Fisk

Proctor & Gamble ... from product push to customer pull

AJ Lafley departed P&G at the end of 2009 after a remarkable decade of transformation at the

consumer goods business. The first thing Lafley told his managers when he stepped up to the

CEO job in 2000 was just what they wanted to hear: Focus on what you do well -- selling the

company's major brands such as Crest, Tide and Pampers -- instead of trying to develop the

next big innovation. Now, old staples of the P&G stable have done so well that they are again the

envy of the industry, whilst many new innovations not sit alongside them.

Back in 2000, Lafley, 23 years in P&G, wasn't supposed to be a radical change agent, he was

supposed to bring some stability back to the business. Having spent his early years managing

Tide, a decade running the Japanese business, he had recently returned to head up North

American operations. He recognized the need for change, the need for more speed and agility,

a deeper understanding of consumers, and a more radical approach to innovation.

In his time in charge, P&G has not only experienced transformation internally, but has absorbed

some of its largest competitors too - buying Clairol for $5 billion in 2001, followed by Wella $7

billion, and Gillette for a huge $54 billion in 2005. He has replaced at least half of his most

senior managers top 30 officers, and cut many more jobs as part of his vision to turn P&G into a

virtual brand-owning company, with brand building and innovation as its core business, with

much of the latter done in partnership with others.

Lafley’s initial rallying call was incredibly simple, almost embarrassingly so, as he reminds

people in meeting after meeting that ―the consumer is the boss‖. With this phrase he is turning

P&G inside out – or more precisely, outside in.

Symbolically he tore down the walls of the executive offices, including his own. He moved

people about, for example seating marketing and finance people together to drive faster, more

Page 13: Creative Genius. Extract from new book by Peter Fisk

collaborative, more commercial, much customer-driven ways of working. He spent hours,

himself, talking to real consumers in their homes around the world - about how they live, how

they cook, how they clean. When his managers came to him with an idea, he was ready to

respond with a consumer’s mindset.

Innovation, in particular, has come under the microscope. Despite battalions of scientists and

engineers, P&G hadn’t delivered a real innovation in decades, despite millions of dotcom-style

dollars being pumped into internal ventures. When they tried to innovate, it was always based

on a technically-advanced product offer, rather than something consumers actually wanted.

Two major initiatives drove his innovation agenda – ―Connect and Develop‖, a co-creation

approach to developing new ideas with partners and consumers, and ―design thinking‖, using

those insights to create dramatically improved brand experiences.

―Connect and develop‖ started from Lafley’s goal that at least 50% of new products should come

from outside, compared to 10% when he began. This would require a huge culture change, from

a world where research scientists ruled, to one where ethnographers had the upper hand. The

new approach was also is about collaboration, with a diverse array of partners who had

specialist skills and perspectives which P&G didn’t, and couldn’t have internally.

The initiative is P&G’s version of open innovation – working in partnership with external expert

companies to access their ideas and capabilities, and equally those of consumers. It works in

both directions, inbound and outbound, and encompasses everything from trademarks to

packaging, marketing models to engineering, business services to retail partnerships. It started

with Lafley’s goal that at least 50% of new products should come from outside, compared to 10%

when he began. This would require a seismic culture change, and putting your future in the

hands of others would be risky too. The new approach is about collaboration, with partners who

have specialist skills, P&G doesn’t, and with consumers.

Page 14: Creative Genius. Extract from new book by Peter Fisk

"Design thinking" has also become a core driver of P&G’s culture change under Lafley. Business

leaders have learnt to focus and listen, build and design – rather than order and control. Teams

work together rather than apart. The best ideas come from customer immersion not from the

research scientists. Business cases have been reduced to one page posters, rigorous evaluation

has been overtaken by rapid prototyping, and new products and services are rolling out like

never before.

"It has been transformative for our leadership teams," says Cindy Tripp, marketing director at

Page 15: Creative Genius. Extract from new book by Peter Fisk

P&G Global Design, when describing her task implementing the company's new approach to

design-centred innovation to Business Week. Embracing 100 internal facilitators, more than 50

design thinking workshops are held in P&G business units across the globe each year. The

facilitators comes from every function at P&G, pushing the workshops to think beyond products,

and at least half the time is spent thinking about strategy, retail, operations and consumer

applications. People are encouraged to learn fast, and sometimes fail fast, every day.

.

Olayforyou.com is a new online beauty service. It provides a calming, easy way to receive a

professional beauty consultation without ever leaving your own home, all using intuitive

programming, based human-centred interface design. Through menu choices that indicate your

interests and skin issues, Olay is able to start a new type of dialogue while collecting important

data that can be more informative than expensive market research.

Design thinking was initially driven by VP Design, Claudia Kotchka who was asked by her then

CEO Lafley, to build design into the DNA of the company. At P&G this would normally result in a

complex, highly specified process but she knew that good design comes through attitude rather

than dictate. It needs a cultural pull rather than process push mechanism to work. At first people

wanted to know about the academic theory behind the process, which stifled thinking and

behaviours, but slowly they embraced the more experiential approach, engaging in problem-

solving rather than product-thinking became intuitive to them, as did the search for new

stimulus that led to creative solutions.

The resulting design thinking workshop structure became more of a fast-paced immersive

experience that ends with a serious reflection point about what's different using this

methodology. The main lesson was that people need to do design thinking rather than just think

about it. People who previously sat behind the safety of desks and lab benches were initially

scared to talk to real consumers, or to just build a prototype and try new ideas. But then by

doing it they found it worked. Indeed, counter intuitively, the less finished the prototype, the

Page 16: Creative Genius. Extract from new book by Peter Fisk

more feedback it got.

Kotchka, writing in Front End Innovation believes that ―design thinking activates both sides of the

brain—it makes participants more creative, more empathetic toward the human condition P&G

consumers face. Our managers don't leave their analytical minds at home; instead they are able

to operate with their whole brain, not just the left hemisphere."

Net revenues have grown from $55 billion in 2005 to $79 billion in 2009, with 60% growth in

profits over the same period. Not only this, but 42% of P&G products now include an externally

sourced component. It seems that P&G, with the customer as its leader, and design thinking as

its discipline, is doing very well.

For more information, detailed contents and more

extracts from Creative Genius : Innovation from the

Future Back, the new book from Peter Fisk, go to

www.CreativeGeniusLive.com

To order your copy now at a special discount go to

www.wiley.com/go/genius

For more about author Peter Fisk, inspirational

speaker, and business advisor, go to his website

www.theGeniusWorks.com

Page 17: Creative Genius. Extract from new book by Peter Fisk

www.CreativeGeniusLive.com