fronteer strategy - co-creation's 5 guiding principles
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FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
CO-CREATION’S
5 GUIDINGPRINCIPLES
A White Paper by Martijn Pater, Fronteer Strategy
Amsterdam, May 2009
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Co-creation’s 5 Guiding Principles
OR .... WHAT IS SUCCESSFUL CO-CREATION MADE OF?
In this white paper, we identify different types of co-creation
(suitable for different types of challenges), present 5 guiding
principles for success, discuss the value of co-creation and
present a number of inspiring cases from around the world.
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FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Co-creation - what is it?
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We define co-creation as the practice of collaborative product or service development: developers and stake-holders working together.
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FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Co-creation - where does it come from?
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Co-creation is part of the
Open Innovation trends
going on since the 50‘s
Traditional business processes have changed
Customers want more involvement with their products
An enormous amount of
knowledge has become
accessible
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Because of these trends, companies face
challenging questions
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How to get - or stay - connected with customers?
Where can I find future growth?
How to innovate from the core?
How should I deal with the risk of commoditisation?
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
But markets change and new rules apply...
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99,995% of the people don’t work at your
company...
They might have some good ideas...
Why not capture them?
But opening up can be scary
- most companies hesitate to
share ideas and strategies
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Co-creation - how does it work?
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There is always 1 initiator
- either company or just a
single person - that decides
to start the initiative
Contributors will be joining
along the process, but the
initiator determines who can
join and under what conditions
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
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100% Consumers
Only 1% of people in any
community generates the
majority of the creative output
1% Creators
10% Synthesisers
If you open up, keep in
mind the ‘1% rule’
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
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Co-creation is more than a tool, it’s a program of change
It can be used to...
... tackle your toughest strategic challenges
... get a fresh perspective on your business
... develop breakthrough new ideas
... unlock the world outside and bring it inside
... connect with partners, customers, consumers
... bring excitement to the floor
... work with the 1% most creative peopleFRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
4 Types of Co-creation
There are many ways to go about Co-creation, and which to choose depends
on the challenge and objectives at hand.
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The 4 types of co-creation are based on 2 dimensions:
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Ownership who owns the challenge &
the outcome?
Openness who can join the challenge?
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
The 4 types of co-creation
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Anyone can join
Selection process
Initiator Initiator + Contributors
Club of Experts
Community of Kindred Spirits
Coalition of Parties
Ownership
Open-ness
Crowd of people
Crowd of People
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Crowd of people
For any give challenge there might be a person ‘out there’
with a brilliant idea
Threadless enables contributors to send in and
rate t-shirt designs. Profits on sold items are
shared with the designer. Not bad: a full 30%
profit margin selling t-shirts with no R&D cost,
low investments and hardly any employees.
Community of kindred spirits
People or groups with a similar goal develop something for the
‘greater good’
The Linux open source operating system
software was developed by users and for
users. The software code is free to use and
owned by nobody. It started with one
simple e-mail with a request for help.
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Nokia organises ‘lead user’ and
‘expert’ co-creation sessions to
develop visionary new products
and services.
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Club of experts
For specific, time-pressured challenges when expertise and breakthrough ideas are needed
Coalition of parties
In certain complex situations parties with specific skills team up to share knowledge, ideas
and investments
Heineken has successfully developed
the ‘Beertender’ in co-operation with
Krups. A development period of 10 years
resulted in the first true packaging
innovation in beer in a long time.
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FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
5 Guiding Principles of Co-creation
Successful co-creation initiatives tend to have a number of characteristics in common.
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5 Guiding Principles of Co-creation
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Inspire participation
5 Guiding Principles of Co-creation
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Select the very best
Inspire participation
5 Guiding Principles of Co-creation
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Select the very best
Inspire participation
Connect creative minds
5 Guiding Principles of Co-creation
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Select the very best
Inspire participation
Connect creative minds
Share results
5 Guiding Principles of Co-creation
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Select the very best
Inspire participation
Connect creative minds
Share results
Continue development
5 Guiding Principles of Co-creation
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Inspire participation
Trigger people to join your challenge
Alessi has been inspiring designers
for many years to contribute to the
Alessi brand, in return for exposure
and shared gains.
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FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Innocentive is a platform where scientists and
other experts are gathered to solve tough
scientific challenges. Their track record is
impressive: 30% of all problems posed are solved
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Select the very best
Find the best ideas and the best people
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Connect creative minds
Enable people to work together and find that
‘spark’
Lego developed new generation Mindstorms
products together with lead users of the
Mindstorms Developer Program. They have
helped Lego improving their product ranges far
beyond Lego’s wildest dreams.
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Share results
‘Giving back’ is crucial*
Co-creation was part of many of Apples
successes and also drives the Apple iPhone
App store success. The profits are shared,
70% is for the developer, 30% for Apple.
28 *Compensation doesn’t have to be monetary, sharing IP is a next step
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Continue development
Co-creation only delivers when it is a longer-term
engagement
Procter & Gamble set high co-creation
standards: 50% of new products should come
from outside the company. P&G’s Connect &
Develop platform invites external people &
companies to innovate with them.
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FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
4 Areas of Value
Return on investments in co-creation can be found in several areas.
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4 Areas of Value in Co-creation
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Direct S
pinoffs
Future
Spinoffs
Direct ResultsFuture Results
Gen
era
ted
Va
lue
Time
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Direct results correspond with the
project goals that have been set: often
new products and services, which
generate economic value
Direct spinoffs cannot be measured in
terms of profit, but create enormous value.
Unexpected effects can occur like new
contacts, collaborations and brand
ambassadors.
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A successful new product introduction
can generate a snowball effect within a
category, creating future results
Future spin-off effects are
unpredictable. Side-effects of certain
actions are hard to oversee, but what
we can say is that action taken now will
have an effect sometime in the future.
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.