what is social product development? -

October 20-‐24, 2012 Buena Vista Palace Hotel & Spa Orlando, Florida

Managing the Risks When EvaluaFng Crowdsourcing and Social Product Development

Paul Dombowsky CEO

Ideavibes

Product InnovaFon Management 2012 Conference October 20-‐24, 2012 Buena Vista Palace Hotel & Spa Orlando, Florida

Key Learning Points

1.  Benefits an organiza?on can gain from social product development

2.  How to iden?fy poten?al risks if your organiza?on chooses to use employ social product development?

3.  Best prac?ces to keep in mind in order to mi?gate the risks


My Cred

•  Founder and ceo of Ideavibes (since 2010) •  Governments – crowdsourcing for ci?zen engagement and open innova?on •  Brands – crowdsourcing for open innova?on – customer engagement – social product development -‐ support

•  Founder of Fundchange – crowdfunding site •  Marke?ng – Product Marke?ng – Biz Dev Roles

•  SoRware •  Telecom Equipment •  Digital Agency


Social Product Development?


What is Social Product Development?

•  A product development / marke?ng framework where product or service organiza?ons use engagement and open innova?on with internal and external stakeholders for the development of products or services in various stages of the product development life cycle. Crowdsourcing can be part of a social product management strategy.


Social Product Development Benefits Comparing 2010 + 2011 Kalypso Viewpoints Study

hXp://kalypso.com/viewpoints/resource/predic?ons-‐for-‐social-‐product-‐innova?on-‐in-‐2012/


Social Product Development Challenges

hXp://kalypso.com/viewpoints/resource/predic?ons-‐for-‐social-‐product-‐innova?on-‐in-‐2012/


What are the ConversaFons?

•  Idea/Requirements/Feature gathering •  Valida?on (strategy, requirements, usability +) •  Use Cases, User Stories •  Persona development •  Beta recruitment •  Success stories •  Tes?monials •  Usability / Product Appeal •  Scalability


Why are we talking Risks?

•  Why would a vendor in the space talk risks? •  It’s the number one challenge our firm faces when helping clients move to social product development •  Even though these groups want to more ac?vely engage customers and prospects to influence the product development process


Who’s doing it?


Examples of Social Product Development


What do Product Development Folks Say about Social Media and SPD?


Survey Says Ideavibes survey of product development teams to understand use of ‘social’ as part of the way they develop and update products.


This Means …

•  Although not scien?fically accurate, it says Product Development s?ll, for the most part, doesn't get social media and is missing out on opportuni?es to strengthen rela?onships with customers and build customer driven products and services.

•  Why? What is the problem?


Iden?fying the Major Risks


Product Lifecycle – Where The Risk Can Creep In

Vision/Need

Define Customer

Define Product

Develop Product

Test Product

Deliver Product

Refine Product

Crowdsource Op?on: features & func?onality

Capture new customers with op?ons & features they are looking for.

Crowdsource Tes?ng – early adopters reward

Socializing requirements and priori?za?on gathering improves decision making


Risks of Social Product Development and Crowdsourcing in PD

Segmenta?on Compe??on

Fragmenta?on Execu?on

Flavouriza?on Organiza?onal Behavioriza?on

Benchmarkiza?on Iner?a



Segmenta?on

Fragmenta?on

•  Absence of selec?ng par?cipants may result in a mix of conflic?ng requirements

•  Presence of too narrow a segment may cause special interest group biases or fragmenta?on

•  May result in too many requirements with weak support

•  Could have ver?cal industry or geography biases



Benchmarkiza?on

•  Par?cipants may take one or more ideas and each create their own twist, leads to Segmenta?on (#2)

•  Suffers from clarity challenge – how people define things

•  What if only 30% of people want it? Do you implement?

•  What if you only have one product – how do you decide?

Flavouriza?on

I know – not a word – but go with me on this


Execu?on

Compe??on


•  Will open informa?on help compe?tors more than is acceptable?

•  Can you execute on the input from the crowd? If you can’t, are you in an industry where this hurt your brand?


Iner?a

Organiza?onal Behavioriza?on


•  Does your product team accept input from customers or the broader crowd?

•  Does management believe openness will hurt compe??ve posi?on?

•  Is your product team going to feel devalued and lose mo?va?on?

•  What is the risk of not engaging the crowd? •  Are your compe?tors doing a beXer job of

listening and engaging with customers and prospects


BUT…

•  As every product person knows:

•  Opportunity for: •  New products •  New markets •  New segments •  Stronger rela?onships with customers

RISKS = OPPORTUNITY


Managing Risk With Strategy

•  Focus on reaching customers & prospects where they live – join in the conversa?ons that are happening already

•  Capitalize on valuable customer and prospect insight in a way that benefits you more than gives insight to compe??on

•  Develop a culture of collabora?on •  Implement the right social technology to manage risk •  Communicate results and inten?ons and be open as possible •  Let conversa?ons happen in the open •  Be crowd friendly on an ongoing basis


Managing Risk With Planning

•  When trying to become more social with your product development, managing communica?on internally is key.

•  Knowing your organiza?on’s willingness to change helps. •  Well thought out strategy will prevent product teams from gemng

their backs up – blocking change. •  Pilot projects help. •  Build network – customers and prospects •  Have an internal champion willing to plant a stake on the

importance of involving voice of customer more. •  Ar?culate where the balance between openness and IP protec?on

is ideal for your organiza?on. It should move over ?me.


Managing Risk With Resource Mgmt

•  Web and IT Resources •  Community Management •  Social Media •  Financial backing to launch program •  Oversight


Develop Creditability to Reduce Risk

Create a reliable paXern of engagement •  Ask meaningful ques?ons •  Answer relevant (high visibility) ques?ons •  Provide meaningful informa?on •  Declare a call to ac?on •  Follow up & follow through •  Invite to par?cipate


To Sum Up

•  Benefits of going social with product development have to be weighed against risks for your organiza?on

•  Choosing the right strategy should avoid internal challenges

•  Monitor results and adapt to maximize ROI vs Risk balance

•  Keep an eye on how customers – prospects – compe?tors are responding


Thank you


Resources

Crowdsourcing.org | www.crowdsourcing.org Whitepaper Risk and Crowdsourcing | www.ideavibes.com

Innova?on Management | www.innova?onmanagement.se


Coordinates

Paul Dombowsky 613.878.1681 [email protected] @ideavibes www.ideavibes.com blog.ideavibes.com

what is social product development? -

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