lego cuusoo project

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How Lego co-create value? Answer: Cuusoo project

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Lego CUUSOO

value co-creation project

Kolyasnikova Anastasiya

Pugaeva Marina

Makarova Yana

Introduction

3

What is LEGO CUUSOO?

4

Lego Cuusoo is a new international web-based open innovation and

crowdsourcing platform.

Lego Cuusoo provides its customers an opportunity to create a new Lego

product, build it and submit it on Lego.cuusoo.com

Ideas that are supported by 10,000 votes have a chance of being selected to

become part of the LEGO portfolio and sold in LEGO stores.

Consumers who have their ideas chosen will earn 1% of the total net sales of

the product.

Currently there are 3,787 live projects at LEGO CUUSOO.

3 co-created products have been launched to date, and a 4th one is in

production.

5

Goal:

is to crowd-source new product ideas and to launch products

which are desired by customers.

6

Now vote for:

Analysis

Eight styles of company-customer

value co-creation

8

Co-creation tree

Value

Experiences

Interactions

Engagement platforms

Networks

Creating new products is a good

experience - LEGO and consumers

benefit in terms of value and risk.

LEGO constant opens up its design

process to consumers, further

enhancing the experience

An online community of consumers who can create new LEGO product, discuss other ideas and

support best product

Lego Cuusoo co-creation

platform aimed at getting

consumers to submit ideas for

new Lego products

- with creators in own platform and creator-to-creator

community interaction - with power users around final design, applicable licenses,

production run size, sales channels, etc

9

DIALOGUE ACCESS

•Between company and consumers

•LUGNET – Brand Community co-creation

within community

•Full stakeholders model

•No opaqueness on price, cost and profit

•Organization wide access

•Access points into inner working of organization

•Explore power dynamics

•Organization boundaries are redrawn

TRANSPARENCY RISK

•Information on Product, Technology and

Business System more accessible

•Corporate Exposure Growth of Social Media

Role of Communication

•Full stakeholder model of brand co-creation

•More knowledge of stakeholders

•Harming Customer IPR (intellectual property

right)

•Imagined co-creation overlooking opportunity

reputation

•Losing distinctiveness

•Loss of control

•Loss of credibility and authenticity

DART model

10

Morphological grid box of co-

creation (1)

WHEN

Opportunities & Ideation

Concepts Design & Engineer

Testing Launch

11

WHO

Position in Value Chain

Intermediary End customer

Customer Relationship Existing customer Latent customer New customer

Activity Level Passive

consumer/user Well-informed & pilot customer

Lead user & innovator

Identification screening pyramiding Online signaling &

broadcasting

Incentives intrinsic extrinsic Mixed model

12

Morphological grid box of co-

creation (2)

HOW

Regularity One time repeated routine

Continuity within innovation process

Single stage Many stages Throughout all

stages

Accessability open restrictive close

Branding branded anonymous

Technique Crowd-sourcing

platforms Online labs &

toolkits

Netnography & Board

Discussion

Lead user & other offline

methods

Communication Pattern

Producer/ customer

Producer/ customer/ customer

Intermediation/ Innomediation

Intermediation No

intermediation 13

Morphological grid box of co-

creation (2)

Stakeholders

Consumers

Employees

Business partners

Society

14

18

3 0 , 0 0 0

“ l ike s”

Twe e t e d

4 , 0 0 0

t i m e s

6 t h

m o nt h

co nce p t

19

Conclusion

Advantages

+ Lego receives original ideas from

the clients

+ Fan support provides indication

of the potential popularity of

the product.

+ So, Lego can predict market

potential.

+ Improves a positive image of the

company

+ Establish a strong fan base

+ Decrease long-term costs

20

Restrictions LEGO rejects projects that aren’t an

ideal fit:

- Ideas which are inappropriate for

young audiences.

- Products which are too costly to

produce

- If there is a barrier in obtaining the

license from original copyright

holders (for instance, My Little

Pony – Friendship is Magic, a

property owned by

competitor Hasbro)

- Launching a new product is a time

consuming process, so the company

can lose trends while producing it.

What does this case give

the other companies?

an opportunity to engage

customers,

to conceive clients needs,

to comprehend current and future

trends and market potential for

each product

to decrease company’s long-term

fixed costs.

21

22

References

1. Official site of LEGO CUUSOO: http:// LEGO.CUUSOO.com/

2. Official Digital designer by LEGO: http://ldd. LEGO.com

3. LEGO CUUSOO. What happens when you throw open the doors to the proverbial LEGO

factory? June 15,2012: http://www.slideshare.net/TimCourtney/ LEGO-CUUSOO-at-brickworld-

2012

4. People’s Insights Volume 1, Issue 48: LEGO CUUSOO:

http://peopleslab.mslgroup.com/peoplesinsights/peoples-insights-volume-1-issue-48- LEGO-

CUUSOO/

5. ZinC Opportunity Design. Official cite:

http://chrislawer.blogs.com/chris_lawer/2007/05/value_value_val.html

6. LEGO CUUSOO: LEGO's Open Innovation and Crowd Sourcing Platform -Dexigner

http://www.dexigner.com/news/23980#ixzz2NnunA0ao

7. How Lego's Great Adventure In Geek-Sourcing Snapped Into Place And Boosted The Brand.

By Matthew Kronsberg. February 2, 2012: http://www.fastcompany.com/1812959/how- LEGOs-

great-adventure-geek-sourcing-snapped-place-and-boosted-brand

23

Q&A

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