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Innovation through co-creation: Lessons from international experience Dr Nick Coates & Phil Burgess

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Page 1: International Innovation for AURA

Innovation through co-creation: Lessons from international experience

Dr Nick Coates & Phil Burgess

Page 2: International Innovation for AURA

600th Community launched this week

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1 Let’s talk innovation

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We believe

1.

The best innovation is

customer-centric, not

R&D-led

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We believe

1.

The best innovation is

customer-centric, not

R&D-led

2.

Co-creation is the most

powerful tool for

doing this

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2 Let’s talk co-creation

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Co-creation isn’t…

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Crowdsourcing can work

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It can also backfire

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Co-creation is…

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Creativity Collaboration Control

Focus on outcomes Non-rational focus

Reaching new places ‘creative’ approaches

[not just choosing]

Interactivity Snowballing

Real-time component Social

[not a solo effort]

Purposive; often time-bound Organisation-led

Facilitated

[not organic]

What defines co-creation?

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2000s 2010 1960s 1970s 1980s 1990s pre-history

Participatory architecture (Gehl, Price, Huth)

Psychoanalysis (Freud) User innovation

(von Hippel)

Open source movement (Linux, Mozilla)

User-centered design

Evolution of co-creation

Action Research

Psycho-doodles

Co-design

Open Space

Big Talk Communities 3D

printing

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International examples

Brand innovation

Business innovation

Service innovation

Retail innovation

Product innovation

Working with customers to explore and

create a new global brand platform for

Tempo, in Hong Kong, Germany

and Italy

Collaborative sessions for the

new management

team and their target

customers to help launch

Virgin Poland

Using hotel staff across a

global network to generate

‘local experiences’,

the currency of a new breed of loyalty scheme

Co-creating the ‘restaurant of

the future’, leading to

family concepts stores in UK,

France & Germany

Co-creating the interior of the new fleet of A380s, using

frequent flyers and designers in

the US, Australia and

UAE

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The advantages of co- creative innovation

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When it works, co-creative innovation…

…does it all earlier, quicker and with greater agility

Better engagement & understanding

Enhanced creativity and commitment

Stronger insights,

ideas, belief

Reduced costs and time to

market

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More creative input & imagination

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Better insights (Activia)

• The insights generated from the community were 82% more effective than those generated through traditional methods. (Danone IPSOS Study)

• The community generated 47% more insights than those produced using traditional off-line methods (e.g. focus groups)

• Insights fed into the development of the Activia campaign: Tummy Loving Care.

• The campaign resulted in a +9% uplift in base sales.

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Better belief (Kraft)

+ managers in 60 markets online

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Faster implementation (Orange)

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3 5 myths about co-creation

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Myth 1 It’s just a big focus group

In fact: co-creation’s a different philosophy, a way of working, not a format…

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Myth 2 Consumers will give you the answer In fact: the answer can come from lots of places, and at different moments

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Myth 3 It’s about consumers doing the hard work

In fact: it’s not about delegating decision-making, it’s got to be collaborative

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Myth 4 Consumers don’t know what they need In fact: they are often very good at telling us what they need, if we listen for possibility

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Myth 5 We need special people, the 1%ers

In fact: we need to create the right environment not recruit ‘special’ people

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We believe

1.

The best innovation is

customer-centric, not

R&D-led

2.

Co-creation is the most

powerful tool for

doing this

3.

The key driver of co-creation is

360o creativity

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4 Let’s talk creativity

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Involve Homo Ludens – the spirit of serious play

OR

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Invent your own game: build group self-confidence

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Tantrum: break down inhibition from the start

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We believe

1.

The best innovation is

customer-centric, not

R&D-led

2.

Co-creation is the most

powerful tool for

doing this

3.

The key driver of co-creation is

360o creativity

4.

Creativity is a universal

human capability, not a skill

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4 Lessons from international experience

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Fundamentally, creativity travels…

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Think traders won’t write love letters? Think again

When we first met I had uncertainties and inhibitions, while you were salivating. A few times I got upset when you put your hands in my pockets rather inappropriately, but after your apologies and promise to behave, we happily moved on.

Nobody does what you do nearly as well - though there are some things you can't or so far don't want to do so I have to see someone else on the side until you change your mind. I appreciate that you're low maintenance and without many mood swings. I'm always thrilled to manipulate your platform and sometimes overdo it, which ends up costing me more than you. I'll be having a small corporate baby soon, will you be able to take care of it? Raphael

The first time I heard about you was in industry chatter. The first time I saw you I thought ‘wow this looks good’! Our first date was mmmm. I was expecting you to deliver. As I got to know you better, I thought that must be in the fine print. Our relationship now is tiring and things are going worse. In the future, I can imagine us living apart unless you drastically change your ways and there is a overhaul of your charts and reliability. Jters

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All over the world, drawing works…

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Don’t let stereotypes limit your creativity

People will do things for you, in most markets…

And it’s easy to assume some are more different

than they actually are Source: Communispace –

Breakthroughs without borders

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But there are bumps in the road…

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Challenge 1 Culture

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What’s socially acceptable can be a barrier

Creative games work all over the world

Sometimes talking about things doesn’t

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How much mess you can make varies…

Messy play in some markets = OK

In Hong Kong we needed a bathroom

break

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Beware stimulus! (Virgin Polska)

BORED / SAD? COOL!

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Challenge 2 Logistics

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Practical issues can often be a drag…

Broadband penetration in Peru CEO who can’t type in Chicago

Mortality rate in Africa Venues in Hong Kong

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The usual international fieldwork issues apply

Long evening work? Factor in prayer time!

Punctuality? Beware ‘Cairo time’

Local partners? Recruiter says no…

But co-creation can be demanding and place extra burdens on people

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Challenge 3 Organisational

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In January 2012 we built L’Atelier Gervais An online insight and innovation community of

300 Mums of 2-8 year olds

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Don’t let fear get in the way of experimentation

De mon côté j 'ai toujours été bien ronde aussi depuis petite. Depuis que j'ai su que j'étais enceinte ma crainte est venu aussi de faire attention aux poids de mes

garçons. Sans tomber dans l'excès. Mais comme tu l'écris je vis avec cette pensée secrète et je les observe pour être sur qu'ils soient bien dans la norme si on peut

dire! - Virginie

I’m someone who’s always been a bit on the round side, even young. As soon as I found out I was pregnant I started worrying about my boys’ weight. It wasn’t

excessive, but just like you were saying, I am living with this secret thought and I watch them to make sure they are ‘normal’ so to speak - Virginie

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Don’t let the brand police kill creative ideas

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Don’t let creatives ‘own’ creativity

Consumers? Not grounded enough They don’t understand how complicated it really is

Consumers? They haven’t trained for this,

that’s our job; “step away from the creative”

The R&D department The creative agency

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Thank you!

Dr Nick Coates | Consultancy Director [email protected] Phil Burgess | Consultancy Director [email protected]

Promise Communispace 76-80 Whitfield Street London W1T 4EZ 020 7082 1747