outside innovation
DESCRIPTION
How Customers are Shaping the Future of Businesses and their Products and How You can Harness Customer-led InnovationTRANSCRIPT
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2007 Patricia Seybold Group
Outside Innovation
How to Leverage Your Customers’ Creativity
Patricia Seybold, CEO Patricia Seybold Group, Inc.
NEDMA- May 14, 2007
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Page 2 2007 Patricia Seybold Group
What is “Outside Innovation?”
Customers roll up their sleeves to co-design their products and your business.
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What is “Outside Innovation?”
Customers attract other customers and partners to build a vital customer-centric
ecosystem around your products and services.
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What is “Outside Innovation?”
Customers drive the design of your business processes, products, services,
and business models.
I want to get a great deal and get my
rebate promptly, with no hassles!
Staples Easy Rebate®
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© 2006 Staples, Inc.
Customers determined how to categorize products
Ethnographic research led to Easy Reorder
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Lead customers
Consultants
Guides
Contributors
Promoters
Five Roles Customers want to Play
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Patterns for Customer Innovation
1. Engage customers in all five roles: consultants, contributors, guides, promoters, lead customers
2. Nurture customer communities
3. Co-design with lead users/customers
4. Provide tools & streamlined support to help them reach their goals
5. Empower customers to “strut their stuff”
6. Open your products and engage customers in peer production
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Mozilla is Designed by Lead Users & Contributors
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Mozilla is QA’d by Users Acting as Consultants
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Mozilla is Supported by Users acting as Guides
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Mozilla is Promoted by Users
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Karmaloop’s Lead Customers: Urban Streetwear
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Karmaloop Community Finds and Reps the Products
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Customers are acknowledged for posting
Customers rate each other’s contributions!
National Instruments’ Vibrant Community
50% of new products created
by customers
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Patterns for Customer Innovation
1. Engage customers in all five roles: consultants, contributors, guides, promoters, lead customers
2. Nurture customer communities
3. Co-design with lead users/customers
4. Provide tools & streamlined support to help them reach their goals
5. Empower customers to “strut their stuff”
6. Open your products and engage customers in peer production
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• Their self-image is deeply connected to the problem domain at hand
• Passionate about their outcomes and issues
• Influential in their circles
• Thoughtful and insightful
• Imaginative, visionary
• Pragmatic, realistic
Engage Lead Customers
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Zopa Founders Co-Designed with Lead Users
Discovered a new Segment: Freeformers
• People who want control over their time and their careers
• People who don’t want to work full-time for one company as “slave laborers”
• Distrust banks and other financial institutions
• Have difficulty getting loans
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Zopa Co-Designed a New Lending Model
• Identified Lead Users (in an un-served market)
• Conducted ethnographic research
• Ran co-design sessions
• Brainstormed possibilities
• Piloted peer-to-peer lending model
• Engaged in continuous learning
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Co-Designed a Solution to Meet their Goals
I want to borrow money easily, on my terms, to meet my goals without
dealing with an impersonal institution.
I want to invest money safely, on my terms, grow my income, help others
improve their lives.
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Co-Design to Meet Customers’ Outcomes
Customers’ Streamlined Scenarios
Your Company’s Streamlined Processes
Moment of Truth
Moment of Truth
Desired Outcome
s
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Moments of Truth = Business Opportunities
• A real “Moment of Truth” is a showstopper
• It keeps a prospect or customer from reaching their desired outcome
• It’s when they can’t get things done “their way”
• Goal: understand customers’ contexts, outcomes and key moments of truth
• Ask them to quantify metrics around moments of truth (elapsed time, conditions of satisfaction, specific parameters)
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The Koko Fitness ExperienceDesigned with Customers
Customers’ Moments of Truth:
•30 minutes
•Don’t need to think
•Easy to use
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Provide Tools to Help them Reach their Goals
Koko Fitness Smartrainer
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Koko Fitness Provides Realtime Feedback
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Build an Ecosystem around Customers’ Outcomes
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Cu
sto
mer
-Cen
tric
Cu
ltu
reCustomer-Led
Innovation
Unified Online Experience Transformation
Customer-Prioritized Business/IT Roadmaps
Use Customer Co-Design to Achieve:
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Moment of Truth
Moment of Truth
Co-Design to Meet Customers’ Outcomes
Customers’ Streamlined Scenarios
Your Company’s Streamlined Processes
Your Partners’ Streamlined Processes
Desired Outcome
s
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What We Did in the Co-Design Session:• Co-design streamlined Customer Scenarios and identify customers’ moments of truth and metrics
• Build organizational consensus around customer-critical issues
• Use customers’ metrics to drive priorities!
Co-Design Customers’ Ideal Experience with Lead Customers
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Patterns for Customer Innovation
1. Engage customers in all five roles: consultants, contributors, guides, promoters, lead customers
2. Nurture customer communities
3. Co-design with lead users/customers
4. Provide tools & streamlined support to help them reach their goals
5. Empower customers to “strut their stuff”
6. Open your products and engage customers in peer production
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Provide Tools to Help Customers Reach their Goals
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Application
Resources
DiagramLayout
SystemOverview
National Semiconductor’s WEBENCH Toolkit
SortableSelection
Guide
WEBENCHWEBENCHSimulationSimulation
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How Customers’ Designs Spur Innovation
National Semiconductor has leveraged customers’ designs to be able to provide pre-packaged solutions for:
• Mobile phones
• Gaming controls and consoles
• Hand-held devices
• Flat panel displays
• Medical imaging
• etc…..
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Provide Customization and Innovation Toolkits
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Let Customers use Your Tools Anywhere!
Design your shoes on your cell
phone, and see your design on
the Billboard in Times Square
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Let Customers use Your Tools Anywhere!
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Support a Continuum of Customer Innovation
Lead Users Improvise
Create Customizable
Solutions
Customers Purchase
New Product
Customers Configure Solutions
Customers Hack or Extend
Solutions
Commercialize Lead Users’Innovation
Recommend Solutions
Lead Customers Improvise
Create Next GenerationProducts
CreateExtensibleSolutions
CommercializeNew Solutions
Partners Create New Solutions
Customers Create New Solutions
C O M M U N I T Y
CAPTURE PATTERNS
CAPTURE PATTERNS
CAPTURE PATTERNS
What Customers Do
What Brand Owners Do
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Help Customers Strut their Stuff
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Help Customers Strut their Stuff
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Discover New Products & Services
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Help Customers Strut their Stuff
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Customers Will Create their own Mash Ups
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Engage in Open Access and Peer Production
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2007 Patricia Seybold Group
Next generation games: Co-designed by customers
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Take-Aways
1. Engage customers in all five roles: consultants, contributors, guides, promoters, lead customers
2. Co-design with lead users/customers
3. Provide tools & streamlined support to help them reach their goals
4. Nurture customer communities
5. Empower customers to “strut their stuff”
6. Open your products and engage customers in peer production
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2007 Patricia Seybold Group
Patricia SeyboldCEO, Consultant, and Author
Patricia Seybold Group, Inc.
It’s YOUR turn!
Questions, Comments, Feedback!