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Fronteer Strategy, a strategy boutique from Amsterdam, presented at the Dutch broadcasting event NPOX in September 2010. This is the presentation
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10 STEPS FOR SUCCESSFUL
CO-CREATION
NPOX2010
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Door: Martijn PaterFronteer Strategy
Hilversum, 9 September 2010
ABOUT FRONTEER STRATEGY
Fronteer Strategy
Innovation.
Co-creation.
Brand Development.
Change.
Leading Co-creation consultancy.
Blue chip client base in The Netherlands and abroad.
People’s background in fashion, design, engineering, marketing, consulting
5
10 STEPS FOR SUCCESSFUL
CO-CREATION
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
1. Realise one thing2. Define your strategy3. Inspire participation4. Select the very best
5. Connect creative minds6. Share results
7. Continue development8. Think R.O.I.
9. Get the IP right10. Mobilise internally
7
Where does it come from?
8
Focus Groups
Experts panels
Outsourcing
Crowd-sourcing
Open Source
50’s- 90’sEarly days
User-generated
Customer Feedback
R&D
Academic sharing
Design Contests
Collaborations
Prosumers
Mass customisation
Social Media
Now
Co-creation
Participatory Design
12
“Co-creation unlocks the collective creativity of
people to create deeply relevant solutions.”
9
What is it?
Source: Copenhagen Co-creation
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
1. Realise one thing
10
11
“No matter who you are, most of the smartest people
work for someone else.”
Bill Joy, Founder Sun Microsystems
Why would you?
Unpredictable systems
12 Source: Banny Bannerjee, Stanford University
McKinsey report:
Clouds, big data, and smart assets: Ten tech-enabled business trends
to watch:
1. Distributed cocreation moves into the mainstream
13 Source: McKinsey
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
2. Define your strategy
14
Club of Experts
Crowd of People
Community of Kindred Spirits
Coalition of Parties
Anyone can join
Selection process
Initiator Initiator + Contributors
Ownership
Open-ness
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
4 Types of Co-creation
15 Source: Fronteer Strategy Whitepaper
Club of Experts
Anyone can join
Selection process
Initiator Initiator + Contributors
Ownership
Open-ness
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT. 16
4 Types of Co-creation
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT. 17 Source: Wired
Lego Mindstorms
Crowd of People
Anyone can join
Selection process
Initiator Initiator + Contributors
Ownership
Open-ness
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT. 18
4 Types of Co-creation
Source: DSM
Community of Kindred Spirits
Anyone can join
Selection process
Initiator Initiator + Contributors
Ownership
Open-ness
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT. 20
4 Types of Co-creation
Linux
Coalition of Parties
Anyone can join
Selection process
Initiator Initiator + Contributors
Ownership
Open-ness
22
4 Types of Co-creation
Heineken & Krups
Anyone can join
Selection process
Initiator Initiator + Contributors
Ownership
Open-ness
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
4 Types of Co-creation
24
Nokia BetaLabs
Maemo/Meego community
Expert Co-creation
Meego Intel Co-op
Design competitions
OVI store
Bluetooth Special Interest Group
NRC University collaborations One plug for all devices
ROOFTOP™Expert Co-creation
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
We offer in co-creation
25
CAMPSITE Community Co-creation
Link: Fronteer Strategy
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
3. Inspire participation
26
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT. 27
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Source: WIred
Netflix 1 Mio. USD challenge
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Source: Innocentive
Innocentive oil spil challenge
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Source: Youtube
Old Spice Twitter campaign
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Source: The Wilderness Downtown
The Arcade Fire album launch
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
4. Select the very best
31
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT. 32 Source: Forrester
Many people wanting to co-create
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
100% Consumers
1% Creators
10% Synthesizers
But you have to look for your 1%
33 Source: Fronteer Strategy Whitepaper
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT. 34
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Explorers
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT. 35
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Heroes
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT. 36
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Innovators
Threadless, the numbers:
12,000 registred users500 designs posted per week
5 designs are made20 M USD turnover
38
Source: Katharina Braun, Wirtschaftsuniversität Wien
Designs that make it into production are made by people who:
Give more feedbackUpload more designs
Comment moreGive concrete feedback
Have more contacts
39
Source: Katharina Braun, Wirtschaftsuniversität Wien
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
5. Connect creative minds
40
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Source: Vimeo
Nokia expert co-creation
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Source: Canon
Canon
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Source: Hyve
Swarovski on-line co-creation
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
6. Share results
44
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT. 45
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Source: Ereaders
App store: De verjaardag
Source: Inno15
Apple does do co-creation
Source: Business Week
Tata Nano co-created with vendors
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Source: Radiohead
Radiohead show filmed by fans
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
7. Continue development
49
50 Source: P&G
P&G continues to co-create
Source: Business Model Generation
New book, co-created, continues
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
8. Think return on investment
52
Open Innovation ROI
53
BIGGER...
BETTER...
FASTER...
Results
STRONGER...
Innocentive
Cost savings.Savings from faster research process.
Access to a diverse network of experts.Fostering a more innovative culture.
Smoother IP transfer process.
ROI of 74%
54
Source: Innocentive, Forrester
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
9. Get the IP right
55
Source: GreenXchange
Nike, BestBuy, others share I.P.
The Amsterdam Model
57
We offer a friendly N.D.A.
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
10. Mobilise internally
58
DRIVERS:
Reputation Building
Sense of belonging
Networking
Peer recognition/Status
Job market opportunities
Fun & involvement
Skill-Building
New challenge
Love the brand
Money (never main driver)
BARRIERS:
Unclear rewards
No interest in the challenge
Trust
Participants’ Drivers & Barriers
59
Source: Fronteer Strategy
FansAmbivalentOpposers
Anna Kirah
Source:
60
Internal bloodgroups
Diffusion of Open Innovation
61
Open Innovation aware
Domain of Interest
Community of Interest
Community of Practice
Community of Value
Practitioners
Lead users
Thought leaders
InvolvementLow High
# people
Low
High
Source: Harry Barraza, Unilever
MORE...
Links Visit our website
www.fronteerstrategy.com
Updates from the Fronteer
www.fronteerstrategy.com/blog/
Follow us on twitter
twitter.com/fronteerstrat
twitter.com/martijnpater
Slideshare
www.slideshare.net/Fronteer
Our whitepaper on co-creation
Co-Creation’s 5 Guiding Principles
63
Vision “Be” leads to “Do”. Innovation leads to brand strength - and strong brands inspire development.
Brands that allow for all stakeholders to jointly create the future are the ones that survive.
‘Empathy’ is the new Gold. We have launched thus the Dutch index of most‘Empathic brands 2010’
64
Top-10 Empathic Brands 2010
65
Aantrekkelijk
Empathisch
Source: Ruigrok Netpanel, Fronteer Strategy
1,5 2,0 3,0 4,0 4,53,5
1,5
2,0
3,5
4,0
4,5
EMPATHISCH
2,5
AANTREKKELIJK
2,5
Derde variabele zichtbaar in grootte van stip: Innovatief
Efteling
RTL4
PhilipsSony
Nokia
Samsung
Canon
Apple
PanasonicLG
Dirk van der Broek
Plus
Aldi
LidlJumbo
C1000
Blokker
Hema
Albert Heijn
Bol.comIkea
Jupiler
Grolsch
Heineken
Nescafe
Cup a Soup
Coca Cola
Douwe Egberts
Pickwick
Tele2
XS4ALL
UPC
Ziggo
KPN
FoodDrankenRetailBankenInternetprovidersElectronicaOverigFriesland Bank
Van Lanschot
Triodos ASN Bank
SNS Bank
ABN Amro
RabobankING
Cela VitaLassie
Grand ItaliaBertolli
Maggi
Heinz
UnoxHonig
Knorr
Conimex
Calve
Remia
66
Linear correlation
Source: Ruigrok Netpanel, Fronteer Strategy
FRONTEERSTRATEGYINNOVATION.CO-CREATION.BRAND DEVELOPMENT.
Martijn [email protected]