Open And User Innovation Flashcards
Critical success factors
Having a specific NPD strategy
- stages
- using multiple different types of market research
- customer knowledge
- price sensitivity
- proficiency of product launch
- quality of planning
- continuous commercial assessment
- measuring NPD outcomes
- closing NPD projects
Quality of market research (orientation of the npd process to the needs of the market)
Organisation - cross functional, strong leaders, communication
Product differentiation
Product advantage
Culture (innovation friendly climate, tolerance of risk taking, entrepreneurial climate)
Sticky info
Info that is difficult to transfer between two
Solution info
Technical knowledge how a need can be transformed into a solution
Local search
The look for solution information in your own technical domain based on previous experience
Problems of local search
Tunnel perspective
Mainly block the solver from finding the best solution
Methods to gain access to sticky need information
Market research Observing customers Find people with different knowledge More effective external search Broaden the breadth and width of search = open innovation
Open innovation - Henry chesbrough
Use of purposeful inflows and outflows of knowledge to accelerate innovation
Firms should use external ideas as well as external
Closed model of innovation
Innovation requires control
Companies must generate their own ideas that they would then develop, manufacture, market, distribute and service themselves
Heavy investment in r&d
Recruiting the best talent
Firm to market
Continued IP and provided barrier to entry
Reinvest profit into circle of innovation
(Closed model remember)
Factors eroding the closed model (changing market)
Rise in number and mobility of knowledge workers
Difficult for companies to control their propriety of ideas and expertise
Growing availability to private venture capital, which has helped to finance new firms and their efforts to commercialise ideas. Start up firms become competitors
Fast time to market making shelf life shorted
Growing recognition that ideas can also originate outside the firms
Collab between supplies, customers and competitors
SA’s involves the sharing of knowledge and resources which could be beneficial to all parties involved eg p&g oher 1000 partnerships
IBM and Cisco systems to develop security Sydney’s
Co creation with users
The era of open innovation (chesbrough)
Open innovation model
Open innovation principles
Not all the smart people for us
External r&d can create significant value, internal r&d is needed to claim some portion of that value
We don’t have to originate the research in order to profit from it
Build better model
Make best use of ideas, we win
Profit from other users IP
User innovation
Are forms of individual consumers that expect to benefit from using a novel product or a service they develop
Producer - innovators expect to benefit from selling the novel product or service they develop in the marketplace
Vonhippel
Users increasingly can now develop their own products
Trend seen in software and info products
Argues that manufacturers should redesign their innovation processes and that they should systematically seek out innovators developed by users
Sources of open innovation
Forums Crowdsourcing Platform Make call Ask people within uni/out of uni Social media Innocentive.com Nine sigma Quirky.com Threadless Ideation contests Atizo YourEncore
Ideation contests
Web based contests to generate ideas and concepts for new products, services or designs advertising a specific task
They are based on the crowdsourcing principle of an open call for participation ie. broadcasting a task widely and self-identify-ficiation of participants with either specific task, motivation or dedicated pre knowledge. Participants can be external or internal
Crowdsourcing for new product ideas
Crowdsourcing using an online community
Use of an open call format and a large number of labourers
-Starbucks has a blog format to leave ideas
Toolkit’s
Needs to user friendly
Easy, needs to transfer back to corporation (sticky)
Challenges
Firms need to master two distinct challenges at the same time
Exploitation (strengthening and extending the core)
And exploration (creating the new)
Cultural differences
Managerial mindsets
Search strategies (firms that search widely and deeply tend to be more innovative- but benefits to openness are subject to decreasing returns)
Incorporating external and internal ideas
Identifying user innovators
Developing appropriate relationships
Need to master highly specific knowledge
Roberts et al
Utilising info from SM channels can lead to higher performance, but that this link is influenced by the formalisation of a firms NPD process
Sm helped Nivea gain radical new customer insights, which viewed in the most successful launch of a new product for this company
Companies who utilise SM apply these tools on average to 42% of their overall products.
Need info is collected by discussion forums (31%), the brand social networks (26%) and blogs (25%)
Kozinets et al - 4 types of online creative consumer communities
Crowds
Hives
Mobs
Swarms
Crowds (Kozinets et al)
Large organised groups who gather together specifically to plan, manage and or complete particular defined objects
Eg for Super Bowl - PepsiCo ran project where people created a 30 second video, then best one was used to advertise Doritos in Super Bowl
Hives (kozinets et al)
Online communities whose members contribute to a relatively greater amount to the community, but also product innovations specifically to respond to particular challenges or to meet particular project goals
All organising, industrious
Skibuilders.com - hike to people who like to make their own skis, post the pictures and answer questions
Mobs (kozinets et al)
Contributions are orientated to a community-Ludic spirit of conman play and lifestyle exchange.
Expert sources who create content for the consumption of affinity groups similar in terms of interests and/or lifestyle.
Swarms (kozinets et al)
Collection of multitudinous yet individually small individual contributions that occur as a part of more natural free flowing culture or communal practices.
People rating or tagging. adding feedback sending message.
Netflix and amazon used them
Laursen and salter
Innovation search can lead to oversearch - may indeed hinder innovation performance. There are moments of tipping points after which openness can negatively impact innovative performance
