Von Hippel, 2005 - Democratising innovation

Question 1

Lead users

Answer 1

Address the problems which the general market place has not addressed yet. They have an incentive to seek solutions to these needs. They are highly motivated to innovate and find better ways to do things, due to personal investment.

Question 2

Examples of lead users - Social media websites

Answer 2

Lead users in data protection and reliability due to constant attack from other entities

Question 3

Examples of lead users - Make up artists

Answer 3

Lead users in development of new cosmetics or new ways in which to apply/remove make up

Question 4

Examples of lead users - Japanese architects

Answer 4

Lead users in creating earthquake proof buildings and structures

Question 5

Examples of lead users - Information systems

Answer 5

Due to increased costs of bespoke software, many companies implemented a standard software. This tended to be oversold and disgruntled manu users. As a result, corporate users were used to develop software. User groups were set up, these users then transferred their opinions and expertise with one another. Developers tapped into this transfer of opinion to improve software

Question 6

Benefits of lead users

Answer 6

• Cheap
• Effective
• If the innovations work in small communities, then products can be mass produced commercialising on what the lead users discovered
• In this way, risk is reduced

Question 7

Users willingness to share

Answer 7

Manufacturers tend to want to protect their intellectual property, because it is how they make their money. However, he says users have much less strategic need to maintain this competitive advantage and their knowledge is context specific, resulting in them sharing this with manufacturers.

Question 8

Users willingness to share - paradox

Answer 8

Open innovation model says that users are aware of the lead user concept and therefore that their innovations and knowledge carry significant value

Question 9

Creative commons license

Answer 9

This is a halfway house between public domain and traditional copyright conditions. It requires attribution and allows derivatives and non-profit users.

Question 10

Web 2.0

Answer 10

Increasingly amateurs want to be heard, it is harder for professionals to make money as a result. This has led to the creation of websites such as Twitter, where users create all the content on the website. It is easier to monitor the use of these websites and therefore easier to innovate.
For example, Twitter added a 280 character tweet feature and a thread feature as it analysed that this was what customers wanted

Question 11

Conclusions

Answer 11

• Involvement of users as innovators is becoming increasingly key
• However there is a risk that this overemphasises the amount of innovation by users, as a lot of real world innovation comes from out-doing competitors

Question 12

Cisco & the search for the next big idea using crowdsourcing

Answer 12

Cisco used a competition to generate new ideas from users. Generated the i-prize. Allowed them to reach a worldwide group of people who were smart, passionate and eager to help them to drive innovation.