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June 18, 2006
Eric von Hippel and Consumer Co-Creation. Beyond Ethnography to Participatory Design.
One of the strongest voices in the innovation and design space these days is MIT's Eric von Hippel, who is head of the innovation and entrepreneurship program at the Sloan School of Management. Von Hippel writes a lot about user-led innovation, by which he means letting consumers get more and more involved in the design and execution of new products and services. Von Hippel is quoted in the Sunday NYT piece "To Charge Up Customers, Put Customers in Charge," (nice head guys).
Here is one quote from the story: "It's getting cheaper and cheaper for users to innovate on their own," Professor von Hippel said. "This is not traditional market research — asking customers what they want. This is identifying what your most advanced users are already doing and understanding what their innovations mean for the future of your business."
Something big is happening here. Technology is allowing people to design their own stuff and companies are increasingly in the business of providing tools, not products, to consumers. Today, people are making ads for companies. Tomorrow, entire services. This is one cool trend we need to follow.
Liz Sanders of maketools.com tells me that "ethnographically-informed participatory design" is the next trend. It goes beyond ethnography and involves the active participation of people in the design and making of their products and services. I want to know more about participatory design.
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The problem with Eric von Hippel’s innovation style from IdeaPort :
The excellent Business Week design/innovation blog has a piece on Eric von Hippels thoery of user led innovation. If you don’t know the theory, it focuses on getting what von Hippel terms ‘lead users’ to generate new product/service... [Read More]
Tracked on June 28, 2006 09:20 AM
http://www.kraftfoods.com/innovatewithkraft/faq.aspx is an example of Kraft saying they are now open to ideas from the general public, and this gets called "Open Innovation." All Kraft seems to be doing is inviting submissions which they will then process. They aren't doing any sort of co-creation, or research, but just allowing people to send 'em stuff which they can then productize and market. Gee, thanks, Kraft.
I know this isn't really what you are describing in your post, Bruce, but I felt like this sort of effort and what you refer to get lumped together, and I'd offer this as a counter-example.
I have a little more (with some good comments from others) at http://chittahchattah.blogspot.com/2006/06/innovatewithkraftcom.html
And a good piece (excerpts at http://chittahchattah.blogspot.com/2006/02/lego-grabs-ahold-of-customers-with.html) from Wired recently about what Lego is doing to engage enthusiast customers who are thrilled of course to be involved with the company, even to be giving away their ideas to them.
Posted by: Steve Portigal at June 18, 2006 08:25 PM
If you are interested in consumer co-creation, you also need to check out the work done by Professor Venkat Ramaswamy at the University of Michigan Ross School of Business, particularly his book he wrote with CK Prahalad, "The Future of Competition: Co-Creating Unique Value with Customers."
Posted by: Shannon at June 19, 2006 04:32 PM
Corporations with a traditional, top-down "consumer" focus might have the farthest to go in setting up effective participatory design programs. Participatory design is a collaboration in context, where a company and its customers engage in creating mutual value. It's an engagement of peers and partners. Companies with legacy brands and product lines will have to transcend their own hierarchies just to get the ball rolling. Smaller companies will find it easier to collaborate with customers because they haven’t built such walls. They may be even freshly cut from customer cloth themselves. This may give them a key competitive advantage.
Posted by: Brian Phipps at June 26, 2006 04:33 PM
Bruce, Eric von Hippel is pointing towards an overall trend, but I think it should be looked at on more than just one level. Instead of participating in the design or product stage only, we should also be looking the development of co-creation on the business process level.
Consumers should be participating in creating value, items, and (business) processes (VIP principle). The problem is that, especially in the latter area, not many businesses are willing or able to involve their customers - especially when they are large and have been longer established.
Posted by: Lev at August 1, 2006 09:58 PM