Product Customization, Personalization and Customer Centricity: Market Opportunities and Future Developments


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Product Customization, Personalization and Customer Centricity: Market Opportunities and Future Developments

  1. 1. Mass Customization: Profiting from the fact that customers are different Frank T. Piller | 2 About usRWTH-TIMs new (shared) building in Kackertstraße 15, Aachen
  2. 2. 3 RWTH Aachen University: Facts and Figures  RWTH = Rheinisch-Westfälische Technische Hochschule" (Institute of Technology of the North-Rhine Westphalia, i.e. a State of Germany)  Established in 1870 as a "Technische Hochschule" in Germany. Quickly became leading place for mining technology, electrical and mechanical engineering, and later also medicine.  Today, RWTH Aachen University is one of Europe’s leading institutions for science and research. Ranked frequently as Top German University by HR Managers (Wirtschaftswoche Ranking 2007, 2008, 2009, 2011).  One out of every five board members in a German corporation is an RWTH Aachen alumni, and about one out of two engineering managers in the German automotive industry.  Annual Budget of €750 million, 50% funded by grants and industry  31,400 students are enrolled in over 100 academic programs, 20% of them international students from 120 different countries.  About 2.800 graduates per year (of which about 800 receive a doctoral degree)  Co-Founder of IDEA League network of the leading universities of technology in Europe 4RWTH-TIM Group: Facts and Figures Established in 1990 as one of the first dedicated chairs in technology & innovation management in Europe Part of RWTHs School of Business & Economics, with strong links to the RWTH Engineering Schools, but also the Humanities Dedicated to research, but excellent in participant-centered learning on graduate student and executive education level. Core student body of industrial engineering students ("Wirtschaftsingenieurwesen") Ranked in top3 in schools ranking w/r to research output (publications), and #2 w/r to external funding. Awarded "RWTH Price for Teaching Excellence 2009/2010". Interdisciplinary team of about 18 full time positions for researchers plus about 25 support positions and student researchers (strong growth since 2007) 70% of annual research budget funded by competitive, peer-reviewed research contracts and grants ("forschungsorient. Drittmittel") from DFG, EU, BMBF, BMWI, AIF Strong industry partnerships, yet focus on scholarly research, not consulting or contract research for singular companies (but network of affiliated consultancies for this purpose). "RWTH TIM Expertenkreis": Sponsorship circle of 12 companies, including 3M, Cognis, Ford, Henkel, Lindt, Telekom, Melitta, Johnson Controls, and others
  3. 3. 5Prof. Frank Piller Since 2007: Head of the RWTH Technology & Innovation Management Group, and full (tenured) professor of management at RWTH Aachen University, Germany Since 2007: Co-Founder and Co-Director of the MIT Smart Customization Group, MIT, Cambridge, MA, USA Research Professorship at the MIT Sloan School of Management (2004-2007), Innovation Management Group, Cambridge, MA, USA Assistant / Associate Professor in Management and Habilitation on Customer Co-Creation and User Innovation (1999-2004) at TUM Business School, Munich, Germany Ph.D. in Operations Management with focus on Mass Customization (1995-1999), University of Wuerzburg, Germany Co-Founder, Investor, or Member of Board of Directors of several companies, including (personalization and virtual models), ThinkConsult (consultancy and concept testing in the TelCo industries), Hyve AG (customer co-creation), Dialego AG (innovative online market research and innovation panels), Corpus-e AG (low-cost high-quality body scanning devices) More information and recent research:
  4. 4. HOW ARE MARKETS CHANGING? 100 10 +86% % INCREASE OF 0 PRODUCT CAR MODELS +200% VARIETIES +300% OFFERED ON USITEMS IN MAC DONALD’S MENU MARKET TV SCREEN SIZES +3000% +5700% CABLE TV CHANNELS LATE 90S SPORT SHOE STYLES EARLY 70S 9 Heterogeneity of needs is not a threat but an extraordinary profit opportunity
  5. 5. 23 Mass CustomizationProfiting from exploiting heterogeneities across customers needs. "Producing goods and services to meetindividual customers needs with near mass production efficiency." (Tseng/Jiao 2001) 24
  6. 6. 25The market opportunity is large!• 35% of online customers are already interested in customization/purchasing build to order products {Forrester Research}• Adobe System survey: 75% respondents said the ability to customize a product would influence them to make an online purchase• Brand Keys, a research firm, found that today, customization is 30% of what draws a customer to a brand• Land’s End found that customization customers had a 34% higher retention rate• Many companies currently are taking advantage of this trend: "Personalization" is one of the key mega trends in fashion and branding today Customization provides great opportunitiesbut there also has been some huge failures!
  7. 7. Aufgabenumfang eines Konfigurators Lists of mass customization
  8. 8. >> category n % t-shirt 60 12 shirt / jacket / suit / underwear 60 12 photo / print / puzzle / cards 55 11 food 39 8 bag / belt / hat / scarf 19 4 shoe / boot / sneaker 17 3 computer / pc / notebook 15 3 furniture / table / chair / shelf 15 3 jewlery / watch / ring 15 3 bottle label 14 3 books 14 3 blankets / covers / skins 12 2 golf- / foot- / bowling-ball 10 2 figure /doll 8 2 gift 7 1 bicycle 6 1skate- / kite- / surf- / snowboard 5 1 cosmetics / skin care 3 1 others 127 25 >> sum 501 100 Some established traditional niche players
  9. 9. (c ) C opyright Some very professional new players
  10. 10. (c ) C opyright Some oddity products (niching the niche)
  11. 11. (c ) C opyright Which capabilities are needed to create value through mass customization?
  12. 12. In a paper, we developed the following framework tounderstand what makes mass customization greatGive me your business card for a copy via PDF! 41 ROBUST PROCESS DESIGN CHOICE NAVIGATION CAPABILITIES(based on research SOLUTIONS SPACE with Fabrizio DEFINITION Salvador)
  13. 13. How does mass customization work?Portfolio of customers Portfolio of capabilities/resources Customer-specific solution Individual customer Customer-specific value chain ROBUST PROCESS DESIGN Flexible Process Adaptive human automation Modularity resources
  14. 14. Robust processes mean flexible machinery … … but much more … ROBUST PROCESS DESIGN process segments based on each customers’ needs Flexible Process Adaptive human automation Modularity resources
  15. 15. CAPABILITY #1: ROBUST PROCESS DESIGN Capacity of the organization to reuse and/or recombine its resources to address variability in customers’ requirements,  ensuring resource efficiency  ensuring delivery reliability as in a mass production system Flexible Process Adaptive human automation Modularity resources SOLUTION SPACE DEFINITIONPortfolio of customers Portfolio of capabilities/resources ? Customer-specific Individual customer solution Customer-specific value chain
  16. 16. (c ) C opyright 53 54 Setting the solution space is not easy
  17. 17. 55Mass Customization at adidas SOLUTION SPACE DEFINITION
  18. 18. Customized Training Programs 57 CAPABILITY #2: SOLUTION SPACE DEFINITION Ability of the organization to identify the idiosyncratic and unexploited needs and preferences of each individual customer,  so as to satisfy each single customer’s needs Innovation Analysis of user- Analysis of past toolkits generated data configurations
  19. 19. CHOICE NAVIGATIONPortfolio of customers Portfolio of capabilities/resources Individual customer ? Customer-specific solution Customer-specific value chain CHOICE NAVIGATION Car for the 1957 Masses Single Model MSRP 500,000ITL 3,893,294 sold (1957-75) Car for the 2007 Masses, but Stresses individuality 575,000 possible configurations MSRP > 11,500€ 2007 production sold in 3 weeks Over 200,000/yr
  20. 20. CHOICE NAVIGATION Behavioral EmbeddedElicitation choice models configuration 66 66
  21. 21. 77We are in a (desperate) need for more support –very clever choice navigation
  22. 22. ? Choose your way … Behavioral Elicitationchoice models (parameter based(need based config.) configuration) configuratore/www/config2.html CHOICE NAVIGATION >500.000.000 radio station > interactions > thumb feedback Behavioral EmbeddedElicitation choice models configuration
  23. 23. CAPABILITY #3: CHOICE NAVIGATIONCapacity of the organization to create models ofhow customers construct their preferences and/orevaluate the offerings of the supplier against theirpreferences choice complexity minimized enjoyment of the search process is maximized Behavioral EmbeddedElicitation Choice Models configuration The other dimension of choice navigation: Turn "burden of choice" into customer experience
  24. 24. 87 88An experiment on the benefit of customization for consumers(expressed in their willingness to pay (WTP)) (joint research withNik Franke) The basic toolkit allows 648,000,000 design variants … 30 hour / minutes hands 150 faces 60 cases 30 straps 30 seconds-hands … and our calculations show that customers use this huge solution space extensively.
  25. 25. 90 Mass Customization yields an impressing value increment to users 92.0 €Mean willing- ness to pay + 90% 48.5 € 21.5 € + 126% n = 165 Bestselling Self-designed “ideal” standards watch (toolkit) watch (perfect toolkit) 91 Mass Customization practice confirms this observation that consumers are willing to pay a large premium for a custom good
  26. 26. 92 Mass Customization yields an impressing value increment to users 92.0 € Why this increase in Recent research WTP ? explains 50% of additionalMean willing- ness to pay Product satisfaction + 90% willingness-to-pay in 48.5 € BtoC mass customization - fit by process satisfaction - uniqueness and hedonistic benefits Process satisfaction 21.5 € + 126% - “flow” - pride of authorship - peer recognition= 165 n Bestselling Self-designed - emotional factors “ideal” standards watch (toolkit) watch (perfect toolkit) 93 Picture: Frank Piller
  27. 27. 94 100 Relating the capabilities to each otherSolution Space Development Robust Process DesignChoice Navigation
  28. 28. 101 The point is not whether you want to mass customize. See mass customization as an "ideal point". A small step towards mass customization can be a large step for your business.Mass customization is not about "build to order": it is about exploiting customer heterogeneities to make money. 102 The Future of Mass Customization
  29. 29. From "markets of one" to "markets for peers" (often "disposable markets") 103 104The long tail of products also is a long tail of markets Products Markets 104
  30. 30. The Creativity Marketplace for Sharing, Connecting and Selling • “Generate exposure and enthusiasm for charities and causes • Unite teams, schools and businesses for various events • Create galleries and sell products to generate exposure and earn royalties • Commemorate events such as birthdays, graduations and family reunions • Build communities for your special interests such as maps, sci-fi, photography, politics and more” Ride the long tail, enable super niche products Technology: Zazzle Product Engine with Zazzle Create-a-Product API, the first-ever API that allows third party websites to offer their users an easy “one click’ way to turn digital content into custom products.The Creativity Marketplace for Sharing, Connecting and Selling• “Generate exposure and enthusiasm for charities and causes• Unite teams, schools and businesses for various events EACH DAY AT ZAZZLE,• Create galleries and sell products to generate exposure and earn royalties• Commemorate events such as birthdays, graduations and family reunions• Build communities for your special interests such as maps, sci-fi, more than 120,000 new photography, politics and more”Ride the long tail, enable super niche products created products are being and placed on the market!Technology: Zazzle Product Engine with Zazzle Create-a-Product API, the first-ever API that allows third party websites to offer their users an easy “one click’ way to turn digital content into custom products.
  31. 31. Platforms for mass customization• "Explosion" of new start-ups following Zazzle, Cafepress, Spreadshirt, Bivolino ...• SERVIVE, Remplanet and Open Garment projects -> €15 Mio+ EU research money on MC platforms• Bringing the MC capabilities to incumbents, shortening the learning curve (also in the field of "batch-customized" products)• Creating millions of markets for peers – complementing the "long tail" idea and offering orientation and a solution to the "complexity of choice" problem 109Zazzle and Spreadshirts "Mirco Merchandising" approachallows users to create their own niche markets – and toserve them efficiently  Combination of mass customization and ebay mini shops  Provides access to sticky need information by allowing micro-segments to create their own products and markets  Captures creativity of the crowd, overcoming the local search bias of new product development  Overcomes problems of traditional mass customization systems – and still gives each niche what they want
  32. 32. From traditional mass customization toco-created manufacturing A look in the furniture industry …
  33. 33. Easy-to-accessnetworked flexible manufacturing infrastructure
  34. 34. Intuitive design tools
  35. 35. Open data(repositories of design)
  36. 36. And with these tools and approaches, we also mayovercome one of the weakestspots of mass customization … 134 Mass customization and the location of manufacturing
  37. 37. With existing technology made-to-measure orders from Asia SANDERScan be filled within 8 to 14 calendar days for mass customization of textile productsLogistics-chain for made-to-measure orders from Asia TOTAL 8 - 14 Delivery to consumer by UPS, FedEx etc. Re-packing Close to airport Air-freight On pallets Transport to the airport By truck Sewing, ironing, packing In small flexible groups Cutting (incl. preparation) Preparation on CAD, single-ply-cutter Ordering New software Daily order transmission 5 10 15 Calendar-daysSource: Sanders-analysis Copyright © 1999 - 2001 SANDERS GmbH ( All rights reserved. 136More than three quarters of all consumers still accept a SANDERSdelivery-time of 14 days for mass customization of textile productsConsumer’s acceptance of different delivery-times for made-to-measure apparel in Germany, in 1998 Acceptance 100% 76% 50% 20% 8 days 14 days 21 days 28 days Delivery-timeSource: Zitex, McKinsey-Quarterly Copyright © 1999 - 2001 SANDERS GmbH ( All rights reserved. 137
  38. 38. 139 Freight cost are almosttriple the purchasing cost of the custom-madeshoes (incl. the profit from the supplier!) 140 And we better dont talk about the CO2 footprint of your custom shoes (counterbalancing all positive effects due to reduction of waste)
  39. 39.  Selve: Founded in 2001 by Claudia Kieserling Fashionable womens shoe that fit New last design, new modular product design Stores in Munich, London, and New York Manufacturing in Italy in an industrial scale Customers love the product! Selve: Founded in 2001 by Claudia Kieserling Fashionable womens shoe that fit Customers love the product! Stores in Munich, London, New York New last design, new modular product design Manufacturing in Italy in an industrial scale
  40. 40. 150 And the vision for manufacturing:Revitalizing the European footwear industry in an INDUSTRIAL scale The largest project ever funded in the 5th EU FP
  41. 41. The Euroshoe RESULTS (2000-2004)Many papers and conferencesNew softwareAdvancements in last makingA much better understanding of the domainThree nice spin-offs in related fields (including corpus.e)An even larger follow up project (CEC-made shoes)…And a full scale working demo factory in Vigevano (thecapital of Italian footwear manufacturing) ….
  42. 42. 157Deep troubles for Selve: A market with no manufacturing 158 The solution
  43. 43. 160  After five years of un- successful trial and error in Italy, relocation of manufacturing to China  Partnership with Canadian custom footwear company  Works perfectly  1 week delivery time possible  Finally: Scalability of system, new retail partnerships, many new models … 161 It is not just aboutflexibility of the software and the production technology ….
  44. 44. 162… but much more about the flexibility in the managements head! 163 There are exemptions
  45. 45. 164 Simple productsHeavy products 165 Digital products Fast products
  46. 46. 166National pride products 167
  47. 47. An optimistic outlook
  48. 48. There is a market, the technology is ready, mostpotential competitors are not able to change, VCs are getting interested … So why wait?
  49. 49. Conclusions 176 Where is your company in this picture?Solution Space Development Robust Process DesignChoice Navigation
  50. 50. Open for Interaction Frank T. Piller TIM-Group at RWTH Aachen University Kackertstraße 15-17, 52072 Aachen, Germany Tel.: +49 (0)241-809-3577 Twitter | Skype: @masscustom ) C opyright
  51. 51.           Garwood Center for   MIT Smart   Technology & Innovation  Advanced   Corporate Innovation  Customization Group  Management Group  Manufacturing Institute    About the MCPC 2011: Conference Briefing   The 2011 World Conference on Mass Customization,  Personalization, and Co‐Creation (MCPC 2011) Bridging Mass Customization & Open Innovation   Business Seminar, November 16‐17, 2011 Innovation & Research Conference, November 17‐19, 2011  Conference Venue: San Francisco Airport Marriot Hotel & Conference Center  Conference Host: Garwood Center for Corporate Innovation, University of California, Berkeley | twitter: #mcpc2011   About the MCPC conference series The MCPC conference series started out as a bi‐annual conference devoted to Mass Customization & Personalization. The content has broadened in recent years, including also customer co‐creation, user innovation and other strategies of customer‐driven value creation (hence, MCPC = Mass Customization, Personalization, and Co‐Creation"). The event frequently brings together hundreds of the worlds most remarkable people in the field. In 2011, the conference will link MCPC with a topic that has driven and inspired the field for several years: open innovation. The previous conferences have been hosted by …  2001: Hong Kong University of Science and Technology, Hong Kong  2003: University of Technology Munich, Germany (  2005: Hong Kong University of Science and Technology, Hong Kong (  2007: M.I.T., Cambridge, MA  (mass‐  2009: Aalto University, Helsinki, Finland  (  Upcoming conference 2011: UC Berkeley, San Francisco, USA (  1  
  52. 52.  Participation Statistics (average for 2005‐2009 conferences)  Between 450‐650 participants  About 150 presentations over the entire program  45% Managers from companies engaged in MCPC activities or planning to do so (of those about  40:60 split between Directors / VP Product Mgmt of Fortune1000 and CEOS of SMEs / startups)   45% Academics (from Engineering, Management & Marketing, Computer Science / Information  Systems, but also many other disciplines (architecture, psychology …)  10% Consultants and Technology Providers (Flex Manufacturing, SCM, Configurators, CAD)  The MCPC conference style & layout The MCPC is a multi‐track conference featuring a combination of high profile keynotes with expert talks, panel discussions, paper sessions, workshops, receptions, and much more. While it is devoted to sharing and discussing the latest research in the field, the MCPC has a strong focus on real life applications. Since its beginning, there is an equal share of participants, practitioners and academics/researchers. This makes the MCPC truly unique among many conferences. It really strives to connect MCPC thought leaders, entrepreneurs, technology developers, and researchers with people applying these strategies in practice.  The conference consists of three major elements: • The Research and Innovation Conference is an academic‐style but application‐focused conference,  with a broad call for papers. All contributions are peer reviewed by at least two reviewers. An  international program committee and many ad‐hoc reviewers support the program chairs with this  process. Presentations are organized in parallel tracks, with sufficient time for discussions and  feedback. The conference policy is: "all participants, including presenters, must pay the registration  fee" that is characteristic for academic conferences.    • The Business Seminar provides an innovative platform for managers doing mass customization and  open innovation as the core of their business. The seminars foremost idea is to connect managers in  peer‐to‐peer interaction to foster an intense discussion, facilitated by presentations from industry  leaders and the seminar faculty. In 2011, the Business Seminar will kick‐off the conference event.     • Networking Events & Exhibition: A sponsors marketplace and exhibition, social events like  networking lunches, conference dinners, and cocktail receptions, as well as site visits to local  companies provide unique opportunities to connect and exchange ideas among participants. The  event has a long track‐record of successful business relationships and even a number of start‐up  companies have been launched thanks to new connections between participants of the conference.     2  
  53. 53.  The MCPC 2011 Conference The MCPC 2011 Conference will take place on November 15‐19, 2011, at the San Francisco Airport Marriott Hotel & Conference Center located in Burlingame, California, just minutes from the San  Francisco International Airport between downtown San Francisco and Silicon  Valley. The hotel offers a perfect waterfront location with great views of the  San Francisco Bay, and provides an inviting and inspiring setting for a  conference.  Conference Layout & Program Overview (Draft)  Nov. 16  MCPC 2011 Business Seminar (I)   9‐10  Registration & Continental Breakfast   10‐11.15  Plenary and Opening Presentations   11.15‐12  Panel Session   12‐1  Lunch & Exhibition   1‐2.15  Plenary Presentations   2.15‐3.15  Panel Session & Group Discussions   3.15‐3:45  Networking Break & Exhibitions   3:45‐5  Plenary Presentations   5‐7  Cocktail Reception Nov. 17  MCPC 2011 Business Seminar (II)   7:30‐8:30  Registration & Breakfast   8:30‐9.45  Plenary Presentations   9.45‐10.15  Panel Session & Group Discussions   10.15‐10:45  Networking Break & Exhibitions   10.45‐12  Plenary Session    12‐1  Lunch & Exhibition   1‐2.15  Plenary Presentations   2.15‐3.00  Panel Session & Group Discussions   3.3:30  Networking Break & Exhibitions MCPC 2011 Keynote Session Nov. 17  4‐6  Joint session between business seminar & research conference     6‐8  Networking Receptions   continued on next page  3  
  54. 54.    Nov. 18  MCPC 2011 "Research and Innovation" Conference  (I)   8‐9  Registration   9‐10.15  Plenary Presentations   10.15‐10:45  Networking Break & Exhibitions   10.45‐12.00  Parallel Sessions    12‐1  Lunch & Exhibition   1‐2.15  Parallel Sessions   2.30‐3.45  Parallel Sessions   3.45‐4:15  Networking Break & Exhibitions   4:15‐5.30  Parallel Sessions   6.30‐9.30  Conference Dinner Nov 19  MCPC 2011 "Research and Innovation" Conference  (II)   7.30‐8.30  Registration   8:45‐10.15  Plenary Presentations   10.15‐10:45  Networking Break & Exhibitions   10.45‐12.00  Parallel Sessions    12‐1  Lunch & Exhibition   1‐2.15  Parallel Sessions   2.30‐3.45  Parallel Sessions   3.45‐4:15  Networking Break & Exhibitions   4:15‐6.00  Plenary Presentations and Closing Keynotes   7.30 ‐12.00   Dinner and Drinks with old and new friends (offsite) Expected Conference Fees (updated!) • MCPC Main Conference ("Innovation and Research Conference") (Nov 17‐19 ):   $540 before Sept 30, $790 after Sept 30, 2011   • MCPC Business Seminar (Nov 16‐17): $980 before Sept 30, $1230 after Sept 30, 2011 – Registration for the  MCPC Business Seminar also includes full participation at the Main Conference (Nov. 17‐19)      4  
  55. 55. Selected Feedback on the Previous MCPC Conferences & Business Seminars "I found the business seminar incredibly beneficial, and  "We attended the MCPC 2009 conference and are now I am honored to have been able to co‐teach with you."  really stimulated to develop mass customisation Alison Page, Director Mass Customization,  Adidas AG  further at our company! Thank you!" Jay Jolly, Program  Manager, Nokia "It was a GREAT seminar. My head is still spinning! (In a good way!). As a colleague, David Liddle, former  "I was really amazed by the quality of the content, the founder, CEO of Metaphor once said, "I know a seminar  seniority of the attendees, and the possibilities & is good if it changes the pattern of the neurons in my  opportunities explored during these days." Kamel brain!" This seminar definitely met that criterion for  Ouadi, Worldwide Digital Media Director, Louis Vuitton, me!" Patricia Seybold, CEO, Seybold Group; Author of  Paris, France "" and "Innovation inside‐out"  " Its been a long time that I havent been so excited "Thank you again for accommodating me at the last  about a conference. I consider myself as a lucky person minute and giving me the opportunity to observe the  to become a member of the community. Thanks again larger picture. It has been a turning point for me. To be  for this fascinating event." Vivienne Chen, Assistant honest I was only slightly aware of the whole "mass  Professor of Marketing, Oakland University customization movement" till a few weeks before the seminar. Its been an awakening for me." Russell  "It was a great event, and to me personally it provided Benfanti, Founder and CEO,  a lot of inspiration, valuable information and contacts."  JanWillem Hoftijzer, University of Twente, Enschede, "I thoroughly enjoyed the conference this week ! Thank  The Netherlands you, and looking forward to hearing more on upcoming conferences." Joanne Pendergast, Director E‐ "Thanks again for a great conference – so much food commerce, Converse   for thought!" Maria Alm. DSN Productization Markets,  Nokia "It was a pleasure to actively participate and exchange ideas and experiences amid such a diverse room of  "I really enjoyed the conference in Helsinki. This is the innovators!" Patrick Abouchalache, Managing Director,  second time I attend the MCPC conference. I really Roberts Mitani Advisors, LLC  appreciate your efforts in organizing and providing this  conference, which gave me inspiration for my research, “Participating was a great step in building a Mass  as well as some new directions."  Sage Endo, Customization company with the best and brightest in  Department of Marketing, The University of Mississippi the industry.” Carmen Magar, CEO chocri USA  "I would like to thank you and everyone in the team “What I liked most: Meeting likeminded professionals  that were involved in the preparation of the MCPC from around the globe who are eager to push a  2009 event. It was very well organized with versatile worthwhile idea forward.” Hubertus Bessau, Co‐ and interesting discussions that have a great impact on Founder, mymuesli  all participating parties." Ran Machtinger, CEO, OptiTex  Ltd., Israel “This event was the worlds leading collection of mass customizers.” Ted Acworth, Artaic   "The conference was a lot of fun with many very  For reports and reviews of the past events, check interesting presentations and  possibilities for (MCPC 2007 at MIT) interactions! Thanks for making all this possible."  and 35xe8zm (MCPC 2009 in Benedict G.C. Dellaert, Professor of Marketing, Erasmus  Helsinki). University Rotterdam   5  
  56. 56. People and organizations behind the MCPC conference series  Initiators and Program Co‐Chairs: The conferences have been initiated by Mitchell Tseng, HKUST,  and Frank Piller, MIT/RWTH Aachen, who also serve the program as co‐chairs. Frank and Mitch  provide strong support to the conference with their institutes and research groups.   Host of MCPC 2011 Conference: Garwood Center for Corporate Innovation, Program in Open  Innovation (  The mission of the Garwood Center is to conduct  research, publish articles, and develop teaching materials around open innovation, a more  distributed model of industry innovation.  It is part of the Haas School of Business at the University of  California, Berkeley.  Local Conference Chairs: Since 2007, the conferences are co‐created by a local host and conference  chair. In 2011, this position will be taken by Prof. Henry Chesbrough, UC Berkeley (2007: Prof.  William Mitchell, MIT Media Lab; 2009: Prof. Jarmo Suominen, Aalto University Helsinki).   MIT Smart Customization Group ( The MIT SCG Group is a research group at the MIT  Media Lab devoted to research on mass customization and personalization of complex systems. It is  the academic host of the business seminar of the conference.  The “International Institute on Mass Customization and Personalization” (IIMPC) is a  society that provides a platform for interaction between researchers and practitioners on mass  customization, personalization and related issues.  It is the academic body organizing the MCPC  conference series.  2011 Conference Co‐Chairs:   Henry Chesbrough, Garwood Center for Corporate Innovation, University of California, Berkeley  Solomon Darwin, Garwood Center for Corporate Innovation, University of California, Berkeley    Frank Piller, RWTH Aachen University & Smart Customization Group, Massachusetts Institute of  Technology  Mitchell Tseng, Advanced Manufacturing Institute, Hong Kong University of Science & Technology  Contacts     Sponsorship & Exhibition Opportunities  Program Planning & Speakers    Solomon Darwin, Associate Director  Frank T. Piller, Professor of Management Garwood Center for Corporate Innovation,   RWTH Aachen & MIT Smart Customization Group Haas School of Business, University of California,  (+1) 617 326 3748  (US office) Berkeley  (+49 )241 809 3577 (German office) (+1) 510‐643‐4133  General Inquiries and Organization  Anita Stephens, Program Manager Garwood Center for Corporate Innovation, Haas School of Business, University of California, Berkeley  (+1) 510‐642‐4233   6  
  57. 57. The 2011 World Conference on Mass Customization, Personalization, and Co-Creation will take placeNovember 15 – 19, 2011, and will engage academics, business leaders, and consultants in a set of plenarypresentations, discussion panels, and paper presentations intended to bridge the topics of MassCustomization & Open Innovation:Mass customization, personalization, and co-creation (MCPC) strategies aim to profit from the fact thatpeople are different. Their objective is to turn customer heterogeneities into profit opportunities, henceaddressing the current trend of long-tail business models. Mass customization is a means to provide goodsand services that best serve individual customers’ personal needs with near mass production efficiency.Open innovation is the idea that companies should make greater use of external ideas and technologies intheir own business, and allow unused internal ideas to flow out to others for use in their business. It is theantithesis of a closed innovation process which relies on internal R&D and deep vertical integration.MCPC 2011 Conference Layout Afternoon Conference Kick-Off & Public Event: Pre-conference program with workshops, Nov 15 company tours, and a big networking / press event (offsite) Business Seminar (I): Plenary & Opening Presentations; Panel Sessions & Group Discussions; Nov 16 Exhibitions; and Cocktail Reception Business Seminar (II): Plenary Presentations; Panel Sessions & Group Discussions; Nov 17 Networking & Exhibitions; Keynote Session (joint session between business seminar & research conference); Network Reception “Research and Innovation” Conference (I): Plenary Presentations; Parallel Sessions; Nov 18 Networking & Exhibitions; Conference Dinner “Research and Innovation” Conference (II): Plenary Presentations; Networking & Exhibitions; Nov 19 Parallel Sessions; Closing Keynotes; Dinner and Drinks with old and new friends (offsite)Participate and present your MCPC research and experiences. For more information visit: Conference Fees: “Innovation and Bundle price for the MCPC Business Seminar ENTIRE conference experience (Nov 16-17) Research Conference” $1890 (Nov 17-19 ) (Nov 16-19) $2400 for on-site registration $540 before Sept 1 $2200 $790 after Sept 1, 2011 $2700 for on-site registrationSponsored by:
  58. 58. About the MCPC 2011 Conference:The MCPC conference series started out as a bi-annual conference devoted to Mass Customization &Personalization. The content has broadened in recent years, including also customer co-creation, userinnovation and other strategies of customer-driven value creation (hence, MCPC = Mass Customization,Personalization, and Co-Creation”). The event frequently brings together hundreds of the world’s mostremarkable people in the field. In 2011, the conference will link MCPC with a topic that has driven and inspiredthe field for several years: open innovation.The conference consists of four major elements:The Research and Innovation Conference is an academic-style but application-focused conference, witha broad call for papers. All contributions are peer reviewed by at least two reviewers. An internationalprogram committee and many ad-hoc reviewers support the program chairs with this process. Presentationsare organized in parallel tracks, with plenty of time for discussions and feedback. The conference policyis “all participants, including presenters, must pay the registration fee” that is characteristic for academicconferences.The Business Seminar provides an innovative platform for managers DOING mass customization and openinnovation as the core of their business. The seminar’s foremost idea is to connect managers in peer-to-peerinteraction to foster an intense discussion, facilitated by presentations from industry leaders and the seminarfaculty. In 2011, the Business Seminar will kick-off the entire conference event.Networking Events: A sponsor’s marketplace & exhibition, social events like networking lunches, conferencedinners, and cocktail receptions, as well as site visits to local companies provide unique opportunities toconnect and exchange ideas among participants. The event has a long track-record of successful businessrelationships and even a number of start-up companies that have been launched thanks to new connectionsbetween participants of the conference.Pre-Conference Event and Exhibition: On the day before the conference kicks off, we plan a showcaseexhibition and press event to demonstrate the scale and scope of mass customization, co-creation and openinnovation to a wider public. This event will be co-organized and hosted by local companies from the Bayarea active in this domain.2011 Conference Co-Chairs:• Henry Chesbrough, Garwood Center for Corporate Innovation, University of California, Berkeley• Solomon Darwin, Garwood Center for Corporate Innovation, University of California, Berkeley• Frank Piller, RWTH Aachen Univ. & Smart Customization Group, Massachusetts Institute of Technology• Mitchell Tseng, Advanced Manufacturing Institute, Hong Kong University of Science & Technology Conference Venue: Conference Host: San Francisco Airport Marriott Garwood Center for Corporate Hotel & Conference Center Innovation, University of California, Berkeley