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Value Co-Creation, The New Approach To Successful Product Innovation
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Innovation exists at the intersection of invention and value and the best approach to create value is a new technique called value Co-creation. Co-creation not only describes a trend of jointly ...

Innovation exists at the intersection of invention and value and the best approach to create value is a new technique called value Co-creation. Co-creation not only describes a trend of jointly creating products. It also describes a movement away from customers buying products and services as transactions, to those purchases being made as part of an experience. Value is co-created with customers when a customer is able to personalize his/her experience using a firm's product-service proposition to a level that is best suited to get his/her job(s) or tasks done. In this chapter of the Beyond Stage Gate series we describe to how use Co-creation to increase the probability of successful new product and service introductions and how it fits in the entire innovation management ecosystem. We present a case study of how iPad Apps for Augmentative and Alternative Communication (AAC) have disrupted the market for AAC devices.

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  • This is a brilliant talk - and covers so much ground from inception of innovation to methodology and procedures to guarantee implementation. Its amazing and telling that Jobs takes no credit for creating a device that makes such a difference to 'special learners', although it is aligned with his goal - to create products that are easy to use (with the end user in mind).
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Value Co-Creation, The New Approach To Successful Product Innovation Presentation Transcript

  • 1. Value Co-Creation AND iNNOVATION case study: assessment of ipad apps for augmented and alternative communication 
    ProductCamp Austin August 6, 2011
    Jose A. Briones, Ph.D.
    Twitter: @Brioneja
    www.Brioneja.com
  • 2. Agenda
    Introduction
    Background to Value Co-Creation
    Value and Innovation
    Value Definition and Pricing
    Introduction to Spiro-Level System for Innovation Management
    Value Co-Creation Case Study:
    iPad Apps for Augmentative and Alternative Communication (AAC)
    www.Brioneja.com Twitter: @Brioneja
  • 3. Legalese
    “The fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright” - Copyright Act of 1976, 17 U.S.C. § 107
    www.Brioneja.com Twitter: @Brioneja
  • 4. Introduction
    Product innovation has been described as the way out of today’s difficult business environment.
    The rate of success of development projects, in particular disruptive innovation projects remains too low.
    We believe that a reason for the low success rate is the erroneous application of analysis methods designed for incremental innovation to projects with high levels of uncertainty
    www.Brioneja.com Twitter: @Brioneja
  • 5. In this chapter of the Beyond Stage Gate series we describe to how use Co-creation to increase the probability of successful new product and service introductions and how it fits in the entire innovation management ecosystem.
    www.Brioneja.com Twitter: @Brioneja
  • 6. Background
    Value Co-Creation is a new approach to create value
    Co-creation not only describes a trend of jointly creating products. It also describes a movement away from customers buying products and services as transactions, to those purchases being made as part of an experience (1,2).
    www.Brioneja.com Twitter: @Brioneja
  • 7. Value is co-created with customers when a customer is able to personalize his/her experience using a firm’s product-service proposition to a level that is best suited to get his/her job(s) or tasks done (3).
    www.Brioneja.com Twitter: @Brioneja
  • 8. www.Brioneja.com Twitter: @Brioneja
    Value and Innovation
    • Innovation exists at the intersection of invention and value
    • 9. If your new product/invention/service does not offer value, it is just new - not innovative.
  • Innovation
    “Big new ideas more often result from recycling and combining old ideas than from eureka moments" from @stevenbjohnson
    www.Brioneja.com Twitter: @Brioneja
  • 10. Definition of Value
    Value is
    • A measure of the magnitude of how much an unmet need is met
    Desirability
    Functionality
    Innovation is not a measure of the change you make. It is a measure of the need you address
    Maslow's hierarchy of needs
    • Physiological
    • 11. Safety
    • 12. Love and Belonging
    • 13. Esteem
    • 14. Self-actualization
    • 15. Self-trascendence
    www.Brioneja.com Twitter: @Brioneja
  • 16. www.Brioneja.com Twitter: @Brioneja
    Pricing of a New Product
    • There are multiple ways to approach pricing for a new product
    • 17. Cost-plus
    • 18. Competition-driven pricing.
    • 19. Customer-driven pricing
    • 20. Minimum Return on Investment (ROI)
    • 21. Cost in use analysis
    • 22. Value in use analysis
    • 23. We must move away from cost-based pricing to value-based pricing
  • www.Brioneja.com Twitter: @Brioneja
    How Do We Capture Value?
    Value is captured through
    Pricing
    Market share
    Brand awareness
    In order to capture value, we must first be able to measure value
  • 24. www.Brioneja.com Twitter: @Brioneja
    The Concept of “Hard” vs. “Soft” Value in Use
    Hard or objective value in use is value which can be readily quantified by the customer: “cash out the door”
    Raw material savings
    Energy savings
    Reduction in spare parts cost
    Product Features
    Soft or subjective value in use are benefits that, while real, can not be quickly quantified or monetized immediately by the customer.
    Improved safety
    Improved quality
    Environmental/Green benefits
    Ease of use
    User Experience (UX)
  • 25. www.Brioneja.com Twitter: @Brioneja
    C. Christensen’s Disruptive Innovation Models
    Twitter: @Brioneja www.Brioneja.com
  • 26. The Spiro-Level™ 3-D Approach to Innovation
    Resources
    Launch
    Quadrant IV
    Quadrant I
    Roadmap/Timeline
    Idea
    Generation
    Level
    3
    Risk Analysis
    VOC
    2
    Customer
    Testing
    1
    Time
    Time
    Technology
    Assessment
    Supply Chain
    Analysis
    Business
    Case
    Value in Use
    Analysis
    Regulatory
    IP Strategy
    Prototype
    Development
    Quadrant II
    Quadrant III
    Resources
    www.Brioneja.com Twitter: @Brioneja
  • 27. www.Brioneja.com Twitter: @Brioneja
    Relationship Between Spiro-Level and Project Type
  • 28. www.Brioneja.com Twitter: @Brioneja
    Relationship Between Spiro-Level and Value Creation
    www.Brioneja.com Twitter: @Brioneja
  • 29. www.Brioneja.com Twitter: @Brioneja
    Tools for Product Attribute Value Analysis
    Level 1
    • Market Perceived Quality Profile
    Level 2
    • Kano Analysis
    Level 3
    • Conjoint Analysis
    18
  • 30. Value Co-Creation Case Study
    iPad Apps for Augmentative and Alternative Communication
    www.Brioneja.com Twitter: @Brioneja
  • 31. Augmented & Alternative Communication
    Augmentative and Alternative Communication (AAC) refers to methods and devices that supplement or replace speech and writing when these are temporarily or permanently impaired
    Best known example:
    Stephen Hawking
    www.Brioneja.com Twitter: @Brioneja
  • 32. AAC Technology
    Until a few years ago AAC communication devices consisted of bulky electronic boards costing over $7 K each
    www.Brioneja.com Twitter: @Brioneja
  • 33. Disruption in Action
    www.Brioneja.com Twitter: @Brioneja
  • 34. Disruptive Innovation: iPad and AAC
    iPad apps are being used by special needs children, such as those who have speech impediments as a communication tool
    New apps give a person the ability to communicate basic needs and interests through the use of pictured images and corresponding audio. 
    www.Brioneja.com Twitter: @Brioneja
  • 35. AAC Apps Symbols and Graphics
    www.Brioneja.com Twitter: @Brioneja
  • 36. Steve Jobs on the iPad and Special Needs
    "We take no credit for this, and that's not our intention," Mr. Jobs said, adding that the emails he gets from parents resonate with him.
    “Its use in therapy wasn't something Apple engineers could have foreseen”
    "Our intention is to say something is going on here," and researchers should "take a look at this.“
    www.Brioneja.com Twitter: @Brioneja
  • 37. Analysis of iPad Apps for AAC
    Proloquo2Go
    TouchChat
    Expressive
    One Voice
    iComunicate
    Grace
    Features vs. Usability (UI/UX)
    Price vs. Value
    www.Brioneja.com Twitter: @Brioneja
  • 38. Features vs. UX/UI
    Features
    Images & Symbols
    Can add more images
    # of Audio Voices
    Can Record Voices
    Create phrases
    Can add categories
    Text to speech
    Quality of audio
    Automatic conjugations
    Word prediction
    In-App expansion
    UX/UI
    Usability/Navigation (UI)
    Customization
    Communication capability
    Visual appeal
    www.Brioneja.com Twitter: @Brioneja
  • 39. AAC Apps – Features Analysis
    www.Brioneja.com Twitter: @Brioneja
  • 40. Customization
    Customization to the individual’s communication level and needs is critical for usability
    www.Brioneja.com Twitter: @Brioneja
  • 41. UX/UI
    How easy is it to use, navigate?
    How much knowledge is required about programming or manuals?
    How simple and intuitive is to setup and customize to the individual’s communication level and needs?
    What is the level of communication capability that the app can provide?
    www.Brioneja.com Twitter: @Brioneja
  • 42. UX/UI Capability Ratings
    www.Brioneja.com Twitter: @Brioneja
  • 43. Pricing/Sales Ranking
    www.Brioneja.com Twitter: @Brioneja
  • 44. Features vs. UX/UI
    www.Brioneja.com Twitter: @Brioneja
    Features/
    Capability
    TouchChat
    Proloquo2Go
    Area of Opportunity
    Expressive
    OneVoice
    iCommunicate
    Grace
    UX/UI
  • 45. Co-Creation Project
    Hewlett-Packard’s “Hacking Autism”
    Volunteer group of software developers teaming up with leading autism specialists to develop groundbreaking, touch-enabled applications for the autism community
    http://hackingautism.org/
    www.Brioneja.com Twitter: @Brioneja
  • 46. Summary
    www.Brioneja.com Twitter: @Brioneja
    Value Co-Creation offers the best opportunities to disruptive innovations
    Value Co-Creation is more than joint development, it is the ability of a customer to create or customize his/her own experience using your product/service offering
    The iPad has become a very powerful Co-creation tool that triangulates manufacturer, developer and end-user
  • 47. Acknowledgements
    Thanks to Smarty Ears, LLC for allowing me to be part of this exciting new field of product development
    www.smartyearsapps.com
    www.Brioneja.com Twitter: @Brioneja
  • 48. Contact Information
    Brioneja@SpyroTek.com
    www.Brioneja.com
    Twitter: @Brioneja
    www.Brioneja.com Twitter: @Brioneja
  • 49. References
     C K Prahalad and VenkatRamaswamy2000 Harvard Business Review article, “Co-Opting Customer Competence”.
    C K Prahalad and VenkatRamaswamyHarvard Business School Press, The Future of Competition
    WimRampen, The future of marketing - understanding value co-creation. http://wimrampen.com/2009/08/07/my-personal-definition-of-business-with-customer-value-co-creation/
    The Entrepreneurial Mindset, 2000,
    Innovation Killers, 2008, Harvard Business Review
    www.Brioneja.com Twitter: @Brioneja
  • 50. TouchChat is a registered trademark of Silver Kite
    Proloquo2Go is a registered trademark of AssistiveWare
    Expressive is a registered trademark of Smarty Ears, LLC
    OneVoice is a registered trademark of Acapela Group
    iCommunicate is a registered trademark of Grembe, Inc.
    Grace is a registered trademark of Shining Glow
    Dilbert is a registered trademark of Scott Adams, Inc.
    iPad is a registered trademark of Apple, Inc.
    www.Brioneja.com Twitter: @Brioneja