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Value Co-Creation, The New Approach To Successful Product Innovation
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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 Value Co-Creation, The New Approach To Successful Product Innovation Presentation Transcript

    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • www.Brioneja.com Twitter: @Brioneja
      Value and Innovation
      • Innovation exists at the intersection of invention and value
      • 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
    • 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
      • Safety
      • Love and Belonging
      • Esteem
      • Self-actualization
      • Self-trascendence
      www.Brioneja.com Twitter: @Brioneja
    • www.Brioneja.com Twitter: @Brioneja
      Pricing of a New Product
      • There are multiple ways to approach pricing for a new product
      • Cost-plus
      • Competition-driven pricing.
      • Customer-driven pricing
      • Minimum Return on Investment (ROI)
      • Cost in use analysis
      • Value in use analysis
      • 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
    • 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)
    • www.Brioneja.com Twitter: @Brioneja
      C. Christensen’s Disruptive Innovation Models
      Twitter: @Brioneja www.Brioneja.com
    • 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
    • www.Brioneja.com Twitter: @Brioneja
      Relationship Between Spiro-Level and Project Type
    • www.Brioneja.com Twitter: @Brioneja
      Relationship Between Spiro-Level and Value Creation
      www.Brioneja.com Twitter: @Brioneja
    • 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
    • Value Co-Creation Case Study
      iPad Apps for Augmentative and Alternative Communication
      www.Brioneja.com Twitter: @Brioneja
    • 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
    • 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
    • Disruption in Action
      www.Brioneja.com Twitter: @Brioneja
    • 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
    • AAC Apps Symbols and Graphics
      www.Brioneja.com Twitter: @Brioneja
    • 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
    • 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
    • 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
    • AAC Apps – Features Analysis
      www.Brioneja.com Twitter: @Brioneja
    • Customization
      Customization to the individual’s communication level and needs is critical for usability
      www.Brioneja.com Twitter: @Brioneja
    • 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
    • UX/UI Capability Ratings
      www.Brioneja.com Twitter: @Brioneja
    • Pricing/Sales Ranking
      www.Brioneja.com Twitter: @Brioneja
    • Features vs. UX/UI
      www.Brioneja.com Twitter: @Brioneja
      Features/
      Capability
      TouchChat
      Proloquo2Go
      Area of Opportunity
      Expressive
      OneVoice
      iCommunicate
      Grace
      UX/UI
    • 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
    • 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
    • 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
    • Contact Information
      Brioneja@SpyroTek.com
      www.Brioneja.com
      Twitter: @Brioneja
      www.Brioneja.com Twitter: @Brioneja
    • 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
    • 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