Presentation by Martijn Pater about Co-creation and Open Business Models during the Vlerick Innovation Day

1. Fronteer Strategy
Co-creation & Open Business Models
- 2nd Vlerick Innovation Day
Brussels, October 11, 2011
FRONTEER
STRATEGY
I N N OVAT I O N.
C O - C R E AT I O N.
B R A N D D E V E L O P M E N T.

2. User Generated Content
Open Innovation
Co-Creation
Expert Board Communities
Crowdsourcing
2.0
Social Media
Collaboration
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 2

3. How does it
relate to? Social media
Co-Creation
Expert
panels Brainstorm
sessions
Research
Hiring an Team sessions
FRONTEER
STRATEGY agency
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 3

4. Question to you:
“What is Co-creation?”
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 4

5. ABOUT
US
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.

6. FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 6

7. We help brands
to grow
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 7

8. 8

9. Our services
VALIDATION STRATEGY
IMPACT
BUSINESS
INNOVATION
MODELING
BRAND
CO-CREATION
DEVELOPMENT
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 9

10. CO-CREATION
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.

11. Unpredictability
11 Source: Banny Bannerjee, Stanford University

12. FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 12

13. FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 13

14. “You cannot
solve a problem
with the same
thinking that
created it.”
FRONTEER
STRATEGY
Albert Einstein
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 14

15. “No matter who
you are, most of
the smartest
people work for
someone else.”
FRONTEER
STRATEGY
Bill Joy, Founder Sun Microsystems
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 15

16. “Co-creation unlocks the
collective creativity of
people to create deeply
relevant solutions.”
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 16

17. “Co-creation is the chance
for others to complete
the work that you started,
going well beyond what you
envisioned or intended.”
Henry Chesbrough,
FRONTEER author of Open Services
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 17
Innovation (2011)

18. “Co-creation is developing new
products, concepts or services
together with customers, partners
and other expert stakeholders.”
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 18

19. Why Co-Creation?
1. Real involvement of the outside world
2. Fresh new perspectives, ideas & energy
3. Innovative, compelling & round concepts
4. Point of No Return
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 19

20. 4 TYPES OF
CO-CREATION
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.

21. 4 Types of Co-creation
Anyone Crowd of Community of
can join People Kindred Spirits
Open- Crowd of people
ness
Selection Club of Coalition of
process Experts Parties
Initiator Initiator +
Contributors
Ownership
21

22. 4 Types: Crowd of People
Anyone Crowd of
can join People
Open-
ness
For any given challenge, there
might be a person ‘out there’ with a
Selection brilliant idea
process
➡ Community, PR, Crowdsourcing
Initiator Initiator +
Contributors
Ownership
222

23. 99Designs
What does the co-creator
get out of it?
FRONTEER
200-500 USD
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.

24. FRONTEER
2500 USD
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.

25. FRONTEER
1% of revenues
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.

26. 25.000 € and
FRONTEER
STRATEGY
INNOVATION.
1% of revenues
CO-CREATION.
BRAND DEVELOPMENT. 26

27. FRONTEER
40% of revenues
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.

28. A GRI (Glucose Responsive Insulin) for
Better Treatment of Type 1 Diabetes
FRONTEER
100.000 USD
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 28

29. FRONTEER
1M USD
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 29

30. FRONTEER
100M USD
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 30

31. - 250 USD

32. 4 Types: Community of Kindred
Spirits
Anyone Community of
can join Kindred Spirits
Open-
ness
Groups with similar interests &
goals developing something for the
Selection greater good
process
➡ Social, Open Innovation
Initiator Initiator + Contributors
Ownership
322

33. Glory
33

34. FRONTEER
Your own products made
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 34

35. A new interior
35

36. A better world
36

37. FRONTEER
A better classroom
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 37

38. A unique chance
38

39. 4 Types: Coalition of Parties
In certain complex situations you
Anyone
can join
need to team up to share ideas and
investments
Open- ➡ R&D, Relations
ness
Selection Coalition of
process Parties
Initiator Initiator + Contributors
Ownership
392

40. New opportunities
40

41. New value
41

42. 4 Types: Club of Experts
Specific, time-pressured challenges
Anyone
can join
that demand expertise &
breakthrough ideas
Open- ➡ Visionary, Team
ness
Selection Club of
process Experts
Initiator Initiator +
Contributors
Ownership
422

43. FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 43

44. FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 44

45. FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 45

46. FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 46

47. WHY?
Fun, Fullfillment,
FRONTEER
STRATEGY
INNOVATION.
Fame, Fortune
CO-CREATION.
BRAND DEVELOPMENT. 47

48. CAMPER
Innovation camp
Co-creation services 10-15 people
5 days-off
CAMPSITE
Crowdsourcing
500+ people
1 challenge, 9 wks
Crowd of people
ROOFTOP CLUBHOUSE
Expert co-creation Strategic alliances
5 + 10 people 2+ parties
1 challenge, 1 day 1 challenge, x wks

49. KICKSTARTER
.COM
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.

50. What can we
get funded?
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 50

51. FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 51

52. Some recent numbers:
80 Projects launched daily
1M USD pledged weekly
14K projects
400K pledgers
+/- 40% gets funded
10% of projects are gadgets
5% goes to Kickstarter.com
FRONTEER
STRATEGY Source: Wired.com
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 52

53. How does it work?
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 53

54. FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 54

55. Upload Video, blog, Pledge
project social media levels
% Funded
Production.. Backers
FRONTEER
Days left
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 55

56. What is really What could be
good? improved?
1. Easy & Open 1. More structure
2. Trust 2. Co-creation
3. Promotion 3. Hick-ups
FRONTEER
STRATEGY Source: Yobble
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 56

57. A iPod Nano watch got...
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 57

58. As a result:
6 People hired to answer...
40.000 e-mails
Prooduction time shortened
to 30 days
Very close connection to
customers
FRONTEER
STRATEGY Source: Wired.com
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 58

59. “People’s use of the service
is never what the creators
intended.”
- Investor in Kickstarter
FRONTEER
STRATEGY Source: Wired.com
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 59

60. THE FUTURE?
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.

61. How will we fix a
broken stroller?
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 61

62. FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT. 62

63. Thanks
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.

64. Whitepapers:
fronteerstrategy.com
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.

65. FRONTEER info@fronteerstrategy.com
STRATEGY
I N N OVAT I O N.
C O - C R E AT I O N.
B R A N D D E V E L O P M E N T.