Fronteer Strategy NPOX Co-Creation

10 STEPS FOR SUCCESSFUL CO-CREATION

NPOX 2010

Door: Martijn Pater Fronteer Strategy Hilversum, 9 September 2010 FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT.

ABOUT FRONTEER STRATEGY

Fronteer Innovation. Co-creation. Strategy Brand Development. Change. Leading Co-creation consultancy. Blue chip client base in The Netherlands and abroad. People’s background in fashion, design, engineering, marketing, consulting 5

10 STEPS FOR SUCCESSFUL CO-CREATION

1. Realise one thing 2. Deﬁne your strategy 3. Inspire participation 4. Select the very best 5. Connect creative minds 6. Share results 7. Continue development 8. Think R.O.I. 9. Get the IP right 10. Mobilise internally FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 7

Where does it come from? Co-creation Open Source User-generated Crowd-sourcing Focus Groups Mass customisation Design Contests Prosumers Customer Feedback Social Media Experts panels Outsourcing R&D Participatory Design Academic sharing Collaborations Early days 50’s- 90’s Now 12 8

What is it? “Co-creation unlocks the collective creativity of people to create deeply relevant solutions.” 9 Source: Copenhagen Co-creation

1. Realise one thing FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 10

Why would you? “No matter who you are, most of the smartest people work for someone else.” Bill Joy, Founder Sun Microsystems 11

Unpredictable systems 12 Source: Banny Bannerjee, Stanford University

McKinsey report: Clouds, big data, and smart assets: Ten tech-enabled business trends to watch: 1. Distributed cocreation moves into the mainstream 13 Source: McKinsey

2. Deﬁne your strategy FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 14

4 Types of Co-creation Anyone can join Crowd of Community of People Kindred Spirits Open-ness Selection Club of Coalition of process Experts Parties Initiator Initiator + Contributors FRONTEER Ownership STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 15 Source: Fronteer Strategy Whitepaper

4 Types of Co-creation Anyone can join Open-ness Selection Club of process Experts Initiator Initiator + Contributors FRONTEER Ownership STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 16

Lego Mindstorms FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 17 Source: Wired

4 Types of Co-creation Anyone can join Crowd of People Open-ness Selection process Initiator Initiator + Contributors FRONTEER Ownership STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 18

Source: DSM

4 Types of Co-creation Anyone can join Community of Kindred Spirits Open-ness Selection process Initiator Initiator + Contributors FRONTEER Ownership STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 20

4 Types of Co-creation Anyone can join Open-ness Selection Coalition of process Parties Initiator Initiator + Contributors Ownership 22

Heineken & Krups

4 Types of Co-creation Design Maemo/Meego Anyone competitions community can join Nokia BetaLabs OVI store Open-ness NRC University collaborations One plug for all devices Selection Meego Intel Co-op process Expert Co- creation Bluetooth Special Interest Group Initiator Initiator + Contributors FRONTEER Ownership STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 24

We offer in co-creation ROOFTOP™ CAMPSITE Expert Co-creation Community Co-creation FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 25 Link: Fronteer Strategy

3. Inspire participation FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 26

Netﬂix 1 Mio. USD challenge FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 27 Source: WIred

Innocentive oil spil challenge FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. Source: Innocentive

Old Spice Twitter campaign FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. Source: Youtube

The Arcade Fire album launch FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. Source: The Wilderness Downtown

4. Select the very best FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 31

Many people wanting to co-create FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 32 Source: Forrester

But you have to look for your 1% 1% Creators 10% Synthesizers 100% Consumers FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 33 Source: Fronteer Strategy Whitepaper

Explorers FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 34

Heroes FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 35

Innovators FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 36

Threadless case Link: Threadless

Threadless, the numbers: 12,000 registred users 500 designs posted per week 5 designs are made 20 M USD turnover Source: Katharina Braun, Wirtschaftsuniversität Wien 38

Designs that make it into production are made by people who: Give more feedback Upload more designs Comment more Give concrete feedback Have more contacts Source: Katharina Braun, Wirtschaftsuniversität Wien 39

5. Connect creative minds FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 40

Nokia expert co-creation FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. Source: Vimeo

Canon FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. Source: Canon

Swarovski on-line co-creation FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. Source: Hyve

6. Share results FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 44

App store: De verjaardag FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 45 Source: Ereaders

Apple does do co-creation Source: Inno15

Tata Nano co-created with vendors Source: Business Week

Radiohead show ﬁlmed by fans FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. Source: Radiohead

7. Continue development FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 49

P&G continues to co-create 50 Source: P&G

New book, co-created, continues Source: Business Model Generation

8. Think return on investment FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 52

Open Innovation ROI BIGGER... BETTER... FASTER... STRONGER... Results 53

Innocentive Cost savings. Savings from faster research process. Access to a diverse network of experts. Fostering a more innovative culture. Smoother IP transfer process. ROI of 74% Source: Innocentive, Forrester 54

9. Get the IP right FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 55

Nike, BestBuy, others share I.P. Source: GreenXchange

We offer a friendly N.D.A. The Amsterdam Model 57

10. Mobilise internally FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 58

Participants’ Drivers & Barriers DRIVERS: BARRIERS: Reputation Building Unclear rewards Sense of belonging No interest in the challenge Networking Trust Peer recognition/Status Job market opportunities Fun & involvement Skill-Building New challenge Love the brand Money (never main driver) Source: Fronteer Strategy 59

Internal bloodgroups Fans Ambivalent Opposers Source: Anna Kirah 60

Diffusion of Open Innovation Thought Low leaders Lead users Community of Value Practitioners Community Open Innovation of Practice aware Community # people of Interest Domain of Interest High Low Involvement High 61 Source: Harry Barraza, Unilever

MORE...

Visit our website Links www.fronteerstrategy.com Updates from the Fronteer www.fronteerstrategy.com/blog/ Follow us on twitter twitter.com/fronteerstrat twitter.com/martijnpater Slideshare www.slideshare.net/Fronteer Our whitepaper on co-creation Co-Creation’s 5 Guiding Principles 63

Vision “Be” leads to “Do”. Innovation leads to brand strength - and strong brands inspire development. Brands that allow for all stakeholders to jointly create the future are the ones that survive. ‘Empathy’ is the new Gold. We have launched thus the Dutch index of most ‘Empathic brands 2010’ 64

Top-10 Empathic Brands 2010 Aantrekkelijk Empathisch 65 Source: Ruigrok Netpanel, Fronteer Strategy

Linear correlation 4,5 AANTREKKELIJK Pickwick Philips Douwe Egberts Conimex Albert Heijn Sony 4,0 Calve Hema Ikea Honig Knorr Unox Bol.com Samsung Coca Cola Efteling Canon Maggi Blokker Nokia RTL4 Remia Bertolli 3,5 Cup a Soup Grand Italia Apple Heinz KPN Nescafe Rabobank Lassie ING C1000 Cela Vita Lidl Heineken Panasonic Jumbo Aldi Grolsch EMPATHISCH LG 1,5 2,0 2,5 3,0 3,5 4,0 4,5 Plus ABN Amro Dirk van der Broek Ziggo Jupiler UPC 2,5 Food SNS Bank XS4ALL Dranken Retail Tele2 Banken Van Lanschot 2,0 Internetproviders Triodos ASN Bank Electronica Friesland Bank Overig 1,5 Derde variabele zichtbaar in grootte van stip: Innovatief 66 Source: Ruigrok Netpanel, Fronteer Strategy

FRONTEER Martijn Pater STRATEGY martijn@fronteerstrategy.com 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.

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Fronteer Strategy NPOX Co-Creation

by Fronteer Strategy on Sep 10, 2010

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