ABSORBING KNOWLEDGE FROM CREATIVE YOUTHBased on the following paper and other work inprogress.Berthon, P.R., Pitt, L.F., McCarthy, I.P., andKates, S.M. 2007. When Customers Get Clever:Managerial Approaches to Dealing with CreativeConsumers. Business Horizons, 50(1): 39-47.(Download a PDF of the paper)
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SOME ASSUMPTIONS• Entrepreneurship: identifying high-potential opportunities (business, social, etc.) and exploiting these opportunities.• Innovation: processing of producing and exploiting new things• Research: the transformation of resources (time & $$$) into knowledge.• Commercialization: the transformation of knowledge into money/impacts• User innovation: innovation that is undertaken by end users, both firms and consumers who at the time were users of the product or service that they innovated innovation.
GEORGE HOTZ (GEOHOT): THE JAIL BREAKER• An alumnus of the Johns Hopkins Center for Talented Youth program.• At 19 yrs. old hacks iPhones (Feb 2008)• In Nov 2009 hacks Playstation 3.• Apple does nothing• Sony launches law suit• Facebook employs him
NEWMAN DARBY AND LARRY STANLEY: THE LEADUSERS • In 1948, Darby aged 20 develops the first windsurfing board • In the 1970s Stanley and his teenage friends helped develop many of the innovations in high performance windsurfing. • Founded the firm Windsurfing Hawaii. • Windsurfing is now a multibillion dollar industry
JOSE AVILA: THE USER DESIGNER• He posted his furniture on a web site.• FedEx promptly overnighted a cease and desist letter.• Lawyers at the Stanford Law School Center for Internet and Society represented him for free.• consumer comments on weblogs persist: – “This really brightened my day! The letters are classic lawyer exchange. My husband and I laughed and laughed. Lawyers jousting at windmills...”, – “FedEx needs to lighten up. Jose is a bright and innovative young man, and instead of making his life miserable, they should give him a great job.
JEFF MOSS (THE DARK TANGENT): THE BLACK HAT• At high school he was a “phreaker”• During the 1980s as a teenager he ran an underground bulletin board systems for hackers.• In 1993 founded DEF CON, now the oldest and largest hacker conference in the world.• In 2009 became a consultant for the U.S. Homeland Security Advisory Council• In 2011 became chief security officer of the Internet Corporation for Assigned Names and Numbers (ICANN)
NICK HAYLEY: CONSUMER GENERATED ADS• In 2007 the 18 yr. old U.K. student created an ad for the iTouch and posted it into on YouTube.• “We represent Apple and we’ve seen what you have produced and we’d like a chat with you”• Click on the picture to watch his advert.
THESE ARE ALL EXAMPLES OF CREATIVE CONSUMERS: Creative consumers are any “individual or group, who adapts, modifies or transforms a proprietary product, service or idea” (Berthon, Pitt, McCarthy & Kates, 2007, page 40)Based on the following paper:Berthon, P.R., Pitt, L.F., McCarthy, I.P., and Kates, S.M. 2007. When Customers GetClever: Managerial Approaches to Dealing with Creative Consumers. BusinessHorizons, 50(1): 39-47.(Download a PDF of the paper)
WHAT DO THESE STORIES TELL US?• Motivations (intrinsic vs. extrinsic)• Products and services, both low tech and high tech are being innovated• The faithfulness of the innovation varies• There are varying levels of value in the innovations• Individuals versus groups• The reactions of firms, governments and societies can vary significantly• These factors impact how we view, treat and absorb knowledge from creative consumers.
WHAT STANCE DO WE TAKE TOWARDS THESE CONSUMERS? RESIST ENABLE Actively restrain Actively facilitate Active the innovation the innovation Firms action to consumer innovation DISCOURAGE ENCOURAGE Defacto ignore or Happy to allow tolerate the but don’t help the Passive innovation innovation -ve +ve Firms attitude to13 consumer innovation
THE “WHY” AND “WHAT” Berthon, P.R., Pitt, L.F., McCarthy, I.P., and Kates, S.M. 2007. When Customers Get Clever: Managerial Approaches to Dealing with Creative Consumers. Business Horizons, 50(1): 39-47 PATRIOTS MERCENARIES Creative consumers Creative consumers Faithful who are loyal to the who are initially product’s original motivated by external functionality and rewards to loyally innovate for the enhance product experience itself. offerings. Appropriate REBELS MAVERICKS Creative consumer Creative consumers who are disloyal to the who are initially product’s original motivated by external Unfaithful functionality and rewards to alter a innovate for the product’s functionality. experience itself. Intrinsic Extrinsic Consumer14 Motivation
IMPLICATIONS FOR GOVERNMENTS, SCHOOLSAND UNIVERSITIES• How do we teach youth to jailbreak, hack, phreak, modify and re-appropriate products?• Could/should we apply/adapt the stances for schools and universities?• What are the intrinsic and extrinsic factors that drive “youth” to innovate?• What facilitating mechanisms should schools and universities employ?• What barriers that prevent youth from being creative consumers
DRIVERS, FACILITATORS AND BARRIERSDrivers Facilitators BarriersFun Tool kits AdultsInterest and curiosity Spaces and places Rules, laws andCommercial Heroes, regulationsProblem solving Mentors, ConfidenceDissatisfaction Resources (time, $, Lack of resourcesSelf-expression knowledge)Peer recognition ContextBoredom ProtectionRevenge Channels