Shut Up and Take My Money: LEGO® Does Crowdsourcing SXSW Interactive, March 11, 2013 #LEGOcrowd Tim Courtney (@timcourtney...
Page 2   ©2013 The LEGO Group   By Iain Clifford Heath
Peter Espersen• Head of Community Co-Creation at the LEGO Group• I create digital experiences with our fans targeted  main...
Tim Courtney• Community Manager for LEGO CUUSOO• I lead site operations and public communication• Co-wrote “Virtual LEGO” ...
Today we will discuss   • Some background on the LEGO Fan community   • Our crowdsourcing journey so far   • What we’ve le...
The Wisdom of CrowdsPage 6   ©2013 The LEGO Group
How did we get here?                                80 Years        15 Years         Only the Best is Good Enough      Blo...
“I always welcome fans to write, call and interact with me directly and personally because I learn so much from them.”    ...
LEGO Fan Clubs in North America
These people are also LEGO fans!
Our Crowdsourcing Journey So FarPage 12   ©2013 The LEGO Group
Kids dream of being a LEGO designer.
“Although were flattered that you chose to share a special idea with us, we arent allowed to use LEGO consumers suggestion...
How does it work?Page 16   ©2013 The LEGO Group
”Your LEGO Wish”
Shinkai 6500 Submersible
Hayabusa
“Lego is finally crowdsourcing designs with its newCuusoo platform; its basically a Lego Kickstarter.”Page 24   ©2011 The ...
It was all fun and games until…
Notch posted and crashed our servers.
Notch who?
Still the quickest project to the top.                       2 days    77 days   420 days
Yo dawg, I heard you like recursion jokes.                                       By Flickr user Tzidik
The Lego Back to the Future Set is Now OFFICIAL!Page 33   ©2011 The LEGO Group
LEGO CUUSOO: Timeline        2009             2010    2011              2012               Japan-Only Beta                ...
Complexity of Production                      vs.
Who makes this happen?                                                 Fan Designer                                       ...
Working with the crowd:   What We’ve Learned…Page 37   ©2013 The LEGO Group
+ __________ = Awesome!
Different initiatives with our communityLEGO developed – User Hacked
Different initiatives with our communityCo-developed – LEGO PublishedLEGO developed – User Hacked
Different initiatives with our communityUser developed – LEGO PublishedCo-developed – LEGO Published LEGO developed – User...
Different initiatives with our communityUser developed – User PublishedUser developed – LEGO PublishedCo-developed – LEGO ...
Different initiatives with our community User enterprise – LEGO PartnerUser developed – User PublishedUser developed – LEG...
Different initiatives with our communityCrowdsourced – LEGO Published User enterprise – LEGO PartnerUser developed – User ...
We decide if an idea fits.Page 45   ©2013 The LEGO Group
So what insight can we derive from this?Page 46   ©2013 The LEGO Group
Do you have a community?         …Oh you work for                                 LEGO, I have this                       ...
Lets revisit The Wisdom of the Crowds?                        OR
You’re never prepared for what will happen!
Finally… you can’t make everyone happy.                                  Illustration by Paul Lee
Thank you!©2011 The LEGOGroup. Page - 51
Shut Up and Take My Money: LEGO Does Crowdsourcing
Shut Up and Take My Money: LEGO Does Crowdsourcing
Shut Up and Take My Money: LEGO Does Crowdsourcing
Shut Up and Take My Money: LEGO Does Crowdsourcing
Shut Up and Take My Money: LEGO Does Crowdsourcing
Shut Up and Take My Money: LEGO Does Crowdsourcing
Shut Up and Take My Money: LEGO Does Crowdsourcing
Shut Up and Take My Money: LEGO Does Crowdsourcing
Shut Up and Take My Money: LEGO Does Crowdsourcing
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Shut Up and Take My Money: LEGO Does Crowdsourcing

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This presentation was given on March 11, 2013 at SXSW Interactive in Austin, TX. Here is the orignial description from the conference schedule:

Come hear from the intrapreneurs with a web-startup mindset who opened the LEGO Group to solicit and deliver crowdsourced products. In 2011, LEGO opened its factory doors with LEGO CUUSOO, allowing fans to propose designs for new products and collect votes from their peers. The LEGO Minecraft proposal in late 2011 took the beta site (and the Internet) by storm and became a hit product of the summer.

But to LEGO fans with high expectations, something seemed rotten in Denmark. Transforming this crowdsourcing dream into reality was a lot harder than stacking a few bricks together. LEGO CUUSOO allowed acute demand to emerge overnight, and when it did, production resources in the traditional manufacturing company remained fixed and finite. The company learned pointed lessons about transforming fan concepts into real products under public scrutiny, and will share hard-learned best practices that will help you allow your fans to drive product innovation.

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  • Some rulesDo you have a communityIs your product suited for it?You’re not prepared – EVER!And you can’t make everyone happy
  • Actually no. The reference to oxen in the title is aboutsomethingelse. Back in 1906 an 85-year-old gentleman by the name of Sir Francis Galton, cousin of Darwin, begetter of statisticalanalysis, and prettyclose to engaginglybonkers, went to a fair in Devon (where it is raining just now.) Therewas a Guess the Weight of the Oxcompetition. It was a rather large ox.PedigreeAlnwickShorthornbull “Sunstreak”, photographed by Sir Francis GaltonNone of the visitors to the fair, as far as weknow, wereparticularlyexpert at ox-weight-guessing. Seven hundred and eighty-sevenpeoplepaidtheir sixpence to join in, and wrotetheirguessesonpiece of paper. Not one of themguessed the weight of the animalright.ButGaltoncollected up all theirguesses, and addedthem up, and averagedthem. It came to 1197 pounds. And guesswhat? Collectively, all thosenon-expertshad got it exactly right. The actualweight of the oxwas 1198 pounds. The average of all theirguesseswas as close to spot-on as anyonecould ask. The wisdom of crowds, heconcluded, couldoftengetthingsexactly right whennoindividualcould do it.ReMemberthis is not LeadUser innovationSunstreak1197 poundsAudience hit 1198 pounds!
  • Crowds aren’t always wise.It must be a win-win for everyone.It isn’t a free-for-all.
  • Ideas for LEGO products come from everywhere.We receive 50 calls and emails per DAY to our Consumer Services department with ideas for new products. That’s almost 20,000 per year.If I tell someone I work for LEGO in public, they’re like “oh, I’ve got this idea…”
  • Do a joke “who is speaking” – it’s your voice right?
  • Partnership with CUUSOO System, tested in Japan for two yearsExpanded globally to test the concept on a large scaleDifferent from Threadless, Kickstarter, and Quirky as we are taking a traditional business and opening a portion of it to crowdsourced ideas.Open innovation - allow external ideas to shape new developmentsSharing risk and reward
  • Partnership with CUUSOO System, tested in Japan for two yearsExpanded globally to test the concept on a large scaleDifferent from Threadless, Kickstarter, and Quirky as we are taking a traditional business and opening a portion of it to crowdsourced ideas.Open innovation - allow external ideas to shape new developmentsSharing risk and reward
  • They shared some very weird things … and some sensible things too.
  • October 2011
  • Make the audience guess how long it took, before revealing!
  • Contrast the complexity of doing this with Threadless. A screen printer and a website. Masters of community – and BRILLIANT for keeping things simple!
  • Crowds aren’t always wise.It must be a win-win for everyone.It isn’t a free-for-all.
  • Interest communities surprised us. People saw they had the chance to have their favorite thing in LEGO, and spread the word.And especially – the LEGO community + another community = CUUSOO product
  • Structuring the different levels of involvement with our communityKey – insert LEGO jewlery!
  • Structuring the different levels of involvement with our communityKey – insert LEGO jewlery!
  • Structuring the different levels of involvement with our communityKey – insert LEGO jewlery!
  • Structuring the different levels of involvement with our communityKey – insert LEGO jewlery!
  • Structuring the different levels of involvement with our communityKey – insert LEGO jewlery!
  • Structuring the different levels of involvement with our communityKey – insert LEGO jewlery!
  • Sometimes things don’t fit….And sometimes our fans use our own tools against us
  • Some rulesDo you have a communityIs your product suited for it?You’re not prepared – EVER!And you can’t make everyone happy
  • Wisdom of crowds vs. Lead User InnovationWhere users get confused.Where crowd wisdom fails us.http://en.wikipedia.org/wiki/The_Wisdom_of_Crowds#Failures_of_crowd_intelligenceDo you want quality or quantity? (Creating a successful LEGO product is difficult!)Don’t think that this will replace product development (limits to collective wisdom)Setting the bar right (10K?)
  • This should go to the learnings section This is not a method for people to demand we do something.Products must fit our values and make business sense.We are the sole deciders of what fits.
  • Let’s get a more interesting picture…
  • Shut Up and Take My Money: LEGO Does Crowdsourcing

    1. 1. Shut Up and Take My Money: LEGO® Does Crowdsourcing SXSW Interactive, March 11, 2013 #LEGOcrowd Tim Courtney (@timcourtney) Community Manager, LEGO CUUSOO Peter Espersen (@virtualpeter) Head of Online Community©2013 The LEGO Group l
    2. 2. Page 2 ©2013 The LEGO Group By Iain Clifford Heath
    3. 3. Peter Espersen• Head of Community Co-Creation at the LEGO Group• I create digital experiences with our fans targeted mainly at 13+ users• I’ve also worked for OMD and lead the MMOG Habbo Hotel in Scandinavia MY LEGO!
    4. 4. Tim Courtney• Community Manager for LEGO CUUSOO• I lead site operations and public communication• Co-wrote “Virtual LEGO” (No Starch Press) in 2003• Also co-founder SocialDevCamp Chicago
    5. 5. Today we will discuss • Some background on the LEGO Fan community • Our crowdsourcing journey so far • What we’ve learnedPage 5 ©2013 The LEGO Group
    6. 6. The Wisdom of CrowdsPage 6 ©2013 The LEGO Group
    7. 7. How did we get here? 80 Years 15 Years Only the Best is Good Enough Blood, Sweat & TearsPage 7 ©2013 The LEGO Group
    8. 8. “I always welcome fans to write, call and interact with me directly and personally because I learn so much from them.” Jørgen Vig Knudstorp, CEO
    9. 9. LEGO Fan Clubs in North America
    10. 10. These people are also LEGO fans!
    11. 11. Our Crowdsourcing Journey So FarPage 12 ©2013 The LEGO Group
    12. 12. Kids dream of being a LEGO designer.
    13. 13. “Although were flattered that you chose to share a special idea with us, we arent allowed to use LEGO consumers suggestions for new sets or other related items. This policy is in place because we have invested considerable resources in our own product-development department in Denmark…”
    14. 14. How does it work?Page 16 ©2013 The LEGO Group
    15. 15. ”Your LEGO Wish”
    16. 16. Shinkai 6500 Submersible
    17. 17. Hayabusa
    18. 18. “Lego is finally crowdsourcing designs with its newCuusoo platform; its basically a Lego Kickstarter.”Page 24 ©2011 The LEGO Group
    19. 19. It was all fun and games until…
    20. 20. Notch posted and crashed our servers.
    21. 21. Notch who?
    22. 22. Still the quickest project to the top. 2 days 77 days 420 days
    23. 23. Yo dawg, I heard you like recursion jokes. By Flickr user Tzidik
    24. 24. The Lego Back to the Future Set is Now OFFICIAL!Page 33 ©2011 The LEGO Group
    25. 25. LEGO CUUSOO: Timeline 2009 2010 2011 2012 Japan-Only Beta Global Open Beta Shinkai Hayabusa Minecraft DeLorean ???
    26. 26. Complexity of Production vs.
    27. 27. Who makes this happen? Fan Designer Community Manager Business PR Team Model Designer Manager Corporate Department Project Graphic Leadership Leadership Manager Designers Project Licensing Supporters Legal Supply Chain MarketsPage 36 ©2011 The LEGO Group
    28. 28. Working with the crowd: What We’ve Learned…Page 37 ©2013 The LEGO Group
    29. 29. + __________ = Awesome!
    30. 30. Different initiatives with our communityLEGO developed – User Hacked
    31. 31. Different initiatives with our communityCo-developed – LEGO PublishedLEGO developed – User Hacked
    32. 32. Different initiatives with our communityUser developed – LEGO PublishedCo-developed – LEGO Published LEGO developed – User Hacked
    33. 33. Different initiatives with our communityUser developed – User PublishedUser developed – LEGO PublishedCo-developed – LEGO Published LEGO developed – User Hacked
    34. 34. Different initiatives with our community User enterprise – LEGO PartnerUser developed – User PublishedUser developed – LEGO PublishedCo-developed – LEGO Published LEGO developed – User Hacked
    35. 35. Different initiatives with our communityCrowdsourced – LEGO Published User enterprise – LEGO PartnerUser developed – User PublishedUser developed – LEGO PublishedCo-developed – LEGO Published LEGO developed – User Hacked
    36. 36. We decide if an idea fits.Page 45 ©2013 The LEGO Group
    37. 37. So what insight can we derive from this?Page 46 ©2013 The LEGO Group
    38. 38. Do you have a community? …Oh you work for LEGO, I have this great idea; why don’t you…Page 47 ©2013 The LEGO Group
    39. 39. Lets revisit The Wisdom of the Crowds? OR
    40. 40. You’re never prepared for what will happen!
    41. 41. Finally… you can’t make everyone happy. Illustration by Paul Lee
    42. 42. Thank you!©2011 The LEGOGroup. Page - 51

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