Lead User

Slide 1: Lead Users Presentation by : Rushikesh Kulkarni

Slide 2: Introduction “Survival of the Fittest" as a synonym for “Natural selection” Charles Darwin

Slide 3: Introduction “Innovate or perish ”

Slide 4: Know Your Users: Method to identify unarticulated customer needs include : •Ethnographic techniques Observation Interview •Lead user Source: Fuzzy Front End: Effective Methods, Tools, and Techniques Peter A.Koen, Greg M.Ajamian, Scott Boyce, Allen Clamen, Eden Fisher, Stavros Fountoulakis, Albert Johnson, Pushpinder Puri, and Rebecca Seibert

Slide 5: Why User Innovate? • Heterogeneous needs • Manufacture looks at only common needs and hence cannot cater to each customer. • Look for cheaper alternatives Source: Eric von Hippel Sources of innovation oxford university press 1989

Slide 6: How Many Users Innovate?

Slide 7: What Kind Of Innovation Are Users Capable Of ? Source: Eric von Hippel Sources of innovation oxford university press 1989

Slide 8: Lead Users "Lead Users" of a novel or enhanced product, process, or service have been defined (von Hippel 1986, 1988) as those who display two characteristics with respect to it: •Theyorface needs that will be of that marketplace encountersface them months years before the bulk general in a marketplace - but them •They expect to benefit significantly by obtaining a solution to those needs.

Slide 9: Lead Users: Example Space is the ultimate platform for nutritional innovations, in which astronauts are a unique “lead user” for product innovations.

Slide 10: Lead Users: Example Examples for commercial innovations created by Lead User development Brake manufacturing company aerospace company car racing professional train engineer Refrigerator company cold storage company hoteliers Meat and ice-cream exporters

Slide 11: Why Study Lead User ? • Studies of problem-solving have shown, users who have real-world experience with a need can provide the most accurate data regarding it. • When needs are evolvingusers at the is theof the in many high technology with product categories, only rapidly, as front case trend will have experience "tomorrow's needs today.“ • Studies of industrial product and process innovationsto a need tend to show that those who expect a high benefit from a solution (Mansfield 1968) experiment with solutions on their own -and so can provide the richest need and solution data to inquiring market researchers Their present strong needs will become General in a market place months or years in the future

Slide 12: How Can We Study Them ? How can we find them? Why would they help us or revel their innovations ?

Slide 13: Lead Users Method A Lead User market research study involves four major steps, which are spelled out in detail elsewhere (von Hippel 1986,1988; Urban and von Hippel (1988). Techniques:

Slide 14: Lead Users: Identification of Trends Identification of trends: • Delphi • Trend extrapolation • Interview with experts (futuristic) It seems easier to predict future trends for industrial than consumer goods.

Slide 15: Identification of lead users: • Lead usersofshouldexpected benefit from solutionstrend being needs. and should display correlates high be at the leading edge of the to related studied • According to the relevant literature lead userstools for identified byof lead user identification surveys or personal interviews. Some online can be the support databank analyses, have been developed (e.g. Yenta, IDOL, Xpert-finder) (Springer et al. 2006). • While in consumermarkets pioneers are often well known, it is much more difficult to find lead users in industrial markets. Eg: Automotive user looking at new braking system Might look at car racing, aerospace Medical imaging Look to radiologist. Sonographers in early stage tumor detection to semiconductor process to pattern reorganization software

Slide 16: Identification of lead users Screening from previously identified indicators customer data banks, Customer complaints or Externally produced reports

Slide 17: Lead Users: Identification of lead users Networking Approach: This approach involves a small number of customers who are asked if they know of other product users who have new needs or are innovatively active. These kinds of recommendations usually lead very quickly to interesting Lead Users. Digital imaging: Pattern Reorganization

Slide 18: Lead Users: Development of lead user product concepts

Slide 19: Lead Users: Market Testing • Score-Tests, • Mini-Market Tests or • Test Market Simulations (Springer et al. 2006).

Slide 20: Users V/S Manufactures: Why Would They Reveal Their Skills And Innovations ? • There is practically them alternative left with not • They any motivation to gothey have don’t have time nor ahead and commercialize their innovations

Slide 21: Where has the process been used Medical Products Industry: 3M Challenge : Increasing hygienic demands, a higher resistance against antibiotics and increasing cost pressures were identified as being relevant factors in the search field. Method: With help of the “networking approach”, doctors within the target market, working under extreme conditions (e.g. surgeons in developing countries) were selected. users from analogous fields such as microbiologists or make-up artists. They latter aided in the development of materials that can adhere reliably and comfortably to the human skin. Result: Improved protective coverings, a microbial-treated incisions foil and a radical new approach to individual infection control that allows hygienic measures to be tailored to the specific needs of the patient.

Slide 22: Where has the process been used IT Industry: Nortel Networks Challenge: GSM-based tracking systems for different applications. Method: The trend analysis carried out showed a strong demand for systems that could be used in mobile applications. Lead Users were sought in fields where the position of objects and the transfer of data played significant roles. In this way, contact was made with so-called “storm chasers” who locate and track tornados. Another group consisted of “animal trackers” who often must determine the position of wild animals from a traveling vehicle. Result : Applications for mobile tracking systems that allow the transfer of multiple forms of data. Included in this, is a concept for the mobile controlling of an “intelligent” house. This system allows, amongst other things, the control of particular appliances in a house as soon as the user leaves the work place (e.g. switching on a heater or pre-heating an oven).

Slide 23: What's Beneficial About Lead Users Innovations • Captures the focus areas fast • Low cost solution • These are usually perfect fit to their situations • Usually commercially attractive • Manufacturers acting on user needs are often imperfect. Source: Developing New Product Concepts Via the Lead User Method: A Case Study in a "Low Tech" Field", Cornelius Herstatt* and Eric von Hippel** WP#3249-91-BPS February 1991

Slide 24: How Is It Different ? Ethnography tell the present needs / pain point/ Gaps in the existing system Lead user tell about the problems and opportunities of future Source: Eric von Hippiel; Democratizing innovation

Slide 25: India and Lead Users: Other names of lead users innovation in India: Juggad !

Slide 26: Discussion: • Lead user method for innovation institutively states that it can be adopted by Companies as a corporate innovation method. How can we adopt the it for consulting projects? • At what stage in the Contextual Innovation method can this “ lead user concept “ be helpful, and how?

Slide 27: THANK YOU