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Users and Innovation Research –
                 INUSE- Research Seminar
         Open Innovation House, Otaniementie 19-21
          (2nd floor, room A208, Time: 9.30-11.30)
Users roles for co-creation of innovation in
               living lab networks
           Seppo Leminen, D.Sc. (Econ), Principal lecturer Laurea University of
         Applied Sciences, Adjunct Professor Aalto University School of Business

                                seppo.leminen@laurea.fi

          Anna-Greta Nyström, D.Sc. (Econ), Åbo Akademi University, School of
                              Business and Economics

         Mika Westerlund, D.Sc. (Econ), Assistant Professor, Carleton University,
                           Sprott School of Business, Canada
Research gaps

• Living Labs provide a promising research area for studying open
 service innovation. (Pascu & van Lieshout, 2009)
• The roles of the actors in Living Labs networks deserve further
 investigation. (Nyström & Leminen, 2011)

• Research on living labs scarce from the network perspective (e.g. in
 Leminen & Westerlund, 2008) and there is lack of rich case
 descriptions of Living Labs (Schaffers & Turkama 2012; Leminen &
 Westerlund, forthcoming)
Living Labs (1/3)
 Experimentation environments, where stakeholders form public-
    private-people partnerships (4Ps) to create, prototype, validate, and
    test new products, services, and technologies in real-life contexts.
    (Ballon et al., 2005)

 Products, services, and technologies are developed and tested in
    physical or virtual regions, where users are informants/co-
    creators. (Kusiak, 2007)

 Different from: (Ballon et al., 2005; Schaffers et al,. 2007)
•    test beds for controlled testing in a laboratory environment.
•    field trials for testing in a limited but still real-life environment.
•    other forms of open innovation that have no concrete setting.
Living Labs (2/3)
 Participants’ roles: Living Lab is a real-life test and
 experimentation environment, where users and producers co-
 create innovations, and which connects them with utilizers and
 enablers. (Leminen & Westerlund, 2008)

 Global networks: many Living Labs join regional or global
 networks of Living Labs: e.g., European Network of Living Labs.
 (http://www.openlivinglabs.eu/)

 Different types: i) narrow but sizable communities of expert
 users; ii) whole bounded populations; iii) Living Labs for technical
 service development; iv) Living Labs for non-technical research
 using a service platform. (Stewart, 2007)
Living Labs (3/3)
• We define living labs as physical regions or virtual
 realities, or interaction spaces, in which stakeholders form
 public-private-people partnerships (4Ps) of companies,
 public agencies, universities, users, and other
 stakeholders, all collaborating for creation, prototyping,
 validating, and testing of new technologies, services,
 products, and systems in real-life contexts. They are used
 for the development of communities for the use of
 innovation. (Westerlund & Leminen, 2012)


                                                            5
Users as innovators
 Customer participation (customer contribution to co-production)
 and interaction (dialogue between customer and business) vital in
 service innovations. (von Hippel, 1986)

• Today’s organizations need a constant flow of ideas while competing
 through emergent technologies and fast NPD. (Kao, 1997)

• Integrating customers and users to learn from and with them in
 the innovation process is a key success factor for firms in all
 industries. (Edvarsson et al., 2010).

• Firms involve consumers in the co-production of brands,
 experiences, design, marketing strategies, and even product or
 service development. (Jeppesen & Molin, 2003; Zwick et al., 2008)
Objectives of the study
• Describe Living Labs as open innovation networks

• Identify the distinct structures of Living Labs networks

• Analyze users’ roles in diverse Living Labs networks
Customer involvement: two
  different approaches




                (Leminen, Kortelainen & Fred, 2010) 8
Methodology
Primary data

  • A multiple case study among the staffs of 26 Living
   Labs in Finland, Sweden, Spain, and South Africa
   during 2007-2011 (a total of 103 semi-structured
   interviews).

Secondary data

  • Web sites, bulletins, magazines, and case reports

  • Data collection aimed at identifying and
   categorizing roles in Living Labs networks
Activity based user roles
• Four principal activity based user roles in Living Labs
 found:
   • Informant

   • Tester

   • Contributor

   • Co-creator




                                                       10
Living Labs: The network view
                  Users




                Innovation        Providers
Enablers       development




                Utilizers



           A Living Lab network               Network of Living Labs

                                                                                   11
                                               (Mod. Leminen & Westerlund, 2008)
Different types of Living Labs
                                     Enabler
• Utilizer-driven Living Labs

• Enabler-driven Living Labs
                                            Utilizer
• Provider-driven Living Labs                               Developer


• User/User community-driven Living Labs
                                               User




                                     (Kortelainen, Leminen & Fred, 2011)
                                                                    12
User’s roles in Living Labs networks
           Utilizer         User           Provider            Enabler        Living Lab
           driven           driven         driven              driven           actors


           Co-creator,      Co-creator,    Co-creator,         Co-creator,
           Contributor      Contributor    Contributor,        Contributor       User
                                           Informant, Tester

Activity
based
           Contributor 6,   Coordinator,   Co-creator 18,      Coordinator,
 roles     Informant,       Co-creator,    Contributor         Contributor,
           Tester           Informant      15,16,18,19,        Informant
                                                                                 User
                                           Informant
                                           15,16,17,18,19,
                                           Tester 15,17,18,



           Informant        Contributor,   Contributor         Informant
           Contributor 4,   Tester         11,12,13            Tester
                                                                                 User
           Tester 2,4                      Informant 13,14,
                                           Tester 11,12,14
                                                                                           13
Business networks: structure
• Business network can be classified according to the
 firm’s position in the network and the
 configuration of the network (Doz, 2001).
• The company may act as the engine, or hub, in the
 focal business network, or it is one of the many
 actors having a minor role as a partner with whom
 the hub company cooperates.
• Networks centralized, decentralized, or distributed.
 Barbasi (2002, ref. Möller and Svahn, 2003)
                                                         14
Roles in networks
• Heikkinen et al. (2007)

   • Webber, instigator, gatekeeper, advocate,
    producer, planner, entrant, auxiliary

   • Facilitator, compromiser, aspirant, accessory
    provider




                                                     15
User’s roles in diverse Living Labs networks
                 Utilizer         User            Provider            Enabler        Living Lab
                 driven           driven          driven              driven           actors
                                  Orchestrator,                                         HUB
                                  Facilitator
Distributed
 Multiplex
                 Co-creator,      Co-creator,     Co-creator,         Co-creator,
 structure
                 Contributor      Contributor     Contributor,        Contributor       User
                                                  Informant, Tester
                                  Webber,                                               HUB
                                  Builder,                 Position (structure)
                                  Facilitator
                                                              based roles
Distributed      Contributor 6,   Coordinator     Co-creator 18,      Coordinator
 structure       Informant,       (focal net),    Contributor         (focal net),
                 Tester           Co-creator,     15,16,18,19,        Contributor,
                                                                                        User
                                  Informant       Informant           Informant
                                                  15,16,17,18,19,
                                                  Tester 15,17,18,
                                  Facilitator,                                          HUB
Centralized
                                  Integrator
 structure

                 Informant        Contributor,    Contributor         Informant
                 Contributor 4,   Tester          11,12,13            Tester
                                                                                        User
                 Tester 2,4                       Informant 13,14,                                16
                                                  Tester 11,12,14
New position (structure) based
       roles for user found
• Builder

• Facilitator

• Orchestrator

• Integrator

• Coordinator (focal net)




                                    17
User’s roles in diverse Living Labs networks
                  Utilizer         User            Provider            Enabler        Living Lab
                  driven           driven          driven              driven           actors
                                   Orchestrator,                                         HUB
                                   Facilitator
 Distributed
  Multiplex
                  Co-creator,      Co-creator,     Co-creator,         Co-creator,
  structure
                  Contributor      Contributor     Contributor,        Contributor       User
Activity                                           Informant, Tester

based                              Webber,
                                                                 Position                HUB
                                   Builder,
 roles                             Facilitator                  based roles
 Distributed      Contributor 6,   Coordinator     Co-creator 18,      Coordinator
  structure       Informant,       (focal net),    Contributor         (focal net),
                  Tester           Co-creator,     15,16,18,19,        Contributor,
                                                                                         User
                                   Informant       Informant           Informant
                                                   15,16,17,18,19,
                                                   Tester 15,17,18,
                                   Facilitator,                                          HUB
 Centralized
                                   Integrator
  structure

                  Informant        Contributor,    Contributor         Informant
                  Contributor 4,   Tester          11,12,13            Tester
                                                                                         User
                  Tester 2,4                       Informant 13,14,                                18
                                                   Tester 11,12,14
Main conclusions
We suggest that either

      actors actively shape the environment
      they act in
 or

      they are restricted by predetermined
      social structures (e.g. business
      networks)

                                             19
Main arguments
• Innovation is the outcome of
 cooperation between actors in business
 networks
• Roles and positions of users are tools to
 manage the network
Found users roles
                in Living Lab networks
Position (structure)       Activity based user roles
based roles for users
• Builder                  • Informant

• Facilitator              • Tester

• Orchestrator             • Contributor

• Integrator               • Co-creator

• Coordinator

• Webber                                               21
Are you
                 innovating
               together with
             your customers?
             Perspectives on
                Living Labs
                (in Finnish)
10.10.2012


                          22
Living lab special issues and living
               lab tracks at 2013 conferences
                                                                Living Lab tracks
Technology Innovation        Forthcoming 2012/2013
                                                            at the 2013 conferences
     Management          Special issue on: "Living Labs –
         Review            Environments for Concurrent
  http://timreview.ca/        Product Development“
                          IJPD (International Journal of
                             Product Developement)




                                                                                      23
Thank you!




seppo.leminen@laurea.fi   anna-greta.nystrom@abo.fi   Mika_westerlund@carleton.ca
 seppo.leminen@aalto.fi


    Questions?                                Comments?

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Inuse seminar 20121009 Seppo Leminen

  • 1. Users and Innovation Research – INUSE- Research Seminar Open Innovation House, Otaniementie 19-21 (2nd floor, room A208, Time: 9.30-11.30) Users roles for co-creation of innovation in living lab networks Seppo Leminen, D.Sc. (Econ), Principal lecturer Laurea University of Applied Sciences, Adjunct Professor Aalto University School of Business seppo.leminen@laurea.fi Anna-Greta Nyström, D.Sc. (Econ), Åbo Akademi University, School of Business and Economics Mika Westerlund, D.Sc. (Econ), Assistant Professor, Carleton University, Sprott School of Business, Canada
  • 2. Research gaps • Living Labs provide a promising research area for studying open service innovation. (Pascu & van Lieshout, 2009) • The roles of the actors in Living Labs networks deserve further investigation. (Nyström & Leminen, 2011) • Research on living labs scarce from the network perspective (e.g. in Leminen & Westerlund, 2008) and there is lack of rich case descriptions of Living Labs (Schaffers & Turkama 2012; Leminen & Westerlund, forthcoming)
  • 3. Living Labs (1/3)  Experimentation environments, where stakeholders form public- private-people partnerships (4Ps) to create, prototype, validate, and test new products, services, and technologies in real-life contexts. (Ballon et al., 2005)  Products, services, and technologies are developed and tested in physical or virtual regions, where users are informants/co- creators. (Kusiak, 2007)  Different from: (Ballon et al., 2005; Schaffers et al,. 2007) • test beds for controlled testing in a laboratory environment. • field trials for testing in a limited but still real-life environment. • other forms of open innovation that have no concrete setting.
  • 4. Living Labs (2/3)  Participants’ roles: Living Lab is a real-life test and experimentation environment, where users and producers co- create innovations, and which connects them with utilizers and enablers. (Leminen & Westerlund, 2008)  Global networks: many Living Labs join regional or global networks of Living Labs: e.g., European Network of Living Labs. (http://www.openlivinglabs.eu/)  Different types: i) narrow but sizable communities of expert users; ii) whole bounded populations; iii) Living Labs for technical service development; iv) Living Labs for non-technical research using a service platform. (Stewart, 2007)
  • 5. Living Labs (3/3) • We define living labs as physical regions or virtual realities, or interaction spaces, in which stakeholders form public-private-people partnerships (4Ps) of companies, public agencies, universities, users, and other stakeholders, all collaborating for creation, prototyping, validating, and testing of new technologies, services, products, and systems in real-life contexts. They are used for the development of communities for the use of innovation. (Westerlund & Leminen, 2012) 5
  • 6. Users as innovators  Customer participation (customer contribution to co-production) and interaction (dialogue between customer and business) vital in service innovations. (von Hippel, 1986) • Today’s organizations need a constant flow of ideas while competing through emergent technologies and fast NPD. (Kao, 1997) • Integrating customers and users to learn from and with them in the innovation process is a key success factor for firms in all industries. (Edvarsson et al., 2010). • Firms involve consumers in the co-production of brands, experiences, design, marketing strategies, and even product or service development. (Jeppesen & Molin, 2003; Zwick et al., 2008)
  • 7. Objectives of the study • Describe Living Labs as open innovation networks • Identify the distinct structures of Living Labs networks • Analyze users’ roles in diverse Living Labs networks
  • 8. Customer involvement: two different approaches (Leminen, Kortelainen & Fred, 2010) 8
  • 9. Methodology Primary data • A multiple case study among the staffs of 26 Living Labs in Finland, Sweden, Spain, and South Africa during 2007-2011 (a total of 103 semi-structured interviews). Secondary data • Web sites, bulletins, magazines, and case reports • Data collection aimed at identifying and categorizing roles in Living Labs networks
  • 10. Activity based user roles • Four principal activity based user roles in Living Labs found: • Informant • Tester • Contributor • Co-creator 10
  • 11. Living Labs: The network view Users Innovation Providers Enablers development Utilizers A Living Lab network Network of Living Labs 11 (Mod. Leminen & Westerlund, 2008)
  • 12. Different types of Living Labs Enabler • Utilizer-driven Living Labs • Enabler-driven Living Labs Utilizer • Provider-driven Living Labs Developer • User/User community-driven Living Labs User (Kortelainen, Leminen & Fred, 2011) 12
  • 13. User’s roles in Living Labs networks Utilizer User Provider Enabler Living Lab driven driven driven driven actors Co-creator, Co-creator, Co-creator, Co-creator, Contributor Contributor Contributor, Contributor User Informant, Tester Activity based Contributor 6, Coordinator, Co-creator 18, Coordinator, roles Informant, Co-creator, Contributor Contributor, Tester Informant 15,16,18,19, Informant User Informant 15,16,17,18,19, Tester 15,17,18, Informant Contributor, Contributor Informant Contributor 4, Tester 11,12,13 Tester User Tester 2,4 Informant 13,14, Tester 11,12,14 13
  • 14. Business networks: structure • Business network can be classified according to the firm’s position in the network and the configuration of the network (Doz, 2001). • The company may act as the engine, or hub, in the focal business network, or it is one of the many actors having a minor role as a partner with whom the hub company cooperates. • Networks centralized, decentralized, or distributed. Barbasi (2002, ref. Möller and Svahn, 2003) 14
  • 15. Roles in networks • Heikkinen et al. (2007) • Webber, instigator, gatekeeper, advocate, producer, planner, entrant, auxiliary • Facilitator, compromiser, aspirant, accessory provider 15
  • 16. User’s roles in diverse Living Labs networks Utilizer User Provider Enabler Living Lab driven driven driven driven actors Orchestrator, HUB Facilitator Distributed Multiplex Co-creator, Co-creator, Co-creator, Co-creator, structure Contributor Contributor Contributor, Contributor User Informant, Tester Webber, HUB Builder, Position (structure) Facilitator based roles Distributed Contributor 6, Coordinator Co-creator 18, Coordinator structure Informant, (focal net), Contributor (focal net), Tester Co-creator, 15,16,18,19, Contributor, User Informant Informant Informant 15,16,17,18,19, Tester 15,17,18, Facilitator, HUB Centralized Integrator structure Informant Contributor, Contributor Informant Contributor 4, Tester 11,12,13 Tester User Tester 2,4 Informant 13,14, 16 Tester 11,12,14
  • 17. New position (structure) based roles for user found • Builder • Facilitator • Orchestrator • Integrator • Coordinator (focal net) 17
  • 18. User’s roles in diverse Living Labs networks Utilizer User Provider Enabler Living Lab driven driven driven driven actors Orchestrator, HUB Facilitator Distributed Multiplex Co-creator, Co-creator, Co-creator, Co-creator, structure Contributor Contributor Contributor, Contributor User Activity Informant, Tester based Webber, Position HUB Builder, roles Facilitator based roles Distributed Contributor 6, Coordinator Co-creator 18, Coordinator structure Informant, (focal net), Contributor (focal net), Tester Co-creator, 15,16,18,19, Contributor, User Informant Informant Informant 15,16,17,18,19, Tester 15,17,18, Facilitator, HUB Centralized Integrator structure Informant Contributor, Contributor Informant Contributor 4, Tester 11,12,13 Tester User Tester 2,4 Informant 13,14, 18 Tester 11,12,14
  • 19. Main conclusions We suggest that either actors actively shape the environment they act in or they are restricted by predetermined social structures (e.g. business networks) 19
  • 20. Main arguments • Innovation is the outcome of cooperation between actors in business networks • Roles and positions of users are tools to manage the network
  • 21. Found users roles in Living Lab networks Position (structure) Activity based user roles based roles for users • Builder • Informant • Facilitator • Tester • Orchestrator • Contributor • Integrator • Co-creator • Coordinator • Webber 21
  • 22. Are you innovating together with your customers? Perspectives on Living Labs (in Finnish) 10.10.2012 22
  • 23. Living lab special issues and living lab tracks at 2013 conferences Living Lab tracks Technology Innovation Forthcoming 2012/2013 at the 2013 conferences Management Special issue on: "Living Labs – Review Environments for Concurrent http://timreview.ca/ Product Development“ IJPD (International Journal of Product Developement) 23
  • 24. Thank you! seppo.leminen@laurea.fi anna-greta.nystrom@abo.fi Mika_westerlund@carleton.ca seppo.leminen@aalto.fi Questions? Comments?