The document discusses the shift from traditional consumer models to consumer co-creation enabled by new technologies and user-generated content. It provides examples of companies like Procter & Gamble and Lego that have successfully engaged communities to gather feedback and co-create new products and innovations. It also outlines considerations for developing effective communities of creation, such as balancing order and openness, intellectual property management, and incentives for long-term user involvement.

1. ENTERING THE WORLD OF CONSUMER CO-CREATION Desk research, April 2007

2. The flow:- Web 2.0 and user generated content Innovation: from traditional model to innovation in the network economy P&G: a case study Crowd-sourcing and cocreation: examples and common themes Communities of creation: “do’s and don’ts”, requirements and research questions

3. The Internet is changing & it is changing the world Growing BROADBAND distribution is driving the change 1 BILLION active citizens Quantum leap in FUNCTIONALITY and USABILITY the result is a shift from the culture of hits to culture of niches - the “Long Tail”, described by Chris Anderson 3 forces are working for the long tail, away from the “hits”: 1 – Democratize the Tools of Production (e.g. personal computer becoming a small publishing house) 2 – Democratize Tools of Distribution (I-Tunes, Amazon) 3 – Connect Supply and Demands (filters: search engines, blogs, recommendations)

4. PROFESSIONAL CONTENT CREATORS *professional broadcasts (news, entertainment, sport) SEMI-PROFESSIONALS *regional/local broadcasting *home video shows and video-diaries END USERS & EVERYBODY *photo/music sharing *blogging *co-creating content One to Many One to a Few Everybody to a Few Based on> Georg Trogemann, Academy of Media Arts Cologne The forces of the Long Tail transforms the user into a content creator, blurring the border between creators and between audience and actors

5. Editorial/Commerce News, magazines www.salon.com news.bbc.co.uk Topic specific information sites E-commerce amazon.co.uk Prompted Quizzes/Polls/ Questionnaires/ Personality tests www.tickle.com Chat Bulletin boards (user-to-user) User Generated Blogs Online communities topic specific www.basenotes.net www.imdb.com or connection specific www.myspace.com Personal websites Shared content flikr.com youtube.com wikipedia Active “ Static” Interactive User generated and professionally generated content co-exists and overlaps on the Internet

6. News, magazines Points of available user connection CONTENT GENERATED BY EDITORIAL/COMMERCE : Salon.com & Amazon as example of the most successful sites. Why? People need and seek information and products on the Internet and rely on what other people see/think/experience about information and products. Online information resources E-commerce Rating Reviews Comments Viral sharing Tags Recommendations Messaging Profiles Editorial/Commerce “ Static”

7. Blogs Points of available user connection USER GENERATED CONTENT : Flickr , youtube and mySpace being the most successful, i.e. those with the most points of available connections between users and the most interesting/fun/provocative content. Topic-specific communities Connection-specific communities Shared content sites Rating Reviews Comments Viral sharing Tags Recommendations Messaging Profiles User Generated Active

8. USER GENERATED CONTENT : Flickr , youtube,mySpace, Wikipedia - and their road to success

10. USER GENERATED CONTENT & user generated research: www.grupthink.com : users generate their own questions & surveys

11. Traditional Innovation Management Innovation in the Network Economy Innovation is governed through a hierarchical mechanism Manufacturer organizes innovation as close, autonomous system Manufacturer retain full control of the innovation process Manufacturer retains intellectual property rights over innovation Convergence of industries and blurring of boundaries Increasing diversity of knowledge base Focus on core competencies Increasing need for partnering and collaboration Emergent nature of innovation and markets Increasing need for adaptability and speed Deep connectivity with partners and customers Increased ability to co-develop and co-create Innovation over innovation CROWDSOURCING & INNOVATION THROUGH COCREATION : from traditional innovation management to innovation in the network economy

13. Mohan Sawhney, Kellog Graduate School of Management

14. Mohan Sawhney, Kellog Graduate School of Management

16. P&G: CONNECT AND DEVELOP PROGRAM - P&G is getting ahead of the game in the area of open innovation & cocreation -2004: the 1st co-created (with companies) product: Magic Eraser Duo P&G : case study – CONNECT AND DEVELOP PROGRAM, at the “edge of chaos”

17. P&G: Case study: Tremor panels and Vocal point. - P&G is inviting the consumers to co-create, while offering access to new products, music etc. More than co-creation, this is WOM marketing on a mass scale… P&G is identifying people according to their potential to reach and influence other people (i.e. Connectors and Mavens according to Malcolm Gladwell definition)

18. User Generated Active Editorial/Commerce “ Static” Prompted Interactive Points of available user connection Rating Reviews Comments Viral sharing Tags Recommendations Messaging Profiles P&G initiative in terms of user generated content. P&G created Capessa to learn more about the interests and products needs of woemn. Capessa will also enable P&G to better understand digital space. The site is a mixture of user generated and editorial content. Bulletin board Site 1-2-1 messaging Site profiles Chat Polls Online “community”: e.g. w direct user interaction Personal blogging for all users Posting – sharing personal questions and thoughts and stories as well as videos, photos and links. Personal profiles Features (both user & editor generated) >> Photos >> Videos & Files Searchable tags Media files >> Photos >> Videos & Files P&G: Case study:- Capessa ( http:// health.yahoo.com/capessa / )

19. IBM InnovationJam : working with IBMers, their clients and family members from 160 countries

20. Philips Design : us ing it’s presence in Second Life to gain feedback on innovation concepts, engage residents in co-creation and gain a deeper understanding of potential opportunities in this virtual environment.

21. Dell’s Idea Storm , “Where Your Ideas Reign”. Users can submit ideas and feedback and other Dell community members can vote on them. The top idea: Pre-Installed Linux | Ubuntu | Fedora | OpenSUSE | Multi-Boot

22. Cisco Systems : An interactive community that allows customers, parteners and prospects the opportunity to exchange information on networking topics with peers and Cisco experts. Benefits: Allow Cisco to continuously capture feedback, used to anticipate and build next generation of products and solutionjs Gain information on networking trends, which is used in marketing, sales, engineering Grow customer and partner loyalty

23. 3 key themes for Lego consumer community : Feedback Recommendations Innovation/Co-creation LEGO: lesson in consumer intimacy – leading to cocreation - Lego Mindstorms is a line of Lego sets combining programmable bricks with electric motors , sensors .Lego Mindstorms may be used to build a model of an embedded system with computer-controlled electromechanical parts. Many kinds of real-life embedded systems, from elevator controllers to industrial robots , may be modelled using Mindstorms. There is a strong community of professionals and hobbyists of all ages involved in the sharing of designs, programming techniques, and other ideas associated with Lego Mindstorms. (Wikipedia)

24. Concept share : allows designers to capture feedback in fast and interactive way & speed up the process of innovation. The users are provided with a platform for collaboration and cocreation.

25. My Penguin : book covers created by readers

26. CrowdSpirit: Crowdsourcing for electronic products Submit an idea – Vote on it – Earn Money if idea goes to market

27. Cambrian House ( www.cambrianhouse.com ) : allows members to submit ideas that could succeed on the Internet, then vote for their favourites. Users are also awarded Royalty Points for their contributions: if a product is launched commercially and starts making money, the user-creator will earn part of it.

28. TBWA London ( www. thebigwhatadventure.com ) Cocreation and advertising:-users/participants can create and submit ideas as a response to creative briefs once submitted TBWA will own the ideas but will reward people for them (either money or possibility of a career)

29. Communities of creation: “do’s and don’ts” Balance order & disorder Understand what is consumers’ perception of value Interact frequently; be open and honest Sound like yourself and admit mistakes Encourage conversation amongst consumers Find your advocates and invite them inside Formalize what can be formalize Participate: you get what you give Inspire, don’t manage your community Don’t sell; show passion and share passion It is ok to say “I don’t know" Constantly feeding and renewing the creative tension that defines innovation at the “edge of chaos”

30. Community of Creation: Requirements a common interest a sense of belonging an explicit economic purpose a sponsor a shared language ground rules for participation a mechanism to manage intellectual property rights physical support of the sponsor co-operation as a key success factor a setting in which ideas and prototypes can be tested

31. Communities of Creation - Research questions: What level of control should the sponsor firm/manufacturer maintain? What are the roles and responsibilities of the sponsor firm? What are the criteria for selecting the members? Can individual contributions be rewarded? How should intellectual property be managed? How should the community be allowed to evolve? What incentive promote long term member involvement?