Outside Innovation presented on May 11, 2007 at CRMC CALA

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Patty Seybold's presentation on Outside Innovation tailored to a Latin American audience--both b2c and b2b.

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Outside Innovation presented on May 11, 2007 at CRMC CALA

  1. 1. Outside Innovation How Your Customers will Co-Design Your Company’s Future Patricia Seybold, CEO Patricia Seybold Group, Inc. Customer Relationship Management Conference 2007 Caribbean and Latin America May 11, 2007 Coral Gables, Florida
  2. 2. Get Your Seat at the Strategy Table By making it easy for your Customers to: - Do business with you! - Achieve their goals!
  3. 3. What is “Outside Innovation?” <ul><li>Customers drive the design of your business processes, products, services, and business models. </li></ul>I want to get a great deal and get my rebate promptly, with no hassles! Staples Easy Rebate ®
  4. 4. What is “Outside Innovation?” <ul><li>Customers roll up their sleeves to co-design their products and your business. </li></ul>
  5. 5. What is “Outside Innovation?” <ul><li>Customers attract other customers and partners to build a vital customer-centric ecosystem around your products and services. </li></ul>
  6. 6. Use Customer Insight & Co-Design to Achieve:
  7. 7. Design to Meet Customers’ Outcomes Customers’ Streamlined Scenarios Your Company’s Streamlined Processes Moment of Truth Moment of Truth Desired Outcomes
  8. 8. Moments of Truth = Business Opportunities <ul><li>A real “Moment of Truth” is a showstopper </li></ul><ul><li>It keeps a prospect or customer from reaching their desired outcome </li></ul><ul><li>It’s when they can’t get things done “their way” </li></ul><ul><li>Goal: understand customers’ contexts, outcomes and key moments of truth </li></ul><ul><li>Ask them to quantify metrics around moments of truth (elapsed time, conditions of satisfaction, specific parameters) </li></ul>
  9. 9. Building Contractors’ Moments of Truth <ul><li>Deliver within 1 hour of when I need it </li></ul><ul><li>Let me change my delivery time with no penalties </li></ul><ul><li>Make it easy for me to meet my deadlines </li></ul>Cemex: Meeting Moments of Truth
  10. 10. Customer-Outcome-driven Eco-system <ul><li>I want to: </li></ul><ul><ul><li>“ Buy building supplies for my DIY project” </li></ul></ul><ul><ul><li>“ Pay as I go” </li></ul></ul><ul><li>Led to fastest growth retail brand in Mexico </li></ul><ul><li>Co-designed with retailers </li></ul><ul><li>Next: “ I want to complete my project before I have the cash” </li></ul>
  11. 13. Patterns for Customer Innovation <ul><li>Identify lead users/customers </li></ul><ul><li>Provide tools & streamlined support to help them reach their goals </li></ul><ul><li>Nurture customer communities </li></ul><ul><li>Empower customers to “strut their stuff” </li></ul><ul><li>Open your products and engage customers in peer production </li></ul>
  12. 14. <ul><li>Their self-image is deeply connected to the problem domain at hand </li></ul><ul><li>Passionate about their outcomes and issues </li></ul><ul><li>Influential in their circles </li></ul><ul><li>Thoughtful and insightful </li></ul><ul><li>Imaginative, visionary </li></ul><ul><li>Pragmatic, realistic </li></ul>Engage Lead Customers
  13. 15. Zopa Founders Co-Designed with Lead Users <ul><li>Discovered a new Segment: Freeformers </li></ul><ul><li>People who want control over their time and their careers </li></ul><ul><li>People who don’t want to work full-time for one company as “slave laborers” </li></ul><ul><li>Distrust banks and other financial institutions </li></ul><ul><li>Have difficulty getting loans </li></ul>
  14. 16. Zopa Co-Designed a New Lending Model <ul><li>Identified Lead Users (in an un-served market) </li></ul><ul><li>Conducted ethnographic research </li></ul><ul><li>Ran co-design sessions </li></ul><ul><li>Brainstormed possibilities </li></ul><ul><li>Piloted peer-to-peer lending model </li></ul><ul><li>Engaged in continuous learning </li></ul>
  15. 18. Co-Designed a Solution to Meet their Goals I want to borrow money easily, on my terms, to meet my goals without dealing with an impersonal institution. I want to invest money safely, on my terms, grow my income, help others improve their lives.
  16. 19. Design to Meet Customers’ Outcomes Customers’ Streamlined Scenarios Your Company’s Streamlined Processes Moment of Truth Moment of Truth Desired Outcomes
  17. 20. The Koko Fitness Experience Designed with Customers <ul><li>30 minutes </li></ul><ul><li>Don’t need to think </li></ul><ul><li>Easy to use </li></ul>
  18. 21. Provide Tools to Help them Reach their Goals Koko Fitness Smartrainer
  19. 22. Koko Fitness Provides Realtime Feedback
  20. 23. Build an Ecosystem around Customers’ Outcomes
  21. 24. Provide Customization and Innovation Toolkits
  22. 25. Let Customers use their Tools Anywhere! Design your shoes on your cell phone, and see your design on the Billboard in Times Square
  23. 26. Support a Continuum of Customer Innovation
  24. 27. Provide Tools to Help them Reach their Goals
  25. 28. National Semiconductor’s WEBENCH  Toolkit Application Resources System Overview Diagram Layout Sortable Selection Guide WEBENCH Simulation
  26. 29. How Customers’ Designs Spur Innovation <ul><li>National Semiconductor has leveraged customers’ designs to be able to provide pre-packaged solutions for: </li></ul><ul><li>Mobile phones </li></ul><ul><li>Gaming controls and consoles </li></ul><ul><li>Hand-held devices </li></ul><ul><li>Flat panel displays </li></ul><ul><li>Medical imaging </li></ul><ul><li>etc….. </li></ul>
  27. 30. Karmaloop’s Lead Customers: Urban Streetwear
  28. 31. Karmaloop Community Finds and Reps the Products
  29. 32. Customers are acknowledged for posting Customers rate each other’s contributions! National Instruments’ Vibrant Community 50% of new products created by customers
  30. 33. Lead customers Consultants Guides Contributors Promoters Five Roles Customers want to Play
  31. 35. Help Customers Strut their Stuff
  32. 36. Help Customers Strut their Stuff
  33. 37. Customers create their own Mash Ups
  34. 38. Engage in Open Access and Peer Production
  35. 39. Next generation games: Co-designed by customers
  36. 40. Key Take-Aways <ul><li>Engage with lead customers </li></ul><ul><li>Understand their context deeply </li></ul><ul><li>Co-design ways to help them reach their outcomes </li></ul><ul><li>Identify and optimize around their moments of truth </li></ul><ul><li>Provide tools that empower them </li></ul><ul><li>Open up your intellectual property and engage customers in peer production </li></ul><ul><li>Nurture customer communities </li></ul>
  37. 41. <ul><li>Patricia Seybold CEO, Consultant, and Author </li></ul><ul><li>Patricia Seybold Group, Inc. </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>www.psgroup.com </li></ul></ul><ul><ul><li>617.912.3107 </li></ul></ul>It’s YOUR turn! Questions, Comments, Feedback!

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