Outside Innovation

Outside Innovation How to Leverage Your Customers’ Creativity Patricia Seybold, CEO Patricia Seybold Group, Inc. NEDMA- May 14, 2007

What is “Outside Innovation?”
Customers roll up their sleeves to co-design their products and your business.

Customers attract other customers and partners to build a vital customer-centric ecosystem around your products and services.

Customers drive the design of your business processes, products, services, and business models.
I want to get a great deal and get my rebate promptly, with no hassles! Staples Easy Rebate ®

Lead customers Consultants Guides Contributors Promoters Five Roles Customers want to Play

Patterns for Customer Innovation
Engage customers in all five roles: consultants, contributors, guides, promoters, lead customers
Nurture customer communities
Co-design with lead users/customers
Provide tools & streamlined support to help them reach their goals
Empower customers to “strut their stuff”
Open your products and engage customers in peer production

Mozilla is Designed by Lead Users & Contributors

Mozilla is QA’d by Users Acting as Consultants

Mozilla is Supported by Users acting as Guides

Mozilla is Promoted by Users

Karmaloop’s Lead Customers: Urban Streetwear

Karmaloop Community Finds and Reps the Products

Customers are acknowledged for posting Customers rate each other’s contributions! National Instruments’ Vibrant Community 50% of new products created by customers

Their self-image is deeply connected to the problem domain at hand
Passionate about their outcomes and issues
Influential in their circles
Thoughtful and insightful
Imaginative, visionary
Pragmatic, realistic
Engage Lead Customers

Zopa Founders Co-Designed with Lead Users
Discovered a new Segment: Freeformers
People who want control over their time and their careers
People who don’t want to work full-time for one company as “slave laborers”
Distrust banks and other financial institutions
Have difficulty getting loans

Zopa Co-Designed a New Lending Model
Identified Lead Users (in an un-served market)
Conducted ethnographic research
Ran co-design sessions
Brainstormed possibilities
Piloted peer-to-peer lending model
Engaged in continuous learning

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.

Co-Design to Meet Customers’ Outcomes Customers’ Streamlined Scenarios Your Company’s Streamlined Processes Moment of Truth Moment of Truth Desired Outcomes

Moments of Truth = Business Opportunities
A real “Moment of Truth” is a showstopper
It keeps a prospect or customer from reaching their desired outcome
It’s when they can’t get things done “their way”
Goal: understand customers’ contexts, outcomes and key moments of truth
Ask them to quantify metrics around moments of truth (elapsed time, conditions of satisfaction, specific parameters)

The Koko Fitness Experience Designed with Customers
Customers’ Moments of Truth:
30 minutes
Don’t need to think
Easy to use

Provide Tools to Help them Reach their Goals Koko Fitness Smartrainer

Koko Fitness Provides Realtime Feedback

Build an Ecosystem around Customers’ Outcomes

Use Customer Co-Design to Achieve:

Co-Design to Meet Customers’ Outcomes Customers’ Streamlined Scenarios Your Company’s Streamlined Processes Your Partners’ Streamlined Processes Moment of Truth Moment of Truth Desired Outcomes

What We Did in the Co-Design Session:
Co-design streamlined Customer Scenarios and identify customers’ moments of truth and metrics
Build organizational consensus around customer-critical issues
Use customers’ metrics to drive priorities!
Co-Design Customers’ Ideal Experience with Lead Customers

Provide Tools to Help Customers Reach their Goals

National Semiconductor’s WEBENCH  Toolkit Application Resources System Overview Diagram Layout Sortable Selection Guide WEBENCH Simulation

How Customers’ Designs Spur Innovation
National Semiconductor has leveraged customers’ designs to be able to provide pre-packaged solutions for:
Mobile phones
Gaming controls and consoles
Hand-held devices
Flat panel displays
Medical imaging
etc…..

Provide Customization and Innovation Toolkits

Let Customers use Your Tools Anywhere! Design your shoes on your cell phone, and see your design on the Billboard in Times Square

Let Customers use Your Tools Anywhere!

Support a Continuum of Customer Innovation

Help Customers Strut their Stuff

Discover New Products & Services

Help Customers Strut their Stuff

Customers Will Create their own Mash Ups

Engage in Open Access and Peer Production

Next generation games: Co-designed by customers

Take-Aways

Patricia Seybold CEO, Consultant, and Author
Patricia Seybold Group, Inc.
[email_address]
www.psgroup.com
617.912.3107
It’s YOUR turn! Questions, Comments, Feedback!

Outside Innovation

by pseybold on Jun 25, 2007

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