Inspiring route - Collaboration revolution: crowdsourcing, customization & co-creation

3,099 views

Published on

The emergence of new models of peer-relationship between people and firms that - surpassing the old framework of consumption - enable the co-creation of value within the market relationship.

This report - part of the "Inspiring Route" project - analyses and understands the main themes related to the Collaboration Revolution through stories, examples, numbers, case studies.

Published in: Business

Inspiring route - Collaboration revolution: crowdsourcing, customization & co-creation

  1. 1. COLLABORATION REVOLUTION MARKETREVOLUTION.IT @MKTRVLTN INSPIRING ROUTE 27/02/2014
  2. 2. WELCOME Thanks for coming COLLABORATION REVOLUTION - INSPIRING ROUTE 2
  3. 3. @MKTRVLTN #INSPIRINGROUTE
  4. 4. How does this story start? COLLABORATION REVOLUTION - INSPIRING ROUTE 4
  5. 5. Let me introduce you to this guy... COLLABORATION REVOLUTION - INSPIRING ROUTE 5 John Pemberton 1 soda, 200 countries, 1.8 billion beverage per day Source: Coca-cola, 2014.
  6. 6. COLLABORATION REVOLUTION - INSPIRING ROUTE One Drink For All 6 “Thirst asks nothing more” Source: Wikipedia, 2014.
  7. 7. COLLABORATION REVOLUTION - INSPIRING ROUTE The main features 7 3 pillars Top-down Product oriented Standardized Source: Market Revolution, 2014.
  8. 8. A model based on passive consumption COLLABORATION REVOLUTION - INSPIRING ROUTE 8
  9. 9. COLLABORATION REVOLUTION - INSPIRING ROUTE What did consumers want? 9 EMULATION BEING REASSURED PASSIVE ACCEPTANCE Source: Market Revolution, 2014.
  10. 10. In the meanwhile, something was changing... COLLABORATION REVOLUTION - INSPIRING ROUTE 10
  11. 11. COLLABORATION REVOLUTION - INSPIRING ROUTE Here comes Rami 11 In Syria the media are controlled by the regime. There’s a high demand - both internal and external - of "information" that remains unfulfilled. Citizens - using common tools such as smartphones and mobile connections and then with professional tools donated by benefactors - have begun to record protests and broadcast the news. Today, these "citizen journalists" collaborate and even replace corporate media - CNN, Al Jazeera Inglese, The Guardian and The Washington Post - in the voice and strength to the civil revolt. Source: Syria Deeply, oct 2014; Wikipedia, feb 2014. Citizen alongside corporate media
  12. 12. COLLABORATION REVOLUTION - INSPIRING ROUTE How did it start? 12 Drivers and causes of change PEER TO PEER OPEN SOURCE USER GENERATED GLOBAL ACTION CONTENT Source: Wikinomics, 2008; Market Revolution, 2014.
  13. 13. COLLABORATION REVOLUTION - INSPIRING ROUTE Collaboration 13 We’re moving from a world organized around passive consumption to one organized around active collaboration between people and firm. Source: Market Revolution, 2014.
  14. 14. The emergence of new models of peer-relationship between people and firms that - surpassing the old framework of consumption - enable the co-creation of value within the market relationship. COLLABORATION REVOLUTION - INSPIRING ROUTE 14
  15. 15. COLLABORATION REVOLUTION - INSPIRING ROUTE Pro-sumers 15 New behaviors and consumption trends Source: Treccani, 2013, Forbes, jul 2013. A consumer than simply “consuming” products, becomes the voice of the products and significantly impact the success or failure of companies, products, and brands. Consumers are in control. The leaders of this shift are the members of the social web who spread messages, influence people around the world, and drive demand.
  16. 16. What drives pro-sumers to partecipate? COLLABORATION REVOLUTION - INSPIRING ROUTE 16 Source: Crowdsourcing, apr 2012 ENGAGEMENT PRIDE SHARED VALUES BRAND RELATIONSHIP IMPACT 7 DRIVERS MONEY COMMUNITY
  17. 17. How new consumers look like? COLLABORATION REVOLUTION - INSPIRING ROUTE 17 EXPERT ACTIVE SOCIAL DIFFERENT STAR Source: Market Revolution, 2014.
  18. 18. How to meet their expectations? COLLABORATION REVOLUTION - INSPIRING ROUTE 18 CO-CREATION Let’s make this unique together CROWDSOURCING Consumers make something unique for me CUSTOMIZATION I am making something unique for each one of my customers Source: Market Revolution, 2014.
  19. 19. MARKET REVOLUTION Crowdsourcing
  20. 20. Invite the creative community Coca-Cola partnering with the crowdsourcing community eYeka COLLABORATION REVOLUTION - INSPIRING ROUTE 20 Source: eConsultancy, nov 2012. “Create a film, print, illustration or animation against that brief” - 3,600 responses - 900% productivity gain - Pro-quality
  21. 21. Crowdsourcing A type of participative online activity in which a company proposes to a group COLLABORATION REVOLUTION - INSPIRING ROUTE of individuals the voluntary undertaking of a task. 21 Source: Wikipedia, 2014.
  22. 22. Source: Innovation Excellence, aug 2013 COLLABORATION REVOLUTION - INSPIRING ROUTE Main characteristics One-to-many activity A challenge is issued and the crowd works independently toward a winning solution People creating a great idea for you Assumes the crowd is capable of the total answer Crowd works independently of the internal creative team Winning ideas are selected Winning is the reward
  23. 23. COLLABORATION REVOLUTION - INSPIRING ROUTE Bring back ol’ good shows 23 Source: Kickstarter, 2013. Veronica Mars
  24. 24. Solve real business problems: R&D and ROI Sales revenues from user-generated products were three times higher – and gross margins four times greater – than those of designer-generated products. And cut costs by 4%. COLLABORATION REVOLUTION - INSPIRING ROUTE 24 Source: McKinsey, jul 2012; Crowdsourcing.org, feb 2013; ScienceDirect, june 2014; Muji, 2014; Muji awards
  25. 25. Customer service by the customers Using Lithium, Tom Tom crowdsourced customer service. Its own customers handled 20,000 cases in 2 weeks making a $150,000 save COLLABORATION REVOLUTION - INSPIRING ROUTE 25 Source: The Economist, may 2012, Tom Tom & Lithium
  26. 26. COLLABORATION REVOLUTION - INSPIRING ROUTE Drive together 26 the value comes from the community The community is the main product information based on community input. Business model - the crowd allows me to be more appealing to potential partners and obtain discouts for the crowd itself. Source: TechCrunch, jun 2013. Waze (acquired by Google)
  27. 27. COLLABORATION REVOLUTION - INSPIRING ROUTE Some figures 27
  28. 28. 200K Italian users in crowdsourcing platforms € 15 MLN Revenues for crowdsourcing platforms in 2012 € 100 MLN Est. Revenues for crowdsourcing platforms in 2015 COLLABORATION REVOLUTION - INSPIRING ROUTE Industry size - Italy 28 Source:Il Sole 24 Ore, Oct 2013
  29. 29. Industry size - worldwide Crowdfunding 452 Platforms > 1 MLN Crowdfunded projects + 105% Growth in the US (number of projects vs. 2012) + 65% Growth in Europe (number of projects vs. 2012) COLLABORATION REVOLUTION - INSPIRING ROUTE 29 Source: Crowdfunding, jul 2013
  30. 30. 2015 COLLABORATION REVOLUTION - INSPIRING ROUTE Here’s the trend 30 2016 2017 Consumer goods companies that employ crowdsourced solutions in marketing campaigns or NPD will enjoy a 1% revenue boost over noncrowdsourced competitors. 24% of large businesses are leveraging external talent, and that adoption will double in the next two years. More than half of consumer goods firms will receive 75% of their consumer innovation and R&D from crowdsourced solutions. Source: Crowdsourcing, feb 2013
  31. 31. COLLABORATION REVOLUTION - INSPIRING ROUTE Take out 31 1. Crowdsourcing now solves real business problems 2. The ROI of crowdsourcing can now be demostrated 3. Brand are rapidly reallocating their spending 4. Consumers are looking forward to partecipate Source: Crowdsourcing, feb 2013
  32. 32. MARKET REVOLUTION Customization
  33. 33. COLLABORATION REVOLUTION - INSPIRING ROUTE Definition 33 Customization is a type of online activity in which a company allows customers to modify/create part of the product or activity of the brand. Source: Market Revolution, 2014.
  34. 34. COLLABORATION REVOLUTION - INSPIRING ROUTE Coca-cola gets personal 34 Share a coke 1. I give up my own name in order to put my customer in the centre 2. I let my customers personalize it online 3. Social media boost Source: The Guardian, aug 2013
  35. 35. COLLABORATION REVOLUTION - INSPIRING ROUTE Your Heineken 35 1. Personalize your bottle and receive it directly at home 2. Share it on social networks 3. Vote best bottle Source: Heineken, 2014.
  36. 36. COLLABORATION REVOLUTION - INSPIRING ROUTE Nike ID 36 Online community: 15 million people. Nike’s market share: from 48 to 61% NIKE iD is 20% of store revenue. Source: Cross Road Innovation, oct 2010
  37. 37. With personalization we observe a change of paradigm from mass production to mass customization. It aims to deliver products that best meet individual customer needs with mass production efficiency. COLLABORATION REVOLUTION - INSPIRING ROUTE Take out 37 Source: Entrepreneur, nov 2013
  38. 38. MARKET REVOLUTION Co-creation
  39. 39. Co-creation is a form of business strategy that emphasizes the generation and ongoing realization of mutual firm-customer value. COLLABORATION REVOLUTION - INSPIRING ROUTE Definition 39 Source: : Wikipedia, 2013
  40. 40. One-to-one activity - Deeper peer-to-peer relationship - Commitment between parties to co-innovate, co-design, co-produce something People working with you to make a good idea great COLLABORATION REVOLUTION - INSPIRING ROUTE 40 Source: Innovation Excellence, aug 2013 Main characteristics The process of an engaging experience of the customer is its own reward The emerging themes become the inspiration for further development
  41. 41. COLLABORATION REVOLUTION - INSPIRING ROUTE Production 41 Make your own coke - more than 100 different flavours to make new and unique combination Reinvented Manufacturing - from syrup to cartridges Co-created market research - insights on new products Consumer is happy too - any Freestyle machine will know their favorite flavor combo Source: Forbes, jul 2013 Let the consumer choose
  42. 42. Maxibon goes co-storytelling with d-still COLLABORATION REVOLUTION - INSPIRING ROUTE 42 Everyone is a storyteller - I let my potential customers to partecipate to a story carrying my brand values (Fun, young) Everyone is informed - PR advantage and content for the brand The consumer is engaged and entertained Marketing Brand - Consumer win win Source: D-stil, 2013
  43. 43. Kraft’s virtuous circle of co-creation COLLABORATION REVOLUTION - INSPIRING ROUTE 43 150 women, Health and Wellness opinion leaders: - helped refining product concepts and packaging - were involved in the merchandising and test marketing - shared their retail experiences and usage patterns Source: Communispace, 2014 R&D and distribution
  44. 44. “Co-Creation is just a natural way for organisations to help their customers meet their goals in the lifetime of use of their products. But they can only do so if they embrace a different view of value and start building back from the customer’s view of value, not the firm’s.” COLLABORATION REVOLUTION - INSPIRING ROUTE Take out 44 Source: Crowdsourcing, feb 2013 Chris Lawer
  45. 45. COLLABORATION REVOLUTION - INSPIRING ROUTE So what? 45
  46. 46. COLLABORATION REVOLUTION - INSPIRING ROUTE Where does the value go? 46 BRANDS/FIRMS CROWDSOURCING CO-CREATION CUSTOMIZATION CUSTOMERS/PEOPLE Source: Market Revolution, 2014.
  47. 47. COLLABORATION REVOLUTION - INSPIRING ROUTE What does it change? 47 Expertise Top-down Standard Control A new set of values Do it together Peer-to-peer Unique Partecipation Source: Market Revolution, 2014.
  48. 48. The collaborative organization COLLABORATION REVOLUTION - INSPIRING ROUTE 48 Giffgaff members help with the company’s operations: sales, customer service and even marketing. In return for this activity, the user receives remuneration through a system called “Payback”. Source: Medium, dec 2013 Run by the community for the community
  49. 49. The collaborative management COLLABORATION REVOLUTION - INSPIRING ROUTE 49 The new "operating system" that replaces the company's top-down paradigm with an organizational approach in which authority and decision-making are distributed throughout the organization’s "fractal" consisting of teams that are self-organizing. Source: First round, sept 2013; Holacracy, 2014 Holacracy
  50. 50. COLLABORATION REVOLUTION - INSPIRING ROUTE Collaboration Revolution 50 Collaborate to change Firm’s primary activities Organization Managerial models Brand Source: Market Revolution, 2014.
  51. 51. COLLABORATION REVOLUTION - INSPIRING ROUTE Brand Revolution 51 Let your company go 1. From control to collaboration 3. From promotion to authenticity and trasparency 4. From a Decision Making Manager to a Dialogue Facilitator 2. From communication to customer experience Source: Wikibrand, 2012
  52. 52. Gotcha! But how the story goes on? COLLABORATION REVOLUTION - INSPIRING ROUTE 52
  53. 53. COLLABORATION REVOLUTION - INSPIRING ROUTE The dark side of the crowd 53 Brand hijacking Mountain Dew asks the internet to name its new soda. The Internet chooses. Source: Mashable, aug 2012
  54. 54. The dark side of collaboration Task: A new logo for Moleskinerie Outcome from the crowd: COLLABORATION REVOLUTION - INSPIRING ROUTE 54 Intellectual property fail Source: Mumbrella, oct 2011
  55. 55. www.marketrevolution.it info@marketrevolution.it 55

×