In flanders co creation day (2012)


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co-creation module 2012 in Belgium for InFlanders

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In flanders co creation day (2012)

  1. 1. Oct-12 DESIGN YOUR INNOVATIONco-creation framework+casesFlavio Fabiani June 29th - NMBS Loods - Magdalenastraat 48 - 8500 Kortrijk 1
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  7. 7. Oct-12 FLAVIO FABIANI / Toshiba Europe I am member of the Innovation Core Team at Toshiba Europe where I work since 10 years At Toshiba I am responsible for working with senior business leaders to drive innovative solutions advising & coaching to business units on innovation methods, processes, and approaches consulting on the approach to innovation engagements R&D, product innovation and communication strategies are the areas I am mainly dealing with 7
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  9. 9. Oct-12Myths about innovation Leading neurologists for many years have been telling us that meaningful interactions among individuals enable people to both learn faster and remember more of what they learn, and that as a result engaged minds in collaboration generate creative solutions even the smartest minds alone may not find In spite of that, there are two prevalent myths about creativity and innovation 1. creativity is the preserve of the individual creative genius 2. innovation are generated by eureka moments often by people in scientific labs These myths exist because they are more interesting to narrate, but looking beneath the surface we find out that innovations are developed by groups of people and that they usually take long time to become fully formed. 9
  10. 10. Oct-12An idea is networked In 1805 Heinrich von Kleist in his essay ‘On The Gradual Production Of Thoughts While Speaking’ wrote that we can sit alone in our room trying to solve a seemingly intractable problem and then when we talk to others suddenly the answer is there Recently, Steve Johnson in his book “Where Good Ideas Come From: The Natural History of Innovation” - concludes that less than 10% of innovation during the Renaissance was networked but that already two centuries later a majority of breakthrough ideas emerged in collaborative environment. This trend continued in the following centuries. Christians will probably refer to the Bible’s passage “For where two or three are gathered in my name, there am I among them” (Matthew 18:20) 10
  11. 11. Oct-12Managing innovation If these are the assumptions, managing innovation in order to create more value lies not in finding a way to create the best fully-featured products or services, but in providing more and varied opportunities to individuals involved in our value chain to come together and co-create personalized experiences 11
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  13. 13. Oct-12my definition of co-creation “Co-creation is an organization’s strategic guidance giving strong significance to the working and consumption experience of people. Co-creation strategies are always human-centric as the notion of experience is by definition referring to individuals who sometimes act for themselves (customers), sometimes on behalf of organizations (employees, suppliers, policy makers, etc.) Talking and working on human experience is setting the ground for the intuitions collision and for the mutual enrichment but should not be the final aim” Ultimately co-creation is about learning how to create meaningful and rewarding experiences, is about managing for creativity instead of managing creativity itself 13
  14. 14. Oct-12Benefits of co-creation It increases efficiency by cutting costs in many ways like reduce marketing budget necessary to launch products / services avoiding launch of products / services not valued by the customers It reduces business risks by sharing them with partners by increasing insights generation by pre-testing investments It lower employees turnover It expands market opportunities and returns thanks to outside-in and inside-out strategies outside-in, by involving customer in matching processes on the enterprise side. This approach start with the human experiences and mix them with the enterprise processes (e.g. Nike+) Inside-out, by making enterprise processes transparent to stakeholders in order to allow them to interact with those processes and generate new experience for themselves. This approach start with the enterprise processes and mix them with the human thinking (e.g. mass customization) It enhance enterprises strategic capital, i.e. the capacity to plan and successfully execute their business strategies It allow individuals to gain new experience of value It decrease risks and cost for individuals 14
  15. 15. Oct-12Scope of co-creation Co-creation can be applied to almost any type of innovation from operational and product-service innovation to business strategy and management innovation. Indeed the more technical a product is, the greater the difficulty in involving consumers in the development process. Yet it is not impossible to involve others. People who have professional careers in associated disciplines such as design, architecture, ergonomics, can bring specific knowledge to a problem; consumers can provide insights into the way a product or service connects to their lives, and employees from different domains can make previously unseen connections: new mental structures, new constellations, come into being when knowledge, experiences, ideas from widely differing and distinct domains, meet. 15
  16. 16. Oct-12The universe of opportunities of co-creation strategies The core principle underlying enterprises transformation towards a co-creation strategy aiming at generating a CO-CREATIVE MUTUAL VALUE is: engaging people to create valuable experiences together while enhancing network economics This core principle can be pursued thanks to 4 different levers: network relationships with the other stakeholders organizations in the ecosystem individual interactions in the different ecosystem contexts experience of both stakeholders organizations and individualssource: V. Ramaswamy and F. Gouillart 2010 engagement platforms 16
  17. 17. Oct-12#1: network relationships with the other stakeholders organizations in the ecosystem The objective is expanding the stakeholders relationships in the ecosystem by increasing networks economics of both stakeholder organizations and of the people working for them In the early stages of co-creation, an organization might experiment by connecting with the existing experiences of adjacent stakeholders Over time, the organization gains confidence to venture into new QUESTIONS relationships with distant stakeholders and supporting or - Who are the different types of stakeholders proposing new experience typologies in our business network? - How does our enterprise currently connect The benefits for stakeholder organizations are: growth of strategic with these stakeholders? - Can we engage with our external capital, increase of efficiency and returns stakeholders in different / new ways in order Individuals acting on behalf of a stakeholder organizations to expand the mutual value generation? Where and how is this possible? (employees, suppliers, policy makers, etc.) benefit from this - Which stakeholders should we address activities by getting a deeper and more personalized working initially? - Are there opinion leaders among the experience stakeholders? If there are, how can we improve the network economics of both these organizations and the people working for them? 17
  18. 18. Oct-12#2: individual interactions in the different ecosystem contexts The objective is expanding the scale and the scope of the interactions among the individuals involved in the different ecosystem contexts (,, As stated above co-creation strategies are always human-centric as the notion of experience is by definition referring to individuals who sometimes act for themselves (customers), sometimes on behalf of a stakeholder organizations (employees, suppliers, policy makers, etc.) To add value to individual working / consumption experiences we can differentiate an early stage approach and a more mature approach, like we did when we approaching stakeholders relationships. Initially the organization experiments by intensifying and reinforcing those interactions among individuals already existing Over time, the organization gains confidence to propose / support QUESTIONS - What links the organization have new interactions and by engaging more individuals, even those already in place with its customers, its traditionally distant from the organization employees, and the employees of the other stakeholder organizations? Individuals in the ecosystem benefit by getting a deeper and more - Can the organization engage in a more personalized working / consumption experience but also by co-creative ways in these interactions? If it can, where and how can these decreasing their risks and costs interactions be more co-creative 18
  19. 19. Oct-12#3: experience of both stakeholders organizations and individuals The objective is to expand the space of the experience of both stakeholder organizations and individuals acting in the ecosystem The experience of value chain participants can concern the organization production, its operative processes or its platforms Often enterprises opening up their processes (design, development, R&D, marketing, etc.) to exploit outside-in and inside-out opportunities forget collecting the experiences of participants and truly include them into their operative processes Another common mistake for some enterprises is to open up their processes to the outside world before paying attention to the working QUESTIONS experience of their employees - What experiences currently live people involved in our value chain when they get The benefits for organizations are: growth of strategic capital, in touch with our products / services, to our increase of efficiency and returns and at the same time decrease processes or our platforms? - Is it possible to build more meaningful risks and employees turnover experiences together with the people involved in our value chain? Individuals in the ecosystem benefit by getting a deeper and more personalized working / consumption experience but also by decreasing their risks and costs 19
  20. 20. Oct-12#4: engagement platformsThe objective is to driving organization costs down and reducing its riskthrough co-creative engagementThe engagement platforms represent an industrialization of theinteractions among individuals who are part of the ecosystem, i.e. thanksto these platforms both the scope and the scale of these interactions canbe easily and cost-effectively increasedEngagement platforms are the cornerstone of co-creation which supportthe other 3 engagement componentsThe simplest form of engagement platform is the meeting, where peoplecongregate with a specific purpose and a structured process throughwhich they will co-create, thereby playing a central role in defining QUESTIONS - If we already have engagementproducts and services experience. platforms up and running, how can weStores, products, call centers are other examples keep them alive through the generation of co-creative value?Transforming corporate websites into engagement platforms constitute - What are existing assets and resourcesa huge opportunity in just about any industry . With the plethora of social which can be used as engagement platforms?interaction technologies available nowadays, conversation online has - How can we involve our innovationboomed, nevertheless few companies managed this opportunity to partners in the building of new engagement platform together?engage their customers in a productive and creative ways. (Dell)The best engagement platforms are always multifaceted, they includetherefore different dimensions (e.g. online and offline) 20
  21. 21. Oct-12Core principles of Co-Creation - Recap Co-creative enterprises, innovate new types of experiences shaped by the context of people’s interactions, creating mutual value. To make the process effective and affordable, they design engagement platforms that “industrialize” the scale and scope of interactions, driving their costs down and reducing risk through co-creative engagement. Doing so requires building an expanded, reconfigurable network of relationship that goes beyond the traditional boundaries of the organization to expand stakeholder relationships (private-public-social), and generating radically new economics for participants in the different ecosystem’s contexts of interactions 21
  22. 22. Oct-12Ask yourself the right questions 22
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  24. 24. Oct-12Designing a super cheap incubator ($300/$30.000) a team of students at Stanford University accepted the challenge and went to Bangladesh, in an area with a high incidence of infant mortality and there they visited many hospitals hospitals found of way to finance the purchasing of the incubators via donations incubators were empty students visited the villages and there they realize that mothers didnt brig the premature babies to the hospitals because they were busy with the other children or with domestic activities or again because they didnt know about this opportunity 24
  25. 25. Oct-12Designing a super cheap incubator ($300/$30.000) when they came back to university, students knew the context of interactions and understood that the initial problem was incorrectly formulated the real challenge was not to design a super cheap incubator at a cost of 300$ but a cheap port-enfant which that could be used directly by mothers at home and therefore without electric energy the initial question was therefore reformulated by the students FROM how to design a super cheap incubator TO how to save premature babies from death 25
  26. 26. Oct-12Designing a super cheap incubator ($300/$30.000) 26
  27. 27. Oct-12mistaking today = mistaking tomorrow A correct approach to innovation is working on both sides of the equation through many fruitful iterations 27
  28. 28. Oct-12DESIGN YOUR INNOVATIONPREDICAdesigning co-creative business processes 28
  29. 29. Oct-12Context Crédit Agricole Europe’s second-largest banking network which comprises of 39 regional banks in France Predica is a CA division designing life insurance products and managing sales through CA network. Big business, in 2007 around €20 billion Hocher (CEO) tasked Steinmann (Head of Marketing) with the development of a new low-end unit-linked life insurance product (i.e. linked on a series of mutual funds) The product, dubbed Cap Découverte, targets young customers who never saved a penny before 29
  30. 30. Oct-12Challenges Getting the mass of young unskilled customers to understand the relative complex functionality of the product Competitive offering from ING which had no fees and was rapidly getting market share Indirect selling model of Predica through regional banks which trained their branch advisors on the insurance products Complex product management function with many actors involved, setting Predica far back from final customer Painful launch experiences in the past with many of the actors always having good reasons not to like the product design 30
  31. 31. Oct-12 How do individuals view their engagementexperiences in their interaction contexts andhow can those views be leveraged by myorganization? 31
  32. 32. Oct-12Kick off of co-creative initiative Co-creation starts with people not with analytical phases in a process, so the first step was to figure out who should be involved Steinmann was leading the product development and marketing function so she started looking at all parties involved in the development and launch of Predica products with the intent to allow them to engage with one another in different ways and as a consequence to improve their experience To achieve this objective, engagement would be expanded to a new level by asking the retail branch advisor to design the selling-buying experience and to some extent the life insurance product itselfACTUARIAL, FINANCIAL, COMPLIANCE STAFF INSURANCE SPECIALISTS FINAL CUSTOMERSpredica retail branchesSALES AND SUPPORT TEAM BRANCH MANAGESpredica retail branchesCUSTOMER COMMUNICATION PEOPLE RETAIL BRANCH ADVISORSpredica retail branchesPRODUCT MANAGERSpredicaTOP MANAGEMENTpredica 32
  33. 33. Oct-12Predica Product Manager’s Interaction Mapstakeholders sequence Develop Develop Discuss Finalize Develop Finalize Develop Finalize Deliver market product Product Design Comm Comm Sales Aid & Build Sales Sales background concept Concept & Review Plan Plan Tools Aid Tools KitINSURANCE SPECIALISTS act as product manager within the branches orchestrateretail branches training and support Institutional sales forceSALES AND SUPPORT TEAM conveying +/- enthusiasm topredica retail branches Staff in charge for cucomCUSTOMER COMMUNICATION PEOPLE activities boost -/+ by decidingpredica where promo funds are goingPRODUCT MANAGERSpredica Staff evaluate new products’ ROI and checking regulatoryACTUARIAL, FINANCIAL, requirementsCOMPLIANCE STAFF Proof checks new products’predica design and their contribution to the overall strategyTOP MANAGEMENTpredica product lifecycle 33
  34. 34. Oct-12Analysis of product managers interactions Steinmann and her team tried to identify the limitations and opportunities of their own interactions with the actors in their value chain 1. PMs had the largest number of interactions with other parties and this will justify their role of orchestrator of the co- creative effort 2. PMs interactions touched only one or at best two players at a time and this sequential way of acting reduced his role to a ‘traffic cop’ who encouraged better coordination between the warring factions 3. PMs work little with the customer-facing people at the local branches (retail branch advisors) as their interaction stopped at the point of sales tool delivery to the insurance specialists Outcome: there was an unaccomplished need of involving all parties in the design and marketing of new products in an integrated way and as a solution a product design and launch platform was launched and is still used at Predica 34
  35. 35. Oct-12Retail Branch Advisor’s Interaction Mapstakeholders sequence Undergoes Receives Receives Markets to Meet with Introduces Tracks Undergoes training on sales sales targets customers customers and sells progress of yearly new products materials for new new customers evaluation product product assetsCUSTOMERSRETAIL BRANCH ADVISORretail branches Key players at the end of the chain since they interact with the customers. They are 40k with over 60% in junior positionINSURANCE SPECIALISTSretail branches Set the goals for retail branchBRANCH MANAGER advisors can set +/- priority onretail branches the different productsSALES AND SUPPORT TEAMpredica product lifecycle 35
  36. 36. Oct-12Analysis of retail branch advisors interactions The PM team then decided to turn the table and see the world from the vantage of the retail branch advisor, and they found out: the advisors were frustrated because they could not talk to the developers of the sales tools junior advisors worked isolated in one-on-one discussion with customers on a complex insurance products quality of interaction with customers was low because there was no more interactions after purchasing Outcome: co-creation workshops were launched in the field with the aim of linking activities of PMs and retail branch advisors In the workshops retail branch advisors fleshed out the nature of interactions with customers and with the other bank employees Workshop were videotaped hoping to uncover emotional responses of participant It became clear the aspiration of junior advisors to grow professionally through a permanent process of co-creation engagement with insurance specialists, other advisors and even customers Advisors Engagement Platform and Customer Engagement Platform were devised and launched 36
  37. 37. Oct-12business process are not sequential Traditional representations of a business process is a left-to-right arrow where successive process owners optimize their process steps in order to deliver the best value to the next operator in the value chain The traditional approach to business process design start with the definition of the process customer needs/specs and attempt to deliver efficiently and predictably. Continuous improvements methodologies (e.g. lean, six sigma) are important is this scenario and parameters like cycle time reduction, cost reduction, minimization of output variations are important 37
  38. 38. Oct-12From designing processes to designing platforms for stakeholders’ interaction If we start looking at operations with a co-creation approach in mind, soon we realize that the difference of process owner and process customer is irrelevant Business processes are not only driven by the process owner (left-to-right) but also by the process customers (right-to-left) Process customers (individuals) don’t want their needs to be frozen at the beginning of the process design investigation, they want a real time adaptation of their process needs. Customers empowered by technology want to engage in the process on their terms and require that the organization adapt the contexts every time they interact The process design focus is therefore not only the desired outcome, but more and more the platform of interaction that will allow process owners and process customers to come together in an optimized way in each new interaction context 38
  39. 39. Oct-12Trans-disciplinary co-creation 39
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