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Innovation in Prosumer Communities

A presentation on prosumers for my Schulich Social Media Marketing class

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Innovation in Prosumer Communities

  1. 1. INNOVATION<br />IN<br />PROSUMER<br />COMMUNITIES<br />By: Nikita Raja<br />
  2. 2. Agenda Break-Down:<br />Innovation in online communities<br />What are Prosumers?<br />Company Examples: <br /> Lego <br /> Threadless<br />Giving up Control?<br />Organizational benefits<br />Conclusion<br />
  3. 3. Shift<br /><ul><li>Outside Innovation</li></ul>Open-source technology<br />Collaborative thinking<br />ProsumerCommunities<br /><ul><li>TraditionalInnovation</li></ul>R&D Labs<br />Innovation incubators<br />Organization is in control over processes<br />Source: Seybold, Patricia. Outside Innovation <br />
  4. 4. “Prosumers”<br />Prosumption: “...where customers participate in the creation of products in an active and ongoing way.” (Tapscott & Williams, Wikinomics, 2007)<br />Hold product know-how<br />Creativity meets Consumption<br />Co-creation of product ideas and improvements<br />Peer collaboration <br />
  5. 5. 1998: Lego Mindstorms<br /> High Tech product: creation of customized robots out of programmable bricks<br />“Right to Hack”: Allowing Lego customers and users to engage in program modification and software improvement activities <br />Key Learnings:<br /> Mass customization + Peer Production = <br /> full-fledged prosumer community and enhanced innovation <br />
  6. 6. 1) Design a t-shirt <br /> 2) Submit design online <br /> 3) Community votes for <br /> best t-shirt designs<br />Threadless Prosumption Business Model: <br /><ul><li>Prosumer crowds manage the creative design & innovation of t-shirts
  7. 7. Threadless company focuses on production and distribution of t-shirts</li></li></ul><li>Giving up Control?<br />CHALLENGES:<br />Loss of control over innovation processes (e.g. Hacking)<br />Jeopardizing product potential <br />“Over time, value migrates from your product to what customers do with it...”<br />Tapscott & Williams, Wikinomics, 2007<br />
  8. 8. Organizations + Prosumers<br />Integration of community members into a company’s innovation processes <br />
  9. 9. CONCLUSION :<br />“Prosumer-centric paradigm”<br />Give credit where its due and provide potential compensation <br />Prosumer communities are a huge source of innovation<br />