Outside Innovation How to Leverage Your Customers’ Creativity Patricia Seybold, CEO  Patricia Seybold Group, Inc. NEDMA- M...
What is “Outside Innovation?” <ul><li>Customers roll up their sleeves to co-design  their  products and  your  business.  ...
What is “Outside Innovation?” <ul><li>Customers attract other customers and partners to build a vital customer-centric eco...
What is “Outside Innovation?” <ul><li>Customers drive the design of your business processes, products, services, and busin...
© 2006 Staples, Inc.  Customers determined how to categorize products Ethnographic research led to Easy Reorder
Lead customers Consultants Guides Contributors Promoters Five Roles Customers want to Play
Patterns for Customer Innovation <ul><li>Engage customers in all five roles: consultants, contributors, guides, promoters,...
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...
Patterns for Customer Innovation <ul><li>Engage customers in all five roles: consultants, contributors, guides, promoters,...
<ul><li>Their self-image is deeply connected to the problem domain at hand </li></ul><ul><li>Passionate about their outcom...
Zopa Founders Co-Designed with Lead Users <ul><li>Discovered a new Segment:  Freeformers </li></ul><ul><li>People who want...
Zopa Co-Designed a New Lending Model <ul><li>Identified Lead Users (in an un-served market) </li></ul><ul><li>Conducted et...
 
Co-Designed a Solution to Meet their Goals I want to borrow money easily, on my terms, to meet my goals without dealing wi...
Co-Design to Meet Customers’ Outcomes Customers’ Streamlined Scenarios Your Company’s Streamlined Processes Moment of Trut...
Moments of Truth = Business Opportunities <ul><li>A real “Moment of Truth” is a showstopper </li></ul><ul><li>It keeps a p...
The Koko Fitness Experience Designed with Customers  <ul><li>Customers’ Moments of Truth: </li></ul><ul><li>30 minutes  </...
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’...
What We Did in the Co-Design Session: <ul><li>Co-design streamlined Customer Scenarios and identify customers’ moments of ...
Patterns for Customer Innovation <ul><li>Engage customers in all five roles: consultants, contributors, guides, promoters,...
Provide Tools to Help Customers Reach their Goals
National Semiconductor’s WEBENCH   Toolkit  Application Resources System Overview Diagram Layout Sortable Selection Guide...
How Customers’ Designs Spur Innovation <ul><li>National Semiconductor has leveraged customers’ designs to be able to provi...
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...
Let Customers use Your Tools Anywhere!
Support a Continuum of Customer Innovation
Help Customers Strut their Stuff
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 <ul><li>Engage customers in all five roles: consultants, contributors, guides, promoters, lead customers </li><...
<ul><li>Patricia Seybold CEO, Consultant, and Author </li></ul><ul><li>Patricia Seybold Group, Inc. </li></ul><ul><ul><li>...
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Outside Innovation

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How Customers are Shaping the Future of Businesses and their Products and How You can Harness Customer-led Innovation

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  • Outside Innovation

    1. 1. Outside Innovation How to Leverage Your Customers’ Creativity Patricia Seybold, CEO Patricia Seybold Group, Inc. NEDMA- May 14, 2007
    2. 2. What is “Outside Innovation?” <ul><li>Customers roll up their sleeves to co-design their products and your business. </li></ul>
    3. 3. 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>
    4. 4. 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 ®
    5. 5. © 2006 Staples, Inc. Customers determined how to categorize products Ethnographic research led to Easy Reorder
    6. 6. Lead customers Consultants Guides Contributors Promoters Five Roles Customers want to Play
    7. 7. Patterns for Customer Innovation <ul><li>Engage customers in all five roles: consultants, contributors, guides, promoters, lead customers </li></ul><ul><li>Nurture customer communities </li></ul><ul><li>Co-design with lead users/customers </li></ul><ul><li>Provide tools & streamlined support to help them reach their goals </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>
    8. 8. Mozilla is Designed by Lead Users & Contributors
    9. 9. Mozilla is QA’d by Users Acting as Consultants
    10. 10. Mozilla is Supported by Users acting as Guides
    11. 11. Mozilla is Promoted by Users
    12. 12. Karmaloop’s Lead Customers: Urban Streetwear
    13. 13. Karmaloop Community Finds and Reps the Products
    14. 14. Customers are acknowledged for posting Customers rate each other’s contributions! National Instruments’ Vibrant Community 50% of new products created by customers
    15. 15. Patterns for Customer Innovation <ul><li>Engage customers in all five roles: consultants, contributors, guides, promoters, lead customers </li></ul><ul><li>Nurture customer communities </li></ul><ul><li>Co-design with lead users/customers </li></ul><ul><li>Provide tools & streamlined support to help them reach their goals </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>
    16. 16. <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
    17. 17. 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>
    18. 18. 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>
    19. 20. 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.
    20. 21. Co-Design to Meet Customers’ Outcomes Customers’ Streamlined Scenarios Your Company’s Streamlined Processes Moment of Truth Moment of Truth Desired Outcomes
    21. 22. 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>
    22. 23. The Koko Fitness Experience Designed with Customers <ul><li>Customers’ Moments of Truth: </li></ul><ul><li>30 minutes </li></ul><ul><li>Don’t need to think </li></ul><ul><li>Easy to use </li></ul>
    23. 24. Provide Tools to Help them Reach their Goals Koko Fitness Smartrainer
    24. 25. Koko Fitness Provides Realtime Feedback
    25. 26. Build an Ecosystem around Customers’ Outcomes
    26. 27. Use Customer Co-Design to Achieve:
    27. 28. 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
    28. 29. What We Did in the Co-Design Session: <ul><li>Co-design streamlined Customer Scenarios and identify customers’ moments of truth and metrics </li></ul><ul><li>Build organizational consensus around customer-critical issues </li></ul><ul><li>Use customers’ metrics to drive priorities! </li></ul>Co-Design Customers’ Ideal Experience with Lead Customers
    29. 30. Patterns for Customer Innovation <ul><li>Engage customers in all five roles: consultants, contributors, guides, promoters, lead customers </li></ul><ul><li>Nurture customer communities </li></ul><ul><li>Co-design with lead users/customers </li></ul><ul><li>Provide tools & streamlined support to help them reach their goals </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>
    30. 31. Provide Tools to Help Customers Reach their Goals
    31. 32. National Semiconductor’s WEBENCH  Toolkit Application Resources System Overview Diagram Layout Sortable Selection Guide WEBENCH Simulation
    32. 33. 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>
    33. 34. Provide Customization and Innovation Toolkits
    34. 35. Let Customers use Your Tools Anywhere! Design your shoes on your cell phone, and see your design on the Billboard in Times Square
    35. 36. Let Customers use Your Tools Anywhere!
    36. 37. Support a Continuum of Customer Innovation
    37. 38. Help Customers Strut their Stuff
    38. 39. Help Customers Strut their Stuff
    39. 40. Discover New Products & Services
    40. 41. Help Customers Strut their Stuff
    41. 42. Customers Will Create their own Mash Ups
    42. 43. Engage in Open Access and Peer Production
    43. 44. Next generation games: Co-designed by customers
    44. 45. Take-Aways <ul><li>Engage customers in all five roles: consultants, contributors, guides, promoters, lead customers </li></ul><ul><li>Co-design with 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>
    45. 46. <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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