Social Media and Innovation
    in New Product Development


Miles Gerson; Kirsten Jaeckle; Adam Needles;
      John Rothe...
Changing NPD Innovation

Shifting power in NPD
• From brand push
• To customer pull
Presentation Agenda
• Social Media Opportunity
• Integrating NPD Frameworks
• Mediums and Applications
  – Blogs
  – Faceb...
Social Media Opportunity
Social Media Explosion
Social Media in Marketing
Honest Dialogue – Hayes/Malone
• “Smart brands are turning their crowds into „clouds‟:
  organic...
Social Media in Marketing
Learning to Listen – Maltoni
• “Social media is about building relationships - starting
  with y...
Integrating
NPD Frameworks
Relevant Frameworks
• Externalizing NPD
• Content/idea co-creation
• Platforms as „customer toolkits‟
• Virtual „clusterin...
Applying Frameworks
Axes of Analysis for P-O-V
• Context of customer-brand relationship
• Observation vs. surveying

Other...
Social Media P-O-V

OBSERVATION
 (PASSIVE)
                                 Personal
                                  Blo...
Mediums and
Applications
Blogs
Blogging Overview
What is it? How is it used?
• Chronological postings
• Personal or co-created
• Expresses an opinion or ...
Blogging for Innovation
Current uses
• Discovery of consumer trends
• Discovery of lead users
• Enhance internal NPD commu...
Facebook
Facebook Overview
What is it? How is it used?
• A free-access on-line social website
• Fixed Vs. flexible
• Connecting, sh...
Facebook for Innovation
Current uses
• Target right users
• Interact and engage with users in the
  same way they do with ...
LinkedIn
LinkedIn Overview
What is it? How is it used?
• Networking
• Connection seeking
• Job searching
• Collaboration
LinkedIn for Innovation
Current uses
• Targeting for content, development, and
  advertising
• Market research
Future uses...
Online Retail Feedback
Feedback Overview


Many retailers have leveraged the power
of social media in their e-commerce
efforts through user contr...
Feedback Overview

Consumers can …
• Make and receive recommendations
  about products / services
• Network
  – Share idea...
Feedback Overview
Feedback for Innovation
Current uses
• Pre-purchase
• During purchase
• Post-purchase
Future uses
• Improve products (user...
Feedback for Innovation
Keys to success
• Build a system that leverages and
  aggregates contributions/behaviors that
  ma...
Twitter
Twitter Overview
What is it? How is it used?
• What are you doing? (140 characters)
• Followers vs. friends
• Modern-day t...
Twitter for Innovation
Current uses
• Ethnographic observation of Lead Users
• Customer sentiment tracking
• Live, interac...
Thank You! Questions?


        Contact Us

     Adam B. Needles
      aneedles@wisc.edu
         617-413-6087
    www.pro...
Sources Used
•   Anonymous. quot;Facebook.quot; Wikipedia.org. 1                             •   Maltoni, Valeria. quot;Ar...
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Social Media And Innovation In New Product Development

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What are the current and future opportunities for marketers to use social media technologies to improve innovation in the new product development (NPD) process? This presentation was given by graduate students in the Center for Brand and Product Management at the Wisconsin School of Business in Madison, WI, on 4 December 2008.

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Social Media And Innovation In New Product Development

  1. 1. Social Media and Innovation in New Product Development Miles Gerson; Kirsten Jaeckle; Adam Needles; John Rotheray and Hu (Jeffrey) Xie Center for Brand and Product Management Wisconsin School of Business, Madison, WI Copyrighted by the Authors – 4 December 2008
  2. 2. Changing NPD Innovation Shifting power in NPD • From brand push • To customer pull
  3. 3. Presentation Agenda • Social Media Opportunity • Integrating NPD Frameworks • Mediums and Applications – Blogs – Facebook – LinkedIn – Online retail feedback – Twitter
  4. 4. Social Media Opportunity
  5. 5. Social Media Explosion
  6. 6. Social Media in Marketing Honest Dialogue – Hayes/Malone • “Smart brands are turning their crowds into „clouds‟: organic, self-forming and often self-governing communities of interest. Companies such as Hewlett- Packard, Frito-Lay and Harley-Davidson use their clouds as feedback loops to get better faster by obtaining good, timely, often brutally honest customer insights.” • “Right now, few companies are emotionally equipped to wring the best benefits of a cloud, because the most valuable voices out there usually belong to the malcontents.” Source: Hayes, Tom and Michael S. Malone. quot;Marketing in the World of the Web.quot; The Wall Street Journal. 29 November 2008.
  7. 7. Social Media in Marketing Learning to Listen – Maltoni • “Social media is about building relationships - starting with your customers, business partners, influencers and their networks, communities of practice, fans and critics, etc. It's not like the shotgun approach to marketing, it's like the focused, appropriate conversation with those who wish to talk with you. In some cases they already are telling you what you want to know, if you are listening.” Source: Maltoni, Valeria. quot;Are You Getting Engaged?quot; Conversation Agent. 28 November 2008.
  8. 8. Integrating NPD Frameworks
  9. 9. Relevant Frameworks • Externalizing NPD • Content/idea co-creation • Platforms as „customer toolkits‟ • Virtual „clustering‟ • Vertical alliances that extend to the customer/developer • Continuous improvement via infinite stage-gate process
  10. 10. Applying Frameworks Axes of Analysis for P-O-V • Context of customer-brand relationship • Observation vs. surveying Other Considerations • B2B vs. B2C • Narrow vs. wide targeting • Representativeness of sample
  11. 11. Social Media P-O-V OBSERVATION (PASSIVE) Personal Blogs LinkedIn Online Retail Facebook Comments Nature of engagement MySpace Corporate Blogs Twitter Online Survey SURVEYING (ACTIVE) LOW Context of customer-brand relationship HIGH
  12. 12. Mediums and Applications
  13. 13. Blogs
  14. 14. Blogging Overview What is it? How is it used? • Chronological postings • Personal or co-created • Expresses an opinion or talks about something
  15. 15. Blogging for Innovation Current uses • Discovery of consumer trends • Discovery of lead users • Enhance internal NPD communication Future uses • Idea contribution (co-creation systems) • Idea screening (improve stage-gate)
  16. 16. Facebook
  17. 17. Facebook Overview What is it? How is it used? • A free-access on-line social website • Fixed Vs. flexible • Connecting, sharing, and having fun
  18. 18. Facebook for Innovation Current uses • Target right users • Interact and engage with users in the same way they do with each other • “Facebook Connect” – in process Future uses • Go further on co-creation • Find Lead User
  19. 19. LinkedIn
  20. 20. LinkedIn Overview What is it? How is it used? • Networking • Connection seeking • Job searching • Collaboration
  21. 21. LinkedIn for Innovation Current uses • Targeting for content, development, and advertising • Market research Future uses • Continued partnering for development • Internal market research consultancy • Communications clearinghouse
  22. 22. Online Retail Feedback
  23. 23. Feedback Overview Many retailers have leveraged the power of social media in their e-commerce efforts through user contribution to help drive online sales.
  24. 24. Feedback Overview Consumers can … • Make and receive recommendations about products / services • Network – Share ideas, connect with others that share similar interests • Build a sense of community – Become part of a larger community of users
  25. 25. Feedback Overview
  26. 26. Feedback for Innovation Current uses • Pre-purchase • During purchase • Post-purchase Future uses • Improve products (user feedback in NPD/mix) • Better customer service (support forum) • Reduce costs (Threadless example)
  27. 27. Feedback for Innovation Keys to success • Build a system that leverages and aggregates contributions/behaviors that make them useful for others • “User contribution is first of all about the users and their content” (S. Cook) – Avoid creating own content – Nurture and encourage the contributors
  28. 28. Twitter
  29. 29. Twitter Overview What is it? How is it used? • What are you doing? (140 characters) • Followers vs. friends • Modern-day telegraph; not „IM‟
  30. 30. Twitter for Innovation Current uses • Ethnographic observation of Lead Users • Customer sentiment tracking • Live, interactive focus groups Future uses • Chronometric trend-spotting • Aggregated semantic/text analysis
  31. 31. Thank You! Questions? Contact Us Adam B. Needles aneedles@wisc.edu 617-413-6087 www.propellingbrands.com
  32. 32. Sources Used • Anonymous. quot;Facebook.quot; Wikipedia.org. 1 • Maltoni, Valeria. quot;Are You Getting Engaged?quot; December 2008 (last update). Conversation Agent. 28 November 2008. – http://en.wikipedia.org/wiki/Facebook – http://www.conversationagent.com/2008/11/are-you-getting- engaged.html • Anonymous. “The Huffington Post is the #1 blog and 104 overall most visited site on the internet.” • Maltoni, Valeria. quot;Twitter is a Social Network.quot; Quantcast. 4 December 2008 Conversation Agent. 25 November 2008. – http://www.quantcast.com/top-sites-2?r=104#104 – http://www.conversationagent.com/2008/11/twitter-is-a- social-network.html • Boehret, Katherine. quot;Birds of a Feather Twitter • Scott Cook, “The Contribution Revolution.” Harvard Together.quot; The Wall Street Journal. 3 December Business Review. October 2008. 2008. – http://harvardbusinessonline.hbsp.harvard.edu/hbsp/hbr/arti – http://online.wsj.com/article/SB122826572677574415.html cles/article.jsp?_requestid=26282&value=BR0810&ml_subs • Brogan, Chris. quot;How to Listen for Opportunities on criber=true&ml_action=get- article&ml_issueid=BR0810&articleID=R0810C&pageNumb Twitter.quot; Chris Brogan. 26 August 2008. er – http://www.chrisbrogan.com/how-to-listen-for-opportunities- on-twitter/ • Vascellaro, Jessica. quot;Twitter Goes Mainstream.quot; • Harte, Beth. quot;The Twitter Dialogue.quot; The Harte of The Wall Street Journal. 27 October 2008. – http://online.wsj.com/article/SB122461906719455335.html Marketing. 15 September 2008. – http://www.theharteofmarketing.com/2008/09/the-twitter- dialogue.html • Corporate web sites • Hayes, Tom and Michael S. Malone. quot;Marketing in – www.amazon.com the World of the Web.quot; The Wall Street Journal. 29 – www.facebook.com November 2008. – www.linkedin.com – http://online.wsj.com/article/SB122792310060465901.html – www.twitter.com

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