Creative consumers (defined as customers who adapt, modify, or transform a proprietary offering) represent an intriguing paradox for business. On
one hand, they can signify a black hole for future revenue, with breach of copyright and intellectual property. On the other hand, they represent a gold mine of ideas and business opportunities. Central to business is the need to create and capture value, and creative consumers demand a shift in the mindsets and business models of how firms accomplish both. Based upon their attitude and action toward customer innovation, we develop a typology of firms’ stances toward creative consumers. We then consider the implications of the stances model for corporate strategy and
examine a three-step approach to dealing with creative consumers: awareness, analysis, and response.
Two related trends characterize the recent past: value propositions are migrating from the physical to the informational, and value creation is shifting from firms to consumers. These two trends meet in the phenomenon of “consumer-generated intellectual property” (CGIP). This article addresses the question: “How should firms manage the intellectual property that their customers create?” It explores how CGIP presents important dilemmas for managers and argues that consumers’ “intellectual property” should not be leveraged at the expense of their “emotional property.” It integrates these perspectives into a diagnostic framework and discusses eight strategies for firms to manage CGIP.
The New York Tech Scene in 2012 - Tech trends in New YorkIlan Abehassera
A presentation I gave on March 20th at the Prestashop Barcamp in New York.
I am talking about what makes New York, a great city for tech, and the current trends in startups being created in the city.
Credits to Elad Gil and Fred Wilson who've been talking about that topic here and there, and inspired some of my slides. Asked for their approval before using their content obviously!
Enjoy
Software is changing the way traditional business operate. People now have smartphones in their pockets - a supercomputer that is 25,000 times more powerful and the minicomputers of the 1960s. This is changing people´s behaviour and how people shop and use services. The organizational structure created in the 20th century cannot survive when new digital solution are being offered. Software is changing the way traditional business operate. People now have smartphones in their pockets - a supercomputer that is 25,000 times more powerful and the minicomputers of the 1960s. This is changing people´s behaviour and how people shop and use services. The organizational structure created in the 20th century cannot survive when new digital solution are being offered. The hierarchical structure of these established companies assumes high coordination cost due to human activity. But when the coordination cost drops
The organizational structure that companies in the 20th century established was based on the fact that employees needed to do all the work. The coordination cost was high due to the effort and cost of employees, housing etc. Now we have software that can do this for use and the coordination cost drops to close-to-zero. Another thing is that things become free. Consider Flickr. Anybody can sign up and use the service for free. Only a fraction of the users get pro account and pay. How can Flickr make money on that? It turns out that services like this can.
Many businesses make money by giving things away. How can that possibly work? The music business has suffered severely with digital distribution of content. Should musicians put all there songs on YouTube? What is the future business model for music?
This presentation will be covering intellectual property, tips, case studies, and where the industry is heading for each industrial, communication and interaction design, and also an interview with developer and designer, Audrey Tang, about open sources and creative commons
Two related trends characterize the recent past: value propositions are migrating from the physical to the informational, and value creation is shifting from firms to consumers. These two trends meet in the phenomenon of “consumer-generated intellectual property” (CGIP). This article addresses the question: “How should firms manage the intellectual property that their customers create?” It explores how CGIP presents important dilemmas for managers and argues that consumers’ “intellectual property” should not be leveraged at the expense of their “emotional property.” It integrates these perspectives into a diagnostic framework and discusses eight strategies for firms to manage CGIP.
The New York Tech Scene in 2012 - Tech trends in New YorkIlan Abehassera
A presentation I gave on March 20th at the Prestashop Barcamp in New York.
I am talking about what makes New York, a great city for tech, and the current trends in startups being created in the city.
Credits to Elad Gil and Fred Wilson who've been talking about that topic here and there, and inspired some of my slides. Asked for their approval before using their content obviously!
Enjoy
Software is changing the way traditional business operate. People now have smartphones in their pockets - a supercomputer that is 25,000 times more powerful and the minicomputers of the 1960s. This is changing people´s behaviour and how people shop and use services. The organizational structure created in the 20th century cannot survive when new digital solution are being offered. Software is changing the way traditional business operate. People now have smartphones in their pockets - a supercomputer that is 25,000 times more powerful and the minicomputers of the 1960s. This is changing people´s behaviour and how people shop and use services. The organizational structure created in the 20th century cannot survive when new digital solution are being offered. The hierarchical structure of these established companies assumes high coordination cost due to human activity. But when the coordination cost drops
The organizational structure that companies in the 20th century established was based on the fact that employees needed to do all the work. The coordination cost was high due to the effort and cost of employees, housing etc. Now we have software that can do this for use and the coordination cost drops to close-to-zero. Another thing is that things become free. Consider Flickr. Anybody can sign up and use the service for free. Only a fraction of the users get pro account and pay. How can Flickr make money on that? It turns out that services like this can.
Many businesses make money by giving things away. How can that possibly work? The music business has suffered severely with digital distribution of content. Should musicians put all there songs on YouTube? What is the future business model for music?
This presentation will be covering intellectual property, tips, case studies, and where the industry is heading for each industrial, communication and interaction design, and also an interview with developer and designer, Audrey Tang, about open sources and creative commons
Understanding the effects of outsourcing: unpacking the total factor producti...Ian McCarthy
Research on why firms should outsource and how they should do it has proliferated in the past two decades, but few consistent findings have emerged concerning the benefits of outsourcing. We argue that this is in part due to the lack of an adequate framework for measuring the effects of outsourcing. To address this, we present such a framework based upon the Cobb–Douglas productivity function. We explain how our framework can be used to unpack one component of the Cobb–Douglas productivity function, the ‘total factor productivity’, which represents the other numerous sub-variables that affect outsourcing productivity, beyond the capital and labour expenditures. We also demonstrate the framework using a simple illustrative example.
Organisational diversity, evolution and cladistic classificationsIan McCarthy
This article presents a case for the construction of a formal classification of manufacturing systems using cladistics, a technique from the biological school of classification. A seven-stage framework for roducing a manufacturing cladogram is presented, along with a pilot case study example. This article describes the role that classification plays in the pure and applied sciences, the social sciences and reviews the status of existing manufacturing classifications. If organisational diversity and organisational change processes are governed by evolutionary mechanisms, studies of organisations based on an evolutionary approach such as cladistics could have potential, because as March [March JG. The evolution of evolution. In: Baum JAC, Singh JV, editors. Evolutionary dynamics of organizations. Oxford University Press, 1994. p. 39±52], page 45, states ``there is natural speculation that organisations, like species can be engineered by understanding the evolutionary processes well enough to intervene and produce competitive organisational effects''. It is suggested that a cladistic study could provide organisations with a ``knowledge map'' of the ecosystem in which they exist and by using this phylogenetic and situational analysis, they could determine coherent and appropriate action for the specification of change.
Achieving Agility Using Cladistics: An Evolutionary AnalysisIan McCarthy
To achieve the status of an agile manufacturer, organisations need to clearly understand the concept of agility, relative to their industrial and business circumstances and to then identify and acquire the appropriate characteristics which will result in an agile manufacturing organisation. This paper is not simply another discussion on the definition of agility, or a philosophical debate on the drivers and characteristics of agility. This paper presents an evolutionary modelling technique (cladistics) which could enable organisations to systematically manage and understand the emergence of new manufacturing forms within their business environment. This fundamental, but important insight is valuable for achieving successful organisational design and change. Thus, regardless of the industrial sector, managers could use cladistics as an evolutionary analysis technique for determining ``where they have been and where they are now''. Moving from a non-agile manufacture to an agile manufacture is a process of organisational change and evolutionary development. This evolutionary method will enable organisations to understand the landscape of manufacturing possibilities that exist, to identify appropriate agile forms and to successfully navigate that landscape.
Complex adaptive system mechanisms, adaptive management practices, and firm p...Ian McCarthy
As a fascinating concept, the mechanisms of complex adaptive system (CAS) attracted many researchers from a variety of disciplines. Nevertheless, how the mechanism-related variables, such as strategic resonance, accreting nodes, pattern forming, and catalytic behavior of organization, impact the firm product innovativeness is rarely addressed empirically in the new product development (NPD) literature. Also, there exist limited studies on the antecedents of the mechanisms of CAS in the NPD literature. In this respect, we identified and operationalized the adaptive management practices, which involve bonding, nonlinear, and attractor behaviors of management, as antecedents of mechanisms and firm product innovativeness. By studying 235 firms, we found that (1) strategic resonance and accreting nodes are positively related to firm product innovativeness, (2) bonding, nonlinear, and attractor behaviors of management positively influence the mechanism variables, and (3) market and technology turbulence impact the adaptive management practices. We also found that mechanisms of CAS partially mediate the relationship between adaptive management practices and firm product innovativeness.
Innovation in manufacturing as an evolutionary complex systemIan McCarthy
The focus of this paper is on innovation in terms of the new product development processes and to discuss its main features. This is followed by a presentation of the new ideas emerging from complex systems science. It is then demonstrated how complex systems provides an overall conceptual framework for thinking about innovation and for considering how this helps to provide understanding and advice for the organisation of new product development in different circumstances. Three case studies are quoted which illustrate the application of these new ideas.
Why do some patents get licensed while others do not?Ian McCarthy
To understand why some patents get licensed and others do not, we estimate a portfolio of firm- and patent-level determinants for why a particular licensor’s patent was licensed over all technologically similar patents held by other licensors. Using data for licensed biopharmaceutical patents, we build a set of alternate patents that could have been licensed-in using topic modeling techniques. This provides a more sophisticated way of controlling for patent characteristics and analyzing the attractiveness of a licensor and the characteristics of the patent itself. We find that patents owned by licensors with technological prestige, experience at licensing, and combined technological depth and breadth have a greater chance at being chosen by licensees. This suggests that a licensor’s standing and organizational learning rather than the quality of its patent alone influence the success of outward licensing.
Achieving contextual ambidexterity in R&D organizations: a management control...Ian McCarthy
Research on how managers control R&D activities has tended to focus on the performance measurement systems used to exploit existing knowledge and capabilities. This focus has been at the expense of how broader forms of management control could be used to enable R&D contextual ambidexterity, the capacity to attain appropriate levels of exploitation and exploration behaviors in the same R&D organizational unit. In this paper, we develop a conceptual framework for understanding how different types of control system, guided by different R&D strategic goals, can be used to induce and balance both exploitation and exploration. We illustrate the elements of this framework and their relations using data from biotechnology firms, and then discuss how the framework provides a basis to empirically examine a number of important control relationships and phenomena.
Toward a Phylogenetic Reconstruction of Organizational LifeIan McCarthy
Classification is an important activity that facilitates theory development in many academic disciplines. Scholars in fields such as organizational science, management science and economics and have long recognized that classification offers an approach for ordering and understanding the diversity of organizational taxa (groups of one or more similar organizational entities). However, even the most prominent organizational classifications have limited utility, as they tend to be shaped by a specific research bias, inadequate units of analysis and a standard neoclassical economic view that does not naturally accommodate the disequilibrium dynamics of modern competition. The result is a relatively large number of individual and unconnected organizational classifications, which tend to ignore the processes of change responsible for organizational diversity. Collectively they fail to provide any sort of universal system for ordering, compiling and presenting knowledge on organizational diversity. This paper has two purposes. First, it reviews the general status of the major theoretical approaches to biological and organizational classification and compares the methods and resulting classifications derived from each approach. Definitions of key terms and a discussion on the three principal schools of biological classification (evolutionary systematics, phenetics and cladistics) are included in this review. Second, this paper aims to encourage critical thinking and debate about the use of the cladistic classification approach for inferring and representing the historical relationships underpinning organizational diversity. This involves examining the feasibility of applying the logic of common ancestry to populations of organizations. Consequently, this paper is exploratory and preparatory in style, with illustrations and assertions concerning the study and classification of organizational diversity.
Technology Management - A Complex Adaptive Systems ApproachIan McCarthy
There are systems methods and evolutionary processes that can help organisations understand the innovative patterns and competitive mechanisms that influence the creation, management and exploitation of technology. This paper presents a specific model based on the evolutionary processes of variation, selection, retention and struggle, coupled with fitness landscape theory. This latter concept is a complex adaptive systems theory that has attained recognition as an approach for visually mapping the strategic options an evolving system could pursue. The relevance and utility of fitness landscape theory to the strategic management of technology is explored, and a definition and model of technological fitness provided. The complex adaptive systems perspective adopted by this paper, views organisations as evolving systems that formulate strategies by classifying, selecting, adopting and exploiting various combinations of technological capabilities. A model called the strategy configuration chain is presented to illustrate this strategic process.
The ability of current statistical classifications to separateservices and ma...Ian McCarthy
This paper explores the performance of current statistical classification systems in classifying firms and, in particular, their ability to distinguish between firms that provide services and firms that provide manufacturing. We find that a large share of firms, almost 20%, are not classified as expected based on a comparison of their statements of activities with the assigned industry codes. This result is robust to analyses on different levels of aggregation and is validated in an additional survey. It is well known from earlier literature that industry classification systems are not perfect. This paper provides a quantification of the flaws in classifications of firms. Moreover, it is explained why the classifications of firms are imprecise. The increasing complexity of production, inertia in changes to statistical systems and the increasing integration of manufacturing products and services are some of the primary and interrelated explanations for this lack of precision. We emphasise, however, that such classification problems are not resolved using a ‘technical fix’. Any statistical classification method involves a number of tradeoffs.
Understanding outsourcing contexts through information asymmetry and capabili...Ian McCarthy
Outsourcing is a strategic activity that has long been central to operations management research and practice. Yet, there are still many outsourcing management challenges that remain. In this article, we explore two of the outsourcing challenges that motivated this special issue and are central to the 10 articles included. To do this, we develop a theoretical model that examines how variations in capability fit and information asymmetry combine to present firms with four different outsourcing contexts. We then explain how each of the articles included in this special issue relate to our theoretical model and explore several avenues for future research.
New Product Development as a Complex Adaptive System of DecisionsIan McCarthy
Early research on new product development (NPD) has produced descriptive frameworks and models that view the process as a linear system with sequential and discrete stages. More recently, recursive and chaotic frameworks of NPD have been developed, both of which acknowledge that NPD progresses through a series of stages, but with overlaps, feedback loops, and resulting behaviors that resist reductionism
and linear analysis. This article extends the linear, recursive, and chaotic frameworks by viewing NPD as a complex adaptive system (CAS) governed by three levels of decision making — in-stage, review, and strategic—and the accompanying decision rules. The research develops and presents propositions that predict how the configuration and organization of NPD decision-making agents will influence
the potential for three mutually dependent CAS phenomena: nonlinearity, selforganization, and emergence. Together these phenomena underpin the potential for NPD process adaptability and congruence. To support and to verify the propositions, this study uses comparative case studies, which show that NPD process adaptability occurs and that it is dependent on the number and variety of agents, their corresponding connections and interactions, and the ordering or disordering effect of the decision levels and rules. Thus, the CAS framework developed within this article maintains a fit among descriptive stance, system behavior, and innovation type, as it considers individual NPD processes to be capable of switching or toggling between different behaviors — linear to chaotic — to produce corresponding innovation outputs that range from incremental to radical in accord with market expectations.
Unpacking the Social Media Phenomenon: Towards a Research AgendaIan McCarthy
In this paper, we highlight some of the challenges and opportunities that social media presents to researchers, and offer relevant theoretical avenues to be explored. To do this, we present a model that unpacks social media by using a honeycomb of seven functional building blocks. We then examine each of the seven building blocks and, through appropriate social and socio-technical theories, raise questions that warrant further in-depth research to advance the conceptualization of social media in public affairs research. Finally, we combine the individual research questions for each building block back into the honeycomb model to illustrate how the theories in combination provide a powerful macro-lens for research on social media dynamics.
Making a face: Graphical illustrations of managerial stances toward customer ...Ian McCarthy
Creative consumers – consumers who adapt, modify or transform a proprietary offering – represent an intriguing paradox for business. On the one hand they can be a black hole for future revenue, with breach of copyright and intellectual property, while on the other hand they represent a gold mine of ideas and business opportunities. This problem is central to business – business needs to both create and capture value; the problem is that creative consumers demand a shift in the mindsets and business models of how firms both create and capture value. We develop a typology of firms’ stances to creative consumers based upon their attitude and action towards customer innovation. We then consider the implications of the stances model for corporate strategy, and examine a three-step approach to dealing with creative consumers, namely, awareness, analysis and response.
Game on: Engaging customers and employees through gamificationIan McCarthy
Managers are frequently tasked with increasing the engagement levels of key stakeholders, such as customers and employees. Gamification - defined as the application of game design principles to change behavior in non-gaming contexts - is a tool that, if crafted and implemented properly, can increase engagement. In this article we discuss how gamification can aid customer and employee engagement, and delineate between four different types of customers and employees who act as ‘players’ in gamified experiences. We include illustrative examples of gamification and conclude by presenting five lessons for managers who wish to utilize gamification.
Product recovery decisions within the context of Extended Producer Responsibi...Ian McCarthy
Environmental and economic evidence is increasingly supporting the need for better analytical tools for evaluating the recovery of consumer products. In response, we present a novel mathematical model for determining what we call the Optimal Recovery Plan (ORP) for any given product. The ORP is based on an evaluation and optimization of the economics of remanufacturing consumer products versus demanufacturing in the context of Extended Producer Responsibility (EPR) legislation, a driving force behind the adoption remanufacturing initiatives by firms. We provide an illustrative application of the model and then discuss its implications for scholars and practitioners concerned with sustainable business development.
An Integrated Approach to Studying Multiplexity in Entrepreneurial NetworksIan McCarthy
Multiplexity occurs in entrepreneurial networks when flows interact within and across relationships. It defines how these networks function and evolve and cannot be examined by studying network structure or flows separately. Despite the growing recognition of the importance of multiplexity, related research has remained limited and lacks an integrated approach to simultaneously examine structure and flows, thus restricting our understanding of entrepreneurial networks. We propose an integrated approach for conducting inductive studies into multiplexity, involving an adaptation of the “business networks” conceptual model, the configuration theory perspective, and the Q-analysis method.
Two related trends characterize the recent past: value propositions are migrating from the physical to the informational, and value creation is shifting from firms to consumers. These two trends meet in the phenomenon of “consumer-generated intellectual property” (CGIP). This article addresses the question: “How should firms manage the intellectual property that their customers create?” It explores how CGIP presents important dilemmas for managers and argues that consumers’ “intellectual property” should not be leveraged at the expense of their “emotional property.” It integrates these perspectives into a diagnostic framework and discusses eight strategies for firms to manage CGIP. (Keywords: Consumer Behavior, Intellectual Property, Innovation Management, New Product Management, Competitive Advantage, Consumers, Product Design)
Understanding the effects of outsourcing: unpacking the total factor producti...Ian McCarthy
Research on why firms should outsource and how they should do it has proliferated in the past two decades, but few consistent findings have emerged concerning the benefits of outsourcing. We argue that this is in part due to the lack of an adequate framework for measuring the effects of outsourcing. To address this, we present such a framework based upon the Cobb–Douglas productivity function. We explain how our framework can be used to unpack one component of the Cobb–Douglas productivity function, the ‘total factor productivity’, which represents the other numerous sub-variables that affect outsourcing productivity, beyond the capital and labour expenditures. We also demonstrate the framework using a simple illustrative example.
Organisational diversity, evolution and cladistic classificationsIan McCarthy
This article presents a case for the construction of a formal classification of manufacturing systems using cladistics, a technique from the biological school of classification. A seven-stage framework for roducing a manufacturing cladogram is presented, along with a pilot case study example. This article describes the role that classification plays in the pure and applied sciences, the social sciences and reviews the status of existing manufacturing classifications. If organisational diversity and organisational change processes are governed by evolutionary mechanisms, studies of organisations based on an evolutionary approach such as cladistics could have potential, because as March [March JG. The evolution of evolution. In: Baum JAC, Singh JV, editors. Evolutionary dynamics of organizations. Oxford University Press, 1994. p. 39±52], page 45, states ``there is natural speculation that organisations, like species can be engineered by understanding the evolutionary processes well enough to intervene and produce competitive organisational effects''. It is suggested that a cladistic study could provide organisations with a ``knowledge map'' of the ecosystem in which they exist and by using this phylogenetic and situational analysis, they could determine coherent and appropriate action for the specification of change.
Achieving Agility Using Cladistics: An Evolutionary AnalysisIan McCarthy
To achieve the status of an agile manufacturer, organisations need to clearly understand the concept of agility, relative to their industrial and business circumstances and to then identify and acquire the appropriate characteristics which will result in an agile manufacturing organisation. This paper is not simply another discussion on the definition of agility, or a philosophical debate on the drivers and characteristics of agility. This paper presents an evolutionary modelling technique (cladistics) which could enable organisations to systematically manage and understand the emergence of new manufacturing forms within their business environment. This fundamental, but important insight is valuable for achieving successful organisational design and change. Thus, regardless of the industrial sector, managers could use cladistics as an evolutionary analysis technique for determining ``where they have been and where they are now''. Moving from a non-agile manufacture to an agile manufacture is a process of organisational change and evolutionary development. This evolutionary method will enable organisations to understand the landscape of manufacturing possibilities that exist, to identify appropriate agile forms and to successfully navigate that landscape.
Complex adaptive system mechanisms, adaptive management practices, and firm p...Ian McCarthy
As a fascinating concept, the mechanisms of complex adaptive system (CAS) attracted many researchers from a variety of disciplines. Nevertheless, how the mechanism-related variables, such as strategic resonance, accreting nodes, pattern forming, and catalytic behavior of organization, impact the firm product innovativeness is rarely addressed empirically in the new product development (NPD) literature. Also, there exist limited studies on the antecedents of the mechanisms of CAS in the NPD literature. In this respect, we identified and operationalized the adaptive management practices, which involve bonding, nonlinear, and attractor behaviors of management, as antecedents of mechanisms and firm product innovativeness. By studying 235 firms, we found that (1) strategic resonance and accreting nodes are positively related to firm product innovativeness, (2) bonding, nonlinear, and attractor behaviors of management positively influence the mechanism variables, and (3) market and technology turbulence impact the adaptive management practices. We also found that mechanisms of CAS partially mediate the relationship between adaptive management practices and firm product innovativeness.
Innovation in manufacturing as an evolutionary complex systemIan McCarthy
The focus of this paper is on innovation in terms of the new product development processes and to discuss its main features. This is followed by a presentation of the new ideas emerging from complex systems science. It is then demonstrated how complex systems provides an overall conceptual framework for thinking about innovation and for considering how this helps to provide understanding and advice for the organisation of new product development in different circumstances. Three case studies are quoted which illustrate the application of these new ideas.
Why do some patents get licensed while others do not?Ian McCarthy
To understand why some patents get licensed and others do not, we estimate a portfolio of firm- and patent-level determinants for why a particular licensor’s patent was licensed over all technologically similar patents held by other licensors. Using data for licensed biopharmaceutical patents, we build a set of alternate patents that could have been licensed-in using topic modeling techniques. This provides a more sophisticated way of controlling for patent characteristics and analyzing the attractiveness of a licensor and the characteristics of the patent itself. We find that patents owned by licensors with technological prestige, experience at licensing, and combined technological depth and breadth have a greater chance at being chosen by licensees. This suggests that a licensor’s standing and organizational learning rather than the quality of its patent alone influence the success of outward licensing.
Achieving contextual ambidexterity in R&D organizations: a management control...Ian McCarthy
Research on how managers control R&D activities has tended to focus on the performance measurement systems used to exploit existing knowledge and capabilities. This focus has been at the expense of how broader forms of management control could be used to enable R&D contextual ambidexterity, the capacity to attain appropriate levels of exploitation and exploration behaviors in the same R&D organizational unit. In this paper, we develop a conceptual framework for understanding how different types of control system, guided by different R&D strategic goals, can be used to induce and balance both exploitation and exploration. We illustrate the elements of this framework and their relations using data from biotechnology firms, and then discuss how the framework provides a basis to empirically examine a number of important control relationships and phenomena.
Toward a Phylogenetic Reconstruction of Organizational LifeIan McCarthy
Classification is an important activity that facilitates theory development in many academic disciplines. Scholars in fields such as organizational science, management science and economics and have long recognized that classification offers an approach for ordering and understanding the diversity of organizational taxa (groups of one or more similar organizational entities). However, even the most prominent organizational classifications have limited utility, as they tend to be shaped by a specific research bias, inadequate units of analysis and a standard neoclassical economic view that does not naturally accommodate the disequilibrium dynamics of modern competition. The result is a relatively large number of individual and unconnected organizational classifications, which tend to ignore the processes of change responsible for organizational diversity. Collectively they fail to provide any sort of universal system for ordering, compiling and presenting knowledge on organizational diversity. This paper has two purposes. First, it reviews the general status of the major theoretical approaches to biological and organizational classification and compares the methods and resulting classifications derived from each approach. Definitions of key terms and a discussion on the three principal schools of biological classification (evolutionary systematics, phenetics and cladistics) are included in this review. Second, this paper aims to encourage critical thinking and debate about the use of the cladistic classification approach for inferring and representing the historical relationships underpinning organizational diversity. This involves examining the feasibility of applying the logic of common ancestry to populations of organizations. Consequently, this paper is exploratory and preparatory in style, with illustrations and assertions concerning the study and classification of organizational diversity.
Technology Management - A Complex Adaptive Systems ApproachIan McCarthy
There are systems methods and evolutionary processes that can help organisations understand the innovative patterns and competitive mechanisms that influence the creation, management and exploitation of technology. This paper presents a specific model based on the evolutionary processes of variation, selection, retention and struggle, coupled with fitness landscape theory. This latter concept is a complex adaptive systems theory that has attained recognition as an approach for visually mapping the strategic options an evolving system could pursue. The relevance and utility of fitness landscape theory to the strategic management of technology is explored, and a definition and model of technological fitness provided. The complex adaptive systems perspective adopted by this paper, views organisations as evolving systems that formulate strategies by classifying, selecting, adopting and exploiting various combinations of technological capabilities. A model called the strategy configuration chain is presented to illustrate this strategic process.
The ability of current statistical classifications to separateservices and ma...Ian McCarthy
This paper explores the performance of current statistical classification systems in classifying firms and, in particular, their ability to distinguish between firms that provide services and firms that provide manufacturing. We find that a large share of firms, almost 20%, are not classified as expected based on a comparison of their statements of activities with the assigned industry codes. This result is robust to analyses on different levels of aggregation and is validated in an additional survey. It is well known from earlier literature that industry classification systems are not perfect. This paper provides a quantification of the flaws in classifications of firms. Moreover, it is explained why the classifications of firms are imprecise. The increasing complexity of production, inertia in changes to statistical systems and the increasing integration of manufacturing products and services are some of the primary and interrelated explanations for this lack of precision. We emphasise, however, that such classification problems are not resolved using a ‘technical fix’. Any statistical classification method involves a number of tradeoffs.
Understanding outsourcing contexts through information asymmetry and capabili...Ian McCarthy
Outsourcing is a strategic activity that has long been central to operations management research and practice. Yet, there are still many outsourcing management challenges that remain. In this article, we explore two of the outsourcing challenges that motivated this special issue and are central to the 10 articles included. To do this, we develop a theoretical model that examines how variations in capability fit and information asymmetry combine to present firms with four different outsourcing contexts. We then explain how each of the articles included in this special issue relate to our theoretical model and explore several avenues for future research.
New Product Development as a Complex Adaptive System of DecisionsIan McCarthy
Early research on new product development (NPD) has produced descriptive frameworks and models that view the process as a linear system with sequential and discrete stages. More recently, recursive and chaotic frameworks of NPD have been developed, both of which acknowledge that NPD progresses through a series of stages, but with overlaps, feedback loops, and resulting behaviors that resist reductionism
and linear analysis. This article extends the linear, recursive, and chaotic frameworks by viewing NPD as a complex adaptive system (CAS) governed by three levels of decision making — in-stage, review, and strategic—and the accompanying decision rules. The research develops and presents propositions that predict how the configuration and organization of NPD decision-making agents will influence
the potential for three mutually dependent CAS phenomena: nonlinearity, selforganization, and emergence. Together these phenomena underpin the potential for NPD process adaptability and congruence. To support and to verify the propositions, this study uses comparative case studies, which show that NPD process adaptability occurs and that it is dependent on the number and variety of agents, their corresponding connections and interactions, and the ordering or disordering effect of the decision levels and rules. Thus, the CAS framework developed within this article maintains a fit among descriptive stance, system behavior, and innovation type, as it considers individual NPD processes to be capable of switching or toggling between different behaviors — linear to chaotic — to produce corresponding innovation outputs that range from incremental to radical in accord with market expectations.
Unpacking the Social Media Phenomenon: Towards a Research AgendaIan McCarthy
In this paper, we highlight some of the challenges and opportunities that social media presents to researchers, and offer relevant theoretical avenues to be explored. To do this, we present a model that unpacks social media by using a honeycomb of seven functional building blocks. We then examine each of the seven building blocks and, through appropriate social and socio-technical theories, raise questions that warrant further in-depth research to advance the conceptualization of social media in public affairs research. Finally, we combine the individual research questions for each building block back into the honeycomb model to illustrate how the theories in combination provide a powerful macro-lens for research on social media dynamics.
Making a face: Graphical illustrations of managerial stances toward customer ...Ian McCarthy
Creative consumers – consumers who adapt, modify or transform a proprietary offering – represent an intriguing paradox for business. On the one hand they can be a black hole for future revenue, with breach of copyright and intellectual property, while on the other hand they represent a gold mine of ideas and business opportunities. This problem is central to business – business needs to both create and capture value; the problem is that creative consumers demand a shift in the mindsets and business models of how firms both create and capture value. We develop a typology of firms’ stances to creative consumers based upon their attitude and action towards customer innovation. We then consider the implications of the stances model for corporate strategy, and examine a three-step approach to dealing with creative consumers, namely, awareness, analysis and response.
Game on: Engaging customers and employees through gamificationIan McCarthy
Managers are frequently tasked with increasing the engagement levels of key stakeholders, such as customers and employees. Gamification - defined as the application of game design principles to change behavior in non-gaming contexts - is a tool that, if crafted and implemented properly, can increase engagement. In this article we discuss how gamification can aid customer and employee engagement, and delineate between four different types of customers and employees who act as ‘players’ in gamified experiences. We include illustrative examples of gamification and conclude by presenting five lessons for managers who wish to utilize gamification.
Product recovery decisions within the context of Extended Producer Responsibi...Ian McCarthy
Environmental and economic evidence is increasingly supporting the need for better analytical tools for evaluating the recovery of consumer products. In response, we present a novel mathematical model for determining what we call the Optimal Recovery Plan (ORP) for any given product. The ORP is based on an evaluation and optimization of the economics of remanufacturing consumer products versus demanufacturing in the context of Extended Producer Responsibility (EPR) legislation, a driving force behind the adoption remanufacturing initiatives by firms. We provide an illustrative application of the model and then discuss its implications for scholars and practitioners concerned with sustainable business development.
An Integrated Approach to Studying Multiplexity in Entrepreneurial NetworksIan McCarthy
Multiplexity occurs in entrepreneurial networks when flows interact within and across relationships. It defines how these networks function and evolve and cannot be examined by studying network structure or flows separately. Despite the growing recognition of the importance of multiplexity, related research has remained limited and lacks an integrated approach to simultaneously examine structure and flows, thus restricting our understanding of entrepreneurial networks. We propose an integrated approach for conducting inductive studies into multiplexity, involving an adaptation of the “business networks” conceptual model, the configuration theory perspective, and the Q-analysis method.
Two related trends characterize the recent past: value propositions are migrating from the physical to the informational, and value creation is shifting from firms to consumers. These two trends meet in the phenomenon of “consumer-generated intellectual property” (CGIP). This article addresses the question: “How should firms manage the intellectual property that their customers create?” It explores how CGIP presents important dilemmas for managers and argues that consumers’ “intellectual property” should not be leveraged at the expense of their “emotional property.” It integrates these perspectives into a diagnostic framework and discusses eight strategies for firms to manage CGIP. (Keywords: Consumer Behavior, Intellectual Property, Innovation Management, New Product Management, Competitive Advantage, Consumers, Product Design)
10th HRSD SUMMIT, General Santos City, July 20-22, 2011
Birth of A Permanent Mechanism: The MinDA Act of 2010 (RA 9996)
MINDANAO DEVELOPMENT AUTHORITY
4F SSS Building, Bajada, Davao City
Tel. No.: (082) 221-1345 and Telefax: (082) 221-8108
Email: info@minda.gov.ph
Web 2.0, Social Media and the Creative Consumer.Kelly Page
These slides were delivered to an MBA class about rise of the creative consumer. The slides are beaded on research work by leading scholars: Pierre Berthon (Bentely), Ian Mcarthy (SFU), Leyland Pitt (SFU), Colin Campbel (Monash), Steve Kates (SFU), Hope Schau (Arizona), Albert Muntz (DePaul) and Clay Shirky in his book - Cognitive Surplus.
DAN Brand Accelerator: Client Pitch KeynoteJason Newport
Here is the Brand Accelerator pitch deck I began using to pitch current clients more than two years ago. I refined as we advanced through each phase once clients had signed on and we adjusted as necessary. I pitched this to more than twenty clients, all household brand names -- an converted each of them. Not a single brand declined to move forward.
Open branding: Managing the unauthorized use of brand-related intellectual pr...Ian McCarthy
Consumers often innovate with brand-related intellectual property (IP) without permission. Although firms often respond by exercising their legal right to stop such activity, there are a variety of situations in which consumers’ unauthorized use of brand-related IP can be desirable for a brand or in which enforcing IP rights can adversely affect a brand. This article illustrates situations in which managers may benefit from choosing to forgo exercising their IP rights. To assist managers, this article contributes a framework for understanding the managerial approaches to situations in which consumers use IP without permission.
Mission Statement
Mission Statement
Mission Statement
Maurice Hill
Business Management Capstone
Christopher Mcchesney
11/17/2019
The company has a rich history from the start in July 1968 to the current time being ranked as one of the best globally. The original business plan stated the company would be manufacturing integrated circuits in a larger scale. The past 15 years has seen tremendous growth in Intel Corporation. Apple Inc decided its entire PC’s would in future use Intel CPU’s. This was a big leap for Intel as currently Intel and its Intel compatible microprocessors are literally found in every PC in the world. (Hall, 2019). This is the same period the company appeared in Fortune 500 list of big companies. It is also during this period that Intel has made a lot of acquisitions to boost its brand. The acquisition of Infineon Technologies to be used on laptops, smartphones and tablets, Telmap the Israeli software company and Password box. In total Intel made more than twenty acquisitions over the last 15 years to boost its business. There have been expansions like the new processor manufacturing facility in Arizona which was completed in 2013. In 2011 a pilot project with ZTE Corporation to incorporate its processor Intel Atom in mobile markets.
The company’s strategic goal of developing products that competitors cannot match has seen a big growth in its innovation department. The company keeps coming up with new innovations that are better than the last ones and are spurring growth in the company. There have been major changes in the company over the last 15 years. The changes have not only been on management but also with the way business is conducted. The period between 2010 to 2019 saw the acquisition of software and other technology companies in order to keep up with the changes in the technology industry. The same period also saw investments in companies which were deemed as partners that could help Intel achieve its goals. The partnership with ZTE Technologies to try and penetrate the Chinese market is one of the major partnerships. In 2012 Intel partnered with Google where Google’s Androids 2.3 used Intel’s Atom microprocessor. The dwindling sales of CPU’s have also led the company to focus on other devices like smart phones, laptops and tablets. The company introduced new mobile processor technology in June 2011and this helped the company increase its share in global processor market to 82%.
Intel’s first CEO was co founder Robert Noyce in 1968. He was succeeded by co founder Gordon Moore in 1975 followed by Andy Grove who eventually handed the reins to Paul Otellini in 2005. Otellini retired in 2012 and was succeeded by Brian Krzanich who had to resign in 2018 and was replaced by Bob Swan. The main role of the CEO over the past year has been to oversee the growth of the company. During the tenure of Otellini revenue grew by over 50% while Krzanich oversaw the most mergers and acquisitions during his tenure as he steered the ...
Digital technologies have deconstructed market structures that were once firmly established. Not only did they introduce new types of business models, but they also crippled the old ones - as is evidenced by several cases, such as those of Apple and Nokia, or Uber and traditional taxi businesses.
Today, every business faces the following 2 challenges, which digital technologies can help to tackle:
1. Bringing down costs to compete. Technologies have progressed fast: Cloud computing replaced proprietary data centers, and pocket mobile devices are now favored over cumbersome desktops. With the right technologies in place, businesses can scale up and perform more efficiently, ultimately cutting operational costs.
2. Building digital platforms to adapt to the changing competitive landscape. Customers and employees are the 2 drivers of changes: their demands have changed, which requires businesses to change accordingly to adapt. For example, customers expect intuitive online shopping experience, while employees ask for productive and engaging workplace experience. Businesses can meet these demands only if they leverage digital platforms.
This paper will examine the changing face of technologies, learn how digital platforms have inspired digital transformation, and discuss the architecture of a digital platform.
I made resume ini shareable format (PDF) from article Tangui Catlin, Jay Scanlan, & Paul Wilmoot (they are from McKinsey) titled "Raising Your Digital Quotient".
I hope this file can be shared to anyone that need it. You can read how McKinsey can estimates your company related to DQ (Digital Quotient).
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With the pace of change in the world accelerating around us, it can be hard to remember that the digital revolution is still in its early days. Massive changes have come about since the packet-switch network and the microprocessor were invented, nearly 50 years ago. A look at the rising rate of discovery in fundamental R&D and in practical engineering leaves little doubt that more upheaval is on the way.
For incumbent companies, the stakes continue to rise. From 1965 to 2012, the “topple rate,” at which they lose their leadership positions, increased by almost 40 percent1 as digital technology ramped up competition, disrupted industries, and forced businesses to clarify their strategies, develop new capabilities, and transform their cultures. Yet the opportunity is also plain. McKinsey research shows that companies have lofty ambitions: they expect digital initiatives to deliver annual growth and cost efficiencies of 5 to 10 percent or more in the next three to five years.
mHealth Israel_Rick Hamilton_The global Innovation Economy 021515Levi Shapiro
Overview about The Global Innovation Economy by Rick Hamilton, IBM's Master Innovator with more than 600 patents. He is also "IBM Cloud Offering Evangelist" and "IBM Master Inventor". In this presentation, Rick discusses Innovation and Technological Change as well as Corporate and Governmental Reactions.
The open academic: Why and how business academics should use social media to ...Ian McCarthy
Abstract: The mission of many business schools and their researchers is to produce research that that impacts how business leaders, entrepreneurs, managers, and innovators, think and act. However, this mission remains an elusive ideal for many business school academics because they struggle to design and produce research capable of overcoming the "research-practice gap." To help those scholars address this gap, we explain why and how they should use social media to be more 'open' to connecting with, learning from, and working with academics and other stakeholders outside of their field. We describe how social media can be used as a boundary-spanning technology to help bridge the research-practice gap. To do this, we present a process model of five research activities: networking, framing, investigating, dissemination, and assessment. Using recently published research as an illustrative example, we describe how social media was used to make each activity more open. We conclude with a framework of different social media-enabled open academic approaches (connector, observer, promoter, and influencer) and some dos and don'ts for engaging in each approach. This paper aims to help business academics rethink and change their practices so that our profession is more widely regarded for how its research positively impacts practice and societal well-being more generally.
Big Data for Creating and Capturing Value in the Digitalized Environment: Unp...Ian McCarthy
Despite significant academic and managerial interest in big data, there is a dearth of research on how big data impacts
the long-term firm performance. Reasons for this gap include a lack of objective indices to measure big data
availability and its impact, and the tendency of studies to ignore the costs associated with collecting and analyzing
big data, assuming that big data automatically delivers benefits to firms. Focusing on how firms create and capture
value from big data about customers, we use the resource-based view and three dimensions of big data (i.e., volume,
variety, and veracity) to understand when the benefits outweigh the costs. Relying on the number of downloads of
mobile device applications, we find that volume of big data has a negative effect on firm performance. This result
suggests that the “bigness” of big data alone does not ensure value creation for a firm, and could even constitute a
“dark side” of big data. Because big data variety—measured as the number of types of information taken per each
application—moderates the negative effects of big data volume, simultaneous high values of volume and variety
allow firms to create value that positively affects their performance. In addition, high levels of veracity (i.e., a high
percentage of employees devoted to big data analysis), are linked to firms benefiting from big data via value capture.
These findings shed light on the circumstances in which big data can be beneficial for firms, contributing to a better
theoretical understanding of the opportunities and challenges and providing useful indications to managers.
Standardization in a Digital and Global World: State-of-the-Art and Future Pe...Ian McCarthy
We discuss how the standards emerge from an interaction between three main sources, the standards standard-setting organizations (SSOs), the competitive market forces, and the government. We present a framework (see Table I) that highlights how these sources differ and work together to shape the standardization in a digital and global context. Also, using this framework, we introduce the contribution of each article of this issue and their contribution to some of the major issues that the standardization is facing today in a digital and global world. We conclude with the suggestions of avenues for future research on this topic.
Does getting along matter? Tourist-tourist rapport in guided group activitiesIan McCarthy
Guided group activities, where tourists consume with other tourists, are common and important. Although the
tourism and services literature suggests customer-employee rapport impacts customer satisfaction, the composition
and impact of tourist-tourist rapport in guided group activities have received minimal attention. We use a
three-study mixed method approach to conceptualize and examine tourist-tourist rapport in guided group activities.
Study 1 identifies two recognized dyadic dimensions of tourist-tourist rapport (enjoyable interaction and
personal connection) and two new group-based dimensions (group attentiveness and service congruity). Study 2
(video experiment) and Study 3 (field experiment) find that enjoyable interaction and personal connection
mediate the relationship between group attentiveness and service congruity with satisfaction. Thus, touristtourist
rapport in a group context is more multidimensional and complex than previously conceptualized for
customer-employee rapport and non-group contexts. Further, we find tourist-tourist rapport is a critical service
factor such that high levels satisfy, while low levels dissatisfy.
Social media? It's serious! Understanding the dark side of social mediaIan McCarthy
Research and practice have mostly focused on the “bright side” of social media, aiming to understand and help in leveraging the manifold opportunities afforded by this technology. However, it is increasingly observable that social media present enormous risks for individuals, communities, firms, and even for society as a whole. Examples for this “dark side” of social media include cyberbullying, addictive use, trolling, online witch hunts, fake news, and privacy abuse. In this article, we aim to illustrate the multidimensionality of the dark side of social media and describe the related various undesirable outcomes. To do this, we adapt the established social media honeycomb framework to explain the dark side implications of each of the seven functional building blocks: conversations, sharing, presence, relationships, reputation, groups, and identity. On the basis of these reflections, we present a number of avenues for future research, so as to facilitate a better understanding and use of social media.
Leveraging social capital in university-industry knowledge transfer strategie...Ian McCarthy
University-industry partnerships emphasise the transformation of knowledge into products and processes which can be commercially exploited. This paper presents a framework for understanding how social capital in university-industry partnerships affect knowledge transfer strategies, which impacts on collaborative innovation developments. University-industry partnerships in three different countries, all from regions at varying stages of development, are compared using the proposed framework. These include a developed region (Canada), a transition region (Malta), and a developing region (South Africa). Structural, relational and cognitive social capital dimensions are mapped against the knowledge transfer strategy that the university-industry partnership employed: leveraging existing knowledge or appropriating new knowledge. Exploring the comparative presence of social capital in knowledge transfer strategies assists in better understanding how university-industry partnerships can position themselves to facilitate innovation. The paper proposes a link between social capital and knowledge transfer strategy by illustrating how it impacts the competitive positioning of the university-industry partners involved.
Do your employees think your slogan is “fake news?” A framework for understan...Ian McCarthy
Purpose – This article explores how employees can perceive and be impacted by the fakeness of their company slogans.
Design/methodology/approach – This conceptual study draws on the established literature on company slogans, employee audiences, and fake news to create a framework through which to understand fake company slogans.
Findings – Employees attend to two important dimensions of slogans: whether they accurately reflect a company’s (1) values and (2) value proposition. These dimensions combine to form a typology of four ways in which employees can perceive their company’s slogans: namely, authentic, narcissistic, foreign, or corrupt.
Research limitations/implications – This paper outlines how the typology provides a theoretical basis for more refined empirical research on how company slogans influence a key stakeholder: their employees. Future research could test the arguments about how certain characteristics of slogans are more or less likely to cause employees to conclude that slogans are fake news. Those conclusions will, in turn, have implications for the
morale and engagement of employees. The ideas herein can also enable a more comprehensive assessment of the impact of slogans.
Practical implications – Employees can view three types of slogans as fake news (narcissistic, foreign, and corrupt slogans). This paper identifies the implications of each type and explains how companies can go about developing authentic slogans.
Originality/value – This paper explores the impact of slogan fakeness on employees: an important audience that has been neglected by studies to
date. Thus, the insights and implications specific to this internal stakeholder are novel.
Making sense of text: artificial intelligence-enabled content analysisIan McCarthy
Purpose – The purpose of this paper is to introduce, apply and compare how artificial intelligence (AI), and specifically the IBM Watson system, can be used for content analysis in marketing research relative to manual and computer-aided (non-AI) approaches to content analysis.
Design/methodology/approach – To illustrate the use of AI enabled content analysis, this paper examines the text of leadership speeches, content related to organizational brand. The process and results of using AI are compared to manual and computer-aided approaches by using three performance factors for content analysis: reliability, validity and efficiency.
Findings – Relative to manual and computer-aided approaches, AI-enabled content analysis provides clear advantages with high reliability, high validity and moderate efficiency.
Research limitations/implications – This paper offers three contributions. First, it highlights the continued importance of the content analysis research method, particularly with the explosive growth of natural language-based user-generated content. Second, it provides a road map of how to use AI-enabled content analysis. Third, it applies and compares AI-enabled content analysis to manual and computer-aided, using leadership speeches.
Practical implications – For each of the three approaches, nine steps are outlined and described to allow for replicability of this study. The advantages and disadvantages of using AI for content analysis are discussed. Together these are intended to motivate and guide researchers to apply and develop AI-enabled content analysis for research in marketing and other disciplines.
Originality/value – To the best of the authors’ knowledge, this paper is among the first to introduce, apply and compare how AI can be used for content analysis.
Confronting indifference toward truth: Dealing with workplace bullshitIan McCarthy
Abstract Many organizations are drowning in a flood of corporate bullshit, and this is particularly true of organizations in trouble, whose managers tend to make up stuff on the fly and with little regard for future consequences. Bullshitting and lying are not synonymous. While the liar knows the truth and wittingly bends it to suit their purpose, the bullshitter simply does not care about the truth. Managers can actually do something about organizational bullshit, and this Executive Digest provides a sequential framework that enables them to do so. They can comprehend it, they can recognize it for what it is, they can act against it, and they can take steps to prevent it from happening in the future. While it is unlikely that any organization will ever be able to rid itself of bullshit entirely, this article argues that by taking these steps, astute managers can work toward stemming its flood.
The Promise of Digitalization: Unpacking the Effects of Big Data Volume, Vari...Ian McCarthy
Despite significant academic and managerial interest in big data, there is a dearth of research on how big data impacts long-term firm performance. Reasons for this gap include a lack of objective indices to measure big data availability and its impact, and the tendency of studies to ignore the costs associated with collecting and analyzing big data, assuming that big data automatically delivers benefits to firms. Focusing on how firms create and capture value from big data about customers, we use the resource-based view (RBV) and three dimensions of big data (i.e., volume, variety and veracity) to understand when the benefits outweigh the costs. Relying on the number of downloads of mobile device applications, we find that volume of big data has a negative effect on firm performance. This result suggests that the ‘bigness’ of big data alone does not ensure value creation for a firm, and could even constitute a ‘dark side’ of big data. Because big data variety – measured as the number of types of information taken per each application – moderates the negative effects of big data volume, simultaneous high values of volume and variety allow firms to create value that positively affects their performance. In addition, high levels of veracity (i.e., a high percentage of employees devoted to big data analysis), are linked to firms benefiting from big data via value capture. These findings shed light on the circumstances in which big data can be beneficial for firms, contributing to a better theoretical understanding of the opportunities and challenges and providing useful indications to managers.
Masterclass: Confronting indifference to truthIan McCarthy
Many organizations are drowning in a flood of corporate bullshit, and this is particularly true of organizations in trouble, whose managers tend to make up stuff on the fly and with little regard for future consequences. Bullshitting and lying are not synonymous. While the liar knows the truth and wittingly bends it to suit their purpose, the bullshitter simply does not care about the truth. Managers can actually do something about organizational bullshit, and this Executive Digest provides a sequential framework that enables them to do so. They can comprehend it, they can recognize it for what it is, they can act against it, and they can take steps to prevent it from happening in the future. While it is unlikely that any organization will ever be able to rid itself of bullshit entirely, this article argues that by taking these steps, astute managers can work toward stemming its flood.
Confronting indifference toward truth: Dealing with workplace bullshitIan McCarthy
Many organizations are drowning in a flood of corporate bullshit, and this is particularly true of organizations in trouble, whose managers tend to make up stuff on the fly and with little regard for future consequences. Bullshitting and lying are not synonymous. While the liar knows the truth and wittingly bends it to suit their purpose, the bullshitter simply does not care about the truth. Managers can actually do something about organizational bullshit, and this Executive Digest provides a sequential framework that enables them to do so. They can comprehend it, they can recognize it for what it is, they can act against it, and they can take steps to prevent it from happening in the future. While it is unlikely that any organization will ever be able to rid itself of bullshit entirely, this article argues that by taking these steps, astute managers can work toward stemming its flood.
Although manipulations of visual and auditory media are as old as the media themselves, the recent entrance of deepfakes has marked a turning point in the creation of fake content. Powered by latest technological advances in AI and machine learning, they offer automated procedures to create fake content that is harder and harder to detect to human observers. The possibilities to deceive are endless, including manipulated pictures, videos and audio, that will have large societal impact. Because of this, organizations need to understand the inner workings of the underlying techniques, as well as their strengths and limitations. This article provides a working definition of deepfakes together with an overview of the underlying technology. We classify different deepfake types: photo (face- and body-swapping), audio (voice-swapping, text to speech), video (face-swapping, face-morphing, full body puppetry) and audio & video (lip-synching), and identify risks and opportunities to help organizations think about the future of deepfakes. Finally, we propose the R.E.A.L. framework to manage deepfake risks: Record original content to assure deniability, Expose deepfakes early, Advocate for legal protection and Leverage trust to counter credulity. Following these principles, we hope that our society can be more prepared to counter the deepfake tricks as we appreciate its treats.
Social media? It’s serious! Understanding the dark side of social mediaIan McCarthy
Research and practice have mostly focused on the “bright side” of social media, aiming to understand and help in leveraging the manifold opportunities afforded by this technology. However, it is increasingly observable that social media present enormous risks for individuals, communities, firms, and even the whole of society. Examples for this “dark side” of social media include cyberbullying, addictive use, trolling, online witch hunts, fake news, and privacy abuse. In this article, we aim to illustrate the multidimensionality of the dark side of social media and describe the related various undesirable outcomes. To do this, we adapt the established social media honeycomb framework to explain the dark side implications of each of the seven functional building blocks: conversations, sharing, presence, relationships, reputation, groups, and identity. On the basis of these reflections, we present a number of avenues for future research, so as to facilitate a better understanding and use of social media.
The propensity and speed of technology licensing: at LUISS Guido Carli Univer...Ian McCarthy
Licensing speed: There has been much research interest in the speed of innovation, although few consistent findings have emerged. In this study, we unpack the innovation process and focus on the commercialization stage to examine two questions: Which licensor and patent characteristics determine the speed of licensing? How does the speed of licensing impact the royalties and lumpsum payments to licensors? We addressed these questions by proposing that licensing speed is influenced by variables for licensor prominence (size and experience), licensor knowledge structuration (technological depth, technological breadth and experience), and patent appeal (forward citations, scope and complexity). We predict and find that these variables work to increase the size, complexity and duration of the licensing-out task, while also allowing licensors to take their time to review, negotiate and select agreements with higher royalty rates. These findings are counter to arguments for a fast-paced innovation strategy, as it suggests that for the commercialization stage of the innovation process the relationship between licensing speed and licensor royalty
rates rewards a ‘less haste, greater payoff approach.
Seven steps for framing and testing a research paperIan McCarthy
I use the steps in this presentation to:
(i) test research ideas for research papers,
(ii) shape research papers, and
(iii) help draft the Introduction section of a research paper.
For each step I draft one or two concise paragraphs.
I then present and share these with co-authors, collaborators and colleagues to test the ideas and get feedback on how interesting and valid they are.
I consider and work through these steps several times during the life of a research paper framed.
Click here to agree managing intellectual property when crowdsourcing solutionsIan McCarthy
Tapping into the creativity of a crowd can provide a highly efficient and effective means of acquiring ideas, work, and content to solve problems. But crowdsourcing solutions can also come with risks, including the legal risks associated with intellectual property. Therefore, we raise and address a two-part question: Why -- and how -- should organizations deal with intellectual property issues when engaging in the crowdsourcing of solutions? The answers lie in understanding the approaches for acquiring sufficient intellectual property from a crowd and limiting the risks of using that intellectual property. Herein, we discuss the hazards of not considering these legal issues and explain how managers can use appropriate terms and conditions to balance and mitigate the risks associated with soliciting solutions from a crowd. Based on differences in how organizations acquire intellectual property and limit associated risks, we identify and illustrate with examples four approaches for managing intellectual property (passive, possessive, persuasive, and prudent) when crowdsourcing solutions. We conclude with recommendations for how organizations should use and tailor the approaches in our framework to source intellectual property from a crowd.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
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Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
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Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
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Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Unveiling the Secrets How Does Generative AI Work.pdf
When customers get clever: Managerial approaches to dealing with creative consumers
1. Business Horizons (2007) 50, 39 — 47
www.elsevier.com/locate/bushor
When customers get clever: Managerial approaches
to dealing with creative consumers
Pierre R. Berthon a, Leyland F. Pitt b,*, Ian McCarthy b, Steven M. Kates b
a
Bentley College, Waltham, MA 02452, USA
b
Segal Graduate School of Business, Simon Fraser University, Vancouver, BC, Canada V6B 5K3
KEYWORDS Abstract Creative consumers (defined as customers who adapt, modify, or
Creative customers; transform a proprietary offering) represent an intriguing paradox for business. On
Firm stance; one hand, they can signify a black hole for future revenue, with breach of copyright
Strategic response; and intellectual property. On the other hand, they represent a gold mine of ideas and
Diagnostics business opportunities. Central to business is the need to create and capture value,
and creative consumers demand a shift in the mindsets and business models of how
firms accomplish both. Based upon their attitude and action toward customer
innovation, we develop a typology of firms’ stances toward creative consumers. We
then consider the implications of the stances model for corporate strategy and
examine a three-step approach to dealing with creative consumers: awareness,
analysis, and response.
D 2006 Kelley School of Business, Indiana University. All rights reserved.
1. When customers get clever over the Internet for listening on mobile
devices and personal computers. While the idea
What happens when customers get clever? What had been around since the year 2000, podcast-
should a firm do when creative consumers start to ing really took off with the 2001 advent of
modify products, hack code, and adjust services to Apple’s ubiquitous iPod. Yet, Apple was notori-
suit themselves? The following examples illustrate ously slow in capitalizing on the phenomenon,
the dilemmas managers face, and the very differ- perhaps fearful of the copyright and digital
ent strategies firms employ in dealing with the property implications of its devices being used
phenomenon: to store and play content. It was not until mid-
2005 that Apple began to include podcasting
! Podcasting is the distribution of audio or video software with its iPod products or make pod-
files, such as radio programs or music videos, casts available on its iTunes website. To many
iPod owners (and to fans of podcasting), it
seemed that Apple had, at first, discouraged
podcasting. At the very least, the company
* Corresponding author. declined to comment on it in the early days of
E-mail address: lpitt@sfu.edu (L.F. Pitt). the phenomenon.
0007-6813/$ - see front matter D 2006 Kelley School of Business, Indiana University. All rights reserved.
doi:10.1016/j.bushor.2006.05.005
2. 40 P.R. Berthon et al.
!A member of the creative set, pink-haired tions range from a simple early ignoring, to a threat
computer developer Jose Avila made furniture of legal action, to a begrudging condescension, to
for his apartment exclusively from Federal an active embracing of customer creativity. So
Express boxes. When the Tempe, Arizona-based what is a firm to do?
creator displayed pictures of the furniture on his In this article, we explore the issue of creative
website (www.fedexfurniture.com), however, consumers, those customers who adapt, modify, or
the shipping firm promptly overnighted a cease transform a proprietary offering. They represent an
and desist letter demanding that Avila take down intriguing paradox for business. On one front, they
the website (Morrissey, 2005). While the request can represent a black hole for future revenue.
was honored, consumer comments on weblogs Breach of copyright is rife, and the notion of
persist: bThis really brightened my day! The intellectual property is often treated with cavalier
letters are classic lawyer exchange. My husband disregard. There is also the distinct possibility that
and I laughed and laughed. Lawyers jousting at customers who meddle with proprietary products
windmills...Q and bFedEx needs to lighten up. can produce something truly dangerous! On the
Jose is a bright and innovative young man, and other hand, creative consumers can be a gold mine
instead of making his life miserable, they should of ideas and business prospects, as customers
give him a great job. With his kind of thinking, identify opportunities and implementations that
he can only improve the company....the first become sources of revenue, apart from being
thing he should do is fire the lawyersQ (http:// significant improvements.
www.bookofjoe.com/2005/08/fedexfurnitur- The modern business environment provides un-
ec.html). precedented opportunities for customers to get
! Ron Gremban’s car looks like a typical Toyota clever. The Internet permits the rapid dissemina-
Prius hybrid, but in its trunk an additional stack tion and communication of customer innovations.
of 18 brick-sized batteries boosts the car’s Hobby programmers delight in improvising and
already high mileage with an extra electrical improving carefully written code. Modular prod-
charge so it can burn even less fuel. An electrical ucts, which embody high levels of reconfigurability,
engineer and committed environmentalist, and inexpensive hardware (particularly in the form
Gremban spent several months and $3000 tin- of computer chips and storage media) enable
kering with his car. The additional batteries let enthusiasts to tinker with technologies. Businesses
him store extra power by plugging the car into a need to both create and capture value. The
wall outlet at his home, all for about 25 cents. dilemma is that creative consumers demand a shift
Although the Toyota Motor Corporation initially in the managerial mindsets and business models of
frowned on people altering their cars, the how firms accomplish these two feats. We provide a
company now says it may be able to learn from framework for thinking about the phenomenon,
such individuals. bThey’re like the hot rodders of which also enables managers to identify their own
yesterday who did everything to soup up their corporate stance toward customer creativity, in
cars. It was all about horsepower and bling- order to be able to develop strategies for dealing
bling, lots of chrome and accessories,Q said Cindy with this.
Knight, a Toyota spokeswoman (Molloy, 2005).
! In an attempt to create cool new things, the BBC
is giving web developers and designers outside 2. Clever customers are not lead users
the organization access to its content. Called
backstage.bbc.co.uk, this initiative gives people We define the creative consumer as an individual
who create computer programs, applications, or or group who adapts, modifies, or transforms a
graphics the chance to put their stamp on BBC proprietary offering, such as a product or service.
digital content. While the beta stage project is As a phenomenon, the creative consumer has a
only informal at the moment, it aims to drum up long and illustrious history; indeed, it is as old as
interest and proposals for prototypes. Launched products and services themselves. The automobile
in the summer of 2005, it has already garnered serves as an excellent example of a product that,
significant interest (http://news.bbc.co.uk/2/ since its inception, has existed in a generally
hi/technology/4538111.stm). symbiotic relationship with creative consumers.
The early Model T Ford was regularly adapted by
These cases represent four different kinds of farmers as a power source for driving generators,
customer initiatives in four very different indus- mills, and lathes. In the 1960s, motor racing team
tries, and four different corporate responses to BRM modified a jet engine to power a successful
customer inventiveness. The organizations’ reac- Le Mans racecar; today, thousands of dpetrol
3. When customers get clever: Managerial approaches to dealing with creative consumers 41
headsT reprogram the engine management chips (1) Creative consumers work with all types of
on their turbo cars to extract (sometimes fatal) offerings, not just novel or enhanced products
amounts of extra horsepower! While the phenom- (the focus of the lead user). Creative consum-
enon of the creative consumer is old, it has ers sometimes work with old, and even the
received somewhat limited inspection by research- simplest, de-featured products. For example,
ers and business leaders. Only recently has it although Apple ceased production of its
begun to gain attention in the serious manage- unsuccessful Newton PDA in the mid-1990s,
ment literature. For example, Mollick (2005) there still exists today an active community
refers to creative consumers as bunderground that continues to find ways to change the
innovatorsQ (p. 21). While the author provides an product’s functionality, write software for it,
excellent framework by which to understand and and share their observations and experiences
categorize these individuals, he leaves the reader with others (Muniz & Schau, 2005).
guessing concerning what management should do (2) Creative consumers do not necessarily face
about creative consumers, apart from encouraging needs that will become general; rather, they
them. often work on personal interests that can
The related concept of dlead userT has been the remain personal, or expand in use to a subset
primary focus of management and researcher of users. For example, consumers who use
attention. The notion of the lead user was devel- their car alternators to generate electricity
oped some 20 years ago by von Hippel (1986), who for their homes are likely to remain a minority
defined them as users whose current strong needs subset! Indeed, the notion of dwill become
will become general in a marketplace months or generalT is potentially a major problem for
years in the future. Since lead users often try to managers working with lead users; managers
fulfill the need they experience, they can provide have to identify those users they think will
new product concept and design data, as well. In encounter needs that will become general.
totality, the lead user is (1) a user of a novel or They also need to monitor and act upon the
enhanced product who (2) faces needs that will be exploits and advice of these users, while
general in a marketplace, but faces them months or noting that lead users can all too often
years before the bulk of that marketplace encoun- mislead, a point well articulated in the work
ters them, and who (3) is positioned to benefit of Christensen and Bower (1996) and Chris-
significantly from obtaining a solution (von Hippel, tensen (1997). Moreover, creative consumers
1986, 2005). often innovate from a love of experimentation
There has been a significant stream of research and creativity, not to solve some specific
into these specific types of customers, directed at need. In other words, while a creative con-
identifying lead users (Urban & von Hippel, 1988); sumer’s innovation can fulfill instrumental
incorporating them into product design research needs, it (the innovation) is not necessarily
and gathering and analyzing their data (von Hippel, driven by a need.
1989); comparing the lead user approach to more (3) Creative consumers need not benefit directly
traditional new product development techniques from their innovations, although they may
(Herstatt & von Hippel, 1992); the characteristics obviously benefit indirectly through thanks,
of innovation, innovators, and innovation sharing in peer recognition, and so forth. This is often
lead user environments (Morrison, Roberts, & von referred to as bsymbolic capitalQ (Bourdieu,
Hippel, 2000); performance assessment of the lead 1977). Conversely to economic capital, the
user approach (Lilien, Morrison, Searls, Sonnack, & more one dgives away,T the more symbolic
von Hippel, 2002); and the development of a capital one accumulates in the form of pres-
construct of dlead usership,T defined as dleading tige, status, and reputation. BMW now gathers
edge statusT (Morrison, Roberts, & Midgley, 2004). the ideas of its customers and invites the most
There have also been reports in the practitioner inspired among them to meet with its engi-
press of how the lead user approach is structured neers in Munich on a regular basis. Joerg
and applied in eminent firms, such as Johnson & Reimann, the firm’s marketing innovation
Johnson (Luthje & Herstatt, 2004) and 3M (von management head, is quoted as saying, bThey
Hippel, Thomke, & Sonnack, 1999). were so happy to be invited by us, and that our
It is important to note, however, that the two technical experts were interested in their
terms dcreative consumerT and dlead userT are far ideas. They didn’t want any moneyQ (bThe Rise
from synonymous. If we compare and contrast the of the Creative Consumer,Q 2005, p. 75). Others
concepts of creative consumer and lead user, the may be the primary beneficiaries; this process
following four observations can be made: can be conscious (a consumer adapts or
4. 42 P.R. Berthon et al.
modifies a product for the benefit of another tion. In short, creative consumers represent an
consumer or group) or serendipitous (a important and overlooked group. The reasons for
consumer, while playing around with a prod- treating them strategically include:
uct, produces a modification, which is adop-
ted by other consumers). The open source (1) They exist, and are here to stay. As the
software community is replete with exam- technology in products becomes more and
ples. For instance, volunteers have created a more digitized, atomized, and interco-
very viable alternative to Microsoft Windows nnected, the potential for consumers to re-
in the operating system Linux, with no program, adapt, modify, and transform
personal reward other than the kudos of offerings also becomes greater. In simple
friends and users, and, of course, the chal- terms, this phenomenon is growing and will
lenge of solving a problem. continue to grow.
(4) Firms tend to use a formal and disciplined (2) Creative consumers are a rich source of
process to find, screen, and select lead users. innovation; indeed, they are a hothouse of
For example, von Hippel et al. (1999) describe imaginative ideas that the firm might not
how 3M involved many medical specialists in have the resources or the time to cultivate by
different environments, in a strict four-stage itself. They offer an alternative to formal
process to develop a new disposable surgical product development programs, which survey
draping product. In contrast, creative con- consumer needs and preferences, and then
sumers rarely ask permission to experiment design and manufacture corresponding prod-
with a firmTs offering, and critically it is they uct offerings. Creative consumers will simply
who select the product, the firm, and the innovate for firms, but are unlikely to tell
innovation. They certainly do not observe a them about it. Thus, the challenge for firms
formal process. Whereas the firm remains in involves recognizing that creative consumers
control with lead users, the situation is exist, identifying their actions, and under-
reversed with creative consumers; this lack standing how to capture and create value
of control over the creative consumer can from them. Ignoring or mismanaging creative
represent major challenges to some firms. consumers can lead to failure. At the very
least, it may give customers the impression
Lead users garnered managerial attention in the that what they say and do does not matter to
1970s and 1980s because they were seen as a viable the firm. At a more serious level, the firm may
means of reducing the risks and costs involved in lose out on innovative ideas and the revenues
new product development. The creative consumer these can represent. At worst, firms could
phenomenon has only been given attention more find that competitors do identify and exploit
recently because a confluence of factors has the innovations that customers develop on the
pushed it to the fore. These factors include the firm’s offerings.
advent of the Internet, which allows connections (3) Recognizing and utilizing creative consumers
between creative consumers and dissemination of is a form of outsourcing, whereby the process
their ideas; the programmability and malleability of new product development is informally
of software and components which have evolved in contracted out to the market. In a self-
the last two decades; and an overall cultural shift governing manner, this enterprise is able to
toward customization and individualization (Pep- extend the life cycles of existing products by
pers & Rogers, 1993). overcoming the boundary between design
While creative consumers and lead users are two production and design consumption. The cost
distinct groups of customers, there is potential for benefits are potentially much better than din-
an overlap between them, especially when man- houseT innovation, but a significant risk is
agement incorporates and adapts their ideas into posed in that the R&D is done in public.
offerings. Creative consumers are generally more Therefore, without appropriate processes for
difficult to manage, because their innovations tend capturing value from creative consumers,
to be more idiosyncratic and stochastic than lead there is no guarantee that the firm that
user efforts, which are more focused and controlled originally developed the product will be the
by the firm. Moreover, creative consumers are one that can successfully appropriate the
usually independent of the organization. Lead value created by the creative consumer.
users, on the other hand, are contacted by, There exists a substantial risk that compet-
communicated to, and the process of their inter- itors might be able to capitalize on the
action with the firm controlled by, the organiza- opportunities identified by creative consum-
5. When customers get clever: Managerial approaches to dealing with creative consumers 43
ers. That alone might be reason enough for users alone does not provide comprehensive
the firm not to ignore the phenomenon. answers to firms that wish to become aware of
consumer creativity, to develop a stance toward it,
and to be able to formulate and implement action
3. Consumer creativity does not equal plans regarding it. Similarly, the study of consumer
creative consumers creativity by marketing psychologists, mostly in
laboratory settings using student samples, yields
Consumer researchers have certainly not ignored many important insights into what motivates con-
customer creativity; indeed, they have defined it sumer creativity and the environmental conditions
and identified its traits, antecedents, and conse- that enhance it. The work, however, is not that
quences. The problem is that almost all of the helpful to practicing managers. It certainly does
research has been done at a conceptual level. not tell them what to do about creative consumers.
While this is laudable from a scholarly perspective, Having defined and established the importance of
it tells managers little about how customers tinker the creative consumer, we now go on to explore the
with their products and what happens as a result. It stances that firms adopt toward to this important
also gives them very little advice about what they group; stances which, as we will see, range from
should do. dConsumer creativityT (the study of non-management, to mismanagement, to proactive
consumer problem solving and creativity traits) management.
and dcreative consumersT (the reality of how
consumers adapt, modify, or transform proprietary
offerings) are related but still very different 4. Stances: Of Treks and Wars
phenomena.
There is a strong stream of research in the The two landmark stars of modern-day science
consumer behavior literature that has focused on fiction, Star Trek and Star Wars, provide contrast-
consumer creativity. This work was pioneered by ing examples of how organizations deal with the
Hirschman (1980, 1983), who defined consumer problems and dilemmas posed by creative consum-
creativity as the problem-solving capability that ers, those customers who want to get a little too
may be applied toward consumption-related prob- involved for comfort. Star Trek (which started as a
lems. The focus of consumer researchers has television series) and Star Wars (the ongoing movie
tended to be on the behavioral traits of creative saga) have both had a major impact on contempo-
consumers, and especially the factors that influ- rary culture. Yet, one is languishing while the other
ence the process of consumer creativity. For thrives (Borland, 2005).
example, Moreau and Dahl (2005) have studied, in Star Trek’s battalions of fans saw the Internet as a
an experimental setting, how input and time wonderful galaxy in which to indulge their love of
constraints influence the way in which consumers the show, its icons, and legends. They built web-
process information during a creative task and how sites, published online stories, and created and
those processes, in turn, influence the creativity of distributed amateur movies based on the Star Trek
the solution. Also using experiments, Burroughs and mythology and characters. In response, Star Trek’s
Mick (2004) have investigated the antecedents and copyright owner, Viacom, vigorously pursued these
consequences of creativity in a consumption con- fans by releasing warning statements in the press,
text. The authors find that both situational factors issuing legal writs, and closing down websites.
(i.e., time constraints, situational involvement) Viacom was determined to protect and control its
and person factors (i.e., locus of control, meta- intellectual property at all costs, and it seems the
phoric thinking ability) affect creative consump- company has succeeded more than it might have
tion, and that there is also interaction between intended. In 2006, for the first time in over 20 years,
these variables. These research efforts are laud- there will be no cinematic reprise for the Starship
able, yet they shed little light on what managers in Enterprise.
firms should be doing to become aware of customer In managing the Star Wars franchise, Lucasfilm
creativity, how they should define their attitudes has preferred to tread a fine line between incor-
toward it, and what actions they should take to porating creative fans and still controlling its
either encourage or discourage it. intellectual property through regulation. For ex-
In summary, the important notion of lead users ample, a partnership with AtomFilms sponsors an
has received considerable research attention and official contest for independent filmmakers who
application in practice. However, while lead users create works based upon Star Wars. Further, Star
and creative consumers have some things in Wars Galaxies, a massively popular multi-player
common, they are not synonymous. Studying lead game presented as a venture between LucasArts
6. 44 P.R. Berthon et al.
and Sony, permits the design team to solicit play- 5.1. Discourage
ers’ feedback. Thus, Lucasfilm both recognizes and
attempts to manage consumer creativity. In the In ignoring the podcasting phenomenon in its
hiatus between the culmination of the first trilogy infancy, Apple’s espoused policy was, very evident-
of films and the second, more drawn-out, triplet of ly, one that did not welcome independent customer
movies, the Star Wars fan base has burgeoned. For involvement in their offering. While the firm did
the franchise and its fans, the Force lives on. not choose to prosecute or to resort to legal means
in its efforts to thwart innovative customer use of
its products, Apple, in the early stages, did little to
facilitate the practice. In all likelihood, this was
5. Firms’ stances toward creative
because the firm was still pondering the legal
consumers ramifications of using its iPod device to broadcast
digital content. Subsequently, this position has
As mentioned previously, firms adopt a range of
evolved into a more proactive stance, with iPod
stances toward creative consumers. Some see them
players being shipped with legally approved pod-
as threatening and try to prevent them from being
casting subscriptions and downloads as part of the
innovative with their products; others see them as
iTunes package. We refer to this first stance as
an opportunity and actively facilitate consumers’
discourage. Under this stance, a firm’s attitude
creativity. In considering firms’ reactions to this
toward consumer innovation is negative, but its
phenomenon, it is useful to differentiate using two
actions are de facto passive. In this instance, firms
axes: a firm’s attitude toward, and its action on, verbally berate consumer innovation but take no
consumer innovation. Attitude toward consumer
overt action, which can range from ignorance, to
innovation is a firm’s espoused policy or philosophy
reluctant tolerance, to an unreceptive internal
regarding the phenomenon in principle; it can
reaction. Discourage is the default or initial stance
range from positive to negative. The espoused
for many firms, and examples are legion. For
philosophy typically reflects the mental mindset
instance, after Sony released the PSP (Portable
of top management, but can also range from a
Play Station) game player, consumers soon began
subtle form of politicking to poor organizational
hacking the proprietary operating system so that
communication. Action on consumer innovation they could surf the Web, check emails, and run
comprises what a firm does once the phenomenon
retro- and other non-proprietary games on the
has actually been detected. This can range from
device. Sony’s reaction was swift condemnation,
active to passive.
but other than making crystal clear their attitude
These two axes delineate a four-fold typology of
toward the innovation, they took no further action
firm postures to consumer innovation: discourage,
(Hellweg, 2005). Similarly, hackers have turned
resist, encourage, and enable. The four stances are
Nintendo’s Gameboy console into a computerized
illustrated with examples in Fig. 1, and are outlined
musical instrument that can be used to play
below. surprisingly complex music. Nintendo would not
comment on the trend (Kushner, 2006).
5.2. Resist
FedEx not only disapproved of Jose Avila’s furniture
construction methods and materials, it acted
directly by serving him with legal instructions to
desist and take down his website. This is an
example of what we term the resist stance. What
distinguishes this stance from the discourage pos-
ture is that, while the firm’s attitude toward
consumer innovation is still negative, the firm’s
responses are active. Thus, firms that adopt a resist
stance verbally berate consumer innovation and
back that sentiment up with punitive action. The
firm actively seeks to minimize or eliminate
consumer innovations. A long-established embodi-
ment of resistance is invalidation of warrantee. In
Figure 1 Firms’ stances toward creative consumers. the past, the Ford Motor Company refused to honor
7. When customers get clever: Managerial approaches to dealing with creative consumers 45
warranties on vehicles that they suspected had toward consumer innovation, it differentiates itself
been adapted for alternative farming applications. in that the firm’s posture is overtly active. In this
Many Model T owners were farmers, who used the instance, firms cheer consumer innovation and
power of the car, transferred through the rear axle, back words with deeds to actively help consumers
to drive small milling and threshing machines, and innovate with their products. This is very much a
other agricultural equipment. Nowadays, as will be dhands-on,T positive approach to the phenomenon,
seen in a later example, Ford is more open to one which can be seen amongst leaders in the
customer creativity. From warrantee invalidation, gaming industry. Faced with consumers hacking into
firms then move on to taking proactive legal steps the encrypted software of their popular game,
against innovating consumers. AiboPet is a rather Half-Life, Valve Software took the overt, positive
expensive (around $2000) robot dog, marketed by action of releasing the code to the community. The
Sony, which can perform a number of pre- result was the creation of Counter-Strike, the most
programmed tricks, such as following its owner played online game in the Internet’s history
around and responding to voice commands. Sony (Hellweg, 2005). The Ford Motor Company also
initially sued consumers who had hacked the seems to have changed its stance since the days of
AiboPet operating system to make their cyberpets the Model T and is working with individuals such as
dance, jive, and perform a wide host of Chip Foose, who enjoyed such success modifying
dunauthorizedT actions (Kohler, 2005). Ford Mustangs that he started his own business,
Foose Design. Beyond being supported by Ford,
5.3. Encourage Foose’s modified cars are displayed by the auto-
maker at motor shows and are sold through
While Toyota was favorably disposed toward the selected Ford dealers (Sawyer, 2005).
experimentation of Ron Gremban on his new Prius,
the firm did nothing to actively assist him either
financially or materially. It was content to sit on the 6. Which to choose?
sidelines and observe. This third stance is the
encourage position. Under this stance, the firm’s It would be ideal if there was done correctT stance
attitude toward consumer innovation is primarily in the matrix (see Fig. 1); that would make it simple
positive, but its actions are, again, de facto to follow and easy to implement. Like most
passive. The firm verbally lauds and applauds important and complex issues in management,
consumer innovation, but takes no overt action to however, there is no simple and easy solution.
facilitate it. This stance is a positive but dhands-offT Rather than provide straightforward answers, the
approach to the phenomenon. Examples of the matrix should, instead, prompt a series of questions
encourage position are becoming increasingly com- that will require a firm to evaluate whether it has
mon. For instance, Skype, the Voice-Over Internet the appropriate stance for the set of environmental
Protocol (VOIP) pioneer, recently made it known circumstances under which it operates. Legal,
that it was delighted with the innovation of branding, and strategic considerations will be
Skypecasting, a synchronized combination of pod- paramount, as well as a consideration of the
casting and live VOIP broadcast. While Skype resources available.
applauded this clever use of its service, the There may be good reasons to follow a discour-
company has made no modifications to the soft- age stance. For example, when a firm is not
ware to facilitate and further encourage the positive toward a particular form of consumer
phenomenon (Biever, 2005). creativity (perhaps for good reason) but wishes to
avoid the bad publicity that acting like a bully
5.4. Enable might cause, it can adopt a discourage posture. In
situations in which the consequences of consumer
When the BBC became aware that users were creativity could be more severe, however, the firm
appropriating and employing its content, the might actively resist. It is not clear why FedEx has
organization decided to follow classic words of resisted Jose Avila, and the publicity surrounding
wisdom: If you can’t beat them, join them. Not the case has, indeed, made the firm appear to be
only did the BBC demonstrate its positive attitude tyrannical. It could be, though, that the firm simply
by making content freely available, it also actively wishes to avoid possible litigation that might result
facilitated the use of this content through the from injuries caused by furniture that was not
provision of software and other tools. The fourth intended to serve that function. There are also
stance is enable. While the enable stance shares cases in which brand protection is paramount. In
with the encourage stance a positive attitude the case of Mattel, Inc. versus Susanne Pitt, the
8. 46 P.R. Berthon et al.
makers of the Barbie doll sued a woman who had link and join the network) into a series of closed
transformed a child’s toy into an adult parody: protocols (whereby outsiders were excluded and
bDominatrix BarbieQ (Mattel, Inc. v. Pitt, 2002). membership was closed). Thus arose the bDarknetQ
Firms that follow the encourage stance might do so phenomenon, a burgeoning parallel universe of
because, while they support the process, they do invisible networks, of which the original protago-
not wish to spoil the spontaneity of consumers’ nists of the P2P movement were idyllically igno-
creativity efforts by getting too involved; rather, rant. The first task of management, therefore, is
they would prefer to observe passively and cheer to be aware. They may take the first step by
from the sidelines. Finally, in the case of firms asking themselves: bAre consumers adapting our
adopting an enable stance, the intention is to offerings, and in what ways?Q
engage and promote creative consumers as much Once managers are aware that their offerings
as possible, and to benefit from the innovations are being adapted by consumers, they should
that flow from this. analyze the phenomenon. This is where the matrix
outlined in Fig. 1 is essential. Relevant questions
the firm must ponder include: bWhat are the
7. Capturing and creating value from implications for the firm?Q, bShould our attitude
creative consumers be positive or negative?Q, and bShould we pursue a
hands-off approach or actively engage with the
Creative consumers comprise a more general phenomenon?Q
category of offering innovators than lead users. Finally, as soon as management is aware of the
When creative consumers innovate, they either phenomenon and has analyzed it extensively, a
benefit from their innovation in terms of new response is required. The response should be
functionality and new applications, or they simply unambiguous and send appropriate messages to
enjoy the thrill and challenge of experimenting all stakeholders. Employees and shareholders will
with and altering a firm’s offerings. They do not want to know that while their intellectual capital
merely buy and obediently use products or watch and other assets are being protected, they also
other consumers struggle with product inadequa- would not run the risk that the firm will make a
cies. They have a curiosity that drives them to public relations fool of itself by antagonizing the
become participants in the evolution and destiny of media and appearing to be an unfeeling bully. The
the offering. Predicting and identifying creative public at large is entitled to having its concerns for
consumer activity may be difficult, but a typology safety considered by responsible management,
based on possible firm stances and actions toward when technology tinkerers threaten to get out of
customer innovation can help in the diagnosis and hand. Creative customers might want to know when
formulation of strategy. What’s a firm to do? We their genuine efforts are rightfully applauded and
suggest three things: be aware, analyze, and appreciated. When their inventiveness is regarded
respond. as harmful and threatening, they also need to be
informed in no uncertain terms of the consequen-
7.1. Awareness, analysis, and response ces of their behavior.
Ironically, many firms are blissfully unaware that
consumers are modifying their products. Although, 8. Final thoughts
with the advent of the Internet, this ignorance is
becoming less common, it is still widespread. Traditionally, firms have paid little attention to the
Consider, for example, P2P networks. Peer-to-peer phenomenon of creative consumers, but we pro-
(or P2P) computer networks rely on the computing pose that this can no longer be the case. The
power and bandwidth of the participants in the creative consumer is likely to be an increasingly
network, rather than concentrating it in a rela- important force for change and innovation in many
tively low number of servers. Such networks are markets. Consequently, firms must enhance aware-
useful for many purposes. Sharing content files ness of their creative consumers, analyze their
containing audio, video, data, or anything in impact, and formulate an appropriate response. We
digital format is very common; real-time data, have provided an initial framework for carrying out
such as telephony traffic, is also passed using P2P this strategic analysis. As firms have varying
technology programs. Successor to Napster, the situational factors, strategies, and offerings, their
music file sharing program Kazaa was quickly response to creative consumers will also vary.
adapted by enthusiasts to transform the open Managers should therefore recognize that Fig. 1 is
protocol (whereby anyone with the software could not a bone-size-fits-allQ set of four solutions, but
9. When customers get clever: Managerial approaches to dealing with creative consumers 47
rather a framework for (1) understanding that Herstatt, C., & von Hippel, E. (1992). From experience:
creative consumers exist, and (2) for developing Developing new product concepts via the lead user method:
A case study in a dlow techT field. The Journal of Product
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