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Co-creation



Future of Business, Nyenrode seminar
June 7th, 2010




Martijn Staal
martijn.staal@tno.nl | 0651916237
Introduction TNO & Martijn Staal




                          •Independent
            •Turnover: 553MEuro (TNO ICT: 40MEuro)
                •Employees: 4000 (TNO ICT: 375)
Introduction TNO & Martijn Staal
Introduction TNO & Martijn Staal

• Consultant & innovator at TNO ICT since 2005
• Social media & co-creation studies & consultancy for Corporates
  (Philips, KPN), industry associations (publishers & printers),
  SME, Economic Affairs, EC
• More info (Dutch): http://www.martijnstaal.nl/
Co-creation:
 Fear for the crowd or
 give direction to the power
 of the crowd?




Martijn.Staal@tno.nl
+316-51916237
Co-creation presentation



1    Co-creation


2    Co-creation specific strategy


3    Examples
Co-creation presentation



1    Co-creation


2    Co-creation specific strategy


3    Examples
Tapscott                               Von Hippel

                         Co-creation:
                 Develop and improve products
                    & services together with
                      •Users & customers
                          •Consumers
                          •Companies
                            •Experts

                  And very important: dialogue!




Prahalad

                                                      Howe
“more than 50 percent
                                                                                     of product initiatives at
                                                                                     Procter & Gamble involve
                                                                                      significant collaboration
                                                                                      with outside innovators”




Video: https://secure3.verticali.net/pg-connection-portal/ctx/noauth/PortalHome.do
1   2   3

                                     Co-creation as enabler of
                              marketing & innovation objectives and
                              starting dialogue about customer needs



                            Concept      Development           Testing      Use
CO-CREATION OBJECTIVE




                        •New products
                                               •Cost savings              •Loyality
                         •Market share
                                                    •PR                     •PR
                             •PR




                         Ideas           Domain           Info about       Ideas for
                                         expertise          Needs        improvements
Basics of
  Co-creation:

   The crowd
(almost) always
  knows better
Consumers are
 empowered
Text




       Web 2.0: Power of
        media increases
User Generated Content
Consumers are networked
1   2   3




The crowd as a threat..?
1   2   3




The crowd as a threat..?
Dell IdeaStorm (B2C) (2007)
                      •9.000 members
                 •11.000 ideas (300 p/m)
                •84.000 comments (80/20)
                       •650.000 votes
                 •1-5% of ideas is usable
              •Costs: 2 FTE mgt + €150-300k
                •Advantage: less support,
                cost savings, ideas, loyalty




Or as an opportunity!
Hoe voorkom je negatieve publiciteit?
Co-creation happens anyhow!

 But how can you give it some
 direction, and make use of co-
creation to start a dialogue with
         your customers?
Co-creation presentation



1    Co-creation


2    Co-creation specific strategy


3    Examples
Prevent a dead
community or
 negative PR
“What are the most promising cases?”




“Wollig 'enerzijds-anderzijds' verhaal. “
                   …..
“WTF is social tagging: spreek je moers
          taal!)? Kinnesinne?”
                   …..



   Co-creation with users
       can be fragile
1      2   3
Important questions

1. Which marketing & innovation objectives must be reached?

2. Co-creation in what part of the innovation process?

3. What expertise do you need?

4. Which target groups needs to be involved?

5. How can the target group be motivated?

6. What departments and persons in the organization must be involved?

7. What co-creation specific functionality is needed?

8. What platform is most suitable?


            Answers are different per objective
Per phase expertise, target groups
                       and needs are different




            Concept      Development   Testing         Use




Experts                     ●

Pro-Amateur                              ●

Mass
 audience
              ●                                         ●

                                                             Expertise
                                                                    Size
?

Involvement of the right
 departments & persons
  is of huge importance
   •Marketing & communication
            •Innovation
           •Developers
                •MT
                 •..
Co-creation presentation



1    Co-creation


2    Co-creation specific strategy


3    Examples
Platforms per        1   2    3
                       target group
                     (offline & online)


   Experts




 Pro-Amateur




Mass audience




         Internal, own management         External
                   & control              & open
•Consumers can upload their designs
           •3000+ designs per week
                •Costs: 12 FTE
                •Advantages:
     - Customers    2,5 million LEGO fans
        - Animation & computer games
-Magazines & LEGO WORLD with 70.000 visitors
  -Because of community more mature users




 From decreasing revenue to
  fast growing turnover and
        2,5 million fans
•Focus on professional partners and gebruikers
        •Development of applications
       •# apps: 15.000+ in 0,5 year,
          140.000+ apps in 1,5 jaar
             •>3 mrd downloads




                         Controlled
                         & External
Co-creation with
  co-workers
•Focus on young professionals and students
            •5.000 registrations
             •€5.000 per battle
           •Until now 70 battles
     •On average 50 ideas per battle




             On demand &
                closed
De Windvogel




                             Private initiative
                                  & open




                •Particulier initiatief ogv windenergie
               •Vereniging exploiteert 4 windturbines,
                        ca. €500.000 per stuk
                    •Levert energie aan leden en
                     verkoopt energie aan Eneco
                   •Voldoende energie voor ruim
                          1600 huishoudens
1    2    3




              Completely open




•Objective: efficiency, knowledge development
                   and sharing
           •530 festival program tips
           •900 tips via social media
  •40 participants on the Open Festival model
           •A lot of positive feedback
Platforms per        1   2    3
                       target group
                     (offline & online)


   Experts




 Pro-Amateur




Mass audience




         Internal, own management         External
                   & control              & open
Evolution of internal co-creation organization
Co-creation Capabilities




                                                            Phase 1: Start

                                                            •Project focused
                                                            •Experiments & pilots
                                         Phase 1            •Learn to be ‘open’
                                                            •New roles & processes
                                                            •Change management

                                                   Start



                                                           Time
                           Bron: Ninesigma, 2009
Evolution of internal co-creation organization




                                                   Phase 2
Co-creation Capabilities




                                                             Consolidation
                                                                              Phase 2: Consolidation

                                                                              •Best practices
                                                                              •Workflow processes are
                                         Phase 1                              defined
                                                                              •Metrics structure is used
                                                                              •Co-creation as part of
                                                                               the Corp. strategy
                                                    Launch



                                                                             Time
                           Bron: Ninesigma, 2009
Evolution of internal co-creation organization
                                                             Phase 3

                                                               Integration in organization



                                                   Phase 2
Co-creation Capabilities




                                                                                      Phase 3: Integration
                                                             Consolidation            •Co-creation strategy is
                                                                                      presented internally and
                                                                                      externally
                                                                                      •Organization wide, well-
                                                                                      defined CC processes
                                                                                       •Standard metrics and
                                         Phase 1                                       dashboards
                                                                                       •Knowledge has become
                                                                                       competitive strength
                                                    Launch



                                                                                     Time
                           Bron: Ninesigma, 2009
Conclusions

• Go experiment with co-creation, but develop a
  co-creation specific strategy

• Take customers & users serious

• Transformation of internal organization is
  essential!
Thanks for your
attention




    Questions:
Martijn.Staal@tno.nl
 +316 51916237
E-participatie / co-creatie model: Een modulaire
       aanpak
     E-participatie en                   Is er een match met de organisatie?
        co-creatie             1: Maturity         •Type organisatie
                                  model            •Doelstellingen, missie & strategie
          model                                    •Cultuur & ervaring

                                                   Is er een match met het probleem?
                               2: Matching         •Doelstellingen & strategie
                                                   •E-participatie karakteristieken
                                  model            •Cultuur & processen
                                                   •Crowd karakteristieken

                                                   Hoe succesvol te zijn?
                            3: Implementatie       •Doelstellingen & strategie
                                 model             •Cultuur & processen
                                                   •Crowd karakteristieken
                                                   •Tools

                                                   Wat is het succes?
                               4: Evaluatie        •Key performance indicators
                                  model            •Meten van impact / waarde
                                                   •Learnings




42

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Co-creatie presentatie TNO Nyenrode future of business

  • 1. Co-creation Future of Business, Nyenrode seminar June 7th, 2010 Martijn Staal martijn.staal@tno.nl | 0651916237
  • 2. Introduction TNO & Martijn Staal •Independent •Turnover: 553MEuro (TNO ICT: 40MEuro) •Employees: 4000 (TNO ICT: 375)
  • 3. Introduction TNO & Martijn Staal
  • 4. Introduction TNO & Martijn Staal • Consultant & innovator at TNO ICT since 2005 • Social media & co-creation studies & consultancy for Corporates (Philips, KPN), industry associations (publishers & printers), SME, Economic Affairs, EC • More info (Dutch): http://www.martijnstaal.nl/
  • 5. Co-creation: Fear for the crowd or give direction to the power of the crowd? Martijn.Staal@tno.nl +316-51916237
  • 6. Co-creation presentation 1 Co-creation 2 Co-creation specific strategy 3 Examples
  • 7. Co-creation presentation 1 Co-creation 2 Co-creation specific strategy 3 Examples
  • 8. Tapscott Von Hippel Co-creation: Develop and improve products & services together with •Users & customers •Consumers •Companies •Experts And very important: dialogue! Prahalad Howe
  • 9. “more than 50 percent of product initiatives at Procter & Gamble involve significant collaboration with outside innovators” Video: https://secure3.verticali.net/pg-connection-portal/ctx/noauth/PortalHome.do
  • 10. 1 2 3 Co-creation as enabler of marketing & innovation objectives and starting dialogue about customer needs Concept Development Testing Use CO-CREATION OBJECTIVE •New products •Cost savings •Loyality •Market share •PR •PR •PR Ideas Domain Info about Ideas for expertise Needs improvements
  • 11. Basics of Co-creation: The crowd (almost) always knows better
  • 13. Text Web 2.0: Power of media increases
  • 16. 1 2 3 The crowd as a threat..?
  • 17. 1 2 3 The crowd as a threat..?
  • 18.
  • 19. Dell IdeaStorm (B2C) (2007) •9.000 members •11.000 ideas (300 p/m) •84.000 comments (80/20) •650.000 votes •1-5% of ideas is usable •Costs: 2 FTE mgt + €150-300k •Advantage: less support, cost savings, ideas, loyalty Or as an opportunity!
  • 20. Hoe voorkom je negatieve publiciteit?
  • 21. Co-creation happens anyhow! But how can you give it some direction, and make use of co- creation to start a dialogue with your customers?
  • 22. Co-creation presentation 1 Co-creation 2 Co-creation specific strategy 3 Examples
  • 23. Prevent a dead community or negative PR
  • 24. “What are the most promising cases?” “Wollig 'enerzijds-anderzijds' verhaal. “ ….. “WTF is social tagging: spreek je moers taal!)? Kinnesinne?” ….. Co-creation with users can be fragile
  • 25. 1 2 3 Important questions 1. Which marketing & innovation objectives must be reached? 2. Co-creation in what part of the innovation process? 3. What expertise do you need? 4. Which target groups needs to be involved? 5. How can the target group be motivated? 6. What departments and persons in the organization must be involved? 7. What co-creation specific functionality is needed? 8. What platform is most suitable? Answers are different per objective
  • 26. Per phase expertise, target groups and needs are different Concept Development Testing Use Experts ● Pro-Amateur ● Mass audience ● ● Expertise Size
  • 27. ? Involvement of the right departments & persons is of huge importance •Marketing & communication •Innovation •Developers •MT •..
  • 28. Co-creation presentation 1 Co-creation 2 Co-creation specific strategy 3 Examples
  • 29. Platforms per 1 2 3 target group (offline & online) Experts Pro-Amateur Mass audience Internal, own management External & control & open
  • 30. •Consumers can upload their designs •3000+ designs per week •Costs: 12 FTE •Advantages: - Customers 2,5 million LEGO fans - Animation & computer games -Magazines & LEGO WORLD with 70.000 visitors -Because of community more mature users From decreasing revenue to fast growing turnover and 2,5 million fans
  • 31. •Focus on professional partners and gebruikers •Development of applications •# apps: 15.000+ in 0,5 year, 140.000+ apps in 1,5 jaar •>3 mrd downloads Controlled & External
  • 32. Co-creation with co-workers
  • 33. •Focus on young professionals and students •5.000 registrations •€5.000 per battle •Until now 70 battles •On average 50 ideas per battle On demand & closed
  • 34. De Windvogel Private initiative & open •Particulier initiatief ogv windenergie •Vereniging exploiteert 4 windturbines, ca. €500.000 per stuk •Levert energie aan leden en verkoopt energie aan Eneco •Voldoende energie voor ruim 1600 huishoudens
  • 35. 1 2 3 Completely open •Objective: efficiency, knowledge development and sharing •530 festival program tips •900 tips via social media •40 participants on the Open Festival model •A lot of positive feedback
  • 36. Platforms per 1 2 3 target group (offline & online) Experts Pro-Amateur Mass audience Internal, own management External & control & open
  • 37. Evolution of internal co-creation organization Co-creation Capabilities Phase 1: Start •Project focused •Experiments & pilots Phase 1 •Learn to be ‘open’ •New roles & processes •Change management Start Time Bron: Ninesigma, 2009
  • 38. Evolution of internal co-creation organization Phase 2 Co-creation Capabilities Consolidation Phase 2: Consolidation •Best practices •Workflow processes are Phase 1 defined •Metrics structure is used •Co-creation as part of the Corp. strategy Launch Time Bron: Ninesigma, 2009
  • 39. Evolution of internal co-creation organization Phase 3 Integration in organization Phase 2 Co-creation Capabilities Phase 3: Integration Consolidation •Co-creation strategy is presented internally and externally •Organization wide, well- defined CC processes •Standard metrics and Phase 1 dashboards •Knowledge has become competitive strength Launch Time Bron: Ninesigma, 2009
  • 40. Conclusions • Go experiment with co-creation, but develop a co-creation specific strategy • Take customers & users serious • Transformation of internal organization is essential!
  • 41. Thanks for your attention Questions: Martijn.Staal@tno.nl +316 51916237
  • 42. E-participatie / co-creatie model: Een modulaire aanpak E-participatie en Is er een match met de organisatie? co-creatie 1: Maturity •Type organisatie model •Doelstellingen, missie & strategie model •Cultuur & ervaring Is er een match met het probleem? 2: Matching •Doelstellingen & strategie •E-participatie karakteristieken model •Cultuur & processen •Crowd karakteristieken Hoe succesvol te zijn? 3: Implementatie •Doelstellingen & strategie model •Cultuur & processen •Crowd karakteristieken •Tools Wat is het succes? 4: Evaluatie •Key performance indicators model •Meten van impact / waarde •Learnings 42