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Co-creation:
 Fear for the crowd or
 make use of the
 power of the crowd?
 Flevum Open Innovation Experience
 6th October 2009




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




Prahalad                                          Howe
1   2   3

                                    Co-creation as enabler of
                                 marketing & innovation objectives



                            Concept      Development           Testing     Use
CO-CREATION OBJECTIVE




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




                         ideas           Expertise        Capacity        ideas &
                                                                          support
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!
Co-creation happens anyhow!

  But how can you indicate it to
the right direction, and make use
          of co-creation?
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 vulnerable
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?


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




            Concept      Development   Testing         Use




Experts                     ●

Pro-Amateur                              ●

Mass
 audience
              ●                                         ●

                                                             Expertise
                                                                  Grootte
?


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 users
      •Development of applications
         •1.000 ‘normal’ users
             •Costs: 12 FTE
  •Advantages: 2 new apps per month
•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
Source: Alumniblad TUDelft
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
Conclusions


• Go & experiment with co-creation


• Develop a co-creation specific strategy


• Listen seriously to customers & users!
Thanks for your
attention




    Questions:
Martijn.Staal@tno.nl
 +316 51916237

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Co-creation presentation at Flevum Open Innovation Experience 2009

  • 1. Co-creation: Fear for the crowd or make use of the power of the crowd? Flevum Open Innovation Experience 6th October 2009 Martijn.Staal@tno.nl +316-51916237
  • 2. Co-creation presentation 1 Co-creation 2 Co-creation specific strategy 3 Examples
  • 3. Co-creation presentation 1 Co-creation 2 Co-creation specific strategy 3 Examples
  • 4. Tapscott Von Hippel Co-creation: Develop and improve products & services together with •Users & customers •Consumers •Companies •Experts Prahalad Howe
  • 5. 1 2 3 Co-creation as enabler of marketing & innovation objectives Concept Development Testing Use CO-CREATION OBJECTIVE •New products •Cost savings •Loyality •Market share •PR •PR •PR ideas Expertise Capacity ideas & support
  • 6. Basics of Co-creation: The crowd (almost) always knows better
  • 8. Text Web 2.0: Power of media increases
  • 11. 1 2 3 The crowd as a threat..?
  • 12. 1 2 3 The crowd as a threat..?
  • 13.
  • 14. 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!
  • 15. Co-creation happens anyhow! But how can you indicate it to the right direction, and make use of co-creation?
  • 16. Co-creation presentation 1 Co-creation 2 Co-creation specific strategy 3 Examples
  • 17. Prevent a dead community or negative PR
  • 18. “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 vulnerable
  • 19. 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? Strategies differ per objective
  • 20. Per phase expertise, target groups and needs are different Concept Development Testing Use Experts ● Pro-Amateur ● Mass audience ● ● Expertise Grootte
  • 21. ? Involvement of the right departments & persons is of huge importance •Marketing & communication •Innovation •Developers •MT
  • 22. Co-creation presentation 1 Co-creation 2 Co-creation specific strategy 3 Examples
  • 23. Platforms per 1 2 3 target group (offline & online) Experts Pro-Amateur Mass audience Internal, own management External & control & open
  • 24. •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
  • 25. •Focus on professional partners and users •Development of applications •1.000 ‘normal’ users •Costs: 12 FTE •Advantages: 2 new apps per month
  • 26. •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
  • 28. 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
  • 29. Platforms per 1 2 3 target group (offline & online) Experts Pro-Amateur Mass audience Internal, own management External & control & open
  • 30. Conclusions • Go & experiment with co-creation • Develop a co-creation specific strategy • Listen seriously to customers & users!
  • 31. Thanks for your attention Questions: Martijn.Staal@tno.nl +316 51916237