10 STEPS FOR
SUCCESSFUL
CO-CREATION
NPOX
2010
Door: Martijn Pater
Fronteer Strategy
Hilversum, 9 September 2010




 FRONTEER
 STRATEGY
 INNOVATION.
 CO-CREATION.
 BRAND DEVELOPMENT.
ABOUT
FRONTEER
STRATEGY
Fronteer   Innovation.
           Co-creation.
Strategy   Brand Development.
           Change.

           Leading Co-creation consultancy.

           Blue chip client base in The
           Netherlands and abroad.

           People’s background in fashion,
           design, engineering, marketing,
           consulting

             5
10 STEPS FOR
SUCCESSFUL
CO-CREATION
1. Realise one thing
                       2. Define your strategy
                       3. Inspire participation
                        4. Select the very best
                     5. Connect creative minds
                            6. Share results
                     7. Continue development
                             8. Think R.O.I.
                           9. Get the IP right
                        10. Mobilise internally
FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.               7
Where does it come from?
                                               Co-creation
                                               Open Source
                                              User-generated
                                             Crowd-sourcing
                        Focus Groups
                                            Mass customisation
                      Design Contests
                                                Prosumers
                     Customer Feedback
                                               Social Media
                       Experts panels
                         Outsourcing
       R&D           Participatory Design
  Academic sharing
   Collaborations



     Early days           50’s- 90’s              Now
                               12
                                8
What is it?


       “Co-creation unlocks the
         collective creativity of
        people to create deeply
          relevant solutions.”




                   9    Source: Copenhagen Co-creation
1. Realise one thing




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.            10
Why would you?



     “No matter who you are,
    most of the smartest people
     work for someone else.”



        Bill Joy, Founder Sun Microsystems

                      11
Unpredictable systems




               12   Source: Banny Bannerjee, Stanford University
McKinsey report:

Clouds, big data, and smart assets:
Ten tech-enabled business trends
             to watch:

 1. Distributed cocreation moves
       into the mainstream


                13            Source: McKinsey
2. Define your strategy




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.             14
4 Types of Co-creation

                 Anyone
                 can join
                            Crowd of                 Community of
                             People                  Kindred Spirits

Open-ness



                Selection   Club of                     Coalition of
                 process
                            Experts                       Parties



                            Initiator                      Initiator +
                                                          Contributors
   FRONTEER                                  Ownership
   STRATEGY
   INNOVATION.
   CO-CREATION.
   BRAND DEVELOPMENT.                   15         Source: Fronteer Strategy Whitepaper
4 Types of Co-creation

                 Anyone
                 can join



Open-ness



                Selection   Club of
                 process
                            Experts



                            Initiator                     Initiator +
                                                         Contributors
   FRONTEER                                  Ownership
   STRATEGY
   INNOVATION.
   CO-CREATION.
   BRAND DEVELOPMENT.                   16
Lego Mindstorms




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.   17   Source: Wired
4 Types of Co-creation

                 Anyone
                 can join
                            Crowd of
                             People

Open-ness



                Selection
                 process




                            Initiator                     Initiator +
                                                         Contributors
   FRONTEER                                  Ownership
   STRATEGY
   INNOVATION.
   CO-CREATION.
   BRAND DEVELOPMENT.                   18
Source: DSM
4 Types of Co-creation

                 Anyone
                 can join
                                                    Community of
                                                    Kindred Spirits

Open-ness



                Selection
                 process




                            Initiator                     Initiator +
                                                         Contributors
   FRONTEER                                  Ownership
   STRATEGY
   INNOVATION.
   CO-CREATION.
   BRAND DEVELOPMENT.                   20
Linux
4 Types of Co-creation

        Anyone
        can join



Open-ness



       Selection                            Coalition of
        process
                                              Parties



                   Initiator                     Initiator +
                                                Contributors
                                    Ownership
                               22
Heineken & Krups
4 Types of Co-creation

                                Design                               Maemo/Meego
                 Anyone       competitions                            community
                 can join

                                  Nokia BetaLabs               OVI store

Open-ness
                                              NRC University
                                              collaborations               One plug for all devices


                Selection                                      Meego Intel Co-op
                 process
                            Expert Co-
                             creation                    Bluetooth Special Interest
                                                                  Group



                               Initiator                          Initiator +
                                                                 Contributors
   FRONTEER                                        Ownership
   STRATEGY
   INNOVATION.
   CO-CREATION.
   BRAND DEVELOPMENT.                        24
We offer in co-creation
         ROOFTOP™               CAMPSITE
      Expert Co-creation    Community Co-creation




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.         25            Link: Fronteer Strategy
3. Inspire participation




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.              26
Netflix 1 Mio. USD challenge




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.   27   Source: WIred
Innocentive oil spil challenge




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.
                             Source: Innocentive
Old Spice Twitter campaign




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.
                             Source: Youtube
The Arcade Fire album launch




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.
                      Source: The Wilderness Downtown
4. Select the very best




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.             31
Many people wanting to co-create




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.   32    Source: Forrester
But you have to look for your 1%

                                      1% Creators

                                            10% Synthesizers




                     100% Consumers




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.         33         Source: Fronteer Strategy Whitepaper
Explorers




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.   34
Heroes




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.   35
Innovators




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.   36
Threadless case




                  Link: Threadless
Threadless, the numbers:

   12,000 registred users
500 designs posted per week
     5 designs are made
     20 M USD turnover


                     Source: Katharina Braun,
                    Wirtschaftsuniversität Wien
            38
Designs that make it into production
     are made by people who:

       Give more feedback
       Upload more designs
         Comment more
      Give concrete feedback
       Have more contacts
                          Source: Katharina Braun,
                         Wirtschaftsuniversität Wien
                 39
5. Connect creative minds




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.              40
Nokia expert co-creation




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.
                           Source: Vimeo
Canon




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.
                     Source: Canon
Swarovski on-line co-creation




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.
                                Source: Hyve
6. Share results




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.          44
App store: De verjaardag




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.   45    Source: Ereaders
Apple does do co-creation




                            Source: Inno15
Tata Nano co-created with vendors




                          Source: Business Week
Radiohead show filmed by fans




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.
                          Source: Radiohead
7. Continue development




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.             49
P&G continues to co-create




                50           Source: P&G
New book, co-created, continues




                     Source: Business Model Generation
8. Think return on
                         investment




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.           52
Open Innovation ROI


          BIGGER...

              BETTER...


                     FASTER...

                         STRONGER...

                                 Results
                53
Innocentive

             Cost savings.
 Savings from faster research process.
Access to a diverse network of experts.
 Fostering a more innovative culture.
     Smoother IP transfer process.

              ROI of 74%
                           Source: Innocentive, Forrester
                  54
9. Get the IP right




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.           55
Nike, BestBuy, others share I.P.




                          Source: GreenXchange
We offer a friendly N.D.A.



        The Amsterdam Model




                 57
10. Mobilise internally




FRONTEER
STRATEGY
INNOVATION.
CO-CREATION.
BRAND DEVELOPMENT.             58
Participants’ Drivers & Barriers
DRIVERS:                         BARRIERS:
Reputation Building              Unclear rewards
Sense of belonging               No interest in the challenge
Networking                       Trust
Peer recognition/Status
Job market opportunities
Fun & involvement
Skill-Building
New challenge
Love the brand
Money (never main driver)

                                             Source: Fronteer Strategy
                            59
Internal bloodgroups
                       Fans
                       Ambivalent
                       Opposers




                            Source:

                                      Anna Kirah
                60
Diffusion of Open Innovation
                                                                        Thought
   Low                                                                   leaders

                                                     Lead users       Community
                                                                       of Value
                              Practitioners          Community
            Open Innovation                          of Practice
                aware         Community
# people
                               of Interest
             Domain of
              Interest




   High

           Low                                     Involvement                       High

                                              61             Source: Harry Barraza, Unilever
MORE...
Visit our website
Links   www.fronteerstrategy.com

        Updates from the Fronteer
        www.fronteerstrategy.com/blog/

        Follow us on twitter
        twitter.com/fronteerstrat
        twitter.com/martijnpater

        Slideshare
        www.slideshare.net/Fronteer

        Our whitepaper on co-creation
        Co-Creation’s 5 Guiding Principles


          63
Vision   “Be” leads to “Do”.
         Innovation leads to brand
         strength - and strong brands
         inspire development.

         Brands that allow for all
         stakeholders to jointly create
         the future are the ones that
         survive.

         ‘Empathy’ is the new Gold.
         We have launched thus the
         Dutch index of most
         ‘Empathic brands 2010’

           64
Top-10 Empathic Brands 2010

Aantrekkelijk




                                            Empathisch
                65   Source: Ruigrok Netpanel, Fronteer Strategy
Linear correlation
                                                                                          4,5        AANTREKKELIJK
                                                                                                                         Pickwick
                                                                                                               Philips   Douwe Egberts
                                                                                                        Conimex                 Albert Heijn
                                                                                                 Sony
                                                                                        4,0                   Calve Hema          Ikea
                                                                                             Honig
                                                                                                       Knorr Unox         Bol.com
                                                                                        Samsung
                                                                                                         Coca Cola Efteling
                                                                                                 Canon
                                                                                     Maggi              Blokker Nokia
                                                                                               RTL4
                                                                                         Remia
                                                                               Bertolli 3,5            Cup a Soup
                                                                  Grand Italia                        Apple
                                                                                         Heinz
                                                                                                KPN
                                                                                              Nescafe Rabobank
                                                                          Lassie              ING         C1000
                                                                      Cela Vita Lidl         Heineken
                                                                  Panasonic                          Jumbo
                                                                                  Aldi        Grolsch                                          EMPATHISCH
                                                                      LG
1,5                           2,0                               2,5                    3,0                       3,5                 4,0                 4,5
                                                                                   Plus
                                            ABN Amro                             Dirk van der Broek
                                                                      Ziggo
                                          Jupiler
                                                           UPC                         2,5                                           Food
                                 SNS Bank                  XS4ALL                                                                    Dranken
                                                                                                                                     Retail
                                                              Tele2
                                                                                                                                     Banken
      Van Lanschot
                                                                                          2,0                                        Internetproviders
             Triodos                ASN Bank                                                                                         Electronica
                       Friesland Bank                                                                                                Overig
                                                                                          1,5



                     Derde variabele zichtbaar in grootte van stip: Innovatief                  66      Source: Ruigrok Netpanel, Fronteer Strategy
FRONTEER                           Martijn Pater
STRATEGY                           martijn@fronteerstrategy.com
I N N OVAT I O N.
C O - C R E AT I O N.
B R A N D D E V E L O P M E N T.

Fronteer Strategy NPOX Co-Creation

  • 1.
  • 2.
  • 3.
    Door: Martijn Pater FronteerStrategy Hilversum, 9 September 2010 FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT.
  • 4.
  • 5.
    Fronteer Innovation. Co-creation. Strategy Brand Development. Change. Leading Co-creation consultancy. Blue chip client base in The Netherlands and abroad. People’s background in fashion, design, engineering, marketing, consulting 5
  • 6.
  • 7.
    1. Realise onething 2. Define your strategy 3. Inspire participation 4. Select the very best 5. Connect creative minds 6. Share results 7. Continue development 8. Think R.O.I. 9. Get the IP right 10. Mobilise internally FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 7
  • 8.
    Where does itcome from? Co-creation Open Source User-generated Crowd-sourcing Focus Groups Mass customisation Design Contests Prosumers Customer Feedback Social Media Experts panels Outsourcing R&D Participatory Design Academic sharing Collaborations Early days 50’s- 90’s Now 12 8
  • 9.
    What is it? “Co-creation unlocks the collective creativity of people to create deeply relevant solutions.” 9 Source: Copenhagen Co-creation
  • 10.
    1. Realise onething FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 10
  • 11.
    Why would you? “No matter who you are, most of the smartest people work for someone else.” Bill Joy, Founder Sun Microsystems 11
  • 12.
    Unpredictable systems 12 Source: Banny Bannerjee, Stanford University
  • 13.
    McKinsey report: Clouds, bigdata, and smart assets: Ten tech-enabled business trends to watch: 1. Distributed cocreation moves into the mainstream 13 Source: McKinsey
  • 14.
    2. Define yourstrategy FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 14
  • 15.
    4 Types ofCo-creation Anyone can join Crowd of Community of People Kindred Spirits Open-ness Selection Club of Coalition of process Experts Parties Initiator Initiator + Contributors FRONTEER Ownership STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 15 Source: Fronteer Strategy Whitepaper
  • 16.
    4 Types ofCo-creation Anyone can join Open-ness Selection Club of process Experts Initiator Initiator + Contributors FRONTEER Ownership STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 16
  • 17.
  • 18.
    4 Types ofCo-creation Anyone can join Crowd of People Open-ness Selection process Initiator Initiator + Contributors FRONTEER Ownership STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 18
  • 19.
  • 20.
    4 Types ofCo-creation Anyone can join Community of Kindred Spirits Open-ness Selection process Initiator Initiator + Contributors FRONTEER Ownership STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 20
  • 21.
  • 22.
    4 Types ofCo-creation Anyone can join Open-ness Selection Coalition of process Parties Initiator Initiator + Contributors Ownership 22
  • 23.
  • 24.
    4 Types ofCo-creation Design Maemo/Meego Anyone competitions community can join Nokia BetaLabs OVI store Open-ness NRC University collaborations One plug for all devices Selection Meego Intel Co-op process Expert Co- creation Bluetooth Special Interest Group Initiator Initiator + Contributors FRONTEER Ownership STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 24
  • 25.
    We offer inco-creation ROOFTOP™ CAMPSITE Expert Co-creation Community Co-creation FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 25 Link: Fronteer Strategy
  • 26.
  • 27.
    Netflix 1 Mio.USD challenge FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 27 Source: WIred
  • 28.
    Innocentive oil spilchallenge FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. Source: Innocentive
  • 29.
    Old Spice Twittercampaign FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. Source: Youtube
  • 30.
    The Arcade Firealbum launch FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. Source: The Wilderness Downtown
  • 31.
    4. Select thevery best FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 31
  • 32.
    Many people wantingto co-create FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 32 Source: Forrester
  • 33.
    But you haveto look for your 1% 1% Creators 10% Synthesizers 100% Consumers FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 33 Source: Fronteer Strategy Whitepaper
  • 34.
  • 35.
  • 36.
  • 37.
    Threadless case Link: Threadless
  • 38.
    Threadless, the numbers: 12,000 registred users 500 designs posted per week 5 designs are made 20 M USD turnover Source: Katharina Braun, Wirtschaftsuniversität Wien 38
  • 39.
    Designs that makeit into production are made by people who: Give more feedback Upload more designs Comment more Give concrete feedback Have more contacts Source: Katharina Braun, Wirtschaftsuniversität Wien 39
  • 40.
    5. Connect creativeminds FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 40
  • 41.
  • 42.
  • 43.
  • 44.
  • 45.
    App store: Deverjaardag FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 45 Source: Ereaders
  • 46.
    Apple does doco-creation Source: Inno15
  • 47.
    Tata Nano co-createdwith vendors Source: Business Week
  • 48.
    Radiohead show filmedby fans FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. Source: Radiohead
  • 49.
  • 50.
    P&G continues toco-create 50 Source: P&G
  • 51.
    New book, co-created,continues Source: Business Model Generation
  • 52.
    8. Think returnon investment FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 52
  • 53.
    Open Innovation ROI BIGGER... BETTER... FASTER... STRONGER... Results 53
  • 54.
    Innocentive Cost savings. Savings from faster research process. Access to a diverse network of experts. Fostering a more innovative culture. Smoother IP transfer process. ROI of 74% Source: Innocentive, Forrester 54
  • 55.
    9. Get theIP right FRONTEER STRATEGY INNOVATION. CO-CREATION. BRAND DEVELOPMENT. 55
  • 56.
    Nike, BestBuy, othersshare I.P. Source: GreenXchange
  • 57.
    We offer afriendly N.D.A. The Amsterdam Model 57
  • 58.
  • 59.
    Participants’ Drivers &Barriers DRIVERS: BARRIERS: Reputation Building Unclear rewards Sense of belonging No interest in the challenge Networking Trust Peer recognition/Status Job market opportunities Fun & involvement Skill-Building New challenge Love the brand Money (never main driver) Source: Fronteer Strategy 59
  • 60.
    Internal bloodgroups Fans Ambivalent Opposers Source: Anna Kirah 60
  • 61.
    Diffusion of OpenInnovation Thought Low leaders Lead users Community of Value Practitioners Community Open Innovation of Practice aware Community # people of Interest Domain of Interest High Low Involvement High 61 Source: Harry Barraza, Unilever
  • 62.
  • 63.
    Visit our website Links www.fronteerstrategy.com Updates from the Fronteer www.fronteerstrategy.com/blog/ Follow us on twitter twitter.com/fronteerstrat twitter.com/martijnpater Slideshare www.slideshare.net/Fronteer Our whitepaper on co-creation Co-Creation’s 5 Guiding Principles 63
  • 64.
    Vision “Be” leads to “Do”. Innovation leads to brand strength - and strong brands inspire development. Brands that allow for all stakeholders to jointly create the future are the ones that survive. ‘Empathy’ is the new Gold. We have launched thus the Dutch index of most ‘Empathic brands 2010’ 64
  • 65.
    Top-10 Empathic Brands2010 Aantrekkelijk Empathisch 65 Source: Ruigrok Netpanel, Fronteer Strategy
  • 66.
    Linear correlation 4,5 AANTREKKELIJK Pickwick Philips Douwe Egberts Conimex Albert Heijn Sony 4,0 Calve Hema Ikea Honig Knorr Unox Bol.com Samsung Coca Cola Efteling Canon Maggi Blokker Nokia RTL4 Remia Bertolli 3,5 Cup a Soup Grand Italia Apple Heinz KPN Nescafe Rabobank Lassie ING C1000 Cela Vita Lidl Heineken Panasonic Jumbo Aldi Grolsch EMPATHISCH LG 1,5 2,0 2,5 3,0 3,5 4,0 4,5 Plus ABN Amro Dirk van der Broek Ziggo Jupiler UPC 2,5 Food SNS Bank XS4ALL Dranken Retail Tele2 Banken Van Lanschot 2,0 Internetproviders Triodos ASN Bank Electronica Friesland Bank Overig 1,5 Derde variabele zichtbaar in grootte van stip: Innovatief 66 Source: Ruigrok Netpanel, Fronteer Strategy
  • 67.
    FRONTEER Martijn Pater STRATEGY martijn@fronteerstrategy.com I N N OVAT I O N. C O - C R E AT I O N. B R A N D D E V E L O P M E N T.