co-creation module 2012 in Belgium for InFlanders

1. Oct-12
DESIGN YOUR INNOVATION
co-creation framework+cases
Flavio Fabiani
http://about.me/f.flavio
June 29th - NMBS Loods - Magdalenastraat 48 - 8500 Kortrijk
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FLAVIO FABIANI / Toshiba Europe
I am member of the Innovation Core Team at Toshiba
Europe where I work since 10 years
At Toshiba I am responsible for
working with senior business leaders to drive
innovative solutions
advising & coaching to business units on innovation
methods, processes, and approaches www.leading-innovation.com
consulting on the approach to innovation engagements
R&D, product innovation and communication strategies are
the areas I am mainly dealing with www.youtube.com/watch?v=k6PSbUl_68k
www.welovestories.net
us.toshiba.com/computers/research-center/technology-guides/toshiba-bulletin-board-software/
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Myths about innovation
Leading neurologists for many years have been telling
us that meaningful interactions among individuals
enable people to both learn faster and remember
more of what they learn, and that as a result engaged
minds in collaboration generate creative solutions even
the smartest minds alone may not find
In spite of that, there are two prevalent myths about
creativity and innovation
1. creativity is the preserve of the
individual creative genius
2. innovation are generated by eureka
moments often by people in scientific labs
These myths exist because they are more interesting to
narrate, but looking beneath the surface we find out that
innovations are developed by groups of people and that
they usually take long time to become fully formed.
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10. Oct-12
An idea is networked
In 1805 Heinrich von Kleist in his essay ‘On The Gradual Production Of Thoughts While Speaking’
wrote that we can sit alone in our room trying to solve a seemingly intractable problem and then
when we talk to others suddenly the answer is there
Recently, Steve Johnson in his book “Where Good Ideas Come From: The Natural History of
Innovation” - concludes that less than 10% of innovation during the Renaissance was networked
but that already two centuries later a majority of breakthrough ideas emerged in collaborative
environment. This trend continued in the following centuries.
Christians will probably refer to the Bible’s passage “For where two or three are gathered in my
name, there am I among them” (Matthew 18:20)
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Managing innovation
If these are the assumptions, managing
innovation in order to create more value lies not in
finding a way to create the best fully-featured
products or services, but in providing more and
varied opportunities to individuals involved in our
value chain to come together and co-create
personalized experiences
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my definition of co-creation
“Co-creation is an organization’s strategic guidance giving strong
significance to the working and consumption experience of
people.
Co-creation strategies are always human-centric as the notion of
experience is by definition referring to individuals who sometimes
act for themselves (customers), sometimes on behalf of
organizations (employees, suppliers, policy makers, etc.)
Talking and working on human experience is setting the ground
for the intuitions collision and for the mutual enrichment but
should not be the final aim”
Ultimately co-creation is about learning how to create meaningful and rewarding experiences, is
about managing for creativity instead of managing creativity itself
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Benefits of co-creation
It increases efficiency by cutting costs in many ways like
reduce marketing budget necessary to launch products / services
avoiding launch of products / services not valued by the customers
It reduces business risks
by sharing them with partners
by increasing insights generation
by pre-testing investments
It lower employees turnover
It expands market opportunities and returns thanks to outside-in and inside-out strategies
outside-in, by involving customer in matching processes on the enterprise side. This approach start with the
human experiences and mix them with the enterprise processes (e.g. Nike+)
Inside-out, by making enterprise processes transparent to stakeholders in order to allow them to interact with
those processes and generate new experience for themselves. This approach start with the enterprise
processes and mix them with the human thinking (e.g. mass customization)
It enhance enterprises strategic capital, i.e. the capacity to plan and successfully execute their
business strategies
It allow individuals to gain new experience of value
It decrease risks and cost for individuals
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Scope of co-creation
Co-creation can be applied to almost any type of innovation
from operational and product-service innovation to business
strategy and management innovation.
Indeed the more technical a product is, the greater the difficulty in
involving consumers in the development process. Yet it is not
impossible to involve others.
People who have professional careers in associated disciplines
such as design, architecture, ergonomics, can bring specific
knowledge to a problem; consumers can provide insights
into the way a product or service connects to their lives, and
employees from different domains can make previously
unseen connections: new mental structures, new
constellations, come into being when knowledge,
experiences, ideas from widely differing and distinct domains,
meet.
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The universe of opportunities of co-creation strategies
The core principle underlying enterprises
transformation towards a co-creation strategy
aiming at generating a CO-CREATIVE
MUTUAL VALUE is:
engaging people to create valuable
experiences together while enhancing
network economics
This core principle can be pursued thanks to
4 different levers:
network relationships with the other
stakeholders organizations in the ecosystem
individual interactions in the different
ecosystem contexts
experience of both stakeholders
organizations and individuals
source: V. Ramaswamy and F. Gouillart 2010 engagement platforms
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#1: network relationships with the other stakeholders
organizations in the ecosystem
The objective is expanding the stakeholders relationships in the
ecosystem by increasing networks economics of both stakeholder
organizations and of the people working for them
In the early stages of co-creation, an organization might
experiment by connecting with the existing experiences of
adjacent stakeholders
Over time, the organization gains confidence to venture into new QUESTIONS
relationships with distant stakeholders and supporting or - Who are the different types of stakeholders
proposing new experience typologies in our business network?
- How does our enterprise currently connect
The benefits for stakeholder organizations are: growth of strategic with these stakeholders?
- Can we engage with our external
capital, increase of efficiency and returns stakeholders in different / new ways in order
Individuals acting on behalf of a stakeholder organizations to expand the mutual value generation?
Where and how is this possible?
(employees, suppliers, policy makers, etc.) benefit from this - Which stakeholders should we address
activities by getting a deeper and more personalized working initially?
- Are there opinion leaders among the
experience stakeholders? If there are, how can we
improve the network economics of both
these organizations and the people working
for them?
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#2: individual interactions in the different ecosystem contexts
The objective is expanding the scale and the scope of the
interactions among the individuals involved in the different ecosystem
contexts (profit.com, public.gov, social.org)
As stated above co-creation strategies are always human-centric as
the notion of experience is by definition referring to individuals who
sometimes act for themselves (customers), sometimes on behalf of a
stakeholder organizations (employees, suppliers, policy makers, etc.)
To add value to individual working / consumption experiences we can
differentiate an early stage approach and a more mature approach,
like we did when we approaching stakeholders' relationships.
Initially the organization experiments by intensifying and reinforcing
those interactions among individuals already existing
Over time, the organization gains confidence to propose / support QUESTIONS
- What links the organization have
new interactions and by engaging more individuals, even those already in place with its customers, its
traditionally distant from the organization employees, and the employees of the
other stakeholder organizations?
Individuals in the ecosystem benefit by getting a deeper and more - Can the organization engage in a more
personalized working / consumption experience but also by co-creative ways in these interactions? If
it can, where and how can these
decreasing their risks and costs interactions be more co-creative
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#3: experience of both stakeholders organizations and individuals
The objective is to expand the space of the experience of both
stakeholder organizations and individuals acting in the ecosystem
The experience of value chain participants can concern the
organization production, its operative processes or its platforms
Often enterprises opening up their processes (design, development,
R&D, marketing, etc.) to exploit outside-in and inside-out
opportunities forget collecting the experiences of participants and
truly include them into their operative processes
Another common mistake for some enterprises is to open up their
processes to the outside world before paying attention to the working QUESTIONS
experience of their employees - What experiences currently live people
involved in our value chain when they get
The benefits for organizations are: growth of strategic capital, in touch with our products / services, to our
increase of efficiency and returns and at the same time decrease processes or our platforms?
- Is it possible to build more meaningful
risks and employees turnover experiences together with the people
involved in our value chain?
Individuals in the ecosystem benefit by getting a deeper and more
personalized working / consumption experience but also by
decreasing their risks and costs
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#4: engagement platforms
The objective is to driving organization costs down and reducing its risk
through co-creative engagement
The engagement platforms represent an industrialization of the
interactions among individuals who are part of the ecosystem, i.e. thanks
to these platforms both the scope and the scale of these interactions can
be easily and cost-effectively increased
Engagement platforms are the cornerstone of co-creation which support
the other 3 engagement components
The simplest form of engagement platform is the meeting, where people
congregate with a specific purpose and a structured process through
which they will co-create, thereby playing a central role in defining QUESTIONS
- If we already have engagement
products and services experience. platforms up and running, how can we
Stores, products, call centers are other examples keep them alive through the generation
of co-creative value?
Transforming corporate websites into engagement platforms constitute - What are existing assets and resources
a huge opportunity in just about any industry . With the plethora of social which can be used as engagement
platforms?
interaction technologies available nowadays, conversation online has - How can we involve our innovation
boomed, nevertheless few companies managed this opportunity to partners in the building of new
engagement platform together?
engage their customers in a productive and creative ways. (Dell)
The best engagement platforms are always multifaceted, they include
therefore different dimensions (e.g. online and offline)
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Core principles of Co-Creation - Recap
Co-creative enterprises, innovate new types of
experiences shaped by the context of
people’s interactions, creating mutual value.
To make the process effective and affordable,
they design engagement platforms that
“industrialize” the scale and scope of
interactions, driving their costs down and
reducing risk through co-creative
engagement.
Doing so requires building an expanded,
reconfigurable network of relationship that
goes beyond the traditional boundaries of
the organization to expand stakeholder
relationships (private-public-social), and
generating radically new economics for
participants in the different ecosystem’s
contexts of interactions
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Ask yourself the right questions
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Designing a super cheap incubator ($300/$30.000)
a team of students at Stanford
University accepted the challenge
and went to Bangladesh, in an area
with a high incidence of infant
mortality and there they visited
many hospitals
hospitals found of way to finance
the purchasing of the incubators via
donations
incubators were empty
students visited the villages and
there they realize that mothers
didn't brig the premature babies to
the hospitals because they were
busy with the other children or with
domestic activities or again because
they didn't know about this
opportunity
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Designing a super cheap incubator ($300/$30.000)
when they came back to university,
students knew the context of
interactions and understood that the
initial problem was incorrectly
formulated
the real challenge was not to design
a super cheap incubator at a cost of
300$ but a cheap port-enfant which
that could be used directly by
mothers at home and therefore
without electric energy
the initial question was therefore
reformulated by the students FROM
how to design a super cheap
incubator TO how to save premature
babies from death
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Designing a super cheap incubator ($300/$30.000)
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mistaking today = mistaking tomorrow
A correct approach to innovation is
working on both sides of the equation
through many fruitful iterations
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DESIGN YOUR INNOVATION
PREDICA
designing co-creative business processes
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Context
Crédit Agricole Europe’s second-largest banking network which comprises
of 39 regional banks in France
Predica is a CA division designing life insurance products and managing
sales through CA network.
Big business, in 2007 around €20 billion
Hocher (CEO) tasked Steinmann (Head of Marketing) with the
development of a new low-end unit-linked life insurance product (i.e.
linked on a series of mutual funds)
The product, dubbed Cap Découverte, targets young customers who never
saved a penny before
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Challenges
Getting the mass of young unskilled customers to understand the relative complex
functionality of the product
Competitive offering from ING which had no fees and was rapidly getting market share
Indirect selling model of Predica through regional banks which trained their branch
advisors on the insurance products
Complex product management function with many actors involved, setting Predica far
back from final customer
Painful launch experiences in the past with many of the actors always having good
reasons not to like the product design
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How do individuals view their engagement
experiences in their interaction contexts and
how can those views be leveraged by my
organization?
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Kick off of co-creative initiative
Co-creation starts with people not with analytical phases in a process, so the first step was to figure
out who should be involved
Steinmann was leading the product development and marketing function so she started looking at all
parties involved in the development and launch of Predica products with the intent to allow them to
engage with one another in different ways and as a consequence to improve their experience
To achieve this objective, engagement would be expanded to a new level by asking the retail branch
advisor to design the selling-buying experience and to some extent the life insurance product itself
ACTUARIAL, FINANCIAL, COMPLIANCE STAFF INSURANCE SPECIALISTS FINAL CUSTOMERS
predica retail branches
SALES AND SUPPORT TEAM BRANCH MANAGES
predica retail branches
CUSTOMER COMMUNICATION PEOPLE RETAIL BRANCH ADVISORS
predica retail branches
PRODUCT MANAGERS
predica
TOP MANAGEMENT
predica
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Predica Product Manager’s Interaction Map
stakeholders sequence Develop Develop Discuss Finalize Develop Finalize Develop Finalize Deliver
market product Product Design Comm Comm Sales Aid & Build Sales Sales
background concept Concept & Review Plan Plan Tools Aid Tools Kit
INSURANCE SPECIALISTS act as product manager within
the branches orchestrate
retail branches training and support
Institutional sales force
SALES AND SUPPORT TEAM
conveying +/- enthusiasm to
predica retail branches
Staff in charge for cucom
CUSTOMER COMMUNICATION PEOPLE activities boost -/+ by deciding
predica where promo funds are going
PRODUCT MANAGERS
predica
Staff evaluate new products’
ROI and checking regulatory
ACTUARIAL, FINANCIAL, requirements
COMPLIANCE STAFF
Proof checks new products’
predica design and their contribution
to the overall strategy
TOP MANAGEMENT
predica
product lifecycle
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Analysis of product managers interactions
Steinmann and her team tried to identify the limitations
and opportunities of their own interactions with the actors in
their value chain
1. PMs had the largest number of interactions with other
parties and this will justify their role of orchestrator of the co-
creative effort
2. PMs interactions touched only one or at best two players
at a time and this sequential way of acting reduced his role to
a ‘traffic cop’ who encouraged better coordination between
the warring factions
3. PMs work little with the customer-facing people at the local
branches (retail branch advisors) as their interaction stopped
at the point of sales tool delivery to the insurance specialists
Outcome: there was an unaccomplished need of involving
all parties in the design and marketing of new products in
an integrated way and as a solution a product design and
launch platform was launched and is still used at Predica
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Retail Branch Advisor’s Interaction Map
stakeholders sequence Undergoes Receives Receives Markets to Meet with Introduces Tracks Undergoes
training on sales sales targets customers customers and sells progress of yearly
new products materials for new new customers evaluation
product product assets
CUSTOMERS
RETAIL BRANCH ADVISOR
retail branches Key players at the end of the chain
since they interact with the customers.
They are 40k with over 60% in junior
position
INSURANCE SPECIALISTS
retail branches
Set the goals for retail branch
BRANCH MANAGER advisors can set +/- priority on
retail branches the different products
SALES AND SUPPORT TEAM
predica
product lifecycle
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Analysis of retail branch advisors interactions
The PM team then decided to turn the table and see the
world from the vantage of the retail branch advisor, and
they found out:
the advisors were frustrated because they could not talk to
the developers of the sales tools
junior advisors worked isolated in one-on-one discussion
with customers on a complex insurance products
quality of interaction with customers was low because there
was no more interactions after purchasing
Outcome: co-creation workshops were launched in the field with the aim of linking activities of
PMs and retail branch advisors
In the workshops retail branch advisors fleshed out the nature of interactions with customers and
with the other bank employees
Workshop were videotaped hoping to uncover emotional responses of participant
It became clear the aspiration of junior advisors to grow professionally through a permanent
process of co-creation engagement with insurance specialists, other advisors and even customers
Advisors Engagement Platform and Customer Engagement Platform were devised and launched
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business process are not sequential
Traditional representations of a business process is a left-to-right arrow where successive
process owners optimize their process steps in order to deliver the best value to the next
operator in the value chain
The traditional approach to business process design start with the definition of the process
customer needs/specs and attempt to deliver efficiently and predictably.
Continuous improvements methodologies (e.g. lean, six sigma) are important is this scenario and
parameters like cycle time reduction, cost reduction, minimization of output variations are important
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From designing processes to designing platforms for stakeholders’ interaction
If we start looking at operations with a co-creation approach in mind, soon we realize that the
difference of process owner and process customer is irrelevant
Business processes are not only driven by the process owner (left-to-right) but also by the
process customers (right-to-left)
Process customers (individuals) don’t want their needs to be frozen at the beginning of the
process design investigation, they want a real time adaptation of their process needs.
Customers empowered by technology want to engage in the process on their terms and require
that the organization adapt the contexts every time they interact
The process design focus is therefore not only the desired outcome, but more and more the
platform of interaction that will allow process owners and process customers to come together
in an optimized way in each new interaction context
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Trans-disciplinary co-creation
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