Introduction to co-creation
Felix Koch
Consultancy Director – Promise Communities
Co-creation Explosion

                                           Mentions of ‘co-creation’ in the scholarly domain




                                                                                                                                                             1,770
                                                                                                                                                     1,410
                                                                                                                                             1,070
                                                                                                                                    800
                                                                                                                            630
                                                                                                                    550
                                                                                                           400
                                                                                                   340
                                                                                           270
                                                                                  220




      1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009



Source: Promise, based on Google Scholar data. Retrieved on 27th July 2010 using the search term ‘co-creation’ and sorted by year. 2010 data excluded as incomplete.
This presentation is going to be a hybrid!
1. About Promise
2. Introduction to co-creation

3. Definition

4. Online co-creation communities

5. Real life examples
6. Outlook

7. Summary

8. Literature

9. Q&A
Insight   Innovation   Strategy
Our difference:

              Co-creation
 the practice of product, service and strategy
 development that is collaboratively executed
by consumers, staff and stakeholders together
            in collaborative spaces
We co-create off- and online
Client logo
(no bigger
 than box)
Company History



                                     [4. mobile]

                      2. online
    1. face-to-face
                                  3. hybrid
Business functions we touch:

   Producing           Selling       Supporting


   Research &
                   Market Research      HR
  Development


  Production &
                   Marketing & PR      Legal
     Quality


  Distribution &                     Finance &
                        Sales
    Logistics                        Accounting
1. About Promise
2. Introduction to co-creation

3. Definition

4. Online co-creation communities

5. Real life examples
6. Outlook

7. Summary

8. Literature

9. Q&A
The old world
                                     firm,
                organisation/   clearly defined
                  company         boundaries




                 consumer/
                   citizen
Production & consumption are separated.
New products are developed by experts isolated
from consumer needs & creativity.


                                                 Client logo
                                                 (no bigger
                                                  than box)
Consumer input is tightly controlled,
mediated and mostly uncreative.




                                        Client logo
                                        (no bigger
                                         than box)
The old world
                organisation/
                  company




                 consumer/
                   citizen
Catalyst #1: the ICT revolution
Catalyst #2: explosion of the social web
Catalyst #3: cognitive surplus (Clay Shirky)

200 billion hours = time US adults
spend watching TV each year




                                     100 million hours =
                                       time it took to
                                      create Wikipedia
The new world
                organisation/
                  company


organisation/                   consumer/
  company                         citizen


                 consumer/
                   citizen
The new world




organisation/   consumer/
  company         citizen
The new world




       organisation      consumer
        company           citizen



permeable       co-creative
boundaries        spaces
Consumers become producers
New products developed by experts and
consumers sharing collaborative spaces.
Consumer input is unmediated, bottom-
up & creative.
Co-creation is nothing new (its scale is)
 pre-history     1960s             1970s      1980s          1990s          2000s          2010

Psychoanalysis
   (Freud)

                 Participatory architecture
                    (Gehl, Price, Huth)

                                                 User innovation
                                                  (von Hippel)

                                               User-centered design


                                                              Open source movement
                                                                 (Linux, Mozilla)

                                                                                     Application of
                                                                                      co-creative
                                                                                       principles


                                                                                           Client logo
                                                                                           (no bigger
                                                                                            than box)
Hypothesis: we are returning to
pre-capitalist values and relationships

 pre-capitalist       capitalist        web-capitalist

  one-to-one       one-to-many           one-to-one/
                                        many-to-many

 craftmanship     mass production     mass customisation

direct feedback   indirect feedback    direct feedback

   dialogue             silos              dialogue

  bottom-up          top-down             bottom-up
1. About Promise
2. Introduction to co-creation

3. Definition

4. Online co-creation communities

5. Real life examples
6. Outlook

7. Summary

8. Literature

9. Q&A
NOT mass customisation (lack of interaction)
NOT crowdsourcing (volume-driven, no iteration)
NOT listening to conversations (lack of purpose)
What defines co-creation:


  Creativity            Collaboration            Control


  focus on outcomes          interactivity         purposive;
  non-rational focus    real-time component    often time-bound
 reaching new places            social         organisation-led
‘creative’ approaches                              facilitated

 [not just choosing]     [not a solo effort]     [not organic]
A working definition:



     Co-creation is an active, creative
 and social process, based on collaboration
       between producers and users,
        that is initiated by the firm
     to generate value for customers.
1. About Promise
2. Introduction to co-creation

3. Definition

4. Online co-creation communities

5. Real life examples
6. Outlook

7. Summary

8. Literature

9. Q&A
3 applications for co-creation communities:


                              Insight




Strategy                                Innovation
2 main types of co-creation communities:




On-going consumer advisory boards        One-off bursts
     (insight and innovation)       (innovation and strategy)
What we believe in:



       Only Experts!

                      !
Regular consumers, too?
What we believe in:



        Always open!

                    !
  Closed and private.
What we believe in:



Marketing Communities

 Insight & Innovation
    Communities!
The double diamond of co-creation


number
of ideas




                                    time
A typical process

Pre-Launch          Month 1                 Month 2                Month 3



                                      Community members


               1.                2.                       3.                 4.
 Set-up      Warm-up          Co-creation        Testing & development   Filtration




               Creative
             development
1. About Promise
2. Introduction to co-creation

3. Definition

4. Online co-creation communities

5. Real life examples
6. Outlook

7. Summary

8. Literature

9. Q&A
case
        Change management & employee engagement
study
Challenge
Define a new, motivating, & future-proof Mission, Vision, Values
statement together with several thousand executives.
Process
The overall process from set-up through to bringing the new
mission to life spanned 4 months:
Setting the ground for collaboration




Why is this project going to
be a total failure?

What three things do you
hate about Kraft?
Results
An employee co-created mission, vision and values statement
developed & signed off in under four months
case
        Consumer co-creation (Insight & NPD)
study
Challenge
Increase penetration and frequency by developing a new campaign
and filling the NPD pipeline.
Solution
The Activia Advisory Board populated with 400 key consumers who
engaged in a coms development and NPD workstream.
1. About Promise
2. Introduction to co-creation

3. Definition

4. Online co-creation communities

5. Real life examples
6. Outlook

7. Summary

8. Literature

9. Q&A
Outlook


   1. Co-creation fatigue?
Consultancy Director – Promise Communities


   2. IP & ownership?
   3. Technocracy?
   4. Bottom of the pyramid?
1. About Promise
2. Introduction to co-creation

3. Definition

4. Online co-creation communities

5. Real life examples
6. Outlook

7. Summary

8. Literature

9. Q&A
Summary

• Co-creation is not new, but the sheer scale of its growth is
• Co-creation is an emerging discipline, not a trend
• The relationship between consumers and brands is
  changing fundamentally
• There is no going back
• We haven’t even scratched the surface
1. About Promise
2. Introduction to co-creation

3. Definition

4. Online co-creation communities

5. Real life examples
6. Outlook

7. Summary

8. Literature

9. Q&A
Further reading
Dankeschön!

Felix Koch

Consultancy Director – Promise Communities

fkoch@promisecorp.com
Online Market Research & NPD approaches

BASED ON EXISTING DATA -
                                                CREATING NEW DATA - FACILITATED
  NATURALLY OCCURING


    Passive & active            Traditional online research              Online co-creation
   listening research


      Social Media
       Monitoring
        (SMM)
                                           Brand-                                    360° NPD
                               Online                  (Design)         Crowd-
                                           owned                                    cycles using
                              Surveys                    Com-          sourcing
                                            SM                                         online
                              & Panels                 petitions
                                          channels                                  communities
       Data mining
       of NOOCs,
        YouTube,
        Wikis etc.




      Netnography
                            Client/researcher                                        Participant
                                in control                                           in control
Success: how we can measure the impact of
co-creation?

Introduction to Co-creation (MA Brand Development at Goldsmiths)

  • 1.
    Introduction to co-creation FelixKoch Consultancy Director – Promise Communities
  • 2.
    Co-creation Explosion Mentions of ‘co-creation’ in the scholarly domain 1,770 1,410 1,070 800 630 550 400 340 270 220 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Promise, based on Google Scholar data. Retrieved on 27th July 2010 using the search term ‘co-creation’ and sorted by year. 2010 data excluded as incomplete.
  • 3.
    This presentation isgoing to be a hybrid!
  • 4.
    1. About Promise 2.Introduction to co-creation 3. Definition 4. Online co-creation communities 5. Real life examples 6. Outlook 7. Summary 8. Literature 9. Q&A
  • 5.
    Insight Innovation Strategy
  • 6.
    Our difference: Co-creation the practice of product, service and strategy development that is collaboratively executed by consumers, staff and stakeholders together in collaborative spaces
  • 7.
  • 8.
  • 9.
    Company History [4. mobile] 2. online 1. face-to-face 3. hybrid
  • 10.
    Business functions wetouch: Producing Selling Supporting Research & Market Research HR Development Production & Marketing & PR Legal Quality Distribution & Finance & Sales Logistics Accounting
  • 12.
    1. About Promise 2.Introduction to co-creation 3. Definition 4. Online co-creation communities 5. Real life examples 6. Outlook 7. Summary 8. Literature 9. Q&A
  • 13.
    The old world firm, organisation/ clearly defined company boundaries consumer/ citizen
  • 14.
  • 15.
    New products aredeveloped by experts isolated from consumer needs & creativity. Client logo (no bigger than box)
  • 16.
    Consumer input istightly controlled, mediated and mostly uncreative. Client logo (no bigger than box)
  • 17.
    The old world organisation/ company consumer/ citizen
  • 18.
    Catalyst #1: theICT revolution
  • 19.
    Catalyst #2: explosionof the social web
  • 20.
    Catalyst #3: cognitivesurplus (Clay Shirky) 200 billion hours = time US adults spend watching TV each year 100 million hours = time it took to create Wikipedia
  • 21.
    The new world organisation/ company organisation/ consumer/ company citizen consumer/ citizen
  • 22.
    The new world organisation/ consumer/ company citizen
  • 23.
    The new world organisation consumer company citizen permeable co-creative boundaries spaces
  • 24.
  • 25.
    New products developedby experts and consumers sharing collaborative spaces.
  • 26.
    Consumer input isunmediated, bottom- up & creative.
  • 27.
    Co-creation is nothingnew (its scale is) pre-history 1960s 1970s 1980s 1990s 2000s 2010 Psychoanalysis (Freud) Participatory architecture (Gehl, Price, Huth) User innovation (von Hippel) User-centered design Open source movement (Linux, Mozilla) Application of co-creative principles Client logo (no bigger than box)
  • 28.
    Hypothesis: we arereturning to pre-capitalist values and relationships pre-capitalist capitalist web-capitalist one-to-one one-to-many one-to-one/ many-to-many craftmanship mass production mass customisation direct feedback indirect feedback direct feedback dialogue silos dialogue bottom-up top-down bottom-up
  • 29.
    1. About Promise 2.Introduction to co-creation 3. Definition 4. Online co-creation communities 5. Real life examples 6. Outlook 7. Summary 8. Literature 9. Q&A
  • 30.
    NOT mass customisation(lack of interaction)
  • 31.
  • 32.
    NOT listening toconversations (lack of purpose)
  • 33.
    What defines co-creation: Creativity Collaboration Control focus on outcomes interactivity purposive; non-rational focus real-time component often time-bound reaching new places social organisation-led ‘creative’ approaches facilitated [not just choosing] [not a solo effort] [not organic]
  • 34.
    A working definition: Co-creation is an active, creative and social process, based on collaboration between producers and users, that is initiated by the firm to generate value for customers.
  • 35.
    1. About Promise 2.Introduction to co-creation 3. Definition 4. Online co-creation communities 5. Real life examples 6. Outlook 7. Summary 8. Literature 9. Q&A
  • 36.
    3 applications forco-creation communities: Insight Strategy Innovation
  • 37.
    2 main typesof co-creation communities: On-going consumer advisory boards One-off bursts (insight and innovation) (innovation and strategy)
  • 38.
    What we believein: Only Experts! ! Regular consumers, too?
  • 39.
    What we believein: Always open! ! Closed and private.
  • 40.
    What we believein: Marketing Communities Insight & Innovation Communities!
  • 41.
    The double diamondof co-creation number of ideas time
  • 42.
    A typical process Pre-Launch Month 1 Month 2 Month 3 Community members 1. 2. 3. 4. Set-up Warm-up Co-creation Testing & development Filtration Creative development
  • 43.
    1. About Promise 2.Introduction to co-creation 3. Definition 4. Online co-creation communities 5. Real life examples 6. Outlook 7. Summary 8. Literature 9. Q&A
  • 44.
    case Change management & employee engagement study
  • 45.
    Challenge Define a new,motivating, & future-proof Mission, Vision, Values statement together with several thousand executives.
  • 46.
    Process The overall processfrom set-up through to bringing the new mission to life spanned 4 months:
  • 47.
    Setting the groundfor collaboration Why is this project going to be a total failure? What three things do you hate about Kraft?
  • 48.
    Results An employee co-createdmission, vision and values statement developed & signed off in under four months
  • 49.
    case Consumer co-creation (Insight & NPD) study
  • 50.
    Challenge Increase penetration andfrequency by developing a new campaign and filling the NPD pipeline.
  • 51.
    Solution The Activia AdvisoryBoard populated with 400 key consumers who engaged in a coms development and NPD workstream.
  • 52.
    1. About Promise 2.Introduction to co-creation 3. Definition 4. Online co-creation communities 5. Real life examples 6. Outlook 7. Summary 8. Literature 9. Q&A
  • 53.
    Outlook 1. Co-creation fatigue? Consultancy Director – Promise Communities 2. IP & ownership? 3. Technocracy? 4. Bottom of the pyramid?
  • 54.
    1. About Promise 2.Introduction to co-creation 3. Definition 4. Online co-creation communities 5. Real life examples 6. Outlook 7. Summary 8. Literature 9. Q&A
  • 55.
    Summary • Co-creation isnot new, but the sheer scale of its growth is • Co-creation is an emerging discipline, not a trend • The relationship between consumers and brands is changing fundamentally • There is no going back • We haven’t even scratched the surface
  • 56.
    1. About Promise 2.Introduction to co-creation 3. Definition 4. Online co-creation communities 5. Real life examples 6. Outlook 7. Summary 8. Literature 9. Q&A
  • 57.
  • 58.
    Dankeschön! Felix Koch Consultancy Director– Promise Communities fkoch@promisecorp.com
  • 60.
    Online Market Research& NPD approaches BASED ON EXISTING DATA - CREATING NEW DATA - FACILITATED NATURALLY OCCURING Passive & active Traditional online research Online co-creation listening research Social Media Monitoring (SMM) Brand- 360° NPD Online (Design) Crowd- owned cycles using Surveys Com- sourcing SM online & Panels petitions channels communities Data mining of NOOCs, YouTube, Wikis etc. Netnography Client/researcher Participant in control in control
  • 61.
    Success: how wecan measure the impact of co-creation?