This presentation was given on March 11, 2013 at SXSW Interactive in Austin, TX. Here is the orignial description from the conference schedule:
Come hear from the intrapreneurs with a web-startup mindset who opened the LEGO Group to solicit and deliver crowdsourced products. In 2011, LEGO opened its factory doors with LEGO CUUSOO, allowing fans to propose designs for new products and collect votes from their peers. The LEGO Minecraft proposal in late 2011 took the beta site (and the Internet) by storm and became a hit product of the summer.
But to LEGO fans with high expectations, something seemed rotten in Denmark. Transforming this crowdsourcing dream into reality was a lot harder than stacking a few bricks together. LEGO CUUSOO allowed acute demand to emerge overnight, and when it did, production resources in the traditional manufacturing company remained fixed and finite. The company learned pointed lessons about transforming fan concepts into real products under public scrutiny, and will share hard-learned best practices that will help you allow your fans to drive product innovation.
3. Peter Espersen
• Head of Community Co-Creation at the LEGO Group
• I create digital experiences with our fans targeted
mainly at 13+ users
• I’ve also worked for OMD and lead the MMOG
Habbo Hotel in Scandinavia
MY LEGO!
4. Tim Courtney
• Community Manager for LEGO CUUSOO
• I lead site operations and public communication
• Co-wrote “Virtual LEGO” (No Starch Press) in 2003
• Also co-founder SocialDevCamp Chicago
15. “Although we're flattered that you chose to share a special idea with
us, we aren't allowed to use LEGO consumers' suggestions for new
sets or other related items. This policy is in place because we have
invested considerable resources in our own product-development
department in Denmark…”
41. Different initiatives with our community
User developed – LEGO Published
Co-developed – LEGO Published
LEGO developed – User Hacked
42. Different initiatives with our community
User developed – User Published
User developed – LEGO Published
Co-developed – LEGO Published
LEGO developed – User Hacked
43. Different initiatives with our community
User enterprise – LEGO Partner
User developed – User Published
User developed – LEGO Published
Co-developed – LEGO Published
LEGO developed – User Hacked
44. Different initiatives with our community
Crowdsourced – LEGO Published
User enterprise – LEGO Partner
User developed – User Published
User developed – LEGO Published
Co-developed – LEGO Published
LEGO developed – User Hacked
Some rulesDo you have a communityIs your product suited for it?You’re not prepared – EVER!And you can’t make everyone happy
Actually no. The reference to oxen in the title is aboutsomethingelse. Back in 1906 an 85-year-old gentleman by the name of Sir Francis Galton, cousin of Darwin, begetter of statisticalanalysis, and prettyclose to engaginglybonkers, went to a fair in Devon (where it is raining just now.) Therewas a Guess the Weight of the Oxcompetition. It was a rather large ox.PedigreeAlnwickShorthornbull “Sunstreak”, photographed by Sir Francis GaltonNone of the visitors to the fair, as far as weknow, wereparticularlyexpert at ox-weight-guessing. Seven hundred and eighty-sevenpeoplepaidtheir sixpence to join in, and wrotetheirguessesonpiece of paper. Not one of themguessed the weight of the animalright.ButGaltoncollected up all theirguesses, and addedthem up, and averagedthem. It came to 1197 pounds. And guesswhat? Collectively, all thosenon-expertshad got it exactly right. The actualweight of the oxwas 1198 pounds. The average of all theirguesseswas as close to spot-on as anyonecould ask. The wisdom of crowds, heconcluded, couldoftengetthingsexactly right whennoindividualcould do it.ReMemberthis is not LeadUser innovationSunstreak1197 poundsAudience hit 1198 pounds!
Crowds aren’t always wise.It must be a win-win for everyone.It isn’t a free-for-all.
Ideas for LEGO products come from everywhere.We receive 50 calls and emails per DAY to our Consumer Services department with ideas for new products. That’s almost 20,000 per year.If I tell someone I work for LEGO in public, they’re like “oh, I’ve got this idea…”
Do a joke “who is speaking” – it’s your voice right?
Partnership with CUUSOO System, tested in Japan for two yearsExpanded globally to test the concept on a large scaleDifferent from Threadless, Kickstarter, and Quirky as we are taking a traditional business and opening a portion of it to crowdsourced ideas.Open innovation - allow external ideas to shape new developmentsSharing risk and reward
Partnership with CUUSOO System, tested in Japan for two yearsExpanded globally to test the concept on a large scaleDifferent from Threadless, Kickstarter, and Quirky as we are taking a traditional business and opening a portion of it to crowdsourced ideas.Open innovation - allow external ideas to shape new developmentsSharing risk and reward
They shared some very weird things … and some sensible things too.
October 2011
Make the audience guess how long it took, before revealing!
Contrast the complexity of doing this with Threadless. A screen printer and a website. Masters of community – and BRILLIANT for keeping things simple!
Crowds aren’t always wise.It must be a win-win for everyone.It isn’t a free-for-all.
Interest communities surprised us. People saw they had the chance to have their favorite thing in LEGO, and spread the word.And especially – the LEGO community + another community = CUUSOO product
Structuring the different levels of involvement with our communityKey – insert LEGO jewlery!
Structuring the different levels of involvement with our communityKey – insert LEGO jewlery!
Structuring the different levels of involvement with our communityKey – insert LEGO jewlery!
Structuring the different levels of involvement with our communityKey – insert LEGO jewlery!
Structuring the different levels of involvement with our communityKey – insert LEGO jewlery!
Structuring the different levels of involvement with our communityKey – insert LEGO jewlery!
Sometimes things don’t fit….And sometimes our fans use our own tools against us
Some rulesDo you have a communityIs your product suited for it?You’re not prepared – EVER!And you can’t make everyone happy
Wisdom of crowds vs. Lead User InnovationWhere users get confused.Where crowd wisdom fails us.http://en.wikipedia.org/wiki/The_Wisdom_of_Crowds#Failures_of_crowd_intelligenceDo you want quality or quantity? (Creating a successful LEGO product is difficult!)Don’t think that this will replace product development (limits to collective wisdom)Setting the bar right (10K?)
This should go to the learnings section This is not a method for people to demand we do something.Products must fit our values and make business sense.We are the sole deciders of what fits.