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CROWDSOURCING:
How to use online communities for
collaborative innovation
Prof. dr. ir. Marion debruyne
Value co-creation is the new paradigm



                                                            Commoditization risk?
                                                           More products and innovations
                                                               How to be different?




         More Information,                                       MARKET                                                Value co-creation
          more choices                                       Forum of conversations                               Customers are part of value chain
     More informed, network and                               between customers,                                 From product-centric to personalize
                                                            companies & communities                                    customer experiences
       empowered customer



                                                                 Word of mouth
                                                                 Peer influence
                                                       Customers are the best or the worst
                                                                marketing tool


Sources: Adapted from Prahalad, C.K, Ramaswamy (2004). The future of Competition: Co-creating Valur with Customers. Harvard Business Review


   © Vlerick Leuven Gent Management School
A fundamental shift




© Vlerick Leuven Gent Management School
The contribution revolution




© Vlerick Leuven Gent Management School
Adidas insiders community




© Vlerick Leuven Gent Management School
KLM In Touch community




© Vlerick Leuven Gent Management School
Something to read




© Vlerick Leuven Gent Management School
Involving users in innovation



                       Physical              Voice of customer
                                                                          Knowledge broker
                                                  Projects

Environment



                         Virtual             Virtual Customer             Virtual Knowledge
                                              environments                     Brokers



                                                 Firm                       Broker

                                                                 Source

   © Vlerick Leuven Gent Management School
Involving users in innovation



                       Physical              Voice of customer
                                                                          Knowledge broker
                                                  Projects

Environment



                         Virtual             Virtual Customer             Virtual Knowledge
                                              environments                     Brokers



                                                 Firm                       Broker

                                                                 Source

   © Vlerick Leuven Gent Management School
© Vlerick Leuven Gent Management School
5 goals to accomplish
In running a successful virtual customer environment
Key components of a successful online idea community




© Vlerick Leuven Gent Management School
Customer
process
Novices vs experts




© Vlerick Leuven Gent Management School
Customer
Engagement
What motivates external innovators?
 Extrinsic                                                                                    Intrinsic
Motivations                                                                                  Motivations
                                                                        Fun
                                             Reputation
                                                                              Excitement
                    Money                                      Status


                               User need                                         Belonging
                                                               Intellectual
                                                 Recognition    challenge




    Open Markets                                                                   Communities
   © Vlerick Leuven Gent Management School
Idea
Generation
Integration
Customer
Experience
Best Practices on customer experience




                                          (Source: ComBlu, 2010)
© Vlerick Leuven Gent Management School
5 Choices to make
When starting a virtual customer environment
OPEN                          CLOSED




© Vlerick Leuven Gent Management School
ONLINE                           OFFLINE




© Vlerick Leuven Gent Management School
DEFINED                            UNDEFINED
        TOPIC                               TOPIC




© Vlerick Leuven Gent Management School
TEMPORARY                          CONTINUOUS




© Vlerick Leuven Gent Management School
IDEATION                             TESTING




© Vlerick Leuven Gent Management School
OPEN                              CLOSED
           ONLINE                            OFFLINE
        DEFINED TOPIC                     UNDEFINED TOPIC
         TEMPORARY                         CONTINUOUS
          IDEATION                           TESTING




© Vlerick Leuven Gent Management School
Simple Internal Network


              Internal network
              Market insights
              discussed and
              evaluated
              No
              customers/users/part
              ners involved

                                                 Internal person
                                                 in contact with
                                                 external market
29 |   © Vlerick Leuven Gent Management School
Simple Customer Forum



              External network
              Continuous
              Coupling
              customer ideas
              with traditional
              R&D
                                          customers/
                                          shoppers/
                                          users

30 |   © Vlerick Leuven Gent Management School
Semi-open Radical Innovation Network



              Idea outside the
              competences of the
              company
              Network open to
              selected individuals
              and entities

                                          Selected
                                          external
                                          parties
                                          (experts)
31 |   © Vlerick Leuven Gent Management School
Customer-driven Radical Innovation

              External network
              loosely connected with
              internal one
              Solutions and ideas
              outside the company’s
              competencies
              lead users and external
              experts invited to co-
              create solutions



                                          Lead Users

32 |   © Vlerick Leuven Gent Management School
Thank you!

Prof. dr. ir. Marion Debruyne
Associate Professor & Partner
Vlerick Business School




Contact me:
Marion.Debruyne@vlerick.com

Follow me:
          MarionDebruyne



© Vlerick Leuven Gent Management School

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Vlerick innovation network slideshare

  • 1. CROWDSOURCING: How to use online communities for collaborative innovation Prof. dr. ir. Marion debruyne
  • 2. Value co-creation is the new paradigm Commoditization risk? More products and innovations How to be different? More Information, MARKET Value co-creation more choices Forum of conversations Customers are part of value chain More informed, network and between customers, From product-centric to personalize companies & communities customer experiences empowered customer Word of mouth Peer influence Customers are the best or the worst marketing tool Sources: Adapted from Prahalad, C.K, Ramaswamy (2004). The future of Competition: Co-creating Valur with Customers. Harvard Business Review © Vlerick Leuven Gent Management School
  • 3. A fundamental shift © Vlerick Leuven Gent Management School
  • 4. The contribution revolution © Vlerick Leuven Gent Management School
  • 5.
  • 6. Adidas insiders community © Vlerick Leuven Gent Management School
  • 7. KLM In Touch community © Vlerick Leuven Gent Management School
  • 8. Something to read © Vlerick Leuven Gent Management School
  • 9. Involving users in innovation Physical Voice of customer Knowledge broker Projects Environment Virtual Virtual Customer Virtual Knowledge environments Brokers Firm Broker Source © Vlerick Leuven Gent Management School
  • 10. Involving users in innovation Physical Voice of customer Knowledge broker Projects Environment Virtual Virtual Customer Virtual Knowledge environments Brokers Firm Broker Source © Vlerick Leuven Gent Management School
  • 11. © Vlerick Leuven Gent Management School
  • 12. 5 goals to accomplish In running a successful virtual customer environment
  • 13. Key components of a successful online idea community © Vlerick Leuven Gent Management School
  • 15. Novices vs experts © Vlerick Leuven Gent Management School
  • 17. What motivates external innovators? Extrinsic Intrinsic Motivations Motivations Fun Reputation Excitement Money Status User need Belonging Intellectual Recognition challenge Open Markets Communities © Vlerick Leuven Gent Management School
  • 21. Best Practices on customer experience (Source: ComBlu, 2010) © Vlerick Leuven Gent Management School
  • 22. 5 Choices to make When starting a virtual customer environment
  • 23. OPEN CLOSED © Vlerick Leuven Gent Management School
  • 24. ONLINE OFFLINE © Vlerick Leuven Gent Management School
  • 25. DEFINED UNDEFINED TOPIC TOPIC © Vlerick Leuven Gent Management School
  • 26. TEMPORARY CONTINUOUS © Vlerick Leuven Gent Management School
  • 27. IDEATION TESTING © Vlerick Leuven Gent Management School
  • 28. OPEN CLOSED ONLINE OFFLINE DEFINED TOPIC UNDEFINED TOPIC TEMPORARY CONTINUOUS IDEATION TESTING © Vlerick Leuven Gent Management School
  • 29. Simple Internal Network Internal network Market insights discussed and evaluated No customers/users/part ners involved Internal person in contact with external market 29 | © Vlerick Leuven Gent Management School
  • 30. Simple Customer Forum External network Continuous Coupling customer ideas with traditional R&D customers/ shoppers/ users 30 | © Vlerick Leuven Gent Management School
  • 31. Semi-open Radical Innovation Network Idea outside the competences of the company Network open to selected individuals and entities Selected external parties (experts) 31 | © Vlerick Leuven Gent Management School
  • 32. Customer-driven Radical Innovation External network loosely connected with internal one Solutions and ideas outside the company’s competencies lead users and external experts invited to co- create solutions Lead Users 32 | © Vlerick Leuven Gent Management School
  • 33. Thank you! Prof. dr. ir. Marion Debruyne Associate Professor & Partner Vlerick Business School Contact me: Marion.Debruyne@vlerick.com Follow me: MarionDebruyne © Vlerick Leuven Gent Management School