In the world where we live everything must be faster, better and newer. Companies have to innovate and develop products/services faster then ever. With this challenge companies need to think different.
Open innovation is a new way of integrating customers during the research and design period of the firm. This picture below is a simple example of how open innovation works. Because of the new method, firms can choice between the traditional approaches or the new open approaches. The differences between these methods are showed in the table below.
Continue reading Open innovation
I found a very interesting video in which Matthew Guiste, director of global social media at Starbucks talking about open innovation and social media. Specifically he is talking about MyStarbucksIdea.com generating around 100.000 ideas for new products and business improvements. It is good to see this video because it describes most of the things that we learn in class, actually how all these things are applied in a real company.
So, enjoy My Starbucks Idea case…
Just a small paranthesis: if there is someone else out there that is a freak like me when it comes to purchasing things online 🙂 .. http://mashable.com/2012/01/16/zappos-phishing-scams/ you can never be too safe 🙂 …
Yes, I am a relatively late adopter of everything there is on the Internet, nor am I an enthusiast of creating my own things on-line even though I am starting to be more comfortable with the idea. And while we talk in class about designing your own shoes, and make your own T-shirt and Greeting Card etc. and customization of all sorts I’m thinking why do people need to do that? when there are designer and real creative people that will do it a million times better than us. For me the challenge is to find those people 🙂 ..(just a little thought)
So while I was researching for both the presentation on Thursday on the UnMe Jeans, and research for my thesis topic, I came across this blog and article about how Luxury Brands adopt and integrate Social Media into their marketing strategies. http://luxurysocialmedia.wordpress.com/2010/05/26/louis-vuitton-or-how-to-master-the-art-of-social-media/
I thought it was a nice example to complement the topic for the UnMe Jeans and the Web 2.0, and also just and interesting article to see how luxury brands are integrating social media and engaging with customers. and especially how the traditional definition of luxury had to radically change in the last couple of years.
Hope you all have a nice evening
I found this article about mass customization and though it might be interesting and helpful. Please click on the link to read it. http://blogs.forrester.com/jp_gownder/11-04-15-mass_customization_is_finally_the_future_of_products
It’s also nice to read what other people though of this article.
The most important thing about this article is that mass customization has always been under construction. Since 1977 it has been an idea but many companies failed to succeed in the strategy of mass customization, or implemented it all wrong.
In my opinion this is the time that mass custimization really comes through and companies have the knowledge to implement this strategy right so it will succeed. Examples of companies that have implemented the strategy just right are: Nike, Spreadshirt, Ponoko and Zazzle.
Also check this link for another interesting opinion. http://m.readwriteweb.com/biz/2011/04/user-customized-products-future-of-business.php
Robin van Zeijl
Freetime Check is an individual adviser for leisure activities. You get recommendations and suggestions for free time activities of any kind. You find similar people (sims) and friends on your platform. You get worldwide personalized recommendations based on your profile with your interests and hobbies. You get recommendations for nightlife, clubs, bars, theatres or concerts, that were well rated by people who are just like you. They recommend you following:
1) locations: restaurants, cafés, bars, clubs and cinemas;
2) entertainment items: music, movies and books;
3) events: musicals, concerts, theatres, sports.
I came across a mobile virtual network operator company, which gives free SIM cards, lets its customers decide their tariffs and generally speaking handles control over to their customers. As it is not right to copy-paste the whole post that I have found, i am posting the link of a blog that speaks about it. It is pretty interesting. Enjoy…http://thecustomerevolution.blogspot.com/2010/12/giffgaff-case-study-of-customers-in.html
SkinID is a new product that is based on unique customer needs. It is a personalized product for your skin. It works as following: On their website (www.skinid.com) you can evaluate your skin. You have to fill in some data like age, gender and skin type. Then there are some questions about your skin. The possible answers are very clear. After you have filled in 18 steps you get a personalized skin product just for you. I think this a good example of a product that uses consumers information to create the product itself. What do you guys think about it?
There are two sources of information. On one side, consumers possess information regarding their needs, preferences, tastes. On the other side, companies have information about their targets, capabilities, budget restrictions. Companies are trying to get access to consumers’ information. they want to know what they want, what they need, in order to offer the best match possible. Although advances in modeling allow for more accurate predictions of consumer choice behavior, there is still a lot left unknown. A lot is remained probabilistic. Continue reading Open Innovation & Lead Users
We have extensively talked about the advantages of offering personalized product recommendations to consumers. These recommendations increase consumers’ decision quality and save them a lot of effort. There are various approaches in personalized recommendation systems either based on past behavior or based on collaborative filtering techniques (see this article on different approaches of recommendation engines).
However, we have to take into account that sometimes personalized recommendations (especially when we passively receive them) feel quite invasive and consumers at some point ignore or even react. Think about the following situation: you visit a website X and look at a specific red t-shirt. You don’t buy it, yet you move continue your browsing. You send a couple of e-mails, you read the news and finally you log in to facebook. On the right banner, you see an ad with this red t-shirt you inspected 1 hour ago. Next morning, you open your computer, you search information about something you saw n TV last night. Google gives you 1million results in less than a second…plus, a red t-shirt on the right banner of Google ads.
Continue reading Dark Side of Personalization
Here is a great example on how co-creation is used in the entertainment industry. This project is called the Entertainment Experience where the audience is given the opportunity to make their own movie closely accompanied by acclaimed experts. The first three minutes of the script are given, but based on that the audience can create the remaining of the movie. Every part of the creation of the movie is done by the audience: script writing, acting, editing, directing etc. If you lack the talent to contribute directly to the movie, you still have the possibility to be involved because the audience votes on what will be used in the end movie. Together they will create the first user generated movie.
On the website – http://www.entertainmentexperience.com/ – there is a movie that explains how it works.
It will be interesting to see how successful the end result will be. Will this be the future for Hollywood?
I found this really interesting post and thought that it would be a great idea to share it with you since it is so in line with the content of the “Consumer Channel Dynamics” Seminar. I hope you will also find it interesting and enjoy! It shows that customer co-creation is important not only during the product’s designing but mostly during the every day life, when the product is actually used by consumers. It is during the every-day life that customer co-creation gives value to the customer himself!
One rich source of information on recent and upcoming trends, trendwatching.com , already in 2004 spotted a substantial rising trend regarding the phenomenon of companies working closely with consumers in order to create design, produce, develop or promote their products (Customer Made).
Shifting to the latest consumer trend report of January 2012, we can see that consumers’ active involvement in the value creation process is still thriving. Crowd-based problem solving is expected to be the core source of ideas, especially given that contributing will be more effortless than ever before (Idle Sourcing). One of the facilitating drivers is the increasing capabilities of the available interfaces. Screens are expected to be more interactive and consistently on (and online within “the cloud”) (Screen Culture). Even in situations that were considered difficult to “intrude”, consumers are becoming increasingly active and powerful. Health related mobile applications and online interfaces, gives the opportunity to consumers (patients) to satisfy their implicit desire for control by discreetly tracking and managing their health on their own (DIY Health).
In the old times, consumer decision making was simple. Consumers had access to limited (but easily handled) information and only a few channels to look for products. The competition was less intense and consumers could have strong preferences among the clearly distinguished alternatives. However, times have changed and the digitization as well as the need for individualization in modern economies have made the situation a bit more complex. The following video (from the advertising company Scholz & Friends) offers a nice illustration of the evolution of marketing throughout the last decades.
The costs of computing power and telecommunications have been dramatically reduced and, in this information intensive economy, products and services have been extensively digitized. In addition, consumers are becoming more and more knowledgeable and demanding and contact firms in many different situations. These consumers require the formation of tailored value creation systems to better match their needs. The emerging challenge for firms is how to best support and activate consumers and also learn about their product needs? Increasingly firms and consumers work closely together in the value creation process. Firms such as Dell and Nike allow their customers to tailor products to their own taste. Other firms like Amazon and Facebook rely heavily on consumer input to create value for other consumers. To be successful, these new business models often use non-conventional marketing channels, and strongly rely on new information technology such as the Internet and mobile technology to interact with consumers.
Continue reading Welcome to Consumer Channel Dynamics