MADE.com; shifting the power of creativity to consumers


“The 3 Cs of modern creativity are Community, Crowdsourcing and Co-creation”- Jon Wilkins

MADE.com , what is it?
MADE.com, located in London and launched in 2010, is a brand that designs and retails furniture online and via several showrooms across Europe. MADE.com is known by its high frequency of two releases of new collections per week and not owing their own factories. Instead, they give factories instructed to meet orders. More importantly, the most fascinating thing about MADE.com is the way they actively involve customers. (MADE.com, 2017)

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Business model – How it works
MADE.com shifts the power of creative innovation to stakeholders in two remarkable ways, so customers and designers create most of the value. First, customers decide which designs go into production by voting on them (key resource and process). The most popular designs make it to the production facility. By using crowdsourcing for physical design purposes, MADE.com applies a co-creator model (Chui et al., 2016). Second, MADE.com created a service called “Made Unboxed”. The idea behind MADE Unboxed is that customers upload photos of their interior designed by MADE.com, with the purpose to inspire other customers (key resource and process). Consumers can now look at items in a real environment, without going to a showroom. Moreover, the online community nominates some home designs to serve as a showroom. Everyone who is interested can visit designs at the “interior designers” homes. This adds the extra service of touching and feeling the items, instead of only viewing the items (Customer Value Proposition). This short video, which serves as an overview of the services offered by MADE Unboxed, shows that cities are covered with multiple mini MADE.com showrooms. (MADE.com, 2017; Myndset, 2015; Johnson et al.,2008)

Moreover, their crowdsource initiatives go even further. MADE.com also organizes an annual online contest that is similar to LEGO ideas (Mladenow et al., 2015). The Made Emerging Talent Award is a contest in which promising upcoming designers are able to submit their ideas (Customer Value Proposition). The ideas will be judged based on the number of votes given by other designers and customers. Obviously, the designs with the most votes wins the contest.  After the contest, MADE.com takes the winning design ideas into production and adds them to their product line for the next 12 months (Profit formula).

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Efficiency criteria; Win-win-win situation
With the current structure of the contest and MADE Unboxed, designers, customers as well as Made.com benefit from it in distinctive ways. The designers get exposure and maybe even a career boost if they win (see video  for further explanation). Customers vote and can thereby give direction to which designs they would like to see for sale (i.e. efficiency benefit). Finally yet importantly, Made.com benefits from all the votes and uploaded ideas because it gives them certainty that they produce the most desired furniture. In addition, because of all the mini showrooms, MADE.com does not need to have many showrooms themselves, resulting in lower asset costs. It clear that this business model results in joint profitability for all parties.

MADE.com also satisfies the feasibility of required reallocations criteria. Het polity is not invloved and terms regarding what is allows and what not need to be accepted by stakeholders.

 

 

Sources:

Chui, C., Liang, T. & Turban, E. (2016) What can crowsourcing do for decision support?. Journal of Decision Support Systems, 65: 40-49

Johnson, M.W., Christensen, C.M. & Kagermann, H. (2008). Reinventing your business model. Harvard Business Review, 86(12): 50-59

MADE.com (2017) MADE.com. Available at: http://www.made.com/about-us. Accessed on 14/02/2017

Mladenow, A., Bauer, C., Straus, C. & Gregus, M. (2015) Collaboration and Loyalty in Crowdsourcing. International Conference on Intelligent Networking and Collaborative Systems.

Myndset (2015) Available at: http://myndset.com/2015/04/digitail-experience-made/. Accessed on 14/02/2017

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