Users as inventors and developers of radical innovation: An explorative case study analysis in the field of medical technology

Our study focuses on the question, whether users should be intensively involved in the innovation process of radical product innovations or better not - from the manufacturer's perspective. Radical innovations incorporate new technologies, shift market structures, require intensive user learning and induce significant behavior changes. Due to these specifics the question arises, whether users play a productive role in the innovation process of radical innovations at all, or if their contributions might even be counterproductive. To gain a better understanding for the users' role in radical innovation and to develop a differentiated view of their contributions, we have studied three dimensions of user involvement were studied: (1) Which characteristics enable users to contribute to the innovation process? (2) How do manufacturers need to interact with users to benefit from their contributions? (3) How does user involvement impact on the manufacturer? We focused our study on the early phases of the innovation process. Two phases were distinquished for the analysis of these questions: Idea gen-eration and development. This distinction allows us to analyse the role of users within separate phases of the innovation process. Based on relevant theories and empirical work a set of propositions was formulated for each dimension. To study the addressed research questions, an explorative case study analysis was conducted in the field of medical technology. Five radical innovation projects were selected including medical robots, navigation systems, and biocompatible implants. In-depth inter-views were conducted with marketing, R&D, project leaders, CEO's, and users. A content analysis framework was applied to systematically analyse the collected data. The case studies reveal that users with a unique set of characteristics (motivation, competencies, contextual factors) were able to deliver major contributions in all three phases of the radical innova-tion projects. In four cases users turned out to be the original inventor of the radical innovations. Particularly users that work under extreme conditions (e.g. neurosurgeons) prooved to be a valuable source for radically new ideas. Furthermore the cases show that the innovative users took over classi-cal functions of manufacturers in the development process. For example the innovative users identified relevant experts and manufacturers that were required to transform their ideas into prototypes and products. These users therefore took over the networking function. some users were able to actively contribute to the development of first prototypes. A unique set of characteristics enabled users to do so. With regard to appropriate patterns of interaction between users and manufacturers the analysis reveals that face-to-face-interactions are required. This is due to the nature of information that is transferred. The information provided by users and by manufacturers is highly complex. Therefore explanations and visualisations are needed to gain an understanding on either side. In addition the analysis shows that it seems to be appropriate to interact with a small, well selected number of users in early phases and to increase the number of involved users as the project gets closer to market introduc-tion. In four cases specific users contributed significantly to NPD success. Based on the results of the study, the recommendation for manufacturers is to leverage the knowledge of users with certain char-acteristics for radical innovation projects. The results of our study form the basis of a market research concept for radical innovations. --innovation process,product innovation

Innovation search fields with Lead Users

Close orientation with the market is essential for innovation success! Although both academics and market research practitioners would generally agree with this statement, alignment with the needs of the customer often results in conservative innovation strategies. Due to their focus on what is currently on offer in the marketplace, customers primarily demand small, step-wise developments - so-called incremental innovations. This dilemma can be overcome through with the help of particularly advanced customers (Lead Users). The Lead User method aids companies in capitalizing on the innovative potential of these highly qualified customers. A case study with the German firm, Johnson & Johnson Medical GmbH, demonstrated that Breakthrough Innovations are achievable this way. -- Kundenorientierung ist entscheidend für den Innovationserfolg! Obwohl dem Wissenschaftler und Praktiker in der Marktforschung grundsätzlich zustimmen dürften, ist mit der konsequenten Ausrichtung auf die Kundenbedürfnisse gleichzeitig der Nachteil einer konservativen Innovationspolitik verbunden. Kunden fördern durch ihre Fixierung auf aktuelle Marktangebot primär kleine Weiterentwicklungen, d.h. inkrementale Innovationen. Dieses Dilemma kann mit Hilfe besonders fortschrittlicher Kunden (Lead User) überwunden werden. Die Lead User Methode hilft Unternehmen dabei, das innovative Potential dieser hochqualifizierten Kunden zu nutzen. Eine Fallanwendung mit der Johnson&Johnson Medical GmbH demonstriert, wie auf diese Weise Ansätze für radikale Innovationen erarbeitet werden können.Produktentwicklung,Produktinnovation,Marktforschung,Lead User

Management of "technology push" development projects

Discussion of market pull versus technology push approaches in the field of busi-ness innovation research has followed a certain trend. The empirical research under-taken until now has been concerned in particular with the question of how each of these approaches differently influence the subsequent success of the innovation. We do not wish to continue this discussion in our paper, rather we assume that both ap-proaches are justified depending upon the importance of the relevant innovation source, the desired degree of innovation and the respective characteristics of the industry in question. We concern ourselves with the characteristics that result in the technology push for the management of innovation projects and what implications can be derived from practical project management organization. In doing so, we concentrate upon all market-related activities, in particular the identification and verification of application areas for new technology. After contrasting the various characteristics of the technology push and market pull approaches, the market-related characteristics of technology push projects are outlined. In this context, current instruments and methods of qualitative market re-search are introduced and their usefulness discussed. In addition, organizational-structural aspects as well as strategic and operative aspects of technology push pro-ject management will be highlighted. -- Die Diskussion Market Pull versus Technology Push hat in der betriebswirtschaftlichen Innovationsforschung bereits eine gewisse Tradition. Die hierzu durchgeführten empirischen Untersuchungen sind insbesondere der Frage nachgegangen, welche der beiden Vorgehensweisen welchen Einfluss auf den späteren Innovationserfolg hat. Wir wollen mit unserem Beitrag diesen Aspekt der Diskussion nicht erneut aufnehmen, sondern gehen davon aus, dass grundsätzlich beide Innovationsansätze, je nach Bedeutung der relevanten Innovationsquelle, angestrebtem Innovationsgrad und den jeweils vorliegenden Charakteristika der betrachteten Industrie, ihre Berechtigung haben. Die Frage, die uns interessiert, ist vielmehr, welche Besonderheiten sich insbesondere bei dem Technology Push-Ansatz für das Management der Innovationsprojekte ergeben und welche Implikationen sich hieraus für die Gestaltung des konkreten Projektmanagements ableiten. Hierbei konzentrieren wir uns auf alle marktbezogenen Aktivitäten, insbesondere die Identifikation und Verifikation von Applikationsgebieten für neue Technologien. Nach einer Gegenüberstellung der Charakteristika von Technology Push und Market Pull werden zunächst die marktseitigen Besonderheiten bei technologie-getriebenen Entwicklungsprojekten skizziert. In diesem Zusammenhang werden aktuelle Instrumente und Methoden der qualitativen Marktforschung erläutert und im Hinblick auf ihre Nützlichkeit diskutiert. Darauf aufbauend werden strukturorganisatorische, strategische sowie gestaltungstechnische Aspekte des Managements technologie-getriebener Projekte herausgestellt. Technology Push ; MarketingTechnology Push,Marketing

Synergies among Producer Firms, Lead Users, and User Communities: The Case of the LEGO Producer-User Ecosystem

While many firms today proactively involve users in their new product development efforts using a wide variety of methods such as the lead user method, firm-hosted user communities, or mass customization toolkits, some pioneering firms are experimenting with the creation of sustainable producer-user ecosystems designed for the continuous exploration and exploitation of business opportunities. In this paper, the functioning of such ecosystems is studied with particular emphasis on the synergies they can yield. Based on an explorative and longitudinal multiple case study design, the producer-user ecosystem of the firm LEGO is analyzed, and three main actors in the ecosystem are identified: entrepreneurial lead users who aim to start their own businesses, a vibrant user community, and the LEGO company as the focal producer firm and facilitator for multiple user-to-user and user-to-producer interactions. Our study reveals three kinds of synergies: (1) reduced risk for entrepreneurial lead users and the focal producer firm, (2) the extension of the design space of the focal producer firm's products, and (3) the creation of buzz within the user community. Finally, the theoretical and managerial implications of our findings for innovation researchers and practitioners are discussed. (authors' abstract

Knowledge distribution among market experts: A closer look into the efficiency of information gathering for innovation projects

Information gathering from sources outside the company plays a critical role in most innovation projects. Particularly, it seems promising to approach external market experts to develop an indepth understanding of current use problems, changing customer needs and trends for new product solutions. When planning expert interviews, firms are confronted with the question whether knowledge is distributed rather homogeneously or heterogeneously ("scattered") among a pool of experts. This issue strongly determines how many experts need to be interviewed in order to develop a comprehensive understanding of a given search field for innovation. In the present paper we analyse expert interviews that were conducted in the context of an innovation project in the field of surgical hygiene products. We find high heterogeneity of expert knowledge: Market experts in our sample vary in terms of market information they provide for the particular product field. We argue that this finding is in alignment with the concept of "bounded rationality" and the theory of "contextual development of knowledge". Our findings have implications for the management of external information gathering and the identification of market experts.(author's abstract

Heavy Medal - The Consequences of Introducing Symbolic Awards on Contribution Behavior in Online Communities

Online communities, like Wikipedia and Stack Overflow, have made a vast repository of knowledge available as a public good. However, they suffer from under-contribution in terms of quantity and quality. To tackle this issue, online communities have increasingly been relying on gamification, the use of game elements in non-game settings, to incentivize their members. The consequences of introducing such features on members’ behavior have remained elusive—partly due to the lack of controlled experiments. Herein, we take advantage of a natural experiment in which a technical online community introduced gamified rewards, which are awarded contingent on performance thresholds—termed performance contingent symbolic awards. Employing a difference-in-differences design using a comparable online community as a control group, we find that the introduction of performance contingent symbolic awards has a negative impact on the contribution behavior overall and that experienced members reduce their contribution quantity while inexperienced members reduce their contribution quality

The Social Network Position of Lead Users

The field of lead user research has seen a great deal of attention from academics and practitioners alike. However, we still lack a full understanding of the nature of users with high potential for innovation. In this paper, we employ a social network perspective on lead users. Increasing the realism of our research in three empirical studies with different empirical settings and methods, we provide robust evidence that lead users have a distinctive social network position: They exhibit an unusually high level of "betweenness centrality", meaning that they are positioned as bridges between different social groups. This finding has two major implications for lead user theory. First, it consolidates seminal conceptual work on lead users and their embeddedness in social networks. And second, the findings extend and validate prior work on the social network perspective of lead users by combining theoretical insights from cognitive psychology, research on creativity, and network theory. As the social network positions of individuals can be mapped quickly and at low cost with modern Web mining tools, our findings may point to a new and readily applicable approach for the efficient and effective identification of lead users in real-life projects, an aspect that is usually emphasized as the most crucial activity in lead user projects. (authors' abstract

What Do Crowd Equity Investors Do? Exploring Post-Investment Activities in Equity Crowdfunding

Equity crowdfunding has become a viable alternative to the traditional forms of financing technology startups. This survey-based two-study article aims to shed light on the prevalence of crowd equity investors’ postinvestment activities and the antecedents to these engagement activities. Our first study finds that most crowd equity investors engage with the startups in which they invest in some way. While the majority engage in low-involvement activities (e.g., word of mouth), a smaller number of crowd equity investors also engage in high-involvement activities (e.g., strategic advice). Our second study reveals that engagement in these activities is driven by investment-, investor-, and proximity-related factors. In particular, the amount of investment—despite its smallness compared with that in the traditional forms of funding—is a reliable antecedent of crowd equity investors’ engagement in postinvestment activities. Furthermore, age and geographic proximity are positively associated with low-involvement activities, whereas intrinsic motivation and personal proximity are positively linked to high-involvement activities. By providing insights into the prevalence of postinvestment activities in equity crowdfunding and their antecedents, this article contributes to the debate on the potential of equity crowdfunding to complement or even replace the traditional forms of funding technological innovation

Customer Interaction and Innovation in Hybrid Offerings:Investigating Moderation and Mediation Effects for Goods and Services Innovation

Hybrid offerings are bundles of goods and services offerings provided by the same firm. Bundling value offerings affects how firms innovate, interact with customers, and customize their goods and services. However, it remains unclear how customer interaction might drive the innovation performance of various bundled components. Therefore, this study investigates the effects of customer interactions and service customization on both goods and services innovations in a hybrid offering context, using a unique data set of 146 information technology and manufacturing firms. Customer interaction appears beneficial to both goods and services innovation in a hybrid offerings context, but service customization has different direct effects on goods versus services innovation. As a potential mediator, customer knowledge mobilization resources exert different effects on the goods and services elements of hybrid offerings. Furthermore, for high-interaction customers, medium levels of technical modularity lead to most favorable innovation outcomes for services innovation. The results thus suggest that providers of hybrid offerings should foster customer interactions, to drive the innovation performance of the good and service components, while still making sure to implement service customization strategies. These findings have notable implications for service innovation research