Learning from users for radical innovation

In today's environment of rapid technological change companies can not rely on incremental innovations alone. To sustain long-term competitiveness companies need to develop radical innovations as well. Such innovations typically incorporate new and highly complex technologies, create new markets or shift existing market structures, and require user learning as they often induce significant behaviour changes on side of the users. To systematically develop radical innovations firms need to involve the proper actors. One such important external actor in the development process of new products is the user. Our study focuses on the question what kind of users are able to actively contribute to the development of radical innovations and what firms can learn from them to improve their innovative capability. A multiple case study analysis was conducted in the field of medical technology. Five radical innovation projects were selected including medical robots and computer-assisted navigation systems. The case study analysis reveals that users with a unique set of characteristics can contribute substantially to the development of radical innovations. These users have a high motivation toward new solutions, are open to new technologies, possess diverse competencies, and are embedded into a very supportive context. Manufacturers that took over the ideas and prototypes of the inventive users benefited significantly. By learning from these users, firms were able to significantly improve their radical innovative capability. The paper contributes to technology and innovation management research in two ways. First, by exploring critical user characteristics for distinct phases of the radical innovation process, we provide first insights how manufacturing firms can more effectively identify and leverage valuable users for their radical innovation work. Thereby, we highlight the involvement of capable users as an effective learning mechanism to improve the radical innovation capability of a firm. Second, new perspectives on lead user research are provided by enriching the lead user concept with other crucial characteristics of innovative users. --Produktinnovation,Produktentwicklung,Benutzer / Beteiligung

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

Exploring the nature and implementation process of IT-based user-centric business models

Recent advances in information and communication technologies have allowed companies to interact with external stakeholders, especially users, in a very efficient and effective way. As a result, more and more companies are striving to take advantage of these new opportunities and to harness the creative potential of their users by integrating them into core business processes. Successful companies like Threadless or Dell, which were designed to allow user innovation and co-creation from the outset, clearly demonstrate the potential value of such approaches. However, the introduction of user-centric value creation processes at established companies is a rather complex task, as it requires major adaptations to traditional manufacturer-centered business models. At present, little is known about how established companies can successfully implement user-centric business models. In this paper, we therefore explore (1) the success factors for attracting and engaging users in core business processes, and (2) effective strategies to overcome internal resistance when established companies introduce user-centric business models. We apply a multi-case comparison methodology between three well-known companies (LEGO, IBM and Coloplast) which have successfully integrated users into their core business processes. We find that the successful implementation of user-centric business models requires a comprehensive approach encompassing not only an appropriate social softwaredesign, but also a transparent intellectual property policy, proper incentive systems, evolutional learning and nurturing as well as employee empowerment

Designing the Organization for User Innovation

There is increasing consensus among practitioners and academics alike that we are in the midst of a paradigm shift from producer-centered and internal innovation processes toward user-centered and open innovation processes. This paradigm shift induces significant changes to the design of organizations. Even though the research field of user innovation has been developing over a period of more than four decades, there have been only occasional intersections with the research field of organizational design. In this paper we aim to provide an integrated perspective of the two fields. We first identify major user innovation strategies. We then derive the implications of each user innovation strategy on key dimensions of organizational design. We conclude with an outlook on symbiotic producer-user ecosystems and the corresponding implications for organizational design

Designing the Organization for User Innovation

There is increasing consensus among practitioners and academics alike that we are in the midst of a paradigm shift from producer-centered and internal innovation processes toward user-centered and open innovation processes. This paradigm shift induces significant changes to the design of organizations. Even though the research field of user innovation has been developing over a period of more than four decades, there have been only occasional intersections with the research field of organizational design. In this paper we aim to provide an integrated perspective of the two fields. We first identify major user innovation strategies. We then derive the implications of each user innovation strategy on key dimensions of organizational design. We conclude with an outlook on symbiotic producer-user ecosystems and the corresponding implications for organizational design