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Co-creating with end users


          Sami Oinonen
          February 2, 2009



Company Confidential
Topics


              • What is co-creation
              • Why it matters
              • Co-creation at Nokia
              • Lessons learned




Company Confidential
Co-creation

              • When passionate, skillful and innovative
                       end users create and modify products,
                       processes and business models either
                       with or without corporations

              • They are so called “Lead Users”. They are
                       ahead of all adopter groups on an
                       innovation diffusion curve

              • They create something new,
                       substantially different. Something that
                       no firm has developed a commercial
                       version for sale yet.




Company Confidential
I made this!




Company Confidential
Why it matters
              • Manufacturer’s dilemma #1: Understanding
                       and anticipating end users’ needs is
                       expensive.

              • => It makes economical sense to integrate
                       users at the front of the trend to corporate
                       product development as they are able to
                       imagine the future

              • Manufacturer’s dilemma #2: Product
                       development is expensive

              • => Parallel involvement of highly qualified
                       users and product development team
                       improves the iteration loop and handovers



Company Confidential
Why it will matter
              • Emerging self-organizing collaboratives
                       and community brands => Brands
                       offering products to markets OR markets
                       creating sophisticated products to
                       challenge brands?

              • Digital native generation has different
                       expectations towards brands

              • Personalization as a mega trend => mass
                       customization as a basic requirement to
                       compete

              • Rapid manufacturing becoming
                       economically feasible. Personal
                       fabrication emerging.



Company Confidential
Co-creation at Nokia
              • 2006: Brought in through an internal management
                       training program. quot;Let's figure out whether Lego
                       approach works for us.quot;

              • 2007-2008: Some 10 product development
                       projects

              • February 2009: Established practice
                       complementing conventional product
                       development in our most important product lines

              • Used both in category and product-level
                       development as well as in validation

              • KPIs: R&D hit rate & efficiency


Company Confidential
Co-creation, high-level




Company Confidential
Co-creation process




Company Confidential
Lessons learned
              • Strategic fit with overall innovation
                       management

              • Internal commitment: Involve
                       marketing research, design, R&D,
                       product management from the day 1

              • Ensure that there is room for radical
                       innovations and will to drive the
                       innovations, ...and change the road map

              • Foster sharing of ideas, be transparent
              • Success stories and spill over are a
                       mechanism to drive a broader
                       operational change towards open, multi-
                       disciplinary and bottom-up


Company Confidential
Company Confidential
Thank you!




Company Confidential
Evolution of user involvement
             Value




                               Community brand             Wikipedia



                       User enterprise - Brand supported    Ponoko



                        User-developed - User published      Lego



                       User-developed - Brand published     Zazzle



                        Co-developed - Brand published      Nokia



                                                             IKEA
                       Brand developed - Brand published


            Volume

Company Confidential

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U D O I, Sami Oinonen, Nokia, Feb 2, 2009

  • 1. Co-creating with end users Sami Oinonen February 2, 2009 Company Confidential
  • 2. Topics • What is co-creation • Why it matters • Co-creation at Nokia • Lessons learned Company Confidential
  • 3. Co-creation • When passionate, skillful and innovative end users create and modify products, processes and business models either with or without corporations • They are so called “Lead Users”. They are ahead of all adopter groups on an innovation diffusion curve • They create something new, substantially different. Something that no firm has developed a commercial version for sale yet. Company Confidential
  • 4. I made this! Company Confidential
  • 5. Why it matters • Manufacturer’s dilemma #1: Understanding and anticipating end users’ needs is expensive. • => It makes economical sense to integrate users at the front of the trend to corporate product development as they are able to imagine the future • Manufacturer’s dilemma #2: Product development is expensive • => Parallel involvement of highly qualified users and product development team improves the iteration loop and handovers Company Confidential
  • 6. Why it will matter • Emerging self-organizing collaboratives and community brands => Brands offering products to markets OR markets creating sophisticated products to challenge brands? • Digital native generation has different expectations towards brands • Personalization as a mega trend => mass customization as a basic requirement to compete • Rapid manufacturing becoming economically feasible. Personal fabrication emerging. Company Confidential
  • 7. Co-creation at Nokia • 2006: Brought in through an internal management training program. quot;Let's figure out whether Lego approach works for us.quot; • 2007-2008: Some 10 product development projects • February 2009: Established practice complementing conventional product development in our most important product lines • Used both in category and product-level development as well as in validation • KPIs: R&D hit rate & efficiency Company Confidential
  • 10. Lessons learned • Strategic fit with overall innovation management • Internal commitment: Involve marketing research, design, R&D, product management from the day 1 • Ensure that there is room for radical innovations and will to drive the innovations, ...and change the road map • Foster sharing of ideas, be transparent • Success stories and spill over are a mechanism to drive a broader operational change towards open, multi- disciplinary and bottom-up Company Confidential
  • 13. Evolution of user involvement Value Community brand Wikipedia User enterprise - Brand supported Ponoko User-developed - User published Lego User-developed - Brand published Zazzle Co-developed - Brand published Nokia IKEA Brand developed - Brand published Volume Company Confidential