One of the most interesting emerging ideas in business today is tapping into user communities for innovative ideas. Open source software offers a prime example of this sort of citizen innovation (a phrase I may be stealing from someone, but if so, it’s inadvertent). Software isn’t the only place it’s happening: a quick look at Eric von Hippel’s Democratizing Innovation shows that the idea works for all sorts of businesses.
McKinsey in this registration-required post The Next step in open innovation weighs in with judicious optimism on the concept, which it calls “distributed cocreation.”
The post draws on lessons from companies that use cocreation, like Apple, Boeing and Lego, as well as smaller firms like Threadless, a U.S. fashion company heavily focused on t-shirts, and Missha, a South Korean cosmetics maker.
Here are the challenges it’s observed:
1) how do you get cocreationists to work for you? Money is one answer, of course, “but other participants can be inspired to cocreate by mechanisms like community recognition.”
2) How do you present problems for cocreationists to work on? Break down your problems into pieces that can be worked on simultaneously, McKinsey advises. “Otherwise, it will be impossible for a critical mass of participants to cocreate effectively.”
3) How do your govern your cocreationists? You need rules, leaders, and ways to set goals and resolve conflicts that are clear to everyone who gets involved.
McKinsey says this is still an early area, where most companies are barely experimenting:
Even the most advanced businesses are just taking the first few steps on a long path toward distributed cocreation. Companies should experiment with this new approach to learn both how to use it successfully and more about its long-term significance. Pioneers may have ideas about opportunities to capture value from distributed cocreation, but fresh ones will appear. To benefit from them, companies should be flexible about all aspects of these experiments.
I think the trend has traveled a ways down the path, far enough to take a break for a Clif Bar. Nonetheless, this piece offers much to think about, especially for those who are on the fence about opening up their innovation process to outsiders.
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