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Living Labs
                   esteve almirall
        esteve.almirall@esade.edu
“Innovation isn’t what
innovators do. It’s
what customers adopt”
!”
        Michael Schrage, MIT
<1>What?
Living Labs =
co-creation with users early on in
         the development




    in real-life environments
teleictus
Teleictus (2007 – 2009)
implementation of a system for remotely diagnosing
and treating ictus (brain stroke).

Pre-Commercial Gap
       −  Inexistence of a complete solution.
       −  Availability of High Speed infrastructure.
The Role of Users
       −  Existence of a “Champion”.
       −  Co-creation of the service.
       −  Co-creation of parts of the solution.
The Role of the Living Labs organization
       −  Creation of an “innovation arena”.
       −  Selection, Formation & Coordination
       −  Fostering co-creation.
<2>Living Labs as
   Open Innovation
   Intermediaries
Open Innovation
?
who invented the mountain bike
Sources of New Ideas and Innovation
           External                                                      Internal
                       Business partners             Employees
                                            (general population)
                       Customers           Sales or service units

                       Consultants                R&D (internal)

                       Competitors                         Other
                       Associations,
                       trade groups,                Think tanks
                       conference boards
                                                 Internet, blogs,
                       Academia
                                                 bulletin boards
45%   35     25   15                                                             15                  25                  35                 45%



                                                                    IBM	
  Global	
  Benchmarking	
  Program	
  	
  |	
  	
  IBM	
  2006	
  	
  |	
  
Open Innovation
Living Labs as an
Open Innovation Intermediary
that aims to provide structure and
governance to user involvement
<3>Why users ?
R & D ?
high level


                                     mid level   products and services


                                                    ground level

           high level
know how




           mid level


  ground level
1. Science is global.
    a) Ideas.
    b) People.
    c) Technologies.

2. Diffusion fostered by
   “publish or perish”.

3.  Much of it is PUBLIC.
Kleiner Perkins Portfolio (81 companies)

49 (60%) develop mid-level goods and services for
    use by other business.
    23 developing enterprise software
    6 instruments used in hospitals
    20 IT equipment
19 Ground level consumer goods and services
    3 network / community companies
    2 e-commerce
    2 providers of information (mobile)
    1 distributor of movies over the Internet
    1 photoneumatic therapy
    1 financial services
    1 restaurant guide (Zagat)
    4 developing treatments
13 high level products and services
    6 alternative energy companies
    1 fuel cells
    1 portable electronic devices
    1 codecs
    4 semiconductor industry
    1 bio-technology
User Contributions

   1.  Living Labs observe user-lead practice in
       diffuse social contexts.
   2.  Living Labs identify and codify tacit and
       practice based knowledge.
   3.  Living Labs diffuse tacit and practice
       based knowledge into ad-hoc innovation
       networks.
   4.  Living Labs operate at mid-low level
       innovation strata.
<4>Why real-life
   environments ?
In a complex, multi-stakeholder
   environment is not about
 finding the right answers, is
    about finding the right
           questions
Product evolution or Interpretation of meaning

    1.  Living Labs perform context-based experimentation
        in order to generate local modifications within
        existing socially negotiated meanings.
    2.  Living Labs perform context-based experimentation
        in order to generate new socially negotiated
        meanings for products and services.
<5> Innovation as a
   societal process
   where adoption
   plays an important
   role
how did


   ?
we get
here
Who is going to buy an overpriced
($400 in 2001), low capacity (5GB),
cheap plastic look, proprietary,
with a 2” monochrome screen, music
player with no usb (firewire only)
support, no windows support, no
replaceable battery that only
lasts 10h.?
World’s spending in electronics by country -2007
                     New York Times – Sept 4, 2008
                      (data source Euromonitor Intl.)
2001   2007   2009
1)  Sophisticated users.
2)  Eager to try new & pretty
    imperfect things.
3)  Adopt them & integrate
    them in their daily lives.
4)  Changing lifestyles and
    providing meanings.
<6>Mapping Living
   Labs
Lead Users
Human Factors
Ergonomics
Usability Testing
Open Source
Participatory Design
Design Driven Innovation
Design Thinking
Applied Ethnography
Living Labs
users as co-creators




lab like                                real life
settings                                environments




           users as subjects of study
users as co-creators




       lab like                                real life
       settings                                environments




user driven
participatory
design driven
user centered     users as subjects of study
users co-create
                Lego Mindstroms   Highly involved
User driven                                  knowledge


Participatory            need for user
                        involvement in
Collaborative        capturing knowledge
                          from users
User centered
                Google on-line
                 experiments
Traditional
                                  No involvement
                                             information
                  users passive subjects
Lab-like settings                 Real life environments




  understanding                    surfacing
   preferences                       needs
                                   and tacit
                                   knowledge


                      type of 
                    knowledge
Living labs


      {
         Validate fit
         Discover new uses/meaning
         Codify – context specific
                - preferences

              Exploration


         Knowledge Capture


        {
         surfacing needs/preferences
         domain specific
         Tacit knowledge
Living labs

                Exploration


            Knowledge Capture

  Fit+ experiment !
   ü  Technological
   ü  Social (needs, interface, preferences, meaning)
   ü  Economic (Business Model, Sustainability)
esteve	
  almirall	
  
esteve.almirall@esade.edu	
  

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Mapping Living Labs Esteve Almirall

  • 1. Living Labs esteve almirall esteve.almirall@esade.edu
  • 2. “Innovation isn’t what innovators do. It’s what customers adopt” !” Michael Schrage, MIT
  • 4. Living Labs = co-creation with users early on in the development in real-life environments
  • 6.
  • 7. Teleictus (2007 – 2009) implementation of a system for remotely diagnosing and treating ictus (brain stroke). Pre-Commercial Gap −  Inexistence of a complete solution. −  Availability of High Speed infrastructure. The Role of Users −  Existence of a “Champion”. −  Co-creation of the service. −  Co-creation of parts of the solution. The Role of the Living Labs organization −  Creation of an “innovation arena”. −  Selection, Formation & Coordination −  Fostering co-creation.
  • 8. <2>Living Labs as Open Innovation Intermediaries
  • 10. ? who invented the mountain bike
  • 11.
  • 12. Sources of New Ideas and Innovation External Internal Business partners Employees (general population) Customers Sales or service units Consultants R&D (internal) Competitors Other Associations, trade groups, Think tanks conference boards Internet, blogs, Academia bulletin boards 45% 35 25 15 15 25 35 45% IBM  Global  Benchmarking  Program    |    IBM  2006    |  
  • 14. Living Labs as an Open Innovation Intermediary that aims to provide structure and governance to user involvement
  • 16. R & D ?
  • 17.
  • 18.
  • 19.
  • 20. high level mid level products and services ground level high level know how mid level ground level
  • 21. 1. Science is global. a) Ideas. b) People. c) Technologies. 2. Diffusion fostered by “publish or perish”. 3.  Much of it is PUBLIC.
  • 22. Kleiner Perkins Portfolio (81 companies) 49 (60%) develop mid-level goods and services for use by other business. 23 developing enterprise software 6 instruments used in hospitals 20 IT equipment 19 Ground level consumer goods and services 3 network / community companies 2 e-commerce 2 providers of information (mobile) 1 distributor of movies over the Internet 1 photoneumatic therapy 1 financial services 1 restaurant guide (Zagat) 4 developing treatments 13 high level products and services 6 alternative energy companies 1 fuel cells 1 portable electronic devices 1 codecs 4 semiconductor industry 1 bio-technology
  • 23. User Contributions 1.  Living Labs observe user-lead practice in diffuse social contexts. 2.  Living Labs identify and codify tacit and practice based knowledge. 3.  Living Labs diffuse tacit and practice based knowledge into ad-hoc innovation networks. 4.  Living Labs operate at mid-low level innovation strata.
  • 24. <4>Why real-life environments ?
  • 25.
  • 26. In a complex, multi-stakeholder environment is not about finding the right answers, is about finding the right questions
  • 27. Product evolution or Interpretation of meaning 1.  Living Labs perform context-based experimentation in order to generate local modifications within existing socially negotiated meanings. 2.  Living Labs perform context-based experimentation in order to generate new socially negotiated meanings for products and services.
  • 28. <5> Innovation as a societal process where adoption plays an important role
  • 29.
  • 30. how did ? we get here
  • 31.
  • 32. Who is going to buy an overpriced ($400 in 2001), low capacity (5GB), cheap plastic look, proprietary, with a 2” monochrome screen, music player with no usb (firewire only) support, no windows support, no replaceable battery that only lasts 10h.?
  • 33. World’s spending in electronics by country -2007 New York Times – Sept 4, 2008 (data source Euromonitor Intl.)
  • 34. 2001 2007 2009
  • 35. 1)  Sophisticated users. 2)  Eager to try new & pretty imperfect things. 3)  Adopt them & integrate them in their daily lives. 4)  Changing lifestyles and providing meanings.
  • 37. Lead Users Human Factors Ergonomics Usability Testing Open Source Participatory Design Design Driven Innovation Design Thinking Applied Ethnography Living Labs
  • 38. users as co-creators lab like real life settings environments users as subjects of study
  • 39. users as co-creators lab like real life settings environments user driven participatory design driven user centered users as subjects of study
  • 40.
  • 41. users co-create Lego Mindstroms Highly involved User driven knowledge Participatory need for user involvement in Collaborative capturing knowledge from users User centered Google on-line experiments Traditional No involvement information users passive subjects
  • 42. Lab-like settings Real life environments understanding surfacing preferences needs and tacit knowledge type of knowledge
  • 43. Living labs { Validate fit Discover new uses/meaning Codify – context specific - preferences Exploration Knowledge Capture { surfacing needs/preferences domain specific Tacit knowledge
  • 44. Living labs Exploration Knowledge Capture Fit+ experiment ! ü  Technological ü  Social (needs, interface, preferences, meaning) ü  Economic (Business Model, Sustainability)
  • 45.