A central challenge for firms pursuing superior performance in innovation is 
accessing, mobilizing, and combining 
widely distributed knowledge to solve current local problems
 Schumpeter

1. INNOVATION POWER
OF COMMUNITIES
Marketing la puterea X
25 Aprilie 2014
Iulian Padurariu

2. With Every Threat
There's an Opportunity

3. Iulian Padurariu
• Marketing Background (1997)
• Business Development Consultant (2005)
• Specialization in Entrepreneurship & Innovation

4. MARKS
www.themarks.ro

5. PROIECTE

6. Community Experience
• Clubul Intreprinzatorului Român (2007)
• Clubul Regal al Medicilor (2012)
• Asociatia “Dental Office Managers” (2014)

7. INNOVATION &
STRATEGY

8. RIGHT
PEOPLE…

9. “No Matter Who You
Are, Most of the
Smartest People Work
for Someone Else”
!
Bill Joy
(Sun Microsystems, BSD Unix,
Java)
RIGHT
PEOPLE…

10. DEFENSE OFFENSE
FLANKING GUERILLA
STRATEGIC SQUARE

11. NUMBER 1 NUMBER 2 / 3
SPECIALISTS
long term short term
STRATEGIC SQUARE
DEFENSE OFFENSE
FLANKING GUERILLA

12. Leader
Follower
Specialist 1
Specialist 2
Specialist 3
Others

13. LEADER vs.
FOLLOWER

14. LEADER*
• Defend the position, attacking its own portfolio
• Continuous innovation
• Continuous improvement
• Moving target
*read more: Jack Trout - Marketing Warfare

15. FOLLOWER*
• Attack the leader position
• Searching for the strong point of the leader
• Cracking the weakness of the leader strength
• “MORE/BETTER” is the key = AGAIN innovation
*read more: Jack Trout - Marketing Warfare

16. INNOVATION IS A WAY
OF ACTING, NOT A
POINT OF DIFFERENCE

17. INNOVATION IS A WAY
OF ACTING, NOT A
POINT OF DIFFERENCE

18. PRODUCER INNOVATION
PARADIGM
!
“It is … the producer who as a rule initiates
economic change, and consumers are educated
by him if necessary”
(Schumpeter 1934)

19. Market
Research
R&D Production
Market
Diffusion
PRODUCER INNOVATION
& DIFFUSION PARADIGM

20. Market
Research
R&D Production
Market
Diffusion
PRODUCER INNOVATION
& DIFFUSION PARADIGM
!
Manufacturers identify user needs, develop products at
private expense and profit by protecting and selling what
they have developed.

21. USER INNOVATION
PARADIGM

22. USER INNOVATION
PARADIGM
Lead Users innovate to solve their own needs at private
expense and then freely reveal their innovations
- Path from user innovation to commercial product
(Baldwin, Hienerth, vH, 2006)

24. EXAMPLE
• John Heysham Gibbon – physician,
USER - inventor of the heart-lung machine
• “The death of a young patient in 1931 motivated
Dr. Gibbon to develop the first heart-lung machine,
enabling more effective heart surgery techniques.
• In 1935 he successfully used a prototype heart-lung
bypass machine to keep a cat alive for 26 minutes
• In 1953 first used a heart-lung machine on a human
patient…

25. INNOVATION DEVELOPMENT
BY USERS IS HUGE*
UK US JAPAN
% population
innovating 6.1% 5.2% 3.7%
people 2,900,000 11,700,000 3,900,000
*Von Hippel, Ogawa, and de Jong (2011)

26. Entertainer
Facilitator

27. Entertainer
Facilitator

28. MANY USERS INNOVATE
IN COMMUNITIES
% innovating*
Software security features
19.1%
Surgical Equipment 22%
Mountain Biking 19.2%
Extrem Sports 37.8%
*Franke & von Hippel

29. Advantages of
collaborative over
individual innovation efforts

30. A central challenge for firms pursuing
superior performance in innovation is
accessing, mobilizing, and combining
widely distributed
knowledge to solve current local problems
Schumpeter 1912/1934

31. Hello, I have
a problem!
I have a
solution.
„Knowledge is imperfectly shared over time and
across people, organizations and industries.
Ideas from one group might solve the problems of another,
but only if connections can be made across the
boundaries between them“
(Hargadon and Sutton 1997, p. 716)

32. Hello, I have
a problem!
I have a
solution.
„Knowledge is imperfectly shared over time and
across people, organizations and industries.
Ideas from one group might solve the problems of another,
but only if connections can be made across the
boundaries between them“
(Hargadon and Sutton 1997, p. 716)

33. Challenges

35. To build absorptive capacity:
Establish external search
competences
Cohen and Levinthal 1990, p. 128

36. Remember
“Zero Friction”
concept

37. The role of users and
user communities
in search of innovation

38. For many years user contribution has
been restricted to
traditional market research only
Company Users
new products
needs
• Initiator
• Inventor
• Developer
• Designer
• They provide input
about their needs
• They might test
prototype products
• They are unable to
provide direct input on
solutions

39. The role of users in the new
user-centered paradigm
Company Users
needs &
solutions
• Further development of
user innovations towards
products and services for
the market
• Production competence
• Diffusion and marketing
• Active"
• User = Innovator
• Lead Users play an
important for the
generation of
breakthroughs
new product &
services

42. Users tend to freely reveal
their innovations
They benefit from using – not from selling
innovation"
• It may induce improvements by others
• Expectations of reciprocity and reputation effects
• (Low expectation from patent enforcements –
“non-obvious” criteria)
• Altruism / Social norms
Source: Franke & Shah 2002, Harhoff et al. 2000, Fauchart und von Hippel 2006

43. Why and how does free
revealing work?
List your top three motivations for your contribution
1. Code needed (for work and/or non-work) (59%)
2. Intellectually stimulating (44%)
3. Improves skills (41%)
4. To give back - Obligation felt from own open source code use (29%)
5. Work with team (20%)
6. Enhance professional status (18%)
7. Increase reputation in the open source community (11%)
Source: Lakhani and Wolf 2002
A survey from Boston Consulting Group in field of Open Source Software

44. Users often innovate in
communities
• Allows rapid development and simultaneous
experimentation
• Allows users to access resources in order to develop
innovations
• Match problems with individuals possessing ideas and
means to solve them
• Varied needs and skills of individuals
• Communities can identify and solve a wide range of
problems
http://niketalk.com

45. SOLUTIONS
to leverage user
innovation potential

46. Organizations could draw on
various user innovation approaches
Lead User Method
Active search for
„best qualified users“
User Idea Generation Contests
Activate self-selection
among crowd of users
Toolkits
Enable users to
design themselves
User Innovation Communities
Develop (connect to)
user communities

47. CHALLENGE DRIVEN
INNOVATION

48. CHALLENGE DRIVEN
INNOVATION
GAMIFICATION?

49. GAMIFICARE

50. GAMIFICARE
Aplicarea principiilor si tehnicilor de joc
in contexte non-joc (business / social / educational)
avand ca scop cresterea motivarii si a implicarii.

51. GAMIFICARE
Aplicarea principiilor si tehnicilor de joc
in contexte non-joc (business / social / educational)
avand ca scop cresterea motivarii si a implicarii.

52. 2014
O aplicație
70%
2015
40%
Operațiuni
2016
100%
Marketing
2017
50%
HR
Studiu Gartner, Gamification: Engagement Strategies for Business & IT, Nov 2012

53. DESPRE CE E
VORBA?

54. GAMING

55. GAMING
TITANIC
AVATAR
World of W
0 3.333 6.667 10

56. GAMING
TITANIC
AVATAR
World of W
0 3.333 6.667 10
2 MILIARDE

57. GAMING
TITANIC
AVATAR
World of W
0 3.333 6.667 10
3 MILIARDE
2 MILIARDE

58. GAMING
TITANIC
AVATAR
World of W
0 3.333 6.667 10
10 MILIARDE
3 MILIARDE
2 MILIARDE

59. ANUAL
SUA
2000
2012
0 50 100 150

60. ANUAL
SUA
2000
2012
0 50 100 150
75 ORE

61. ANUAL
SUA
2000
2012
0 50 100 150
142 ORE
75 ORE

62. PRIMA GENERATIE DE
ADULTI

63. 4 TIPURI DE “FUN”
EASY
HARD
SOCIAL
SERIOUS

64. TIPOLOGII
COMPORTAMENTALE

67. -140
-70
0
70
CERCETARE PIERDERI
-138 MILIARDE
65 MILIARDE

68. M.
D.
A. FRAMEWORK

69. •Mechanics
•Dynamics
•Aesthetics

70. GAME MECHANICS

71. GAME MECHANICS
•“points”

72. GAME MECHANICS
•“points”
•“levels”

73. GAME MECHANICS
•“points”
•“levels”
•“powers”

74. GAME MECHANICS
•“points”
•“levels”
•“powers”
•“benefits”

75. GAME MECHANICS
•“points”
•“levels”
•“powers”
•“benefits”
•“access”

76. GAME MECHANICS
•“points”
•“levels”
•“powers”
•“benefits”
•“access”
•“intrinsic motivation” ... ...

77. GAME DYNAMICS
• Challenge
(created by things like time pressure)

78. GAME DYNAMICS
• Challenge
(created by things like time pressure)
• Fellowship
(sharing information across certain members of
a session or supplying winning conditions that
are more difficult to achieve alone)

79. GAME DYNAMICS
• Challenge
(created by things like time pressure)
• Fellowship
(sharing information across certain members of
a session or supplying winning conditions that
are more difficult to achieve alone)
• Expression
(encourage individual users to leave their mark)

80. GAME DYNAMICS
• Challenge
(created by things like time pressure)
• Fellowship
(sharing information across certain members of
a session or supplying winning conditions that
are more difficult to achieve alone)
• Expression
(encourage individual users to leave their mark)
• Dramatic tension
(encourage a rising tension, a release and a
conclusion)

81. GAME AESTHETICS
• What makes a game “fun”?

82. GAME AESTHETICS
• What makes a game “fun”?
•How do we know a specific type
of fun when we see it?

83. Status
Access
Power
Stuff

84. modified from “Flow”
Csikszentmihalyi

87. CHALLENGE DRIVEN
INNOVATION

88. STEP 1:
ACCEPT YOU HAVE
A PROBLEM

89. STEP 2:
ASK A BETTER QUESTION
TO GET A BETTER
ANSWER

90. EXAMPLES

98. COMMUNITY DRIVEN
INNOVATION

99. COMMUNITY DRIVEN
INNOVATION
GAMIFICATION?

100. USER INNOVATION
COMMUNITIES
• Modifications/improvements on existing products
• Ideas for new products/services
• Topics and trends
• Testing of new products (beta-testers)
• Outsourcing of company functions (e.g. support)
• Lead user identification

102. TAKEAWAY
• 80% of us feel motivated to offer feedback
• A given behavior will occur when motivation,
ability and a trigger are present at the same
time. (Fogg Behavior Model)
• Open innovation is about harvesting
good & (almost) free ideas

103. THANKS