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Innovation through co-creation:
Lessons from international experience
Dr Nick Coates & Phil Burgess
600th Community launched this week
1
Let’s talk innovation
We believe

     1.
   The best
 innovation is
  customer-
  centric, not
   R&D-led
We believe

     1.             2.
   The best      Co-creation
 innovation is   is the most
  customer-       powerful
  centric, not      tool for
   R&D-led        doing this
2
Let’s talk co-creation
Co-creation isn’t…
Crowdsourcing can work
It can also backfire
Co-creation is…
What defines co-creation?




        Creativity            Collaboration          Control



    Focus on outcomes           Interactivity         Purposive;
     Non-rational focus        Snowballing        often time-bound
   Reaching new places     Real-time component    Organisation-led
   ‘creative’ approaches           Social             Facilitated

    [not just choosing]     [not a solo effort]     [not organic]
Evolution of co-creation
 pre-history           1960s              1970s        1980s            1990s              2000s       2010
Psychoanalysis
                        Participatory architecture
   (Freud)                                                User innovation
                           (Gehl, Price, Huth)
                                                           (von Hippel)

                                                        User-centered design


                                                                                Open source movement
                                                                                   (Linux, Mozilla)



 Psycho-          Action                       Co-      Open                                              3D
                                              design                 Big Talk           Communities
 doodles         Research                               Space                                          printing
International examples



       Brand           Business           Service            Retail            Product
     innovation       innovation        innovation         innovation        innovation
    Working with     Collaborative       Using hotel     Co-creating the   Co-creating the
    customers to    sessions for the    staff across a    ‘restaurant of     interior of the
     explore and          new          global network       the future’,      new fleet of
    create a new     management          to generate         leading to       A380s, using
    global brand    team and their          ‘local       family concepts    frequent flyers
     platform for        target         experiences’,      stores in UK,   and designers in
   Tempo, in Hong    customers to      the currency of        France &          the US,
   Kong, Germany      help launch      a new breed of         Germany         Australia and
       and Italy     Virgin Poland     loyalty scheme                             UAE
The advantages of co-
creative innovation
When it works, co-creative innovation…
…does it all earlier, quicker and with greater agility




      Better         Enhanced         Stronger      Reduced costs
  engagement &     creativity and     insights,      and time to
  understanding    commitment       ideas, belief      market
More creative input & imagination
Better insights (Activia)


                            •   The insights generated from the
                                community were 82% more effective
                                than those generated through traditional
                                methods. (Danone IPSOS Study)

                            •   The community generated 47% more
                                insights than those produced using
                                traditional off-line methods (e.g. focus
                                groups)

                            •   Insights fed into the development of the
                                Activia campaign: Tummy Loving Care.

                            •   The campaign resulted in a +9% uplift in
                                base sales.
Better belief (Kraft)




            + managers in 60
            markets online
Faster implementation (Orange)
3
5 myths about co-creation
Myth 1
It’s just a big focus
group

In fact: co-creation’s a
different philosophy, a way
of working, not a format…
Myth 2
Consumers will
give you the
answer
In fact: the answer can come
from lots of places, and at
different moments
Myth 3
It’s about
consumers doing
the hard work
In fact: it’s not about
delegating decision-making,
it’s got to be collaborative
Myth 4
Consumers don’t
know what they
need
In fact: they are often very
good at telling us what they
need, if we listen for possibility
Myth 5
We need special
people, the 1%ers

In fact: we need to create
the right environment not
recruit ‘special’ people
We believe

     1.             2.             3.
   The best      Co-creation     The key
 innovation is   is the most   driver of co-
  customer-       powerful      creation is
  centric, not      tool for       360o
   R&D-led        doing this    creativity
4
Let’s talk creativity
Involve Homo Ludens – the spirit of serious play




                       OR
Invent your own game: build group self-confidence
Tantrum: break down inhibition from the start
We believe

     1.             2.             3.              4.
   The best      Co-creation     The key       Creativity is
 innovation is   is the most   driver of co-   a universal
  customer-       powerful      creation is      human
  centric, not      tool for       360o         capability,
   R&D-led        doing this    creativity      not a skill
4
Lessons from international experience
Fundamentally,
creativity travels…
Think traders won’t write love letters? Think again
         When we first met I had uncertainties and inhibitions, while you were
         salivating. A few times I got upset when you put your hands in my
         pockets rather inappropriately, but after your apologies and promise
         to behave, we happily moved on.
Nobody does what you do nearly as well - though there are some things you
can't or so far don't want to do so I have to see someone else on the side until
you change your mind.
I appreciate that you're low maintenance and without many mood swings. I'm
always thrilled to manipulate your platform and sometimes overdo it, which
ends up costing me more than you. I'll be having a small corporate baby soon,
will you be able to take care of it? Raphael


The first time I heard about you was in industry chatter. The first time I saw
you I thought ‘wow this looks good’! Our first date was mmmm. I was
expecting you to deliver. As I got to know you better, I thought that must be in
the fine print. Our relationship now is tiring and things are going worse. In the
future, I can imagine us living apart unless you drastically change your ways
and there is a overhaul of your charts and reliability. Jters
All over the world, drawing works…
Don’t let stereotypes limit your creativity




People will do things for
you, in most markets…
       And it’s easy to assume
      some are more different
        than they actually are
        Source: Communispace –
   Breakthroughs without borders
But there are bumps
in the road…
Challenge 1
Culture
What’s socially acceptable can be a barrier



                              Sometimes talking
                             about things doesn’t




 Creative games work
   all over the world
How much mess you can make varies…




  Messy play in some       In Hong Kong we
    markets = OK          needed a bathroom
                                break
Beware stimulus! (Virgin Polska)




                 BORED / SAD?      COOL!
Challenge 2
Logistics
Practical issues can often be a drag…




    Broadband penetration in Peru   CEO who can’t type in Chicago




       Mortality rate in Africa         Venues in Hong Kong
The usual international fieldwork issues apply
   But co-creation can be demanding and place extra burdens on people




  Long evening work?        Punctuality?             Local partners?
 Factor in prayer time!   Beware ‘Cairo time’       Recruiter says no…
Challenge 3
Organisational
In January 2012 we built L’Atelier Gervais
An online insight and innovation community of
           300 Mums of 2-8 year olds
Don’t let fear get in the way of experimentation

De mon côté j 'ai toujours été bien ronde aussi depuis petite. Depuis que j'ai su que
I’m someone who’s always been a bit on the round side, even young. As soon as I
   j'étais enceinte ma crainte est venu aussi de faire attention aux poids de mes
     found out I was pregnant I started worrying about my boys’ weight. It wasn’t
garçons. Sans tomber dans l'excès. Mais comme tu l'écris je vis avec cette pensée
 excessive, but just like you were saying, I am living with this secret thought and I
 secrète et je les observe pour être sur qu'ils soient bien dans la norme si on peut
           watch them to make sure they are ‘normal’ so to speak - Virginie
                                    dire! - Virginie
Don’t let the brand police kill creative ideas
Don’t let creatives ‘own’ creativity


The R&D department                         The creative agency




Consumers?                                          Consumers?
Not grounded enough                They haven’t trained for this,
They don’t understand how             that’s our job; “step away
complicated it really is                      from the creative”
Thank you!
Dr Nick Coates | Consultancy Director   Promise Communispace
ncoates@promisecorp.com                 76-80 Whitfield Street
Phil Burgess | Consultancy Director     London
pburgess@promisecorp.com                W1T 4EZ
                                        020 7082 1747

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International Innovation for AURA

  • 1. Innovation through co-creation: Lessons from international experience Dr Nick Coates & Phil Burgess
  • 4. We believe 1. The best innovation is customer- centric, not R&D-led
  • 5.
  • 6. We believe 1. 2. The best Co-creation innovation is is the most customer- powerful centric, not tool for R&D-led doing this
  • 9.
  • 11. It can also backfire
  • 13. What defines co-creation? Creativity Collaboration Control Focus on outcomes Interactivity Purposive; Non-rational focus Snowballing often time-bound Reaching new places Real-time component Organisation-led ‘creative’ approaches Social Facilitated [not just choosing] [not a solo effort] [not organic]
  • 14. Evolution of co-creation pre-history 1960s 1970s 1980s 1990s 2000s 2010 Psychoanalysis Participatory architecture (Freud) User innovation (Gehl, Price, Huth) (von Hippel) User-centered design Open source movement (Linux, Mozilla) Psycho- Action Co- Open 3D design Big Talk Communities doodles Research Space printing
  • 15. International examples Brand Business Service Retail Product innovation innovation innovation innovation innovation Working with Collaborative Using hotel Co-creating the Co-creating the customers to sessions for the staff across a ‘restaurant of interior of the explore and new global network the future’, new fleet of create a new management to generate leading to A380s, using global brand team and their ‘local family concepts frequent flyers platform for target experiences’, stores in UK, and designers in Tempo, in Hong customers to the currency of France & the US, Kong, Germany help launch a new breed of Germany Australia and and Italy Virgin Poland loyalty scheme UAE
  • 16. The advantages of co- creative innovation
  • 17. When it works, co-creative innovation… …does it all earlier, quicker and with greater agility Better Enhanced Stronger Reduced costs engagement & creativity and insights, and time to understanding commitment ideas, belief market
  • 18. More creative input & imagination
  • 19. Better insights (Activia) • The insights generated from the community were 82% more effective than those generated through traditional methods. (Danone IPSOS Study) • The community generated 47% more insights than those produced using traditional off-line methods (e.g. focus groups) • Insights fed into the development of the Activia campaign: Tummy Loving Care. • The campaign resulted in a +9% uplift in base sales.
  • 20. Better belief (Kraft) + managers in 60 markets online
  • 22. 3 5 myths about co-creation
  • 23. Myth 1 It’s just a big focus group In fact: co-creation’s a different philosophy, a way of working, not a format…
  • 24. Myth 2 Consumers will give you the answer In fact: the answer can come from lots of places, and at different moments
  • 25. Myth 3 It’s about consumers doing the hard work In fact: it’s not about delegating decision-making, it’s got to be collaborative
  • 26. Myth 4 Consumers don’t know what they need In fact: they are often very good at telling us what they need, if we listen for possibility
  • 27. Myth 5 We need special people, the 1%ers In fact: we need to create the right environment not recruit ‘special’ people
  • 28. We believe 1. 2. 3. The best Co-creation The key innovation is is the most driver of co- customer- powerful creation is centric, not tool for 360o R&D-led doing this creativity
  • 30. Involve Homo Ludens – the spirit of serious play OR
  • 31. Invent your own game: build group self-confidence
  • 32. Tantrum: break down inhibition from the start
  • 33. We believe 1. 2. 3. 4. The best Co-creation The key Creativity is innovation is is the most driver of co- a universal customer- powerful creation is human centric, not tool for 360o capability, R&D-led doing this creativity not a skill
  • 36. Think traders won’t write love letters? Think again When we first met I had uncertainties and inhibitions, while you were salivating. A few times I got upset when you put your hands in my pockets rather inappropriately, but after your apologies and promise to behave, we happily moved on. Nobody does what you do nearly as well - though there are some things you can't or so far don't want to do so I have to see someone else on the side until you change your mind. I appreciate that you're low maintenance and without many mood swings. I'm always thrilled to manipulate your platform and sometimes overdo it, which ends up costing me more than you. I'll be having a small corporate baby soon, will you be able to take care of it? Raphael The first time I heard about you was in industry chatter. The first time I saw you I thought ‘wow this looks good’! Our first date was mmmm. I was expecting you to deliver. As I got to know you better, I thought that must be in the fine print. Our relationship now is tiring and things are going worse. In the future, I can imagine us living apart unless you drastically change your ways and there is a overhaul of your charts and reliability. Jters
  • 37. All over the world, drawing works…
  • 38. Don’t let stereotypes limit your creativity People will do things for you, in most markets… And it’s easy to assume some are more different than they actually are Source: Communispace – Breakthroughs without borders
  • 39. But there are bumps in the road…
  • 41. What’s socially acceptable can be a barrier Sometimes talking about things doesn’t Creative games work all over the world
  • 42. How much mess you can make varies… Messy play in some In Hong Kong we markets = OK needed a bathroom break
  • 43. Beware stimulus! (Virgin Polska) BORED / SAD? COOL!
  • 45. Practical issues can often be a drag… Broadband penetration in Peru CEO who can’t type in Chicago Mortality rate in Africa Venues in Hong Kong
  • 46. The usual international fieldwork issues apply But co-creation can be demanding and place extra burdens on people Long evening work? Punctuality? Local partners? Factor in prayer time! Beware ‘Cairo time’ Recruiter says no…
  • 48. In January 2012 we built L’Atelier Gervais An online insight and innovation community of 300 Mums of 2-8 year olds
  • 49. Don’t let fear get in the way of experimentation De mon côté j 'ai toujours été bien ronde aussi depuis petite. Depuis que j'ai su que I’m someone who’s always been a bit on the round side, even young. As soon as I j'étais enceinte ma crainte est venu aussi de faire attention aux poids de mes found out I was pregnant I started worrying about my boys’ weight. It wasn’t garçons. Sans tomber dans l'excès. Mais comme tu l'écris je vis avec cette pensée excessive, but just like you were saying, I am living with this secret thought and I secrète et je les observe pour être sur qu'ils soient bien dans la norme si on peut watch them to make sure they are ‘normal’ so to speak - Virginie dire! - Virginie
  • 50. Don’t let the brand police kill creative ideas
  • 51. Don’t let creatives ‘own’ creativity The R&D department The creative agency Consumers? Consumers? Not grounded enough They haven’t trained for this, They don’t understand how that’s our job; “step away complicated it really is from the creative”
  • 52. Thank you! Dr Nick Coates | Consultancy Director Promise Communispace ncoates@promisecorp.com 76-80 Whitfield Street Phil Burgess | Consultancy Director London pburgess@promisecorp.com W1T 4EZ 020 7082 1747