customer-driven innovation

This tag is associated with 3 posts

The open source way: designed for managing complexity?


This week I finally got a chance to sit down and digest IBM’s latest Global CEO Study, newly published last month and entitled Capitalizing on Complexity. This marks the fourth study IBM has done (they complete them once every two years), and I’ve personally found them to be really useful for getting out of the weeds and looking at the big picture.

This report is based on the results of face-to-face meetings with over 1500 CEOs and other top leaders across 60 countries and 30+ industries. These leaders are asked all sorts of questions about their business challenges and goals, then IBM analyzes the answers and segments the respondents to isolate a group of high-performing organizations they call “standouts.” The standouts are then further analyzed to find out how they are addressing their challenges and goals differently than average organizations.

As a quick summary (but don’t just read my summary, go download the study for free), IBM found a big change this year. In the past three studies, leaders identified their biggest challenge as “coping with change.” This year, they identified a new top challenge: “complexity.”

If you’ve been reading marketing collateral or web copy from your vendors over the past year (someone must read that stuff…) this will come as no surprise to you. How many things have you read that start with something like: “In our increasingly complex world…” or “In the new deeply interconnected business landscape…” If the marketing folks are saying it, it must be true.

But I digress. Here’s IBM’s punch line:

[Read the rest of this post on opensource.com]

Toyota gives customer-driven design the green light


A few weeks ago, Red Hat CEO Jim Whitehurst wrote an article for BusinessWeek suggesting that Toyota might benefit from doing things the open source way when it comes to building the software inside its automobiles.

From Jim’s article:

Open source is about leveraging the power of participation to solve complex problems such as manufacturing, health care, and government. This advantage is why numerous 21st century successes—from Google to Facebook to Wikipedia—are all based on open-source software and principles. It may also be how Toyota can improve its vehicles and ultimately regain consumer trust.

Toyota may be listening.

Last week, Associated Press reported that Toyota has opened a new Design Quality Innovation Division. The new group will be led by Kiyotaka Ise, formerly of Toyota’s Lexus subsidiary, and will be tasked with more quickly reflecting customer feedback in automobile design.

[Read the rest of this post on opensource.com]

Tom Sawyer Part 2: where can your company pitch in?


A few weeks ago I wrote a post called Tom Sawyer, whitewashing fences, and building communities online, where I outlined one of the biggest mistakes I see companies make when figuring out their community strategy– they expect a mythical “community” will paint their fence for them. But not everyone is Tom Sawyer.

tomsawyerIf your community strategy starts with the question, “how can I make the community work for me?” you may still find success if there are a bunch of people out there willing to paint your fence for free, but you definitely are not taking advantage of all of the benefits you can get from participating in communities.

One of the most often used examples of customer/community-driven innovation (perhaps because it is simple to understand) is the My Starbucks Idea site. This is a place where customers can tell Starbucks what they want, people vote on each others’ ideas, and Starbucks takes the best ideas and uses them to make their products, services, and experience better.

A recent example of a service that was launched through the site is a mini Starbucks drink card that can fit on your key chain. Sweet. It looks like they’ve had at least 5-10 innovations like this that have come from customer ideas, maybe more. And Starbucks is not alone– many companies have built similar sites, as has The White House. You’ve seen them.

But this approach is still simple Tom Sawyer-style community-building. People just helping Starbucks paint their fence for free. So why is it working for Starbucks? Because there are people out there willing to spend their time and energy helping Starbucks make their products, services, and experience better. Not every brand can command this sort of attention and loyalty. Most can’t, in fact.

My view? I do think these sort of public idea generation efforts are smart 21st century thinking when they work. But why stop there?

I get excited when I see big companies focused not only on what they take from the table, but what they bring to the table. I love to see companies that aren’t afraid to be humble members of communities, rather than building the community around themselves.

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