U D O I, Sami Oinonen, Nokia, Feb 2, 2009

Company Confidential

Co-creating with end users

Sami OinonenFebruary 2, 2009


Topics

• What is co-creation

• Why it matters

• Co-creation at Nokia

• Lessons learned


Co-creation

• When passionate, skillful and innovative end users create and modify products, processes and business models either with or without corporations

• They are so called “Lead Users”. They are ahead of all adopter groups on an innovation diffusion curve

• They create something new, substantially different. Something that no firm has developed a commercial version for sale yet.


I made this!


Why it matters

• Manufacturer’s dilemma #1: Understanding and anticipating end users’ needs is expensive.

• => It makes economical sense to integrate users at the front of the trend to corporate product development as they are able to imagine the future

• Manufacturer’s dilemma #2: Product development is expensive

• => Parallel involvement of highly qualified users and product development team improves the iteration loop and handovers


Why it will matter• Emerging self-organizing collaboratives

and community brands => Brands offering products to markets OR markets creating sophisticated products to challenge brands?

• Digital native generation has different expectations towards brands

• Personalization as a mega trend => mass customization as a basic requirement to compete

• Rapid manufacturing becoming economically feasible. Personal fabrication emerging.


Co-creation at Nokia

• 2006: Brought in through an internal management training program. "Let's figure out whether Lego approach works for us."

• 2007-2008: Some 10 product development projects

• February 2009: Established practice complementing conventional product development in our most important product lines

• Used both in category and product-level development as well as in validation

• KPIs: R&D hit rate & efficiency


Co-creation, high-level


Co-creation process


Lessons learned• Strategic fit with overall innovation

management

• Internal commitment: Involve marketing research, design, R&D, product management from the day 1

• Ensure that there is room for radical innovations and will to drive the innovations, ...and change the road map

• Foster sharing of ideas, be transparent

• Success stories and spill over are a mechanism to drive a broader operational change towards open, multi-disciplinary and bottom-up


Thank you!


Evolution of user involvement

Volume

Value

Brand developed - Brand published

Co-developed - Brand published

User-developed - Brand published

User-developed - User published

Community brand

User enterprise - Brand supported Ponoko

Nokia

Zazzle

Lego

Wikipedia

IKEA

U D O I, Sami Oinonen, Nokia, Feb 2, 2009

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