My Photo

Description

  • What is Outside Innovation?
    It’s when customers lead the design of your business processes, products, services, and business models. It’s when customers roll up their sleeves to co-design their products and your business. It’s when customers attract other customers to build a vital customer-centric ecosystem around your products and services. The good news is that customer-led innovation is one of the most predictably successful innovation processes. The bad news is that many managers and executives don’t yet believe in it. Today, that’s their loss. Ultimately, it may be their downfall.

Twitter Updates

    follow me on Twitter

    Observations

    • LEAD USERS
      Eric von Hippel coined the term "lead users" to describe a group of both customers and non-customers who are passionate about getting certain things accomplished. They may not know or care about the products or services you offer. But they do care about their project or need. Lead users have already explored innovative ways to get things done. They're usually willing to share their approaches with others.
    • LEAD CUSTOMERS
      I use the term "lead customers" to describe the small percentage of your current customers who are truly innovative. These may not be your most vocal customers, your most profitable customers, or your largest customers. But they are the customers who care deeply about the way in which your products or services could help them achieve something they care about.
    • LEAD CUSTOMERS AND LEAD USERS
      We’ve spent the last 25 years identifying, interviewing, selecting, and grouping customers together to participate in our Customer Scenario® Mapping sessions. Over the years, we’ve learned how to identify the people who will contribute the most to a customer co-design session. These are the same kinds of people you should be recruiting when you set out to harness customer-led innovation.
    • HOW DO YOU WIN IN INNOVATION?
      You no longer win by having the smartest engineers and scientists; you win by having the smartest customers!
    • CUSTOMER CO-DESIGN
      In more than 25 years of business strategy consulting, we’ve found that customer co-design is a woefully under-used capability.
    AddThis Social Bookmark Button

    « SPOTLIGHT ON OUTSIDE INNOVATION AT THE BBC | Main | Tools for Lead Users to Use »

    October 18, 2006

    TrackBack

    TrackBack URL for this entry:
    http://www.typepad.com/services/trackback/6a00d8341bfcb953ef00e5508632498834

    Listed below are links to weblogs that reference What roles are your customers playing in shaping your business?:

    » Outside Innovation: New book by Patricia Seybold builds a bridge between open innovation from Mass Customization
    Outside Innovation: How Your Customers Will Co-Design Your Company's Future, by Patricia B. Seybold New York: Collins, October 2006. ISBN: 0061135909, about 26$. This book review has been overdue for more than two months when I got the pre-version of [Read More]

    » Outside Innovation: New book by Patricia Seybold builds a bridge between open innovation from Mass Customization
    Outside Innovation: How Your Customers Will Co-Design Your Company's Future, by Patricia B. Seybold New York: Collins, October 2006. ISBN: 0061135909, about 26$. This book review has been overdue for more than two months when I got the pre-version of [Read More]

    Comments

    Patty Seybold

    John,
    I'm honored that you stopped by! Right--there are lots of different kinds of customer engagement and not all are right for each client.

    For example, if your clients are NIH folks when it comes to new product development, they may be much more open-minded when it comes to customer co-creation of product positioning and guerrilla marketing.

    On the other hand, you may have clients who are quite willing to be "porous" in co-designing new services and products by working directly with end-customers and/or by co-opting consumers' good ideas!

    Thanks for the pointer (on your blog) to Pete Blackshaw's Engagement by Engagement Blog!

    Patty

    Jonathan Narducci

    The first Guide is an innovation in itself. The concept of "Guides" is particularly useful and, I believe, rarely used. The evaluation criteria starts the thinking process necessary to get company folks out of their "normal" customer relationship activities and into a "change" mindset. Good job.

    John Bell

    We are wrestling with where each of our clients reside on teh "engagement" scale - that is to what level are the willing and best suited to go in terms of engaging their customers - co-creation being a somewhat advanced state (and not right for everyone). I like your observation that the most innovative companies "have customers playing active roles in many different parts of their business." Too often we are trying to find that 'one' program that will thrust a client into this practice and it really must be more organic and more pervasive.

    I can't wait for the book.

    Patty Seybold

    Hi Lincoln,
    You're right, working closely with customers in partnership will certainly help you drive your business priorities from the outside in. I'm curious to know how many of these roles your customers actually play:

    Lead customers
    Contributors
    Consultants
    Guides
    Promoters

    If you have time, download my questionnaire and let me know what you discover!

    My bet is that you've probably got at least 4 out of these 5 roles covered..

    Patty

    Lincoln Torcelli

    "Partnership" is the word which best describes customers shaping our business.
    I manage 400 people in my business unit, security business(certainly a booming industry)and we work every day with our clients to get the job done in a win-win relationship.

    Verify your Comment

    Previewing your Comment

    This is only a preview. Your comment has not yet been posted.

    Working...
    Your comment could not be posted. Error type:
    Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

    The letters and numbers you entered did not match the image. Please try again.

    As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

    Having trouble reading this image? View an alternate.

    Working...

    Post a comment

    Comments are moderated, and will not appear until the author has approved them.

    Patricia Seybold Group Web Site

    RSS 2.0 Feeds
    PSGroup New Research
    Add the latest research to Google
    Add the latest research to My Yahoo!
    http://www.wikio.co.uk

    Your email address:


    Powered by FeedBlitz

    Categories

    • Google Analytics for Blog
    Blog powered by Typepad