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  • 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.

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      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.
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      December 31, 2006

      Why Napkin Drawings are Better than Finished Demos

      Kathy Sierra has a great post on Creating Passionate Users, entitled Don't Make the Demo Look Done!

      Her topic is ostensibly the perils of showing demos of software with polished user interfaces. There are two significant downsides that she describes:

      1. People/customers think that the software is close to complete (when it's really only a prototype).
      2. People/customers focus on making incremental suggestions for improvement, like changing the fonts or the wording of a prompt, or the location of a button, instead of on the BIG PICTURE.

      Her recommendation is to mirror the "doneness" of the software or Web site (or product) with the degree of professional finish. For example, if you are still in concept design mode, you should show scribbles on paper napkins. If you are still thinking thru the use case, you should show a rough story board, and so on.

      Here's a great illustration from Kathy's post:

      The more "done" something appears, the more narrow and incremental the feedback

      Feedbackimage


      In her explanation, Kathy comments:

      "My point is: all you'll get is tree-tweaks when you show something finished-looking, so if you want big picture, make it fuzzy!"

      What I love about this idea is how relevant it is, not just to the creation of demos or of software products and/or of Web sites, but to all KINDS of customer co-design activities. So many times clients ask why they shouldn't just show customers what they've come up with (new Web site, product, business process, etc.) and get their feedback. My instincts and experience tell me that as soon as do so, you're limiting the possibilities for innovation and creativity. You're blocking the really BIG ideas. But I haven't had a good way to explain this until now. Yet, many of my clients have discovered that staying with post-its on the walls, and stick figure diagrams are the best ways to co-design new approaches and solutions with customers. Several clients have moved from Customer Scenario maps (captured in Visio) to cartoons as a more expressive way of communicating and keeping the creative juices flowing.

      Thanks, Kathy!

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