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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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      « Here’s to an Easy Upgrade from 2007 to 2008! | Main | Why Microsoft Is Acquiring FAST »

      January 03, 2008

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      Comments

      Patty Seybold

      Hi Graham...
      Actually we're not writing about Ambient findability in this report...We're writing about the basics of making it easy for your customers to find what they need. There are two kinds of search: In one, you know what you are looking for and want it retrieved for you: I want a ream of bright white copier paper. In the other type of search task, you don’t really know what you are looking for: I need to find a new approach to packaging this product. If you want to deliver a great customer experience, you need to ensure that you're addressing both customer needs adequately.

      Thanks for the tip re: Ambient Findability.. I had missed that book, and I've been a fan of earlier books, so I'm sure I'll find it useful...

      Patty Seybold

      Adele,
      Thanks for catching that.. It turns out that an annoying Amazon Widget had "added itself" to my blog and was inferring links to Amazon books from phrases in the blog.. really annoying.. It took me a while to figure out what was going on, but with the help of the Typepad folks, I finally found the source of the problem...thanks for the alert!

      Patty

      Adele Revella

      Great post, Patricia. Could you check the link on the evaluation framework? I was directed to a book by Robert Burger . . .

      Graham Hill

      Patty

      Ambient findability, to use the title of a recent book, is obviously very important for companies in a world where customers are drowning in data. But, making the assumption that it is the things companies do that add value to customers that is the real foundation of customer experience, I am not sure how being findable really adds value to customers. It isn't as though only the best companies, offering the best products, at the best prices, are those who will adopt ambient findability as their resolution for 2008.

      CRM was too much about companies and not enough about customers. CEM is supposed to help balance this lop-sidedness. Ambient findability is a pure CRM technology play.

      Graham Hill
      Independent CRM Consultant
      Interim CRM Manager

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