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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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      « Girl Scouts Team Up with FIRST | Main | National Instruments Takes the Next Step in Capturing Hearts and Minds of Budding Scientists and Engineers »

      May 13, 2008

      LEGO Celebrates the 10th Anniversary of LEGO Mindstorms’ and FIRST LEGO League: Building a Culture of Customer Engagement

      LEGO executives celebrated the 10th anniversary of their successful MINDSTORMS robotics kit at the FIRST Championship in Atlanta. Soren Lund, Lego’s Sr. Marketing Director for product and marketing development, joined our Visionaries’ meeting to discuss some of his learnings from 10 years of customer engagement. In talking about the cultural challenges of opening up both your product development and your online presence to customer participation, Soren expressed it this way:

      "Like every large company, Lego has a "must" culture - you must do this; the open source developer community has a 'can' culture - I do this because I want to, because I can. The value of the outside-in model is that it brings a different culture inside your company."

      Soren_lundlego_2

      Soren Lund at the LEGO booth at FIRST.

      “As we launched Mindstorms,” Soren explained, “we thought, wouldn’t it be great if people actually talked about this. So we built a Web community and encouraged customers to engage. It wasn’t a mass marketing thing—we’ll tell you what to think. We wanted people to be able to write about what they thought of Mindstorms, etc. We should listen to our consumers. Corporate didn’t want to do that—they were worried about negative content. We did it anyway and were flooded. We were really excited about the response.”

      Now there’s a relatively porous set of customer-powered blogs (Nxtasy.org), Wikis, and communities and LEGO-sanctioned message boards, communities, and blogs that have sprung up around Mindstorms and its different audiences: kids, teachers, adult enthusiasts, hackers, engineers, inventors, etc. “We get 15 million new visitors a month on our (official) Web site,” Soren explained.

      Open APIs Have Attracted a Devoted Developer Community. What LEGO learned quickly when it launched the first version of Mindstorms 10 years ago is that adult hackers wanted to reverse engineer it. LEGO’s unusual response was to open up its APIs and to encourage this activity. “There was a lot of learning by doing, we had no idea where we were going, we just let the lawyers draw up the papers and leave the rest to us.”

      Fll_kit

      10th Birthday hats next to the LEGO Mindstroms robotics kit used for the FIRST LEGO League competition.

      Then, LEGO engaged with four of these “lead users” in the design of its next-gen product, Mindstorms NXT. These lead users have remained actively engaged in the co-development of the next-gen product features as have their cohorts as the developer community has expanded. “We built an ecosystem so that consumers can take and run with it. We went open source with some of the stuff when we could, and it’s the best thing we did. Love and passion are the reasons these people spend time.”

      Building the Mindstorms Kids’ Community through Global Competitions. Probably the best thing that LEGO did to spread Mindstorms’ religion was to partner with FIRST 10 years ago to create the FIRST LEGO League so that younger students could enjoy the challenge of competing in the robotics challenges that FIRST has held. There are now 115,000 kids from 38 countries who are known to be using Mindstorms kits to participate in these competitions. (There are probably other clubs and classrooms around the world who aren’t participating formally.) “All of this marketing is Word of Mouth (WOM); kids have fun and refer others.”

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