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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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    « Web 2.0: Time to Tackle BIG CHALLENGES | Main | Who Will Use Google App Engine? »

    April 29, 2008

    Comments

    windpocken

    I think Google's lack of commercial terms are also going to hinder adoption for the foreseeable future. What happens if your application grows to the point where it exceeds their capacity? They don't say, which effectively means you're stuck if your application gets big.

    Jeffrey McManus

    Patty,

    The Google service is not "cheap" because it requires that your developers use their technology stack and their (one and only) programming language of choice. Since Python coders are not yet a commodity, and developer time is the most expensive part of any engineering endeavor, this may wind up being the most expensive possible way for a business to develop a web application.

    Google's lack of commercial terms are also going to hinder adoption for the foreseeable future. What happens if your application grows to the point where it exceeds their capacity? They don't say, which effectively means you're stuck if your application gets big.

    Google App Appliance will never happen -- they learned their lesson with the search appliance (which is a terrible business for them). This would remove most of the benefits of cloud computing and saddle Google with a bigger support burden which they most definitely do not want.

    The comments to this entry are closed.

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