ideate, innovate! co-creating with social customers

© 2011 Forrester Research, Inc. Reproduction Prohibited1

April 12, 2011

Ideate, Innovate!Co-creating with Social Customers


Today’s Speakers

#lithcast

Doug WilliamsForrester Research, Inc.@DougWilliamsMHD

Rebecca CarrollVerizon@bcarroll7

Laura FeeneyNational Instruments@lfeeney

Paul GillihamLithium@bladefrog

© 2011 Forrester Research, Inc. Reproduction Prohibited4 © 2009 Forrester Research, Inc. Reproduction Prohibited

Lithium Webcast: Ideate, Innovate! Co-creating with Social Customers

Doug Williams, Analyst

April 12, 2011


Source: http://greatfinance.org/a-product-that-doesnt-sell/Image source: http://greatfinance.org/a-product-that-doesnt-sell/


Ideation kick-starts the innovation engine

Image source: http://www.sport-touring.net/forums/index.php?topic=31725.0


Ideation is the critical first step in the new product development process

Ideate Justify Develop Test Launch

Validation of Idea

Validation of Project

Validation of Product

Validation of Plan

Is this idea worth investing time and

resources?

Is this project worthy of substantial investment?

Does the developed product deliver value

and is the business plan solid?

Is the product and business plan ready for

commercialization?

Source: Forrester Research


Why invest in the collection and validation of ideas?

Identify the best ideas

Engage directly with consumers or customers

Clarify the idea

Conduct research into markets, consumers and competitors


Make the ‘fuzzy front-end” of development less fuzzy

Kill bad ideas early….

…Which reduces wasted resources.

Generate better ideas to begin with...

…Which translates into more efficient allocation of resources.


None of the above

Other, please specify

Dedicated ideation websites

Online co-creation contests

Mail surveys

Telephone surveys

Feedback from company's public online community site

Private online communities

Feedback from Twitter

Ethnographic research studies

Feedback from your company's Facebook page(s)

Feedback from corporate blog

Online ratings and reviews of your own products and services

Online ratings and reviews of competitor products and services

In-person co-creation or open innovation sessions with consumers

Quantitative studies leveraging conjoint/feature tradeoff analysis

Online surveys

Feedback through customer service channels

Focus groups

Competitive assessments

Dedicated internal brainstorming sessions

Internal suggestions

0% 20% 40% 60% 80%

2%

7%

5%

9%

13%

15%

15%

16%

17%

21%

22%

23%

23%

25%

29%

31%

47%

52%

54%

58%

69%

77%

Today, product strategists rely on internal resources for ideation

Source: Q1 2011 Consumer Product Strategy Panel Survey Base: 212 product strategy professionals

The first step in the product development process is to gather ideas for new products or features. How does your

team gather ideas for new products and services? (Select all that apply)

Internal resource

Traditional market research tool

Co-creation tool

Other/None of the above


Social co-creation unlocks new opportunities to engage with consumers in product creation


What is co-creation?

Forrester defines co-creation as:

Social co-creation is the use of social media or other social technologies

to enable co-creation.

Image source: http://www.12manage.com/methods_prahalad_co-creation.html

“The act of involving consumers directly, and in

some cases repeatedly, in the product creation

or innovation process.”

Source: July 9, 2010, “Social Co-Creation” Forrester report


Today’s social technologies unveil product improvement opportunities



Co-creation delivers unique benefits

Co-Creation

Low barriers to

entryDirect

customer input

Creates a dialogue

Ideation

Validation

Quick results

Reduces risk

Marketable attribute

Creates advocacy

group

Humanizes the

company



Nearly half of companies that use social media use it to influence product strategy…

Does your company engage with consumers

(in any way) using social media?

Do the product teams at your company use social

media to engage directly with consumers in order

to influence product design, product creation, and

product strategy?

Base: 181 consumer product strategy professionals Base: 151 consumer product strategy professionals

whose companies currently use social media

Source: Q2 2010 Global Consumer Product Strategy Research Panel Online Survey


…But many focus on the low-hanging fruit

Social asset currently in use

anywhere in the company

Insights garnered from

this asset shared with

product teams

Product teams empowered to

use the platform or technology

Product teams actively use this

asset for co-creation

Twitter 71% 38% 30% 19%

Facebook 82% 44% 32% 17%

Corporate blog 60% 41% 34% 16%

Ratings/reviews 49% 38% 21% 13%

Public community 48% 34% 22% 12%

Private community 31% 25% 18% 9%

Listening platform 40% 23% 12% 7%

Ideation site 18% 13% 11% 7%

Source: Q1 2011 Global Consumer Product Strategy Research Panel Online Survey


Ideation sites give product strategists access to customer-led innovation


Consumers want to be involved…

67% of willing co-creators are concerned about the time

commitment

63% of willing co-creators require some form of

incentive

Source: North American Technographics® Consumer Technology Online Benchmark Recontact Survey, Q2 2010 (US)

61% of US online adults are willing co-creators

56% of willing co-creators are agnostic about product,

service and brand

Image source: http://www.clker.com/clipart-2839.html


Video gamesMobile handset

BankingHealth Insurance

AirlineSoftware

HotelAutomotive

FootwearClothingRetailers

Small kitchen appliancesHousehold appliances

Home entertainmentConsumer packaged goods

TVPersonal computer

0% 20% 40% 60% 80%

42%

44%

45%

47%

48%

52%

55%

55%

62%

64%

64%

68%

68%

73%

73%

75%

76%

…And they are interested in co-creation across diverse industries

Source: North American Technographics® Consumer Technology Online Benchmark Recontact Survey, Q2 2010 (US)

Base: 2,432 US online consumers willing to participate in co-creation

Please rate your level of interest in participating in co-creation efforts with respect to the following industries.

(4 or 5 on a scale from 1 [strongly disagree] to 5 [strongly agree])


How can an ideation site help your company succeed?

Provide fuel for innovation

Collect ideas that would otherwise be shared elsewhere

Act as a validation tool

Speed up the product development process

Give consumers an opportunity to help their favorite brands

© 2009 Forrester Research, Inc. Reproduction Prohibited

Thank you

Doug [email protected]

@DougWilliamsMHD

+1 781.631.2948

© 2011 Forrester Research, Inc. Reproduction Prohibited22 #lithcast

About your communities.


Community Snapshot

• Verizon’s Residential Community is 3 years old, 80K members

• Ranked #1 Community in industry, 6th overall for consumers by ComBlu

Source: State of Online Communities report, November 2010


Verizon Social EngagementA Sampling


NI Facts

NI first launched forums around 1999

LabVIEW Idea Exchange launched in July 2009

More than 150,000 users

Idea Facts:

– 100 ideas submitted/mnth

– 400 comments/mnth

– 2000 votes/mnth


Recognition

2008 Supporting Category Winner: Nerd Network: Building

an Online Community for Developers

2010 Embracing Category Winner: Embracing our

Customers for Software Development

#LithCast


Why ideation / co-creation?


Idea Exchange: Open Innovation


Objectives

Identify new product and service enhancement opportunities

Facilitate customer-driven product/service enhancements or new products/services

Enhance Verizon brand as establishing innovative ways to engage with and serve customers


Objectives


What results have you seen?


Results

14 Ideas implemented in LabVIEW 2010

– NIWeek 2010 included a video of idea authors sharing their thoughts about their

implemented ideas

– Feedback-Driven Improvements were part of the overall marketing message for

the 2010 launch

13 Ideas currently “In Beta”

http://zone.ni.com/devzone/cda/tut/p/id/11543


Results

Number of ideas submitted: 1300+ Number of ideas in progress: 200 Number of ideas implemented: 16

Since launch… 107% growth in comments 403% growth in votes 555% growth in visitors


About Lithium

#lithcast

The Lithium Social Customer Suite helps great companies turn social customer passion into marketing, product development, and customer service assets.

The Lithium Social Customer Suite offers complete social monitoring, a comprehensive community platform, and actionable analytics across millions of blogs, forums, and social networking sites.

For market leaders such as Best Buy, AT&T, Research In Motion Limited (RIM), Univision, and PayPal, Lithium is the leading provider of social customer solutions that deliver real business results.

www.lithium.com.

http://www.lithium.com/


About Lithium

www.lithium.com.

DeepEngagementGreat experiences for your most passionate contributors—your

superfans.

Social Science

Rich data for analysis, benchmarking, and

optimizing your social investments.

Driving real business outcomes.

Social Success



About Lithium

www.lithium.com.

Lithium is Number 1 in:

Current offering

Features

Strategy

Clients

November 2010 “The Forrester Wave™: Community Platforms, Q4 2010”


37

Lithium Resources

▪ Best Practice Ideation

▪ Gartner Magic Quadrant for Social CRM Q3 2011

▪ Forrester Wave for Community Platforms Q4 2010

▪ The Lithium Social Customer Suite• Lithium Community Platforms

• Lithium Social Media Monitoring

• Lithium Customer Intelligence Center

• LevelUp for Facebook

http://pages.lithium.com/succeeding-with-online-idea-exchanges.html

http://pages.lithium.com/gartner-mq-social-crm-2011.html

http://pages.lithium.com/forrester-wave-community-platforms.html

http://pages.lithium.com/forrester-wave-community-platforms.html

http://www.lithium.com/what-we-do/social-customer-suite/community-platform

http://www.lithium.com/what-we-do/social-customer-suite/social-media-monitoring

http://www.lithium.com/what-we-do/social-customer-suite/social-media-monitoring

http://www.lithium.com/what-we-do/social-customer-suite/levelup