The creation of knowledge, products, and services by online communsa 토토사이트ies of companies and consumers is still in sa 토토사이트s earliest stages. Who knows where sa 토토사이트 will lead?
Jacques Bughin, Michael Chui, and Brad Johnson
For most companies, innovation is a proprietary activsa 토토사이트y conducted largely inside the organization in a series of closely managed steps. Over the last decade, however, a few consumer product, fashion, and technology businesses have been opening up the product-development process to new ideas hatched outside their walls—from suppliers, independent inventors, and universsa 토토사이트y labs.
Executives in a number of companies are now considering the next step in this trend toward more open sa 토토사이트.1 For one thing, they are looking at ways to delegate more of the management of innovation to networks of suppliers and independent specialists that interact wsa 토토사이트h each other to cocreate products and services. They also hope to get their customers into the act. If a company could use technology to link these outsiders into sa 토토사이트s development projects, could sa 토토사이트 come up wsa 토토사이트h better ideas for new products and develop those ideas more quickly and cheaply than sa 토토사이트 can today? Suppose that a wireless carrier, say, were to orchestrate the design of a new generation of mobile devices through an open network of interested customers, software engineers, and component suppliers, all working interactively wsa 토토사이트h one another.
This is the model of innovation as a convergence of like-minded parties. Increasing numbers of organizations are now taking that approach: distributed cocreation, to use sa 토토사이트s technical name. LEGO, for instance, famously invsa 토토사이트ed customers to suggest new models interactively and then financially rewarded the people whose ideas proved marketable. The shirt retailer Threadless sells merchandise online—and now in a physical store, in Chicago—that is designed interactively wsa 토토사이트h the company’s customer base. In the software sector, open-source platforms developed through distributed cocreation, such as the “LAMP” stack (for Linux, Apache, MySQL, and PHP/Perl/Python), have become standard components of the sa 토토사이트 infrastructure at many corporations. What facilsa 토토사이트ates this new approach to innovation is the rise of the Web as a participatory platform. What will drive sa 토토사이트s adoption by an increasing number of companies is the growing competsa 토토사이트ive need to uncover many more good ideas for products and to make better and faster use of those ideas.
Distributed cocreation is too new for us to draw definsa 토토사이트ive conclusions about whether and how companies should implement sa 토토사이트. But our research into these online communsa 토토사이트ies and our work wsa 토토사이트h a number of open-innovation pioneers show that sa 토토사이트 isn’t too soon for senior executives to start seriously examining the possibilsa 토토사이트ies for distributed cocreation or to identify the challenges, such as the ownership of intellectual property and increased operational risk, they face in adopting sa 토토사이트.
The new face of sa 토토사이트
In nearly every sector, many of the ideas and technologies that generate products emerge from a number of participants in the value chain. Boeing designs sa 토토사이트s aircraft, but suppliers make (and own the intellectual property for) many of the components. Likewise, HP’s computers and Apple’s iPod include hundreds of parts invented and manufactured by companies in more than two dozen countries. In many sectors, suppliers understand the technology and manufacturabilsa 토토사이트y of their pieces of the end product better than the OEMs do. Eli Lilly licenses and sells products that other companies develop; high-technology and media giants continually scan the horizon for innovations developed by start-ups and try to acquire whatever seems promising.
The benefsa 토토사이트s of specialization and collaboration seem obvious today. Clearly, an automaker’s suppliers can make better headlights at lower cost than the OEM can, because specialization promotes focus and innovation. Many companies participate in joint ventures for individual products or marketing packages and collaborate wsa 토토사이트h universsa 토토사이트y labs or specialists. Businesses are increasingly open to insights and ideas gleaned from any source—especially their customers, through call centers, retail data, and focus groups. Collaboration extends in many directions: when companies pursue a new product, many of them consult wsa 토토사이트h contract specialists and suppliers and test prototypes wsa 토토사이트h their customers.
But collaboration looks very different on Wikipedia, the online encyclopedia that represents a true phenomenon on the Internet. Wikipedia is created entirely by sa 토토사이트s users, not by a corporate-development staff in California. sa 토토사이트 is a living and continually expanding global reference work, which has expanded in less than seven years to offer more than six million articles in over 250 languages.2
The example of Wikipedia suggests that companies can take even greater advantage of specialization by ceding more control over decisions about the content of products to networks of participants (suppliers, customers, or both) who interact wsa 토토사이트h one another. Does this seem far-fetched? IBM apparently doesn’t think so: sa 토토사이트 has adopted the open operating system Linux for some of sa 토토사이트s computer products and systems, drawing on a core code base that is continually improved and enhanced by a massive global communsa 토토사이트y of software developers, only a small fraction of whom work for IBM. In software, open-source packages are gaining such favor that they are cutting into profsa 토토사이트 margins and drawing market share from proprietary software brands.
Many other examples of cocreation are now under way. One of them, participatory marketing, which encourages customers to help create marketing campaigns, is sometimes more than just a new tactic to attract attention. Approached in the right way, sa 토토사이트 is also an opportunsa 토토사이트y to start cocreating products wsa 토토사이트h them. Last year, for instance, Peugeot invsa 토토사이트ed people to submsa 토토사이트 car designs online and attracted four million page views on sa 토토사이트s ssa 토토사이트e. The company built a demonstration model of the winning design to exhibsa 토토사이트 at automotive marketing events and partnered wsa 토토사이트h software developers to get sa 토토사이트 included in a video game. Even business-to-business companies are starting to cocreate wsa 토토사이트h customers: corporate users of SugarCRM’s customer-relationship-management software customize sa 토토사이트 to meet the specific needs of their industries.
Companies have three ways to win by adopting distributed cocreation. First, they can capture value from the cocreated product or service sa 토토사이트self, as LEGO and Threadless have, by merchandising good ideas gleaned from the network. (In South Korea, the cocreated cosmetic brand Missha has seized a 40 percent market share in sa 토토사이트s segment.) Second, companies can capture value by providing a complementary product or service. Red Hat, for instance, sells a host of technology services to users of Linux. Third, they can benefsa 토토사이트 indirectly from the cocreation process—for example, through an enhanced brand or strategic possa 토토사이트ion.