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Leveraging customer knowledge in open innovation processes by using social softwareKruse, Paul 24 May 2016 (has links) (PDF)
Involving customers in the creation and design process of new products and services has been dis-cussed in practice and research since the early 1980’s. As one of the first researchers, von Hippel (1986) shed light on the concept of Lead Users, a group of users who are able to provide most accu-rate data on future needs for organizations. Subsequently, many scholars emphasized different areas of contribution for customers and how they provide assistance to the process of innovation.
First of all, customers may contribute to product innovation (Cooper & Kleinschmidt, 1987; Driessen & Hillebrand, 2013; Füller & Matzler, 2007; Gruner & Homburg, 2000; Sawhney, Verona, & Prandelli, 2005; Snow, Fjeldstad, Lettl, & Miles, 2011; Yang & Rui, 2009) and service innovation (Abecassis-Moedas, Ben Mahmoud-Jouini, Dell’Era, Manceau, & Verganti, 2012; Alam, 2002; Chesbrough, 2011; Larbig-Wüst, 2010; Magnusson, 2003; Paton & Mclaughlin, 2008; Shang, Lin, & Wu, 2009; Silpakit & Fisk, 1985), e.g., by co-creating values (Prahalad & Ramaswamy, 2004), such as concepts or designs as well as reviewing and testing them throughout the stages of the process of innovation. From the customers’ point of view, being involved in innovation processes and becoming a part of the organ-ization is a desire of an increasing number of them. Customers are demanding more individual and more tailored products. They are increasingly knowledgeable and capable of designing and produc-ing their own products and services. Due to the fact that their influence on product development is positively related to the quality of the new product (Sethi, 2000), more and more organizations appreciate them as innovation actors and are willing to pay them for their input. Today, customers are not only involved in the qualification of products (Callon, Méadel, & Rabeharisoa, 2002; Callon & Muniesa, 2005; Grabher, Ibert, & Flohr, 2009) but also allowed to customize and evaluate them on the path to innovation (Franke & Piller, 2004; Piller & Walcher, 2006; von Hippel & Katz, 2002; von Hippel, 2001).
Moreover, there is an abundance of studies that stress the customers’ influence on effectiveness (de Luca & Atuahene-Gima, 2007; Kleinschmidt & Cooper, 1991; Kristensson, Matthing, & Johansson, 2008; Still, Huhtamäki, Isomursu, Lahti, & Koskela-Huotari, 2012) and risk (Bayer & Maier, 2006; Enkel, Kausch, & Gassmann, 2005; Enkel, Perez-Freije, & Gassmann, 2005). While the latter comprises the risk of customer integration as well as the customers’ influence on market risks, e.g., during new product development, studies on effectiveness are mostly concerned with customer-orientation and products/services in line with customers’ expectations (Atuahene-Gima, 1996, 2003; Fuchs & Schreier, 2011).
The accompanying change in understanding became known as open innovation (OI; first coined by Chesbrough in 2003) and represents a paradigm shift, where organizations switch their focus from internally generated innovation (i.e., ideation, in-house R&D, etc.) toward external knowledge and open innovation processes, thus, allowing them to integrate external ideas and actors, i.e. custom-ers (Chesbrough, 2006) and other external stakeholders (Laursen & Salter, 2006). Since then, OI has been identified as a success factor for increasing customer satisfaction (Füller, Hutter, & Faullant, 2011; Greer & Lei, 2012) and growing revenues (Faems, De Visser, Andries, & van Looy, 2010; Mette, Moser, & Fridgen, 2013; Spithoven, Frantzen, & Clarysse, 2010). In addition to that, by open-ing their doors to external experts and knowledge workers (Kang & Kang, 2009), organizations cope with shorter innovation cycles, rising R&D costs, and the shortage of resources (Gassmann & Enkel, 2004).
Parallel to the paradigm shift in innovation, another shift has taken place in information and com-munication technologies (Kietzmann, Hermkens, McCarthy, & Silvestre, 2011). Only a few years ago, when customer integration was still very costly, companies had to fly in customers, provide facilities onsite, permanently assign employees to such activities, and incentivise each task execut-ed by customers. Today, emerging technologies (subsumed under the term ‘social software’) help integrating customers or other external stakeholders, who are increasingly familiar with the such technologies from personal usage experience (Cook, 2008), and grant them access from all over the world in a 24/7 fashion. Examples include blogging tools, social networking systems, or wikis. These technologies help organizations to access customer knowledge, facilitate the collaboration with customers (Culnan, McHugh, & Zubillaga, 2010; Piller & Vossen, 2012) at reduced costs and allow them to address a much larger audience (Kaplan & Haenlein, 2010). On the other hand, customers can now express their needs in a more direct way to organizations. However, each technology or application category may present a completely different benefit to the process of innovation or parts of it and, thus, the innovation itself.
Reflecting these developments, organizations need to know two things: how can they exploit the customers’ knowledge for innovation purposes and how may the implementation of social soft-ware support this.
Hence, this research addresses the integration of customers in organizational innovation, i.e. new product development. It addresses how and why firms activate customers for innovation and which contribution customers provide to the process of innovation. Additionally, it investigates which tasks customers may take over in open innovations projects and which strategies organiza-tions may choose to do so. It also addresses which social software application supports each task best and how organizations may select the most suitable application out of a rapidly growing num-ber of alternatives.
The nature of this research is recommendatory and aims at designing a solution for organizations that are interested in the potential contribution of customers during innovation, already involve customers in innovation tasks or plan to do so. Following the recommendations of this research should result in a more effective organizational exploitation of customer knowledge and their workforce and, thus, a value added to innovation and the outcomes of the process of innovation, e.g., a product that better fits the customers’ expectations and demands or consequently a better adoption of the product by the customer.
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Leveraging customer knowledge in open innovation processes by using social softwareKruse, Paul 10 September 2015 (has links)
Involving customers in the creation and design process of new products and services has been dis-cussed in practice and research since the early 1980’s. As one of the first researchers, von Hippel (1986) shed light on the concept of Lead Users, a group of users who are able to provide most accu-rate data on future needs for organizations. Subsequently, many scholars emphasized different areas of contribution for customers and how they provide assistance to the process of innovation.
First of all, customers may contribute to product innovation (Cooper & Kleinschmidt, 1987; Driessen & Hillebrand, 2013; Füller & Matzler, 2007; Gruner & Homburg, 2000; Sawhney, Verona, & Prandelli, 2005; Snow, Fjeldstad, Lettl, & Miles, 2011; Yang & Rui, 2009) and service innovation (Abecassis-Moedas, Ben Mahmoud-Jouini, Dell’Era, Manceau, & Verganti, 2012; Alam, 2002; Chesbrough, 2011; Larbig-Wüst, 2010; Magnusson, 2003; Paton & Mclaughlin, 2008; Shang, Lin, & Wu, 2009; Silpakit & Fisk, 1985), e.g., by co-creating values (Prahalad & Ramaswamy, 2004), such as concepts or designs as well as reviewing and testing them throughout the stages of the process of innovation. From the customers’ point of view, being involved in innovation processes and becoming a part of the organ-ization is a desire of an increasing number of them. Customers are demanding more individual and more tailored products. They are increasingly knowledgeable and capable of designing and produc-ing their own products and services. Due to the fact that their influence on product development is positively related to the quality of the new product (Sethi, 2000), more and more organizations appreciate them as innovation actors and are willing to pay them for their input. Today, customers are not only involved in the qualification of products (Callon, Méadel, & Rabeharisoa, 2002; Callon & Muniesa, 2005; Grabher, Ibert, & Flohr, 2009) but also allowed to customize and evaluate them on the path to innovation (Franke & Piller, 2004; Piller & Walcher, 2006; von Hippel & Katz, 2002; von Hippel, 2001).
Moreover, there is an abundance of studies that stress the customers’ influence on effectiveness (de Luca & Atuahene-Gima, 2007; Kleinschmidt & Cooper, 1991; Kristensson, Matthing, & Johansson, 2008; Still, Huhtamäki, Isomursu, Lahti, & Koskela-Huotari, 2012) and risk (Bayer & Maier, 2006; Enkel, Kausch, & Gassmann, 2005; Enkel, Perez-Freije, & Gassmann, 2005). While the latter comprises the risk of customer integration as well as the customers’ influence on market risks, e.g., during new product development, studies on effectiveness are mostly concerned with customer-orientation and products/services in line with customers’ expectations (Atuahene-Gima, 1996, 2003; Fuchs & Schreier, 2011).
The accompanying change in understanding became known as open innovation (OI; first coined by Chesbrough in 2003) and represents a paradigm shift, where organizations switch their focus from internally generated innovation (i.e., ideation, in-house R&D, etc.) toward external knowledge and open innovation processes, thus, allowing them to integrate external ideas and actors, i.e. custom-ers (Chesbrough, 2006) and other external stakeholders (Laursen & Salter, 2006). Since then, OI has been identified as a success factor for increasing customer satisfaction (Füller, Hutter, & Faullant, 2011; Greer & Lei, 2012) and growing revenues (Faems, De Visser, Andries, & van Looy, 2010; Mette, Moser, & Fridgen, 2013; Spithoven, Frantzen, & Clarysse, 2010). In addition to that, by open-ing their doors to external experts and knowledge workers (Kang & Kang, 2009), organizations cope with shorter innovation cycles, rising R&D costs, and the shortage of resources (Gassmann & Enkel, 2004).
Parallel to the paradigm shift in innovation, another shift has taken place in information and com-munication technologies (Kietzmann, Hermkens, McCarthy, & Silvestre, 2011). Only a few years ago, when customer integration was still very costly, companies had to fly in customers, provide facilities onsite, permanently assign employees to such activities, and incentivise each task execut-ed by customers. Today, emerging technologies (subsumed under the term ‘social software’) help integrating customers or other external stakeholders, who are increasingly familiar with the such technologies from personal usage experience (Cook, 2008), and grant them access from all over the world in a 24/7 fashion. Examples include blogging tools, social networking systems, or wikis. These technologies help organizations to access customer knowledge, facilitate the collaboration with customers (Culnan, McHugh, & Zubillaga, 2010; Piller & Vossen, 2012) at reduced costs and allow them to address a much larger audience (Kaplan & Haenlein, 2010). On the other hand, customers can now express their needs in a more direct way to organizations. However, each technology or application category may present a completely different benefit to the process of innovation or parts of it and, thus, the innovation itself.
Reflecting these developments, organizations need to know two things: how can they exploit the customers’ knowledge for innovation purposes and how may the implementation of social soft-ware support this.
Hence, this research addresses the integration of customers in organizational innovation, i.e. new product development. It addresses how and why firms activate customers for innovation and which contribution customers provide to the process of innovation. Additionally, it investigates which tasks customers may take over in open innovations projects and which strategies organiza-tions may choose to do so. It also addresses which social software application supports each task best and how organizations may select the most suitable application out of a rapidly growing num-ber of alternatives.
The nature of this research is recommendatory and aims at designing a solution for organizations that are interested in the potential contribution of customers during innovation, already involve customers in innovation tasks or plan to do so. Following the recommendations of this research should result in a more effective organizational exploitation of customer knowledge and their workforce and, thus, a value added to innovation and the outcomes of the process of innovation, e.g., a product that better fits the customers’ expectations and demands or consequently a better adoption of the product by the customer.:1 Introduction
2 Theoretical foundation
3 Research areas and focal points
4 Research aims and questions
5 Methods
6 Findings
7 Conclusion
References
Essay 1: The Role of External Knowledge in Open Innovation – A Systematic Review of Literature
Essay 2: External Knowledge in Organisational Innovation – Toward an Integration Concept
Essay 3: Idea Mining – Text Mining Supported Knowledge Management for Innovation Purposes
Essay 4: How do Tasks and Technology fit? – Bringing Order to the Open Innovation Chaos
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