What is Open Innovation? | Crowdsourcing? | User innovation? | Co-Creation?

What is co-creation? Here Wikipedia states that co-creation views markets as forums for firms and active customers to share, combine and renew each other’s resources and capabilities to create value through new forms of interaction, service and learning mechanisms. It differs from the traditional active firm – passive consumer market construct of the past. I like how C.K. Prahalad and Venkat Ramaswamy argue that “value will be increasingly co-created by the firm and the customer, they argued, rather than being created entirely inside the firm.”

These terms overlap which leaves plenty of room for confusion, but I hope this short overview helps.

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By Stefan Lindegaard

Many people ask what open innovation is. I suggest that you should view open innovation as a philosophy or a mindset that you should embrace within your organization. In a more practical definition, open innovation is about bridging internal and external resources and act on those opportunities. The value proposition this gives companies that get it right is simply too good to miss out on.

I also like this quote from Henry Chesbrough; “Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology

This still leaves three other questions:

What is crowdsourcing? Wikipedia states that “crowdsourcing is the act of outsourcing tasks, traditionally performed by an employee or contractor, to a large group of people or community (a crowd), through an open call.” I view crowdsourcing as a tool that can be used to bring external input into your organizations.

What is user-driven innovation? I view this as a technique in which companies gain insights from users, which can then be used in the innovation process. I think that a key element in user-driven innovation is the observation of users rather than the use of questionnaires and focus groups. Erich von Hippel is an important influencer with his contributions on lead-user innovation. Leer más “What is Open Innovation? | Crowdsourcing? | User innovation? | Co-Creation?”

Forrester: Consumers Will Not Only Buy, They’ll Help Create

If the general trend toward crowdsourcing is any clue, then we are all well aware of the value of the Internet masses. Having access to a loyal fan base can be like a fount of free ideas and labor. From translating Wikipedia and Facebook to beta testing Google Chrome, crowdsourcing is used all across the Web for a number of purposes and analyst firm Forrester is suggesting one more – co-creation.

According to a report released this week, U.S. consumers a willing “co-creators”, a fact that many companies have yet to take advantage of. [Más…]

The report surveyed consumer product strategy professionals and consumers and found that “nearly half of all companies are not using social media to interact directly with their customers in order to influence product creation, design or strategy.” Beyond that, the report found that a majority of consumers were more than willing to lend a helping hand in creating the products they would eventually purchase.


If the general trend toward crowdsourcing is any clue, then we are all well aware of the value of the Internet masses. Having access to a loyal fan base can be like a fount of free ideas and labor. From translating Wikipedia and Facebook to beta testing Google Chrome, crowdsourcing is used all across the Web for a number of purposes and analyst firm Forrester is suggesting one more – co-creation.

According to a report released this week, U.S. consumers a willing “co-creators”, a fact that many companies have yet to take advantage of. Leer más “Forrester: Consumers Will Not Only Buy, They’ll Help Create”

Innovation Perspectives – A Common Purpose

This is the second of several ‘Innovation Perspectives‘ articles we will publish this week from multiple authors to get different perspectives on ‘How should firms collaborate with customers and/or value chain partners to co-create new products and services?’. Here is the next perspective in the series:

by Yann Cramer

Co-Creation Springs from a Sense of Common Purpose

Innovation Perspectives – A Common PurposeToo often the question of value extraction/retention is a dominant concern for all parties at too early a stage. For the sake of argument, let’s consider a supplier who has to develop a critical component for a customer who will integrate it in the design of a new finished product. The development process has not yet started that the customer plays its cards close to its chest with the conscious objective to retain as much of the value they will get from selling the finished product, and the supplier plays in a similar way with an equally conscious objective to extract as much value as possible from selling their component to the customer.

As a result, the supplier does not share unique knowledge for fear of losing leverage, the customer does not seek what could make the product unique for fear of tying itself to a particular supplier, and a great deal of time and effort is invested in crafting legal frameworks for knowledge sharing that anticipate on everything that could go wrong. But in reality, the biggest risk they run (without recognising it) is that while they position themselves for future negotiations some competitors will move faster and take the market.


This is the second of several ‘Innovation Perspectives‘ articles we will publish this week from multiple authors to get different perspectives on ‘How should firms collaborate with customers and/or value chain partners to co-create new products and services?’. Here is the next perspective in the series:

by Yann Cramer

Co-Creation Springs from a Sense of Common Purpose

Innovation Perspectives - A Common PurposeToo often the question of value extraction/retention is a dominant concern for all parties at too early a stage. For the sake of argument, let’s consider a supplier who has to develop a critical component for a customer who will integrate it in the design of a new finished product. The development process has not yet started that the customer plays its cards close to its chest with the conscious objective to retain as much of the value they will get from selling the finished product, and the supplier plays in a similar way with an equally conscious objective to extract as much value as possible from selling their component to the customer.

As a result, the supplier does not share unique knowledge for fear of losing leverage, the customer does not seek what could make the product unique for fear of tying itself to a particular supplier, and a great deal of time and effort is invested in crafting legal frameworks for knowledge sharing that anticipate on everything that could go wrong. But in reality, the biggest risk they run (without recognising it) is that while they position themselves for future negotiations some competitors will move faster and take the market. Leer más “Innovation Perspectives – A Common Purpose”