Driving Innovation through Co-Creation

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    InnovationthroughCo-creation

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    Driving Innovation through Co-CreationBy Uday Dandavate,

    December 8th

    , 2008

    1.1 Background

    The real challenge for a future-focused organization lies not in just

    coming up with great product ideas, but in coming up with ideas that

    resonate with the real consumers. Additionally, a greater challenge

    that companies face today is getting multiple teams in the value chain

    to buy into the vision of the creative teams, and executing the vision

    with a passion and precision so that such an innovation translates into

    profit.

    Every year, global companies cumulatively spend billions of dollars on

    innovation. A very small number of ideas generated through voracious

    churning of creative minds actually hit the market, and an even smaller

    proportion of these ideas generate profits. The real challenge faced by

    companies worldwide is how to streamline the innovation processes in

    a manner that optimizes investment in innovation and maximizes the

    chances of success.

    1.2 Evolution of design

    The field of design has reinvented itself with the purpose of keeping

    itself relevant to market realities. Traditionally, design was considered

    a domain of creative mindsof people who were trained to envision

    and execute ideas that could change the course of consumers lives.

    Designers had the power to manipulate everyday lives of consumers.

    Unfortunately, this power did not always translate into business

    success. The result was a typical tension between creative teams and

    the product planning teams on one hand, and the engineering and

    marketing teams on the other. Inevitable culmination of this tension

    was a lot of finger pointing for failed ideas and missed opportunities.

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    Designers were quick to recognize the benefits of a User-Centered

    Design (UCD) process to enhance the chances of design ideas

    succeeding. In the course of time, designers began to integrate creative

    teams with experts in anthropology and cognitive psychology, who

    could bring the knowledge of consumers needs and aspirations to the

    innovation process. Ethnographic research methods became popular

    amongst designers and innovation teams in global corporations. With

    the advent of UCD methods, designers had to adjust their internal

    conceptualization processes to the need for understanding,

    internalizing, and being inspired by information from and about the

    real users of their products.

    Another development affected the practice of design and innovation.

    With the popularization of PCs and various other digital devices, User

    Interface (UI) design (both hardware and software devices) became a

    critical consideration in product development. The UI design

    community recognized the need for inputs regarding real users in

    design. As a result, usability studies became an integral part of the

    innovation process within the UI design field. Usability studies helped

    designers to gain sensitivity to the user experience of their products

    and to make improvements before their designs were put into the hands

    of the consumers.

    Emergence of the UCD approach has helped move the onus of

    innovation from the creativity of a single designer to the information

    acquired from a systematic study of user needs and aspirations. While

    UCD helped increase the chances of making designers ideas more

    relevant to the consumers, the source of ideas still remained with the

    designers. The end users of a design were still used as a reference

    point. This is where Participatory Design (PD) came into the picture.

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    According to Wickepedia,

    Participatory design is an approach to design that

    attempts to actively involve the end users in the designprocess to help ensure that the product design meets their

    needs and is usable. It is rooted in work with trade unionsin several Scandinavian countries in the 1960s and 1970s;

    its ancestry also includes Action research andSociotechnical Design.In participatory design end users(putative, potential, or future) are invited to cooperate withresearchers and developers during an innovation process.

    Potentially, they participate during several stages of aninnovation process: they participate during the initial

    exploration and problem definition, both to help define theproblem and to focus ideas for solution; and during

    development they help evaluate proposed solutions.

    (Wickepedia 2006)

    The main difference between UCD and PD is that UCD uses end users

    in a consultative role, whereas the latter users are included in the

    ideation process by way of having access to the tools and methods

    similar to the ones designers would use to conceptualize ideas.

    Figure 1. (L)Even adults discover the freedom of expression when given the task of

    representing a complex experience in a collage form. (R) Velcro modeling, like

    LEGO, triggers the imagination of the participants. It helps translate the tacit

    knowledge they have about their own needs and aspirations into solutions.

    The benefit of the PD process is that, when users are given the tools of

    conceptualization that designers typically use, they are able to translate

    their tacit knowledge about their own needs and aspirations into

    solutions. Wickepedia itself is a good example of PD. The solutions

    created by the participants of this process are analyzed to understand

    the motivations behind the solutions suggested by the participants.

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    The design field is now moving beyond the PD stage of evolution.

    While PD was focused on eliciting user inputs about the end product, it

    still did not address the need for moving the ideas efficiently and

    effectively through the value chain. Getting various stakeholders in the

    value chain to own the insights and ideas, get their commitment to

    execute innovation, required a new approach. This is where the

    concept of co-creation emerged. C K Prahalad, professor of Corporate

    Strategy at the Stephen M. Ross School of Business, University of

    Michigan, was the first to introduce the concept. In suggesting a shift

    from creating designs for consumers to developing experience

    platforms, Prahalad stated that innovation is not necessarily

    innovation in technology, but it comes from the ability to personalize

    an experience (Prahalad 2004). A key consideration in introducing the

    co-creation process in an organization is to recognize the fact that one

    cannot isolate the experience of an end user from the experience of the

    designer, the client, the marketer, the channel partners, and all the

    other stakeholders within the value chain. Each one of them has their

    own motivations and constraints within the value chain. Unless all of

    these considerations are taken into account while developing an

    innovative idea, it would be difficult to follow through with the

    execution of it. This is where co-creation becomes imperative for

    innovation.

    1.3 Understanding co-creation

    The basic philosophical foundation of co-creation is similar to the

    principles of PD. In order to maximize the effectiveness of co-creation,

    some of the highlights of the process must be understood:

    1. Innovation refers to the impact of your product (which includesservice, retail environment, or a brand) on your consumer. It does

    not refer to just the end product.

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    2. The objectives of various stakeholders must be reconciled when aninnovative idea is executed. Your product cannot succeed if it is

    only driven by the objectives of the CEO, the engineer, the channel

    partners, or the consumers.

    Figure 2: (L) Co-creation workshop at BBC, London. (R) Co-creation

    workshop at Bell Aliant, Halifax, Canada.

    3. Design is an act, not an artifact. It is an act of meeting unmet needsand executing dreams for an experience. The embodiment of

    design is only the culmination of the design process.

    4. People choose products based on the experience they want to havewith the products or because of the meaning such products hold for

    them, not just for their features and functions.

    5. When given appropriate tools of visualizing and expressing theirideas, such as the tools used by designers, everyday people can tapinto their tacit understanding of their own needs and aspirations

    and build ideas for future products.

    Figure 3: Capturing moments through visual tools helps focus on miniscule

    moments of life that have a big impact on how people feel overall about new

    technologies that afford those experiences.

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    6. Verbalized and written methods of articulation have been thetraditional mode of communication between a company and its

    consumers, especially in the areas where market research is meant

    to drive innovation. These modes of communication are not very

    effective in capturing the tacit dimensions of human experience,

    such as emotions, cognitive structures, cultural influences, andinterpersonal relationships. These dimensions of human experience

    have critical bearing on the success of an idea. On the other hand,

    tools such as collage making, cognitive mapping, storytelling,Velcro modeling, etc., allow people to reflect over those aspects of

    their everyday experiences that are important to them. Therefore,the co-creation process engages multiple modes of communication

    between multiple stakeholders in the value chain.

    Figure 4: The data collected from the fieldwork activity is organized to findpatterns in user behaviors, needs, and aspirations.

    7. Translation of market information into innovative, actionable, andmeaningful ideas is more effective when the information is

    presented to the innovation team in a visual, immersive, and

    inspiring format. Reports, bar charts, and statistics do not inspire

    innovative ideas.

    Figure 5: (L) Developing frameworks, use scenarios of the future, and tangible

    product and service ideas is the final phase of the co-creation process. (R) Individual

    members of the co-creation team are encouraged to draw quick visual

    representations of patterns they see in the information. These visual patterns help us

    arrive at a shared understanding of the findings.

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    1.4 Application of co-creation

    The co-creation process can be used in a variety of situations. For

    example:

    1. Developing new products, brands, retail environments,services, user interfaces, or marketing messages.

    2. Identifying emerging cultural, technological, behavioral, ortransactional trends.

    3. Educating an innovation team to innovate for new andemerging markets.

    4. Educating an innovation team to innovate for new andemerging consumer profiles within familiar markets.

    5. Developing a shared vision and a commitment for settingconsumer-focused goals for delivering value within

    multidisciplinary teams within a company.6. Identifying product diversification plans based on the perceived

    competence of the company amongst the consumers.

    7. Extending the brand to new business opportunities.8. Establishing shared goals for innovation between collaborating

    companies based on their respective competencies, aspirations,

    and brand equities.

    9. Defining persona: An actionable description of targetconsumers and their archetypal behaviors and aspirations.

    10.Creating relationships between product manufacturers andchannel partners based on a shared understanding of the

    consumer, the point-of-purchase experience, and opportunities

    for adding value through innovation.11.Jouneys into the heartland of Consumer Experience:

    Exposing senior management to the realities of the market andengaging them in in-field ideation.

    In the following sections I will provide a few examples of using co-

    creation for inspiring people-centered innovation in an organization:

    1.5 Co-creation in action: Connecticut History Society

    A few years ago, The Connecticut History Society (CHS) approached

    SonicRim with a request for helping the organization develop a vision

    of how to develop a new history museum that takes into account the

    aspirations of the people of Connecticut, and what history and a history

    museum means to them.

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    Outcome: It was noticed that the vision of the local population was

    different (there were some overlaps) from the vision suggested by the

    design team earlier. While both visions were considered very exciting

    and worth pursuing, general opinion was in favor of implementing the

    vision that came out of the co-creation exercise.

    1.6 Co-creation in action: Corporate Journeys into the Heartland

    of Consumer Experience

    Recently, a global technology company, requested SonicRims help in

    helping the senior members of their Emerging Markets team to

    understand the innovation opportunities in India.

    The project comprised three phases: 1. Immersion in the field;

    2. In-field synthesis of observations; and 3. Co-creation workshops in

    the United States.

    We scheduled a visit with 20 senior executives from the company to

    one large city, one medium-size city, and one village in India. The

    team was split into smaller groups; each group had the opportunity to

    meet with local families and discuss their lives, routines, and

    aspirations for the future. We also conducted visits to local markets

    and led group discussions in each of the places visited. The immersion

    exercise occurred over 10 days.

    Figure 6: (L) Preparing for an interview with a village milkman in (R) A designer

    from the client company riding a camel in an Indian village as a part of a

    journey into the heartland of consumer experience.

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    The morning after every visit, the team met at a makeshift war room

    set up at the hotel in Delhi. There we discussed our observations and

    implications, wrote down the observations on index cards, and then

    organized them based on themes and aspirations.

    On the last day, a full-day workshop was conducted where the themes

    and aspirations were organized into finer categories, and a preliminary

    brainstorming session was conducted to identify implications and

    opportunities.

    Later, the SonicRim team spent two weeks organizing the information

    collected from the field visit and the daily synthesis workshops. Then

    various stakeholders from the client organization met for a two-day co-

    creation workshop. During this workshop, SonicRim set up large panel

    displays that depicted visual information about the lifestyles, needs,

    and aspirations of the people we visited. On the first day of the

    workshop, the team deliberated over the observations from the field,

    and identified specific persona and their significant goals that were

    relevant to the client business. On the second day, the team developed

    unique scenarios of how, through the use of technology, each of these

    persona could fulfill their goals. These scenarios were then analyzed to

    develop a refined matrix of persona and their associated goals. Finally,

    the team participated in a brainstorming exercise where specific

    solutions (products, services, and marketing messages) were

    conceptualized based on which goals were relevant to which persona.

    Outcome: A multidisciplinary team of this client was able to commit

    to a framework for innovation that helped them relate their innovation

    targets to the goals of specific persona. Additionally, the immersive

    experience in the field and a collective co-creation exercise helped

    them build a shared memory of the user experiencepast, present, and

    future. Overall, the client organization was very pleased that the co-

    creation exercises helped to conserve investment in innovation.

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    1.7 Takeaways

    Organizations that believe that innovation is one of the important ways

    of thriving in competitive and uncertain economic times should follow

    a co-creation-based model of innovation. By involving the

    stakeholders in the creation of the ideas, you conserve resources that

    are typically wasted in pursuing the vision of a single individual or of

    teams that are removed from the realities of the stakeholders in the

    value chain. Indigenous ideas (ideas germinated within your

    organization) stand a better chance of reaching and succeeding in the

    market. By involving the creativity of the stakeholders and by using

    co-creation tools and methods, you stand a better chance of delivering

    value to your consumers and being rewarded for offering them what

    they need, rather than trying to convince them that they need a great

    idea from a great innovator.

    References:

    Dandavate, Uday, and Nancy Lefforty-Wellot. 2003. Designing with

    Indegenious Ideas,Business World, India, June 30

    Greenbaum, Joan, and Morten Kyng, eds. 1991. Design at Work:

    Cooperative Design of Computer Systems. Hillsdale: Erlbaum

    Kuhn, Sarah, and Michael Muller. 1993. Special issue: Participatory

    Design. Communications of the ACM, 36 (4)

    Prahalad, C.K., and Venkat Ramaswamy (2004) The Future of

    Competition: Co-Creating Unique Value with Customers.Boston

    Harvard Business School Press , 2004

    Sanders, Elizabeth. (2006) Design Research in 2006.Design Research

    Quarterly V.I. 1 September 2006. Designer Research Society.

    www.designresearchsociety.org

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    Sanders, E.B.-N., and Dandavate, U., Design for Experiencing: New

    Tools.Proceedings of the First International Conference on Design

    and Emotion, edited by C.J. Overbeeke and P. Hekkert, 1999, TU Delft

    Sanders, E. B.-N., Generative Tools for Co-Designing. Collaborative

    Design, 2000 (Springer-Verlag: London)

    Schuler, Douglas, and Aki Namioka, eds. 1993. Participatory Design:

    Principles and Practices. Hillsdale: Erlbaum

    Trigg, Randall H., and Susan Irwin Anderson. 1996. Special issue:

    Current Perspectives on Participatory Design.Human-Computer

    Interaction 11

    _________________________________________________________

    Written forMuotoilun Johtaminen (Design Management handbook)

    Q1- 2007, published by Kauppalehti, Finland. Original is printed in

    Finnish language._________________________________________________________

    Author: Uday DandavateFounder and CEO, SonicRim Ltd., Global Design Research,USA

    Uday Dandavate is a founder and CEO of SonicRim, a GlobalDesign Research company. A relentless globetrotter, Udaybrings over 28 years of experience in design and innovation toSonicRim. Uday leads a multidisciplinary team at SonicRim,where he studies people, cultures, and trends around the worldin order to drive design and innovation strategies for his clients.A firm believer in the participatory approach to design, Uday has

    helped many Fortune 500 companies gain empathy for theexperience of everyday people as they design products, brands,and new technologies. He has also worked with many publicorganizations to help them understand how to best deliver valueto their audience through design and innovation. Uday is ofteninvited to speak at international conferences and universities toshare his ideas and experiences as an evangelist of everydaypeople in the world of business and technology.

    www.sonicrim.com