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III ENoLL Living labs Summer School
            Research Day
          20th August 2012

  Users roles for co-creation of
innovation in living lab networks

    Seppo Leminen, D.Sc. (Econ), Adjunct Professor, Laurea University of
               Applied Sciences, seppo.leminen@laurea.fi

    Anna-Greta Nyström, D.Sc. (Econ), Åbo Akademi University, School of
                        Business and Economics

   Mika Westerlund, D.Sc. (Econ), Assistant Professor, Carleton University,
                     Sprott School of Business, Canada
Research gaps

• Only few studies address co–production of services; instead focus is
 usually on the co-creation of value. (Chen et al., 2011)
• Living Labs provide a promising research area for studying open
 service innovation. (Pascu & van Lieshout, 2009)

• The roles of the actors in Living Labs networks deserve further
 investigation. (Nyström & Leminen, 2011)
• Living Labs not researched from a network perspective and there is
 lack of rich case descriptions of Living Labs (Leminen & Westerlund,
 forthcoming)
Living Labs (1/2)
 Experimentation environments, where stakeholders form public-
    private-people partnerships (4Ps) to create, prototype, validate, and
    test new products, services, and technologies in real-life contexts.
    (Ballon et al., 2005)

 Products, services, and technologies are developed and tested in
    physical or virtual regions, where users are informants/co-
    creators. (Kusiak, 2007)

 Different from: (Ballon et al., 2005; Schaffers et al,. 2007)
•    test beds for controlled testing in a laboratory environment.
•    field trials for testing in a limited but still real-life environment.
•    other forms of open innovation that have no concrete setting.
Living Labs (2/2)
 Participants’ roles: Living Lab is a real-life test and
 experimentation environment, where users and producers co-
 create innovations, and which connects them with utilizers and
 enablers. (Leminen & Westerlund, 2008)

 Global networks: many Living Labs join regional or global
 networks of Living Labs: e.g., European Network of Living Labs.
 (http://www.openlivinglabs.eu/)

 Different types: i) narrow but sizable communities of expert
 users; ii) whole bounded populations; iii) Living Labs for technical
 service development; iv) Living Labs for non-technical research
 using a service platform. (Stewart, 2007)
Users as innovators
 Customer participation (customer contribution to co-production)
 and interaction (dialogue between customer and business) vital in
 service innovations. (von Hippel, 1986)

• Today’s organizations need a constant flow of ideas while competing
 through emergent technologies and fast NPD. (Kao, 1997)

• Integrating customers and users to learn from and with them in
 the innovation process is a key success factor for firms in all
 industries. (Edvarsson et al., 2010).

• Firms involve consumers in the co-production of brands,
 experiences, design, marketing strategies, and even product or
 service development. (Jeppesen & Molin, 2003; Zwick et al., 2008)
Objectives of the study
• Describe Living Labs as open innovation networks

• Identify the distinct structures of Living Labs networks

• Analyze users’ roles in diverse Living Labs networks
Customer involvement: two
  different approaches




                (Leminen, Kortelainen & Fred, 2010) 7
Methodology
Primary data

  • A multiple case study among the staffs of 26 Living
   Labs in Finland, Sweden, Spain, and South Africa
   during 2007-2011 (a total of 103 semi-structured
   interviews).

Secondary data

  • Web sites, bulletins, magazines, and case reports

  • Data collection aimed at identifying and
   categorizing roles in Living Labs networks
Activity based user roles
• Four principal activity based user roles in Living Labs
 found:
   • Informant

   • Tester

   • Contributor

   • Co-creator




                                                        9
Living Labs: The network view
                  Users




                Innovation        Providers
Enablers       development




                Utilizers



           A Living Lab network               Network of Living Labs

                                                                                   10
                                               (Mod. Leminen & Westerlund, 2008)
Different types of Living Labs
                                     Enabler
• Utilizer-driven Living Labs

• Enabler-driven Living Labs
                                            Utilizer
• Provider-driven Living Labs                               Developer


• User/User community-driven Living Labs
                                               User




                                     (Kortelainen, Leminen & Fred, 2011)
                                                                    11
User’s roles in Living Labs networks
           Utilizer         User           Provider            Enabler        Living Lab
           driven           driven         driven              driven           actors


           Co-creator,      Co-creator,    Co-creator,         Co-creator,
           Contributor      Contributor    Contributor,        Contributor       User
                                           Informant, Tester

Activity
based
           Contributor 6,   Co-creator,    Co-creator 18,      Contributor,
 roles     Informant,       Informant      Contributor         Informant
           Tester                          15,16,18,19,
                                                                                 User
                                           Informant
                                           15,16,17,18,19,
                                           Tester 15,17,18,



           Informant        Contributor,   Contributor         Informant
           Contributor 4,   Tester         11,12,13            Tester
                                                                                 User
           Tester 2,4                      Informant 13,14,
                                           Tester 11,12,14
                                                                                           12
Business networks: structure
• Business network can be classified according to the
 firm’s position in the network and the
 configuration of the network (Doz, 2001).
• The company may act as the engine, or hub, in the
 focal business network, or it is one of the many
 actors having a minor role as a partner with whom
 the hub company cooperates.
• Networks centralized, decentralized, or distributed.
 Barbasi (2002, ref. Möller and Svahn, 2003)
                                                         13
Roles in networks
• Heikkinen et al. (2007)

   • Webber, instigator, gatekeeper, advocate,
    producer, planner, entrant, auxiliary

   • Facilitator, compromiser, aspirant, accessory
    provider




                                                     14
User’s roles in diverse Living Labs networks
                 Utilizer         User            Provider            Enabler        Living Lab
                 driven           driven          driven              driven           actors
                                  Orchestrator,                                         HUB
                                  Facilitator
Distributed
 Multiplex
                 Co-creator,      Co-creator,     Co-creator,         Co-creator,
 structure
                 Contributor      Contributor     Contributor,        Contributor       User
                                                  Informant, Tester
                                  Webber,                                               HUB
                                  Builder,                 Position (structure)
                                  Facilitator
                                                              based roles
Distributed      Contributor 6,   Coordinator     Co-creator 18,      Coordinator
 structure       Informant,       (focal net),    Contributor         (focal net),
                 Tester           Co-creator,     15,16,18,19,        Contributor,
                                                                                        User
                                  Informant       Informant           Informant
                                                  15,16,17,18,19,
                                                  Tester 15,17,18,
                                  Facilitator,                                          HUB
Centralized
                                  Integrator
 structure

                 Informant        Contributor,    Contributor         Informant
                 Contributor 4,   Tester          11,12,13            Tester
                                                                                        User
                 Tester 2,4                       Informant 13,14,                                15
                                                  Tester 11,12,14
New position (structure) based
       roles for user found
• Builder

• Facilitator

• Orchestrator

• Integrator

• Coordinator (focal net)




                                    16
User’s roles in diverse Living Labs networks
                  Utilizer         User            Provider            Enabler        Living Lab
                  driven           driven          driven              driven           actors
                                   Orchestrator,                                         HUB
                                   Facilitator
 Distributed
  Multiplex
                  Co-creator,      Co-creator,     Co-creator,         Co-creator,
  structure
                  Contributor      Contributor     Contributor,        Contributor       User
Activity                                           Informant, Tester

based                              Webber,
                                                                 Position                HUB
                                   Builder,
 roles                             Facilitator                  based roles
 Distributed      Contributor 6,   Coordinator     Co-creator 18,      Coordinator
  structure       Informant,       (focal net),    Contributor         (focal net),
                  Tester           Co-creator,     15,16,18,19,        Contributor,
                                                                                         User
                                   Informant       Informant           Informant
                                                   15,16,17,18,19,
                                                   Tester 15,17,18,
                                   Facilitator,                                          HUB
 Centralized
                                   Integrator
  structure

                  Informant        Contributor,    Contributor         Informant
                  Contributor 4,   Tester          11,12,13            Tester
                                                                                         User
                  Tester 2,4                       Informant 13,14,                                17
                                                   Tester 11,12,14
Main conclusions
We suggest that either

      actors actively shape the environment
      they act in
 or

      they are restricted by predetermined
      social structures (e.g. business
      networks)

                                             18
Main arguments
• Innovation is the outcome of
 cooperation between actors in business
 networks
• Roles and positions of users are tools to
 manage the network
Found users roles
                in Living Lab network
Position (structure)       Activity based user roles
based roles for users
• Builder                  • Informant

• Facilitator              • Tester

• Orchestrator             • Contributor

• Integrator               • Co-creator

• Coordinator

• Webber                                               20
… and the journey continues
continues.




                          21
...Looking for partners
• Scale-up LL (Scale-up innovation mechanisms in Living

 Labs) project focuses on the role of users and consumers

 in up‐scaling innovations from local and regional Living

 Labs experiments to global practices.

• Please contact to: Dr. Seppo Leminen


                                                            22
Are you
                innovating
              together with
            your customers?
            Perspectives on
               Living Labs
               (in Finnish)
22.8.2012


                         23
Thank you!




seppo.leminen@laurea.fi   anna-greta.nystrom@abo.fi   mika.westerlund@carleton.ca



    Questions?                                Comments?

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Users roles for co-creation of innovation in living lab networks Seppo Leminen

  • 1. III ENoLL Living labs Summer School Research Day 20th August 2012 Users roles for co-creation of innovation in living lab networks Seppo Leminen, D.Sc. (Econ), Adjunct Professor, Laurea University of Applied Sciences, seppo.leminen@laurea.fi Anna-Greta Nyström, D.Sc. (Econ), Åbo Akademi University, School of Business and Economics Mika Westerlund, D.Sc. (Econ), Assistant Professor, Carleton University, Sprott School of Business, Canada
  • 2. Research gaps • Only few studies address co–production of services; instead focus is usually on the co-creation of value. (Chen et al., 2011) • Living Labs provide a promising research area for studying open service innovation. (Pascu & van Lieshout, 2009) • The roles of the actors in Living Labs networks deserve further investigation. (Nyström & Leminen, 2011) • Living Labs not researched from a network perspective and there is lack of rich case descriptions of Living Labs (Leminen & Westerlund, forthcoming)
  • 3. Living Labs (1/2)  Experimentation environments, where stakeholders form public- private-people partnerships (4Ps) to create, prototype, validate, and test new products, services, and technologies in real-life contexts. (Ballon et al., 2005)  Products, services, and technologies are developed and tested in physical or virtual regions, where users are informants/co- creators. (Kusiak, 2007)  Different from: (Ballon et al., 2005; Schaffers et al,. 2007) • test beds for controlled testing in a laboratory environment. • field trials for testing in a limited but still real-life environment. • other forms of open innovation that have no concrete setting.
  • 4. Living Labs (2/2)  Participants’ roles: Living Lab is a real-life test and experimentation environment, where users and producers co- create innovations, and which connects them with utilizers and enablers. (Leminen & Westerlund, 2008)  Global networks: many Living Labs join regional or global networks of Living Labs: e.g., European Network of Living Labs. (http://www.openlivinglabs.eu/)  Different types: i) narrow but sizable communities of expert users; ii) whole bounded populations; iii) Living Labs for technical service development; iv) Living Labs for non-technical research using a service platform. (Stewart, 2007)
  • 5. Users as innovators  Customer participation (customer contribution to co-production) and interaction (dialogue between customer and business) vital in service innovations. (von Hippel, 1986) • Today’s organizations need a constant flow of ideas while competing through emergent technologies and fast NPD. (Kao, 1997) • Integrating customers and users to learn from and with them in the innovation process is a key success factor for firms in all industries. (Edvarsson et al., 2010). • Firms involve consumers in the co-production of brands, experiences, design, marketing strategies, and even product or service development. (Jeppesen & Molin, 2003; Zwick et al., 2008)
  • 6. Objectives of the study • Describe Living Labs as open innovation networks • Identify the distinct structures of Living Labs networks • Analyze users’ roles in diverse Living Labs networks
  • 7. Customer involvement: two different approaches (Leminen, Kortelainen & Fred, 2010) 7
  • 8. Methodology Primary data • A multiple case study among the staffs of 26 Living Labs in Finland, Sweden, Spain, and South Africa during 2007-2011 (a total of 103 semi-structured interviews). Secondary data • Web sites, bulletins, magazines, and case reports • Data collection aimed at identifying and categorizing roles in Living Labs networks
  • 9. Activity based user roles • Four principal activity based user roles in Living Labs found: • Informant • Tester • Contributor • Co-creator 9
  • 10. Living Labs: The network view Users Innovation Providers Enablers development Utilizers A Living Lab network Network of Living Labs 10 (Mod. Leminen & Westerlund, 2008)
  • 11. Different types of Living Labs Enabler • Utilizer-driven Living Labs • Enabler-driven Living Labs Utilizer • Provider-driven Living Labs Developer • User/User community-driven Living Labs User (Kortelainen, Leminen & Fred, 2011) 11
  • 12. User’s roles in Living Labs networks Utilizer User Provider Enabler Living Lab driven driven driven driven actors Co-creator, Co-creator, Co-creator, Co-creator, Contributor Contributor Contributor, Contributor User Informant, Tester Activity based Contributor 6, Co-creator, Co-creator 18, Contributor, roles Informant, Informant Contributor Informant Tester 15,16,18,19, User Informant 15,16,17,18,19, Tester 15,17,18, Informant Contributor, Contributor Informant Contributor 4, Tester 11,12,13 Tester User Tester 2,4 Informant 13,14, Tester 11,12,14 12
  • 13. Business networks: structure • Business network can be classified according to the firm’s position in the network and the configuration of the network (Doz, 2001). • The company may act as the engine, or hub, in the focal business network, or it is one of the many actors having a minor role as a partner with whom the hub company cooperates. • Networks centralized, decentralized, or distributed. Barbasi (2002, ref. Möller and Svahn, 2003) 13
  • 14. Roles in networks • Heikkinen et al. (2007) • Webber, instigator, gatekeeper, advocate, producer, planner, entrant, auxiliary • Facilitator, compromiser, aspirant, accessory provider 14
  • 15. User’s roles in diverse Living Labs networks Utilizer User Provider Enabler Living Lab driven driven driven driven actors Orchestrator, HUB Facilitator Distributed Multiplex Co-creator, Co-creator, Co-creator, Co-creator, structure Contributor Contributor Contributor, Contributor User Informant, Tester Webber, HUB Builder, Position (structure) Facilitator based roles Distributed Contributor 6, Coordinator Co-creator 18, Coordinator structure Informant, (focal net), Contributor (focal net), Tester Co-creator, 15,16,18,19, Contributor, User Informant Informant Informant 15,16,17,18,19, Tester 15,17,18, Facilitator, HUB Centralized Integrator structure Informant Contributor, Contributor Informant Contributor 4, Tester 11,12,13 Tester User Tester 2,4 Informant 13,14, 15 Tester 11,12,14
  • 16. New position (structure) based roles for user found • Builder • Facilitator • Orchestrator • Integrator • Coordinator (focal net) 16
  • 17. User’s roles in diverse Living Labs networks Utilizer User Provider Enabler Living Lab driven driven driven driven actors Orchestrator, HUB Facilitator Distributed Multiplex Co-creator, Co-creator, Co-creator, Co-creator, structure Contributor Contributor Contributor, Contributor User Activity Informant, Tester based Webber, Position HUB Builder, roles Facilitator based roles Distributed Contributor 6, Coordinator Co-creator 18, Coordinator structure Informant, (focal net), Contributor (focal net), Tester Co-creator, 15,16,18,19, Contributor, User Informant Informant Informant 15,16,17,18,19, Tester 15,17,18, Facilitator, HUB Centralized Integrator structure Informant Contributor, Contributor Informant Contributor 4, Tester 11,12,13 Tester User Tester 2,4 Informant 13,14, 17 Tester 11,12,14
  • 18. Main conclusions We suggest that either actors actively shape the environment they act in or they are restricted by predetermined social structures (e.g. business networks) 18
  • 19. Main arguments • Innovation is the outcome of cooperation between actors in business networks • Roles and positions of users are tools to manage the network
  • 20. Found users roles in Living Lab network Position (structure) Activity based user roles based roles for users • Builder • Informant • Facilitator • Tester • Orchestrator • Contributor • Integrator • Co-creator • Coordinator • Webber 20
  • 21. … and the journey continues continues. 21
  • 22. ...Looking for partners • Scale-up LL (Scale-up innovation mechanisms in Living Labs) project focuses on the role of users and consumers in up‐scaling innovations from local and regional Living Labs experiments to global practices. • Please contact to: Dr. Seppo Leminen 22
  • 23. Are you innovating together with your customers? Perspectives on Living Labs (in Finnish) 22.8.2012 23
  • 24. Thank you! seppo.leminen@laurea.fi anna-greta.nystrom@abo.fi mika.westerlund@carleton.ca Questions? Comments?