Inspiring route - Collaboration revolution: crowdsourcing, customization & co-creation

COLLABORATION REVOLUTION
MARKETREVOLUTION.IT
@MKTRVLTN
INSPIRING ROUTE
27/02/2014

WELCOME
Thanks for coming
COLLABORATION REVOLUTION - INSPIRING ROUTE 2

How does this story start?

Let me introduce you to this guy...
COLLABORATION REVOLUTION - INSPIRING ROUTE
5
John Pemberton
1 soda, 200 countries, 1.8 billion beverage per day
Source: Coca-cola, 2014.

One Drink For All
6
“Thirst asks nothing more”
Source: Wikipedia, 2014.

The main features
7
3 pillars
Top-down Product
oriented Standardized
Source: Market Revolution, 2014.

A model based on passive consumption
8

What did consumers want?
9
EMULATION BEING REASSURED PASSIVE ACCEPTANCE

In the meanwhile, something was changing...
10

Here comes Rami
11
In Syria the media are controlled by the regime.
There’s a high demand - both internal and external
- of "information" that remains unfulfilled.
Citizens - using common tools such as
smartphones and mobile connections and then
with professional tools donated by benefactors -
have begun to record protests and broadcast the
news.
Today, these "citizen journalists" collaborate and
even replace corporate media - CNN, Al Jazeera
Inglese, The Guardian and The Washington Post -
in the voice and strength to the civil revolt.
Source: Syria Deeply, oct 2014; Wikipedia, feb 2014.
Citizen alongside corporate media

How did it start?
12
Drivers and causes of change
PEER TO PEER OPEN SOURCE USER GENERATED GLOBAL ACTION
CONTENT
Source: Wikinomics, 2008; Market Revolution, 2014.

Collaboration
13
We’re moving from a
world organized around
passive consumption to
one organized around
active collaboration
between people and
firm.

The emergence of new models of peer-relationship
between people and firms that - surpassing the old
framework of consumption - enable the co-creation of
value within the market relationship.

Pro-sumers
15
New behaviors and consumption trends
Source: Treccani, 2013, Forbes, jul 2013.
A consumer than simply “consuming”
products, becomes the voice of the
products and significantly impact the
success or failure of companies, products,
and brands.
Consumers are in control.
The leaders of this shift are the members of
the social web who spread messages,
influence people around the world, and
drive demand.

What drives pro-sumers to partecipate?
16
Source: Crowdsourcing, apr 2012
ENGAGEMENT
PRIDE
SHARED VALUES
BRAND RELATIONSHIP
IMPACT
7 DRIVERS
MONEY COMMUNITY

How new consumers look like?
17
EXPERT
ACTIVE
SOCIAL
DIFFERENT
STAR

How to meet their expectations?
18
CO-CREATION
Let’s make this unique
together
CROWDSOURCING
Consumers make something
unique for me
CUSTOMIZATION
I am making something unique
for each one of my customers

MARKET REVOLUTION
Crowdsourcing

Invite the creative community
Coca-Cola partnering with the crowdsourcing community eYeka
20
Source: eConsultancy, nov 2012.
“Create a film, print,
illustration or
animation against that
brief”
- 3,600 responses
- 900% productivity gain
- Pro-quality

Crowdsourcing
A type of participative online activity in
which a company proposes to a group
of individuals the voluntary
undertaking of a task.
21
Source: Wikipedia, 2014.

Source: Innovation Excellence, aug 2013
Main characteristics
One-to-many activity
A challenge is issued and the crowd works
independently toward a winning solution
People creating a great idea for you
Assumes the crowd is capable of the total answer
Crowd works independently of the internal
creative team
Winning ideas are selected
Winning is the reward

Bring back ol’ good shows
23
Source: Kickstarter, 2013.
Veronica Mars

Solve real business problems: R&D and ROI
Sales revenues from user-generated products were three times higher – and gross margins
four times greater – than those of designer-generated products. And cut costs by 4%.
24
Source: McKinsey, jul 2012; Crowdsourcing.org, feb 2013; ScienceDirect, june 2014; Muji, 2014;
Muji awards

Customer service by the customers
Using Lithium, Tom Tom crowdsourced customer service. Its own customers
handled 20,000 cases in 2 weeks making a $150,000 save
25
Source: The Economist, may 2012,
Tom Tom & Lithium

Drive together
26
the value comes from the community
The community
is the main
product
information
based on
community input.
Business model -
the crowd allows
me to be more
appealing to
potential partners
and obtain
discouts for the
crowd itself.
Source: TechCrunch, jun 2013.
Waze (acquired by Google)

Some figures
27

200K Italian users in crowdsourcing platforms
€ 15 MLN Revenues for crowdsourcing platforms in 2012
€ 100 MLN Est. Revenues for crowdsourcing platforms in 2015
Industry size - Italy
28
Source:Il Sole 24 Ore, Oct 2013

Industry size - worldwide Crowdfunding
452 Platforms
> 1 MLN Crowdfunded projects
+ 105% Growth in the US (number of projects vs. 2012)
+ 65% Growth in Europe (number of projects vs. 2012)
29
Source: Crowdfunding, jul 2013

2015
Here’s the trend
30
2016
2017
Consumer goods companies that employ
crowdsourced solutions in marketing campaigns or
NPD will enjoy a 1% revenue boost over
noncrowdsourced competitors.
24% of large businesses are leveraging external talent,
and that adoption will double in the next two years.
More than half of consumer goods firms will receive
75% of their consumer innovation and R&D from
crowdsourced solutions.
Source: Crowdsourcing, feb 2013

Take out
31
1. Crowdsourcing now solves real business problems
2. The ROI of crowdsourcing can now be demostrated
3. Brand are rapidly reallocating their spending
4. Consumers are looking forward to partecipate

MARKET REVOLUTION
Customization

Definition
33
Customization is a type of online activity in which a
company allows customers to modify/create part of
the product or activity of the brand.

Coca-cola gets personal
34
Share a coke
1. I give up my own name
in order to put my
customer in the centre
2. I let my customers
personalize it online
3. Social media boost
Source: The Guardian, aug 2013

Your Heineken
35
1. Personalize your bottle
and receive it directly at
home
2. Share it on social
networks
3. Vote best bottle
Source: Heineken, 2014.

Nike ID
36
Online community: 15 million people.
Nike’s market share: from 48 to 61%
NIKE iD is 20% of store revenue.
Source: Cross Road Innovation, oct 2010

With personalization we observe a change of
paradigm from mass production to mass
customization.
It aims to deliver products that best meet individual
customer needs with mass production efficiency.
Take out
37
Source: Entrepreneur, nov 2013

MARKET REVOLUTION
Co-creation

Co-creation is a form of business strategy that
emphasizes the generation and ongoing realization
of mutual firm-customer value.
Definition
39
Source: : Wikipedia, 2013

One-to-one activity
- Deeper peer-to-peer relationship
- Commitment between parties to co-innovate, co-design, co-produce
something
People working with you to make a good idea great
40
Source: Innovation Excellence, aug 2013
Main characteristics
The process of an engaging experience of the customer is its own reward
The emerging themes become the inspiration for further development

Production
41
Make your own coke - more than 100 different flavours to make new and
unique combination
Reinvented Manufacturing - from syrup to cartridges
Co-created market research - insights on new products
Consumer is happy too - any Freestyle machine will know their favorite
flavor combo
Source: Forbes, jul 2013
Let the consumer choose

Maxibon goes co-storytelling with d-still
42
Everyone is a storyteller - I let my
potential customers to partecipate to
a story carrying my brand values (Fun,
young)
Everyone is informed - PR advantage
and content for the brand
The consumer is engaged and
entertained
Marketing
Brand - Consumer win win
Source: D-stil, 2013

Kraft’s virtuous circle of co-creation
43
150 women, Health and Wellness opinion
leaders:
- helped refining product concepts and
packaging
- were involved in the merchandising and
test marketing
- shared their retail experiences and
usage patterns
Source: Communispace, 2014
R&D and distribution

“Co-Creation is just a natural way for organisations to
help their customers meet their goals in the lifetime of use
of their products.
But they can only do so if they embrace a different view of
value and start building back from the customer’s view of
value, not the firm’s.”
Take out
44
Chris Lawer

So what?
45

Where does the value go?
46
BRANDS/FIRMS
CROWDSOURCING
CO-CREATION
CUSTOMIZATION
CUSTOMERS/PEOPLE

What does it change?
47
Expertise
Top-down
Standard
Control
A new set of values
Do it together
Peer-to-peer
Unique
Partecipation

The collaborative organization
48
Giffgaff members help with the
company’s operations: sales,
customer service and even
marketing.
In return for this activity, the user
receives remuneration through a
system called “Payback”.
Source: Medium, dec 2013
Run by the community for the community

The collaborative management
49
The new "operating system" that
replaces the company's top-down
paradigm with an organizational
approach in which authority and
decision-making are distributed
throughout the organization’s "fractal"
consisting of teams that are self-organizing.
Source: First round, sept 2013; Holacracy, 2014
Holacracy

Collaboration Revolution
50
Collaborate to change
Firm’s primary activities
Organization
Managerial models
Brand

Brand Revolution
51
Let your company go
1. From control to collaboration
3. From promotion to
authenticity and trasparency
4. From a Decision Making
Manager to a Dialogue
Facilitator
2. From communication to
customer experience
Source: Wikibrand, 2012

Gotcha! But how the story goes on?
52

The dark side of the crowd
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Brand hijacking
Mountain Dew asks the
internet to name its new
soda.
The Internet chooses.
Source: Mashable, aug 2012

The dark side of collaboration
Task:
A new logo for
Moleskinerie
Outcome from the
crowd:
54
Intellectual property fail
Source: Mumbrella, oct 2011

www.marketrevolution.it info@marketrevolution.it
55

Inspiring route - Collaboration revolution: crowdsourcing, customization & co-creation

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