The Uses and Risks of Open Innovation
OVERVIEW: Current approaches to open innovation can be characterized in two general categories: open-boundary innovation and open-source innovation. Open-boundary innovation is designed to source new technology and concepts broadly without surrendering control of the innovation process, while open-source innovation is a more radical model that challenges fundamental assumptions about the nature of the corporation. The appropriate corporate response to open-source innovation is difficult to define, as the risks are unknown. However, as open-source movements gather steam, corporate innovators will need to consider whether and how to approach open-source innovation.
Lead-User Research for Breakthrough Innovation
OVERVIEW: The best companies often work closely with their customers to uncover needs and wants that can be translated into new or improved product or service offerings. The lead-user research method goes a step further, looking not only to the typical customer, but to those users whose needs and preferences lead the market. These lead users, as they are called, will modify products or use them in unforeseen ways to meet their needs. The lead-user research method was developed as a systematic way to mine the insights and innovations of these lead users. Since it was pioneered in the late 1990s, the lead-user method has evolved and grown. This paper offers an update on the use of the method and on adaptations to increase its efficiency using online search and communities as well as an overview of lessons learned from experiences on more than 20 lead-user projects.
The Lead User Method: An Outline of Empirical Findings and Issues for Future Research
In order to reduce the risks of failure usually associated with NPD, leading companies such as 3M, HILTI, or Johnson&Johnson are increasingly working with so-called Lead Users. Their identification and involvement is supported by the Lead User method – a multi stage approach aiming to generate innovative new product concepts and to enhance the effectiveness of crossfunctional innovation teams. While the Lead User method is frequently cited in the literature, yet, there are only limited attempts to comprehensively discuss how this approach is embedded in theories and empirical findings of innovation and marketing research. Therefore the Lead User method is in the focus of the present paper, both with respect to its theoretical foundation and its implementation into the innovation management system. First, empirical research on user innovations is reviewed to clarify the theoretical foundation of the Lead User method. Second the attention is drawn to the Lead User practice by discussing the various process steps of this specific approach on the basis of two applications of the method. Based on this discussion, we outline open questions related with the practical implementation of the Lead User method in order to start an agenda for future research.