Recent research shows that consumers collectively generate massive amounts of product innovation. These findings are a wake-up call for both companies and consumers — and have significant implications for our understanding of new product development.
It has long been assumed that companies develop new products for consumers, while consumers are passive recipients – buying and consuming what producers create. However, this paradigm is fundamentally flawed, because consumers themselves are a major source of product innovations. The authors have framed a new innovation paradigm, in which consumers and users play a central and active role in developing products on their own. In this article, they summarize key findings from studies on consumer product innovation conducted in the United States, the United Kingdom and Japan.
The authors describe three phases in the new innovation paradigm. Initially, markets for products and services with novel functionality are both small and uncertain, with consumers pioneering really new products (for example, the skateboard) for themselves. In the second phase, other consumers become interested in the new products. In the third phase, producer companies decide if the information on the design and function of the new product, and the projected market, are consistent with their risk profiles.
The implications are significant for both consumers and producers, the authors note. Consumer innovators should realize that they play important roles in developing novel products and services. Businesses, for their part, need to think about how they can reorganize their product development systems to take advantage of prototypes developed by users. By focusing on product concepts that consumers have already prototyped and tested, companies can save money and improve their success ratios.
6 Comments On: The Age of the Consumer-Innovator
To me this is about the now common theme of “customer-centricity”; putting the customer at the center of your business. Additionally in the age of social media customer conversations are constant and an excellent source for ideas, innovations, and product breakthroughs. Any business that is creating solely “for” a consumer and not in partnership “with” a consumer is now and has long been missing the boat. Lastly, this relates to both B2C and B2B businesses.
Thanks for a nice article. Also the related innovation articles are interesting. I think the product-oriented approach is far too narrow. In service or social and managerial innovations “consumers” become “prosumers” or “cocreators”. Interesting areas include health, energy, environment and workplace. For instance, most of healthcare costs are lifestyle related. Healthcare cost crisis, as well as any “green” and work-life-fit issue, is only solved through behavioral change and embracing the consumers (in fact, cocreators). Here in process consumerization is the next big innovation potential and imperative.
Nothing seems to stay the same for very long in today’s world. Now, with the prevelance of smart phones and laptops computers, just about anything can happen in the marketplace.
One good example is 3-D printing.
recent business brings manufacturer going closer to their customers. customers are involved in production process, since product more specific and unique
Matti is right. I think many organisations miss the mark by having narrow focus on business on items such as profits and technology. Others probably innovate too superfically. Ultimately, customer has to be number 1 on the list and with the right customer engagement and innovating environment, companies could innovate differently.
Thanks for a nice article.
I think We can use the Focus Group with Users Leaders
not only to Discover Their Needs but also to Help them Create Prototypes.
In this case the Focus Group Facilitador must have new skills.
It is interesting to observe the Evolution of Innovation Processes:
– Design Thinking: Development of Prototypes by the Multidisciplinary Team Without Consumers
– Co-Creation: Developing Prototypes by the Multidisciplinary Team and Consumers
– User-Generated Innovations: Development of Prototypes only by Consumers
Eurico Gushi – Brazil –
http://facilitadordeworkshopdeinovacao.blogspot.com/