Eric Von Hippel, Professor of innovation and entrepreneurship, evhippel@mit.edu
Eric von Hippel's research demonstrates that communities of users are now driving product development. As the telecom networks open-up to web mashup services, virtual network operators, we can leverage lead-user developments that have happened in many industries. Eric von Hippel provides numerous quantitative analysis of the processes that generate breakthrough innovation. Here is a summary of his papers and and video tutorials.Users generate different innovations than manufacturers
Examples demonstrate that communities of users are powerful innovation "engines" . 20 to 40% of users engage in developing/modifying products (20% of mountain biking users, 37% of extreme sport participants) . Those with the strongest lead user characteristics develop innovations having high appeal to the general market place.Von Hippel argues that 80% of innovations come from DIY lead-users because manufacturers don't see emerging business potential, nor can deliver in time. 'Necessity is the mother of invention '. Some examples : Apache web servers users improved security functions. HP Voodoo PCs were developed by users over-clocking standard processors and installing water coolers
Generating breakthrough value on top of incremental improvement
Users and manufacturers tend to have different knowledge leading to different kind of innovations. Unfortunately there is information asymmetry between users and manufacturers and the two sources of innovations are hard to combine. This is sticky information, because it is very difficult to transfer from one group to another or between application domains.
User need and context of use knowledge is generated by lead-users. Often the richest source of information can be found on user web sites. Users tend to develop innovations that are functionally novel. Note that users tend to share their innovation freely inside communities such as Open Source”. As a result user innovation is often cheaper and faster. And user communities are driving manufacturers out of product development.
Generic solution knowledge is, on the other hand, mastered by enterprises closer to manufacturing and supply chain activities within a particular industry. Manufacturers tend to lead in solution process improvement innovation. But the need to protect innovation with IPR often slows down innovation by preventing collaboration with 3rd parties for example.
Democratization with toolkits for user innovation
One way of democratization of innovation is to combine both types of knowledge. 'Toolkits for user innovation and design are integrated sets of product design , prototyping and design testing tools intended for use by end users. One good example is the semiconductor industry with custom ASICs toolkits. Another is Lego mind storms craze for adult techies. Lego executives simply did not know what to do. Toolkits substitute market research by collaborative innovation with communities of users.
