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May 27, 2009

Open Innovation at OSRAM: User Idea Contest Open on LED technology

Osram Hyve idea contest Siemens finally has entered the open innovation landscape. They started late with a dedicated and focused initiative, but now have a full-scale open innovation program that shall explore and pilot various new methods of open innovation among their different business units.

One of the first projects is at OSRAM, part of the industry sector of Siemens AG and one of the two leading lighting manufacturers in the world. According to Wikipedia, the name is derived from osmium and Wolfram (German for tungsten), as both these elements were commonly used for lighting filaments at the time the company was founded. Today, OSRAM is a high-tech company in the lighting industry.

And now they step ahead with a user idea contest, which again has been planned and implemented by Hyve AG (Disclosure: I am a member of the board of directors of Hyve AG).

For more than the weeks, the new Innovation Contest is online. OSRAM and Hyve invite designers and other interested persons worldwide to join the "LED-Emotionalize your light"-Idea Contest and to create innovative light solutions with the latest LED technology.

Have a look on the contest at www.led-emotionalize.com

The contest's tagline: "Are you creative? Does technology inspires you? Do you like puzzles? If so, enter the “LED – Emotionalize your light” idea contest today and create your own light concept using the latest LED technology!"

Since the beginning of the contest two weeks ago, the community has already grown up to 200 active users. The participants can submit their own ideas and designs and present them to the community. More than 70 ideas have been submitted, some of them with a really high potential. The community also intensively uses the possibility to discuss and evaluate the contributions.

With the help of this platform a well-established company like OSRAM (respectively Siemens) deliberately considers the creativity of customers and actively integrates them into the development of new products.

The contest is organized in two stages:

  • Phase 1: The ideas of all participants are collected and discussed.
  • Phase 2: The best designs are jointly advanced by the community.

At the end of each phase a professional jury will evaluate the contributions and select the winners. The winners will receive attractive monetary and non-monetary prizes amounting to 7000€ (again a contest where money is not seen as the core driver of innovation :-)

For more information, head to www.LED-emotionalize.com

May 03, 2009

Reminder: Call for Papers & Presentations MCPC 2009: MATCHING - CUSTOMIZATION, CONFIGURATION & CREATIVITY

Mcpc 2009 homepage The 5th World Conference on Mass Customization and Personalization
Business, Innovation & Research Conference

4-8 October 2009, Aalto University in Helsinki & Espoo, Finland

The MCPC conference series started out as a biennial conference devoted to Mass Customization & Personalization. The content has broadened in recent years, including also open innovation, user co-creation and other strategies of customer-driven value creation. But mass customization is still the main trend that drives the success of the MCPC conferences, bringing together hundreds of the world's most remarkable people in the field.

I am happy to tell you that already more than 150 persons have joined the MCPC2009 website and created their profiles there. You can still create your profile and join the conference mailing list in order to receive all the latest news about the conference.

I warmly welcome you to participate to the Call for Papers of the MCPC2009 conference. Please submit your paper or presentation proposal by May 31 (NEW).

To log directly in to the submission system, please go to:
http://sitruuna.uta.fi/ocs/index.php/mcpc2009/mcpc2009

While we prefer full papers, there also is room for proposals in form of PPTs or short abstracts .. your creativity and ideas related to customization & personalization is important, not your format!

We are looking forward to your contributions!

Professor Jarmo I. Suominen
Conference General Chair
University of Art and Design Helsinki TaiK Hämeentie 135 C FI-00560 Helsinki FINLAND


**************************

CALL FOR PAPERS

Deadline May 31, 2009

A growing heterogeneity of demand, exploding product complexities, and the rise of the creative consumer are challenging companies in all industries to find new strategies to address - and profit from - these trends. Mass Customization and Personalization (MCP) is widely appreciated as a viable and promising strategy which aims to provide goods and services that best serve individual customers' personal needs with near mass production efficiency. The biennial World Conference on Mass Customization & Personalization (MCP) is one of the premier events for the business, innovation and research community in this field.

Bridging academic research and management practice, the conference provides an interactive and interdisciplinary platform to share ideas about mass customization strategies and to discuss the latest technologies and enablers.

The special objective of the MCPC2009 conference is to extend the dialogue beyond today’s boundaries and to explore the future avenues for mass customization and personalization. The theme "Mass Matching" asks for leading-edge examples of customer interaction, as well as insights on the emerging new concepts of personalization and interaction, and on the newest customer centric innovations. We invite submissions and speaking proposals under the sub-themes Customization, Creativity and Configuration. The conference is designed to engage academics, business leaders and consultants in fundamental debates through a set of plenary presentations, discussion panels and paper presentations.

**************************
CONFERENCE THEMES

You will find the selected track and topic examples on the Call for Paper and template documents that you can upload on the conference website. We also look forward to proposals for presentations from the practitioners of mass customization and personalization.

**************************
SUBMISSION SPECIFICATIONS

For submission instructions and more information please see:
http://sitruuna.uta.fi/ocs/index.php/mcpc2009/mcpc2009

If you have any queries regarding abstract submission, please contact:
mcpc2009@fimcp.fi

**************************

IMPORTANT DATES

  • 31 May 2009: Deadline for Abstracts and Short / Full papers 30 June 2009: Notification of accepted contributions
  • 31 August 2009: Approved Papers due
  • 4 October: Pre-conference
  • 5-6 October: Innovation & Research Conference
  • 7 October: Business Strategy Conference
  • 8 October: Business Labs


**************************

Organizers:
The MCPC 2009 (http://www.mcpc2009.com) is co-organized by the Aalto University (Helsinki School of Economics, Helsinki University of Technology, University of Art and Design Helsinki) in co-operation with the Tampere University of Technology and the University of Tampere.

MCPC2009 Conference General Chair:
Jarmo Suominen, Professor of Mass Customization, University of Art and Design Helsinki / Aalto University, Visiting Scientist MIT

MCPC2009 Conference Program Committee:
Frank Piller, Professor, RWTH Aachen University
Mitchell Tseng, Professor, Hong Kong University of Science & Technology

Kalevi Ekman, Professor, Helsinki University of Technology,
Director of the Design Factory at the Aalto University
Kristian Möller, Professor, Helsinki School of Economics,
Director of the Service Factory at the Aalto University
Maija Töyry, Professor, University of Art and Design Helsinki,
Director of the Media Factory at the Aalto University

Matti Hämäläinen, Professor, Helsinki University of Technology / Aalto
University
Turkka Keinonen, Professor, University of Art and Design Helsinki /
Aalto University
Marko Mäkipää, Senior Researcher, University of Tampere
Esko Penttinen, Assistant Professor, Helsinki School of Economics /
Aalto University
Matti Sievänen, Senior Researcher, Tampere University of Technology
Jarmo Suominen, Professor, University of Art and Design Helsinki /
Aalto University
Mikko Ruohonen, Professor, University of Tampere
Reijo Tuokko, Professor, Tampere University of Technology
Maija Töyry, Professor, University of Art and Design Helsinki / Aalto
University

April 28, 2009

(Updated) Will New Coca-Cola Vending Machine Allow Ultimate Customization at the Point-of-Sale?

The new Logo for the Coke Customization Project Update: Coca Cola just contacted me and revealed the brand name for this venture: Coca Cola Freestyle(TM), see press release below!

Finally a concept could become reality that Joe Pine has described more than 16 years ago (as a future dream scenario) in his book "Mass Customization": The ultimate soda fountain that offers unlimited choice, as Owen Morris in a newspaper article and Tim Stevens in Engadget.com report. (Note: I could not get more information about this concept. But if you know more, please drop me a line as I am very interested in these kind of localized customization devices).

 Currently, your typical soda fountain in a fast-food joint features perhaps eight to ten standard choices, usually offering nothing more exotic than "peach flavored ice tea." These machines work through syrup bags. The restaurant buys a bag from Coke or Pepsi, hooks it up to a soda (water) line and then the fountain combines the carbonated water with the syrup to create your soda. The machines are limited by soda lines, which tend to gunk up with sugar mold, and by bulky soda bags that weigh 30 pounds or more.

The new Coke machine is completely different. Coca-Cola has announced a new soda fountain that can hold more than 100 sodas. That's ten times more than current soda fountains.

The new fountain is like an ink printer with space for hundreds of cartridges. Each cartridge contains a concentrated formula of ingredients. When you press your choice, say Diet Coke, the machine will tell cartridge 12 to release three squirts, cartridge 81 two squirts and so on, then it combines it with carbonated water and you get the same drink as old machines.

But: The new fountains can hold a lot moThe new Coke vending machines in a rendering ... will this dream ever become true?re of these little cartridges, so they can handle a lot more flavors. Coca-Cola promises 120 different drinks, but there could be even more as the technology gets better and the company gets more confident. You think these are way to many choices for a standard drink like sodas? Think again; Already today, Coca-Cola is listing more than 2,800 beverages on their website! And I personally would love to have a German "Apfelschorle" with still water and a 20:80 mix of juice to water … something even waiters have a problem to bring in a restaurant.

The first new fountains are rolling out in Atlanta and California in this spring. Assuming tests there go well and the public loves its overwhelming choices, the new fountains would come to other US cities next year.

But there may be a downside: How will Coke protects its customers from the paradox of choice, when too many options overwhelm our brains and shuts them down from making a decision. Just think of the lines as "the thirsty yet indecisive ponder 15 different flavors of Diet Coke?" (Tim Stevens).

---

Update: Press release from The Coca Cola Company on April 28, 2009:

THE COCA-COLA COMPANY INVITES CONSUMERS TO EXPERIENCE “FREESTYLE”
New Proprietary Fountain Dispenser Gets a Brand Name


ATLANTA, Apr. 28, 2009 – The next generation fountain beverage dispenser has a “stylish” new name.

North America today revealed that “Coca-Cola Freestyle TM” is the brand name and logo for its new proprietary fountain dispenser entering market testing this summer.  The fountain’s brand name captures its ability to deliver unprecedented beverage variety to suit any consumer taste – all packaged in an innovative and interactive fountain experience. 

“Coca-Cola Freestyle brings to life the refreshingly positive outlook that has always been associated with Coca-Cola,” said Chandra Stephens-Albright, Group Director of Marketing and Business Development for the brand. 

“It brings back the magic of the fountain of the past, re-imagines it for the future and then takes it a step farther by celebrating the idea that consumers can truly have their say at fountain – with choices tailored completely for them.”

The new self-serve fountains – which represent a complete departure from equipment The Coca-Cola Company has offered before – have been in development for nearly four years.  The sleek new units being tested are touch screen operated, enabling consumers to select from more than 100 calorie and no-calorie brands – including varieties of waters, juices, teas and sparkling beverages that have never been sold in the United States.

The Coca-Cola Freestyle dispenser uses proprietary PurePour Technology™ to make dozens of branded beverages fresh to order, in the same amount of space as the current eight-valve machine.  It will be tested in select quick-serve restaurants in Orange County, Calif., and Atlanta this summer before a wider introduction currently planned for early next year.

April 20, 2009

"Niching the niche": Observations from my visit at Zazzle's Silicon Valley HQs

Zazzle-logo How Zazzle is still growing with mass customization despite -- or just because of -- the economic downturn … and ten other facts that make this platform special

I recently had the opportunity to pay Zazzle an extended visit at their Silicon Valley Headquarters. Here is what I learned during this day:

Zazzle was founded by Bobby and Jeff Beaver as students at Stanford University. The unfulfilled need of a user again was the mother of invention: The two brothers wanted to create a cool t-shirt to advertise a party at their fraternity (in order to "draw in plenty of nice girls"). They realized how difficult it was at that time to get high-quality custom t-shirts without having to order larger quantities at a promotions company or to rely on the low quality of heat-transfer at the local copy store. Well, it didn't work out with the girls at that party, but the rest is history:

Visit at Zazzle HQs April 2009 Since Zazzle's launch in 2003, its focus always has been on technology. It started with unique digital custom printing technologies that allowed the founders to really get high quality products out at a not known quality (at this time). Today, in every presentation Zazzle stresses the fact that being leading edge in technology is what makes them special.

It may be the proximity to the many technology companies in their area that keeps them emphasizing the technology part – but I do not see Zazzle as a technology company – they are a "market maker". In my opinion, their core capability is to create new markets for products that before could not be exploited in any way.

Sheryl Graham called this "Niching the niche". Sheryl is a Zazzle Proseller, making her living by creating products on the Zazzle platform and selling them to others (http://www.zazzle.com/sagart1952) -- most of them appealing just to a very small audience that traditional companies neither can recognize nor capture.

Starting from the scratch without any ballast or old knowledge or constraints, Zazzle created a mass customization ecosystem that has a number of unique features. Here are my ten points that make Zazzle special:

1.    Niching the niches: The unique vale proposition of Zazzle comes from utilizing the broadest possible scope of needs. Each day, about 50K new products are being created, most addressing a very tiny demand – but in total, this sums up. This also allows them to operate with almost no clear definition of target groups or target customer segments: While the "soccer mom" is the single largest customer of Zazzle, it is by far not its majority. The platform is build to cater to all different groups and clients.

2.    Event driven Marketing: The broad scope of users at Zazzle drives a lot of event-driven business beyond the traditional seasons. There is not just the wedding-season, but their has been Obama-Season, Client-#9-Season, Tax-Day-Season and so on … The core business driver is to enable (local) users with some very specific domain expertise to create products immediately for/after a special event in this domain.

3.    24-hour turnaround for most orders:
While most mass customizers need weeks to fulfill an order, Zazzle very early realized that being able to process an order in 24 hours opens many more markets (think of the entire last-minute gift market).

4.    Modular manufacturing system:
Their manufacturing system (in San Jose, CA) is build highly automated so that it can balance large spikes in demand without accumulating too high cost. In addition, a highly flexible work force allows to cover different demand cycles.

5.    Real-time rendering and focus on user experience:
Zazzle has some impressive rendering capabilities that allow the website to create any product in any specification in very high quality virtualization in real-time. While many other mass customizers still work with pre-fabricated pictures, here everything is rendered just on the spot.

This also enables another signature feature: Showcasing all products in different settings: Most products can be virtually placed on many different models. Zazzle realized that not all designs fit to same style of mannequin. This also caters to the broad scope of clients that utilize the Zazzle platform.

Or consider the "stitching simulation videos" when you choose custom embroidery. This allows the user to see how detailed the self-created pictures will be produced – also contributing to the user experience and quality perception of pro-users of the site.

6.    Allowing clients to focus:
Strong focus on creating a flexible platform for different kinds of relationships with different vendors. Their theme: "How to allow our clients to specialize on what they are really good at, and still sell an integrated offering at the same time". So, a traditional company like Pittney Bowes (zazzle.pb.com) can create its own custom goods offering on the same platform as a very design-driven initiative like artsprojekt.com. Compare the sites: They look extremely different, but are based on the same platform and fulfillment system.

7.    Relationships with brands:
Zazzle has build some very strong relationships with brands like Disney and the Star Wars Enterprise that allowed these companies to go beyond merchandising and offer real "fan-based content".

8.    Openness and opportunity-driven growth:
Zazzle created a platform that is flexible enough (with the help of their great engineers) so that vendors can come in and get (almost) any product they would like to offer customized.  There is no general restriction for new products. New assortment creation is driven by the clients and users.

9.    Generating customer knowledge:
Zazzle enables brands and established companies to use Zazzle as a platform for experimentation and testing that even makes money. Disney used Zazzle to allow customization of products with the characters of the movie "Cars", and their large retail clients used the popularity of characters selected by Zazzle users to predict the number of merchandises products in large scale. Creating these aggregated customer knowledge became a large benefit for Disney.

10.    Growing strongly despite the present economic downturn:
Although Zazzle realizes the slower economy, they still grow with high double digit figures. Corporate clients use the on-demand opportunities in these times as a more efficient way to create special assortments compared to building large inventories. And consumers that postpone shopping for high-priced items still use the affordable Zazzle products to get a high-touch emotional products ("if I cannot afford the diamond ring for my girlfriend right now, I still can give her a great custom made t-shirt as an emotional gift").


But Zazzle also has to focus on a number of challenges:

  • Create a site and corporate image that appeals to many different stakeholders, from brand managers at Disney to freelance independent designers in the Gothic Scene, all using the same platform to distribute their products.
  • Manage client conflicts: Zazzle enables its corporate clients to extend their assortment into the custom product line, but at the same time, Zazzle also creates competing assortments by other vendors in the same category. This can lead to channel conflict.
  • Educate their customers: Being ahead in technology and mass-customization-thinking, Zazzle has to educate it different kinds of users what it is able to do – and what they are able to do with Zazzle.
  • To keep technology leadership, continuous investments in the technology platform is required, also including more and more complex integration of new technologies into the current platform.
  • How to grow really big: While Zazzle had remarkable growth in the past, it still has to become the Google of products. What is their strategy to put all the existing amazing technologies and market knowledge together and to create really scalable growth beyond the niches?

So I think we should stay tuned what Zazzle (and their equally strong competitors like Cafepress and Spreadshirt) are turning out in the next months … these are some of the most interesting players in the mass customization market out there in the moment.

Context: Zazzle Blog

April 17, 2009

Cracking the Code of Mass Customization: New MIT SMR Paper

Most companies can benefit from mass customization. The key is to think of it as a process for aligning an organization with its customers’ needs.

Mit sloan spring 2009 issues In the current issue of the MIT Sloan Management Review (Spring 2009 Issue), Fabrizio Salvador, Pablo Martin de Holan and I discuss how mass customization should be not any longer seen as a specialized business strategy but as a bundle of capabilities that could make sense for most businesses.

In the paper, we suggest that mass customization is not some exotic approach with limited application. Instead, it is a strategic mechanism that is applicable to most businesses, provided that it is appropriately understood and deployed. This kind of thinking also is the underlying logic of our upcoming Mass Customization Executive Education Class at IE Business School.

In the paper, we suggest three common capabilities that will determine the fundamental ability of a company to benefit from mass customization thinking:

(1) Solution Space Development.  A mass customizer must first identify the idiosyncratic needs of its customers, specifically, the product attributes along which customer needs diverge the most. (This is in stark contrast to a mass producer, which must focus on identifying central tendencies so that it can target those needs with a limited number of standard products.) Once that information is known and understood, a business can define its “solution space,” clearly delineating what it will offer -- and what it will not.

(2) Robust Process Design.  Next, a mass customizer needs to ensure that an increased variability in customers’ requirements will not significantly impair the firm’s operations and supply chain.  This can be achieved through robust process design -- the capability to reuse or recombine existing organizational and value-chain resources -- to deliver customized solutions with near mass-production efficiency and reliability

(3) Choice Navigation. Lastly, a mass customizer must support customers in identifying their own problems and solutions while minimizing complexity and the burden of choice.  It is important to remember that, when a customer is exposed to myriad choices, the cost of evaluating those options can easily outweigh the additional benefit from having so many alternatives. The resulting syndrome has been called the “paradox of choice,” in which too many options can actually reduce customer value instead of increasing it.  In such situations, customers might postpone their buying decisions and, worse, classify the vendor as difficult and undesirable. To avoid that, a company can provide choice navigation to simplify the ways in which people explore its offerings

But a company does not have to apply all three capabilities in full scope together. For many companies, it already is a great step forward to just work on one of these capabilities to get more customer-centric without, however, having to master the full complexity of a mass customization system.

Read the full article and learn more how these capabilities can be implemented in practice. MIT offers the full paper for free after registration on the SMR website. You also can purchase it there  ($6.50) for further distribution.

Context:

April 14, 2009

Democratization of Manufacturing: Great Article in ASME's "Mechanical Engineering" Journal

Asme In the recent issue of Mechanical Engineering (April 2009), the journal of the powerful American Society of Mechanical Engineering , Associate Editor Jean Thilmany has published a great article on mass customization. His conclusion: Mass customization is part-way here; when the rest will arrive is anyone’s guess.

The article provides a great comparison of traditional consumer-co-design driven mass customization (you designing your shirt in an online-configurator), traditional engineer-to-order and small-batch production, and the new opportunities provided by 3D printing and rapid manufacturing.

As Thilmany observes in the article:

"Pine’s definition [of mass customization] can get a bit muddled, what with the growth of rapid prototyping and related technologies such as 3-D printing. Is a rapid prototype an instance of mass customization? Does an object printed on a 3-D printer qualify?

If the printed piece is meant to be used as an end product—not a prototype—it’s an example of a mass customized product, Pine said.

“I always believe words have meaning,” he said. “It’s called rapid prototyping because you’re making a prototype.”

But say you design an object using an online service like Shapeways of Eindhoven, the Netherlands? That company allows you to upload your own 3-D models. Shapeways prints your object on a 3-D printer and sends it to you. You’ve created your own custom product, Pine said."


But what is the future of mass customization?

Donal Reddington, who runs the Web site MadeForOne.com, is quoted in the article on this:

"So far mass customization—of varying degrees—has supplemented mass production, Reddington said.  So why, in this age of the Internet, hasn’t it come closer to replacing mass production in both the retail and engineering sectors?

“The consumer society is very much based on the idea of gratification. I walk into a shop, see something I like, and walk out with a sense of satisfaction at having bought it,” Reddington said.

“But the predominant mass customization business model that’s gained root since the mid-1990s is the online model, which provided customers with the facility to go online and configure the product, order it, and get exactly what they wanted delivered after one week. Or maybe two or three weeks,” he added.

And where will this lead to?

Despite the impediments to adoption, all the experts interviewed expect mass customization to grow.
“Going into the future, the Internet will facilitate a new wave of mass customization, where customers will create and trade designs for physical products in the same way they trade music files,” Reddington said.  

And not only will consumers find ever-more Internet-based design tools at their disposal, they’ll continue to see advances in the capability to build their own products to their specifications, Piller said.

For the full article, available for free online, head to:
http://memagazine.asme.org/Articles/2009/April/Democratization_Manufacturing.cfm

April 13, 2009

Interview: Joel Yatscoff of Joy de Vivre on Microfinanced Crowdsourcing and How He Helps Creative Designers to Get Their Products Out to Consumers

Joel YatscoffI recently wrote in this blog about Joy de Vivre, the Toronto based company that lets consumers vote on its product assortments. In this interview, founder Joel Yatscoff provides us more information about his vision, how the idea got started (Joy de Vivre seems to be again a typical case of an user innovation, originating from a frustrated user), about first successes and challenges, and what is coming next. His basic motive of democratizing the process how designers can get their products out to consumers, bypassing the power of traditional manufacturers of choosing and investing in designs, reminds me of Ronen Kadushi's idea of open design – different approach to the same problem.

Joel Yatscoff is a Toronto-based product designer. Originally from Beaumont, a small French Community in Alberta, he later studied at the University of Alberta and received his Bachelor of Design with Distinction in 2003.  Currently working in a product development consultancy in Toronto, Joel has also interned at Karim Rashid in New York City in 2002.  He has been recognized nationally and internationally for his roles as a freelance, collaborating, and supporting designer by the Chicago Athenaeum Good Design Award, IDEA, and Conduit National Design Competition.  Joel is also pursuing post-graduate studies in design management at Ryerson University.

Frank T. Piller: Joel, what was the insight and inspiration that motivated you to start Joy de Vivre?

Joel Yatscoff: I had been tinkering around with this concept since about 2006.  I had been out of post-secondary studies for 3 years and had been pitching some really great ideas [of product designs] to companies in New York with my good friend and business partner Bradley Price.  As I remember, it was about our 3rd consecutive year of pitching concepts with limited success.  I was getting really frustrated with how our great ideas were only receiving lukewarm reception but the company was producing real garbage.  We were biased towards our work of course, but it really seemed like frustrating process where we were acting more like salesmen than designers.  This was really the start, thinking there must be a better way for designer to get their great ideas to market.

At some point I remember hearing about Muhammad Yunus’ Nobel prize for micro-loans.  I found the concept of raising money through small increments very inspiring.  I think that lodged somewhere in my head and I thought it made sense to raise the great sums of money required for consumer product manufacturing.

I slowly formulated the business structure in my head and was encouraged to write a business plan to clarify and refine my concept.  I also began to notice that a few companies were really starting to use crowdsourcing to develop goods and it was only a matter of time until someone decided to apply it to consumer products.  As I didn’t want to regret not giving it a shot, I plunged in.  I took the fall of 2008 off from my continuing education studies in design management to devote time towards setting up the business.  And here we are now, 2 months in.

FTP: What are the first experiences with Joy de Vivre? Which reactions did you get, and what are your early users saying?

JY: The first experiences are very, very positive.  Everyone is very excited about the idea and really hope that it works out for us.  Our sales and traffic are slowly increasing, but am impressed with the impact we have made in just over 60 days.  Most interesting is following we have developed from Australia, Germany, and Israel.

FTP: Can you tell us a bit more about yourself? Do you have any personal experience with crowdsourcing?

JY: By education and experience I am a product design that has been practicing since I graduated from University in 2003.  I’ve had the opportunity to work as an in-house, freelance, and consultancy-based designer.  These jobs have allowed me to work on projects that range from municipal water treatment products and peritoneal dialysis machines, to dog toys and water bottles.  I have a real passion for well designed products and love the industry.  Other than that, I’m getting married in July and realized a year ago that I should have been sailing my entire life.

I don’t have any real first hand experiences with crowdsourcing other than my fiancé buying shirts from Threadless.com.  I wouldn’t say I’ve studied crowdsourcing or anything, I just find it a natural process.  As the old adage goes, “many hands make light work.”  The internet has allowed many more “hands” to get involved than would have been possible in the past.

FTP: How do you think Joy de Vivre is different to similar crowdsourcing companies? How do you want to make it special?

JY: Currently, no one else is using crowdsourcing to procure new ideas for consumer products and fund them.  Some sites are using crowdsourcing to spotlight products or designers, to source all their designs like threadless.com, or fund the upcoming albums of new bands, but no one has applied this to capital intensive projects like consumer products.   This is the biggest difference.  

Threadless does a great job procuring really great graphic designs and then has a small investment to bring them to market (buying the shirts, creating the silk screens, etc...). But consumer products are quite different.  We still have to procure the ideas but we also have to pay for substantial costs upfront before anything is made.  Tooling costs for consumer products start in the tens of thousands of dollars and can get into the hundreds of thousands of ideas very quickly.  This is why we pre-sell the products: we raise the money to pay for all the capital costs.  It significantly reduces any financial risk we take on and eliminates the risk for the consumer as we refund any money if the product is not fully funded.

We really want to make Joy de Vivre special by offering designers an outlet where they are encouraged to submit their ideas (not rejected like at most traditional manufacturers), offered fair, competitive compensation, sell really well designed, beautiful, and functional products, and reward our community by compensating them for helping to fund the product’s development.

FTP: What is the source of the designs? Who are your first designers?

JY: The first product we made available for funding, Cellule, was designed by Bradley Price and myself.  We had designed this modular lattice a long time ago and I always thought it was great idea and was puzzled why no manufacturers had jumped on it.  It seemed natural to launch with this product as it seemed symbolic of why I founded the company.  The second product, Terence Cooke’s “Fruity Bowl”, was a submission (full disclosure, I’ve known Terence for several years).  From this point, we will only be making products available for purchase that proves popular from our community.  This is in keeping with our crowdsourced model and will really help ensure whatever is made available for purchase will sell really well.

We should have no shortage of good ideas that will be submitted to our website.  Most product designers are always tinkering in their spare time to either build up their portfolios, create submissions for design competitions, or to pitch new concepts to manufacturers.  In time we hope that designers will be designing product just for us and then we will have a steady stream of product ideas.
 We will hopefully be giving all these beautiful, orphaned ideas a good home.

FTP: You also announced an open design competition. How will this take work?

JY: Yes, in a sense we are running an ongoing design competition.  Unlike traditional manufacturers, we are encouraging designers and innovators to send in their product ideas.  Normally, it is very difficult to make a good contact in an organization to pitch your ideas and most of the times they don’t accept design submissions if they have not asked for them.

We have now setup a submissions and voting platform where designers can submit their product ideas and our community can vote on them.  Popular ideas rise and less popular ideas sink.  We will be closely monitoring the submissions and ideas that do really well be chosen for production.  The submission process is really easy: all a designer has to do is upload a short description of the product and a few nice images.  The onus is on them to clearly communicate what the product is and really sell to the community.

FTP: A critical success factor for your business will be to gather a large enough crowd that follows the proposals and votes for them (with their money). How do you plan to create this movement?

JY: I couldn’t agree more, a big crowd makes or breaks this model.  We have a promotion strategy that has several fronts to get the crowds to us.

First, if a designer has a product made available for funding or voting, he/she has an incentive to spread the message to friends and family.  The more votes or purchases of that designer’s product the better its chances getting picked for production or become fully funded respectively.  We also hope that our consumers will spread the message.  Since we are rewarding everyone who helps to fund a product’s development, there is an incentive on the purchaser to tell friends and family about their purchase and encourage them to also buy.  More sales greatly increase the likelihood of a product being manufactured.  It is word of mouth advertising and is very potent.  We’ve already had purchasers of our first product promote the product and generate additional sales.

Second, we promote all the products that are made available for funding.  We have begun developing an extensive network of online and traditional media to publicize our new product offerings.  We are now able to send out a press release to a few select blogs and be quite confident of receiving a posting.  This allows us to very quickly disseminate a press release and really ramp the site traffic up.

Finally, we will be complementing the product promotion with our blog.  The blog highlights emerging designers and great products which are not being manufactured.  The blog combined with the submission/voting forum will slowly build up the community and make us a hub for emerging designers and products are not in production.  We are aware of how long this may take, but we are slowly getting there and have been surpassing all our site traffic targets to date.

FTP: In general, what are recent trends you see with regard to crowdsourcing and open innovation? What will be next?

JY: I see many more companies forming like us but for specialized products and services.  You already see many bands raising the funds to record their next albums through crowdsourcing models.  I’ve heard most recently of over $75,000 being raised for a female artist to record her latest album.  Her last track on the album has her singing out all the names of the people who helped raise the funds.  

With this kind of money able to be raised, it really opens doors to many more types of products and services.  The effect will likely be thousands of smaller companies using crowdsourcing and micro-financing to make product and services.  While I don’t believe the traditional Ikea’s will ever disappear, the consumer will have a lot more available to them because they will be helping to define what they want.

For more information, visit joydevivre.org or contact Joel Yatscoff at
joel (at) joydevivre.org or 364 King St. East, Toronto, Ontario M5A-1K9, Canada

April 02, 2009

Interview: Bruce Kasanoff of NowPossible.com on "Personal=Smarter"

Bruce Kasanoff, founder of NowPossible.com Bruce Kasanoff is founder and editor of NowPossible.com, which "covers the leading edge of personalization". Bruce wrote the one of the first business books in our domain of mass customization & personalization, "Making It Personal" (2002). He was head of training, research and development for Peppers and Rogers Group, a leading personalization consultancy. The Chartered Institute of Marketing cited Bruce among their inaugural listing of the 50 most influential thinkers in marketing and business today. He works with innovative vendors and enterprises, helping them leverage personalization strategies to build lasting competitive advantage.

"Personal=Smarter," says Bruce, explaining that the more a company customizes, the smarter it becomes. The smarter it gets, the more formidable a competitor it becomes. He has delivered training programs, workshops and keynote speeches to a wide variety of organizations in 21 states and eight countries. His audiences have included technology executives, physicians, managers, customer service representatives and entrepreneurs.

And as he shares in the following interview, Bruce is writing a second book on the topic! So stay tuned for much more brilliant ideas from this great mind in personalization!

FTP: Bruce, there has been a long discussion about terms and concepts in our field. So, what is personalization in your understanding?

BK: Personalization is using technology to accommodate the differences between people. Done right, it's a win/win strategy for providing a better outcome for both the service provider and the individuals involved. For example, if a doctor gives you a test to determine which treatment will work best for you before she starts your treatment, that's personalization. Likewise, if a company gives you the option to tell them when and how to contact you, that's also personalization.

FTP: How is this different to mass customization, where are differences and complements between personalization and mass customization?

BK: Mass customization is a process for implementing personalization. In some respects, personalization is a goal and mass customization is one way to accomplish that goal. But we need to be careful about defining or debating semantics. Both personalization and mass customization push a company towards being more responsive to the marketplace and thus being more nimble. Both result in a firm that can react faster and more effectively to volatility. Both enable a company to build defendable competitive advantages, because both require a firm to track, understand and accommodate the needs of its customers.

FTP: You are one of the earliest voices and thinkers in the field. What originally drew your interest to the concept of personalization?

BK: I was very lucky. One day I read "The One to One Future" by Don Peppers and Martha Rogers, and thought it was brilliant. At the time, I was working for Ogilvy & Mather, and I wrote a strategy brief for a client that used some of the personalization ideas from that book. Shortly thereafter, I saw a little story in our local paper announcing that Don and Martha were starting their company in my town! I sent them an email asking if they wanted a partner, and included a version of my brief. One week later, I was their partner. That was 1996, and it gave me the luxury of spending all my time thinking about personalization and working with many of the pioneers in the field.

FTP: What are recent trends you see with regard to personalization? Are there any industries or individual companies driving these trends?

BK: Personalization is everywhere, although it's not necessarily called that. I dare anyone to name an industry in which personalization is not playing an increasingly important role. It impacts how you search for information, share opinions, make decisions, place orders, use products, get service, and live your life. Google is a leading practitioner, and both IBM and HP are key enablers. For example, IBM's "smarter planet" approach is a wonderful embodiment of the "Personal=Smarter" logic I've been talking about for some time. I was thrilled to see one of the world's largest companies adopt this theme as a selling point for its clients.

The most important trend, just now emerging, is the opportunity to personalize the development and care of our bodies and minds. It sounds dramatic to say it, but personalized medicine and education will literally impact the future of the human race. At present, "personalized" approaches are being used to restore health and function to people who have a physical challenge, such as the loss of a limb or of control over their body (such as ALS.) But as these technologies get cheaper and more powerful, they will be made available to everyone. For example, a brain-computer interface that a "locked-in" individual uses to communicate (because he can't speak) will someday help students learn faster and more in tune with their personal learning styles.

FTP: What is the largest challenge still to be overcome in personalization?

BK: The way we think. Personalization is not a difficult concept to understand, but it is a difficult concept to apply. It's easier for managers to look at customers, projects and investments in isolation, but personalization requires a process – and a mindset - that pervades an organization. It requires a different culture, and near-constant care and feeding of that culture. Not many managers understand this, yet.

FTP: What would be your main advice for a manager who wants to lead a personalization or mass customization implementation?

BK: Spend 25% of your time and budget on training, and on changing your culture. When it comes to personalization, training is not a one-time thing. Your staff and your systems are used to a non-personalized approach; they will constantly try to shift back in that direction. Unless you anticipate this and work consistently to prevent such backsliding, it will prevent you from enjoying measurable success.

FTP: You recently started your new blog, nowpossible.com. The depth and width of content you have provided there just within the last two months is really astonishing! What was your motivation to start this effort, and who is your target audience?

NPpersonalization BK: Thanks. I'm writing a second book on personalization called "You! and Improved!", and as you know, writing is a solitary process. The website gives me an opportunity to test ideas, get feedback, and enlist innovative people in my work. I have two target audiences. The first includes innovators in organizations who are making personalization work better and better. The second comprises thoughtful individuals who would like to understand and benefit from this trend that can change their lives for the better.

FTP: To conclude: What is, in general and beyond your industry, the greatest personalization (and/or mass customization) offering ever – either one that is already existing or that you would like to get in the future?

BK: That's simple. I want to gain control over my fate, to anticipate and thus prevent the afflictions that would otherwise shorten my life or reduce my quality of life; to stay strong and mentally sharp longer than previous generations; and to be able to find and connect with the people and ideas that personally interest me.

Contact Bruce Kasanoff at (203) 341-9448 or bruce (at) nowpossible.com

March 28, 2009

Invitation: IE Business School Executive Workshop on Mass Customization


IE_Business_School_-_color IE Business School, Madrid, 6, 7 and 8 of May, 2009: Mass Customization: Turning heterogeneous customers into a source of profitability.  International Executive Program on Mass Customization: Learn in three days at IE Business School (ranked as a Top 5 business school in the world by the Financial Times, May 2008) the fundamentals to profit from mass customization and how to bring this strategy into practice. More information or download the program brochure (pdf).


Joy de Vivre: Collective Customer Commitment and Crowdsourcing in action at this Canadian startup

JDV_Logo Via Burkhard Schneider's Blog, I got notice of Toronto, Canada, based Joy de Vivre. The start-up opened its doors last month and is entirely based on the concept of "collective customer commitment" that I described in 2006 in a MIT Sloan Management Review Article with Susumu Ogawa: Get the commitment of customers via crowdsourcing first before you invest in final product development and production.

On their website, Joy de Vivre descirbe their concept as follows:

"Product development is very expensive due to the high capital costs involved with prototyping, tooling, marketing, and distribution of products. Thousands of great ideas never make it to market because a manufacturer is not willing to risk money on development costs.

Using the crowdsourcing potential of the internet, these costs can be distributed over many people, making the individual costs affordable. We raise the capital required to manufacture a product by pre-selling its production. The retail price paid by you, our community of engaged consumers, is placed a development fund. This small figure, multiplied by hundreds or thousands of people, fully funds the product development costs. Designers get their idea made, you receive your product, and we all share in bringing a great idea to life. If the product doesn’t get fully funded, you get your money back."


Fruity_bowl- invest in it first before you can buy it One of the two products recently listed on the site is the "Fruity Bowl", a -- surprise -- Fruit Bowl for $34.00. Designed by Terence Cooke, the company calculated that they have to pre-sell 1500 units of this product to go into production, The clock is ticking, 105 days to go. Remember: While the pictures look great, Fruity has not yet been manufactured. In order to bring Fruity to life, customers have to fund it. The funding period for Fruity lasts for 16 weeks beginning from its first sale. Within this time period, Fruity needs to sell a minimum of 1500 units to be manufactured. If Fruity is not fully funded within the 16 week period, all purchases are refunded within 4 days.

For a more comprehensive description of their approach, go here: http://www.joydevivre.org/pages/how-this-works

I am curious to see whether this will work. Its success strongly will depend from (1) the buzz the company can create to generate traffic and bring potential customer-investors to their site; and (2) the quality and appeal of the designs. But Threadless has shown that the basic model works! So let's follow how Joy de Vivre is doing.

Prosumer Revisited - A Brief Conference Report and Links to Summaries of Most Talks

Update: In case you speak German, there is a great comprehensive summary of the event here: "Ich bin ein Prosumer - Brigitte Holzhauer berichtet von der Tagung "Prosumer Revisited" in the Magazin Change X."

Main Building of the Goethe Universitaet Frankfurt This week, at the Goethe University in Frankfurt/M, Germany, an interesting conference took place. Organized by Birgit Blättel-Mink and Kai-Uwe Hellmann, two professors of sociology, the event wanted to review the long school of academic thought on prosumers and co-creating customers. The organizers gathered a diverse and interesting crowd of participants that provided insight from many different perspectives. Overall, it was an interesting event, even when I realized that in sociology, the majority of scholars still focused on mapping that the phenomenon of co-creation or prosuming customers exists, while in the management literature, the state of the discussion has moved one step forward in explaining the structures, methods, and contingencies of user participation in value creation.

Axel Brun, a scholar from Australia who participated in the conference, has written a very comprehensive report, summarizing all keynotes and many of the paper presentation in his blog. Axel is a Senior Lecturer in the Creative Industries Faculty at Queensland University of Technology in Brisbane. He has coined the term "produsage" to better describe the current paradigm shift towards user-led forms of collaborative content creation which are proving to have an increasing impact on media, economy, law, social practices, and democracy itself. For more information, have a look at his website, http://snurb.info.

Here are a few direct links to Axel's summaries of the conference keynote presentations:

  • My opening keynote of the conference: http://snurb.info/node/970. This is a nice summary of parts of the talk and of my basic argument why user participation in the innovation process is important: to get access to sticky need information of customers.
  • Holm Friebe, co-author of my favorite book "Marke Eigenbau". The book is a great summary of all topics I am writing about in this blog, and so was Holm's presentation: http://snurb.info/node/973

  • Kerstin Rieder is the co-author of a rather critical book on the "working customer", that, when it appeared in 2006, seemed to me like a critical and pessimistic review of the self-service society. Missing many of the more recent developments of voluntarily co-creating customers- So I was glad to hear that in her talk, Ms. Rieder did extend the concept and also focused on the opportunities and advantages of co-creation for firms and, equally, customers: http://snurb.info/node/980

  • Johann Füller from Hyve talked about the creation of brands by users. I have heard this talk before, but it again was fascinating to see how user-created brands challenge the marketing thinking of many decades: http://snurb.info/node/977

  • The honorary keynote speaker of the conference was the famous sociologist and scholar of cultural studies, George Ritzer from the University of Maryland. He provided a nice historical overview of the prosuming customer, but -- as most speakers at the conference -- stopped when it got interesting, i.e. when new forms of co-creation emerge. But overall, it was a great experience to listen to Prof. Ritzer live: http://snurb.info/node/976

For summaries of many more talks, go to http://snurb.info/taxonomy/term/104

March 26, 2009

New International Executive Program on Mass Customization: Learn in three days the fundamentals to profit from mass customization and how to bring this strategy into practice

New Executive Program on Mass Customization Mass Customization: Turning heterogeneous customers into a source of profitability

IE Business School, Madrid, 6, 7 and 8 of May, 2009

I am glad to announce a new Executive Education Program in cooperation with IE Business School (ranked as the 5th business school in the world in Open Programs by the Financial Times, May 2008) that wants to provide a strategic  introduction into how to implement mass customization in your organization.

Download Program brochure.

PROGRAM OVERVIEW

With this program participants will realize that offering superior fit to their customers’ needs does not have to necessarily come at the expenses of efficiency. Mass customization is a key strategy to meet this challenge. Many large corporations have started large-scale mass customization programs. The next one may be your company – you will learn why Mass Customization is far more applicable often believed. Most importantly, this program will introduce you to the different issues, tools and approaches that you can adopt to build profitability by serving differentiated customers’ needs – to move towards mass customization.

Over the past decade, we have studied mass customization in more than 200 different organizations. We found that mass customization is a strategic mechanism that is applicable to most businesses, provided that it is appropriately understood and deployed. The key is to view it basically as a process for aligning an organization with its customers’ needs. Mass customization is about moving towards these goals by developing a set of organizational capabilities  that will, over time, supplement and enrich an existing business.

"Mass Customization" is an innovative, ground-breaking international executive program designed to help executives gain competitive advantage by learning how to turn heterogeneities across their customers into a source of profits. Participants will gain a holistic understanding of the various capabilities – both organizational and individual – that their companies will have to develop in order to recognize and exploit heterogeneous customers’ needs. The program emphasizes a cross-functional approach and covers such issues such as organization design, CRM, and organizational change.


PROGRAM OBJECTIVES

This state-of-the-art program provides its participants with the latest practices and cutting-edge strategic insights to help them steer their organizations towards Mass Customization. The program is delivered by world-class experts on the topic, with excellent academic and practical experience.

Participants will develop a sound understanding of:

  • Which capabilities your organization needs to move towards Mass Customization
  • Which tools and approaches you can use to build these capabilities
  • How to revamp your innovation processes to offer the “right customization”
  • How you can you keep the costs of product and service customization under check
  • How human capital contributes to achieving Mass Customization
  • How IT and knowledge management can support Mass Customization
  • How to orchestrate organizational change towards Mass Customization


For the full program structure, please download the program brochure.

WHY IE BUSINESS SCHOOL

IE Business School is a leading international business school oriented at providing top-level training for executives. The recognized prestige of its teaching faculty, the degree of excellence of the academic programs and a clear international focus are the keys behind a learning model that has ranked IE Business School among the best business schools in the world (IE Business School has been ranked the 5th business school in the world in Open Programs by the Financial Times, May 2008).

The Executive Education Programs offered by IE Business School aims to develop the vision, skills and management capabilities required to meet the many and varied challenges facing business organizations, both today and in the future. In recognition of the high quality and academic rigor of the programs, IE Business School is accredited by EQUIS (European Quality Improvement Systems), AACBS International (The Association to Advance Collegiate Schools of Business) and AMBA (Association of MBAs).

Together with my co-instructures, I invite you to join our mass customization community and benefit from a unique learning experience in an environment that nurtures top-level talent both professionally and personally.

FOR FURTHER INFORMATION, please contact:

Karen Hobbs, International Executive Programs Manager

karen.hobbs@ie.edu
Tel.: +34 91 782 17 15
Fax: +34 91 745 47 62
www.execed.ie.edu/internationalprograms

For more information, please download the program brochure.

March 25, 2009

Interview: The Next Generation of Architectural Design: Daniel Smithwick from Physical Design Co on a great way to build the garden house of your dream … and much more

Daniel Smithwick Daniel Smithwick is the co-founder and CEO of Physical Design Co., a Cambridge, MA, startup that wants to start a revolution in building structures. His vision: To empower every consumer to transform nearly any custom design into easily assembled physical structures delivered to your backyard! This could be your next garden house project. Before, you either had to purchase an expensive standard house at Home Depot that was not only labor intensive to assemble, but often ugly and not fitting exactly your requirements. Or you could get your hands dirty and start a complicated DIY project, constructing it with 2x4s and nails. As a last alternative, you could hire a contractor to build you your dream house … but this comes with a heavy price tag and often delays of the construction crew.

PHYSICAL DESIGN CO_logo Daniel wants to offer another alternative: You design your dream in SketchUp, the free CAD software by Google, and his company will translate your uploaded design in a custom kit of interlocking CNC-cut parts that you can then easily assemble after delivery. His promise: "With Physical Design Co Web Platform anyone can design, remotely manage production, and assemble their own full-scale inhabitable creations!"

In an interview, Daniel shared more information about his project and company and what he regards as the future of mass customization.

Daniel Smithwick is an architectural designer by training and he is currently a graduate researcher at MIT where he is a member of the Smart Customization Group and the Digital Design and Fabrication Group.  Daniel co-lead the latest research project by the Digital Design and Fabrication Group called, “Digitally Fabricated Housing for New Orleans,” a project commissioned by and exhibited at the MoMA in New York for their 2008 show, Home Delivery, Fabricating the Modern Dwelling.  Before coming to MIT, Daniel worked professionally as a designer for leading architecture and design firms including: Pompei Architectural Design in NYC, Loom Architects in Minneapolis, MN, and Howeler + Yoon Architecture in Boston.

FTP: Daniel, what is the idea behind your startup, Physical Design Co?

1 PHYSICAL DESIGN CO_Get Physical Process DS: The central idea behind Physical Design Co. is to provide consumers with easy-to-use online tools that engage them in the design and manufacturing process and enables them to become the producers of their own architectural-scale designs.  Our web platform also allows consumers to utilize local manufacturing via our distributed fabrication network which not only reduces carbon emissions, but it also strengthens local economies.  Essentially, we’re re-thinking how our built environment is designed and constructed – with the Physical Design Co, online users, whether they live in rural China, or they are busy professionals interested in design, they can now play an active and participatory role in the built world around them.  

Through our web platform, anyone can upload and transform their digital design – any inhabitable accessory structure, from doghouses to backyard art studios - into a customized kit of interlocking parts that are locally manufactured and that can be easily assembled.  Consumers no longer need to rely on the traditional labor-intensive and wasteful construction process: with the Physical Design Co all you need is a rubber mallet to assemble your creation.


FTP: How is this different to existing companies in the field like Ponoko, Replicator or Shapeways?

DS: The Physical Design Co distinguishes itself in two ways. First, we provide consumers with the ability to custom design, and have fabricated, life-size and inhabitable scale structures, as opposed to only hand-held items like fashion accessories and table-top objects.  We’re interested in offering consumers more than just personalization; our web platform engages the consumer in the design, manufacturing and delivery process – giving them the tools to make smarter decisions about how they impact the built and natural environment.

Second, we have developed a patent-pending technology which automatically translates the user’s design into a unique kit of interlocking, easy-to-assemble parts.  For example, let’s say you wanted to design a backyard shed.  Instead of having to digitally model all of the individual parts, consider how they all attached together, worry about the structural integrity and verify that it is indeed possible to put it all together, with the Physical Design Co., all you have to do is model the shape of your design.  Our technology automatically and digitally translates the design shape into a kit-of-parts that can then be CNC fabricated and subsequently interlock together without the need for nails, screws or any additional hardware.  


PHYSICAL DESIGN CO at the Maker Faire 2008 FTP: Dan, you recently presented your company and some creations at the Maker Faire of MAKE magazine, a large gathering of hardware hackers and DIY enthusiasts in Austin, TX. Can tell us some more about this exhibition and the feedback you received?

DS: In October of 2008 the Physical Design Co., in collaboration with ShopBot Tools (an innovative manufacturer of user-friendly CNC machines) designed, fabricated and exhibited the ‘Austin Shed’ for the Maker Faire in Austin, TX.  This is the world’s first digitally fabricated shed.

The feedback we received from the Maker Faire attendees was incredible.  Most were simply amazed at how structurally strong the shed was without any nails, screws or hardware holding it together.  However, the most rewarding feedback we received was from children.  At the faire, we pulled a few of the ‘skin’ panels off to reveal the grid structure of the interlocking ribs so that visitors could understand how it was assembled.  What surprised us was that 10 year-old kids would pick up the removed parts and correctly replace them back on the shed without any knowledge of how the system worked.  We were delighted to find that our assembly process is intuitive enough that children could put it together!


FTP: How do you master the manufacturing process; who are your cooperation partners?

DS: The great thing about the Physical Design Co and our manufacturing process is that we don’t need to build any new large and energy-inefficient factories to produce our users’ designs.  In fact, the manufacturing infrastructure already exists worldwide – it’s the tens of thousands of individual CNC owners around the world whose machines are online.  These are our cooperation partners.

Through our web platform, these CNC owners become members of our distributed manufacturing network through which they can promote their existing and on-going services.  This is how we enable the users and designers on our web platform to have their structures locally manufactured - which greatly reduces delivery costs both in terms of money and energy use. 


FTP: What are the next steps for your company, and how do you expect to grow it in the coming months?

DS: This summer, in collaboration with ShopBot Tools, Make Magazine and Google SketchUp we’re hosting a competition called the Get Physical! Design Competition which will take place at the Maker Faire in San Mateo, CA.  The top 3 winners will have their designs digitally fabricated using our web platform, assembled and showcased at the upcoming Maker Faire.  Keep an eye on our blog for more details over the next couple of months.


FTP: What are other trends you see with regard to mass customization?

DS: When answering this question I like to quote Eric von Hippel from his book, Democratizing Innovation:

“When the cost of high-quality resources for design and prototyping becomes very low, these resources can be diffused widely, and the allocation problem diminishes in significance.  The net result is and will be to democratize the opportunity to create.”


I think we’ll continue to see an increase in user-engagement not only in the design process but also in the production process of our built environment as the availability of digital fabrication equipment exponentially grows.  In addition I think we’re just beginning to understand the power of online user communities and crowd-sourcing.  Rather than just offering product mass customization to isolated individual users, we are starting to see that by enabling them to interact with each other through a web platform, their collective intelligence is boundless.

For more information, contact Daniel at dan@physicaldesignco.com
http://www.physicaldesignco.com/
http://www.physicaldesignco.com/blog/

March 09, 2009

New toolkit for 3D printing: Turn digital pictures into 3D art

PhotoShaper_Girl I previously reported several times about Shapeways, a spinn-off from the Lifestyle Incubator of Royal Philips Electronics, located in Eindhoven, Netherlands. The company provides 3D-printing capabilities to everyone.

Part of their mission is to provide users a set of toolkits that allow also the average consumer to create 3D objects without any CAD or programming skills. Today, Shapeways has introduced their so called "Photoshaper", a service that allows anyone to turn digital photographs into 3D printed objects.

Users can logon to Shapeways.com, upload any photo and order their creations directly from Shapeways. Now you not only can see your girl friend in your wallet when you are on a business trip, but touch her in 3D!

“Shapeways really makes 3D creation fun, easy and available for everyone,” commented Peter Weijmarshausen, CEO of Shapeways is quoted in a press release. “With Photoshaper we have empowered the average consumer to tap into technologies that used to be out of reach. In doing so Shapeways redefines online consumerism with direct access to unique and individually customized products that were never available before.”

Based on the contrast of the picture (light and dark) the Shapeways Photoshaper automatically creates a depth-layered 3D object that can be printed by Shapeways with the latest in 3D printing technology (I believe with a little bit of photoshopping before uploading the pictures, results can be improved a lot). The 3D photo will be produced and delivered globally within 10 days and costs between $40-50 (USD), including shipping. For best results. use a 1.5 megapixel or better picture. The size of the 3D photo is 13cm to 9cm (5.11” to 3.5”) landscape and portrait.

Context:

March 06, 2009

Crowdsourcing at Mervis Diamond Importers: A nice case of open innovation at a s small company with one big question

Mscbc In a just published contribution on msnbc.com, Emma Johnson provides a good introduction into Crowdsourcing ("Free Problem-Solving for Your Biz: Tapping the masses for brighter ideas and bigger margins").

In the article, she brings the simple case of Mervis Diamond Importers, a small chain of jewelry stores in the Washington, D.C., area. This company employed crowdsourcing to generate a series of successful newspaper advertisements with the help of a crowdsourcing facilitator, Genius Rocket; a site is specialized on broadcasting ideas for ads. The description of this case is nothing special, but the questions Jonathan Mervis, the owner of the jewelry stores, asks at the end are very interesting:

For a $500 fee, Mervis sent out a query looking for one-line ad copy to accompany the front page of the local edition of satirical newspaper The Onion, which is popular with young adults. Genius Rocket publicized the contest, and Mervis spread the word through his company's blog and his own contacts.

The query netted more than 500 responses, many of which were outstanding, Mervis says. He personally read all of them and wrote checks to 10 entrants, which were "brilliant" and many of which are often quoted by customers in his store and strangers on the street.

Standouts include, "She likes the Beatles, but she loves the Stones," and "Conflict-free diamonds for a conflict-free bedroom."

"This doesn't even compare with working with my usual ad agency," Mervis says. "If I just sit down with my agency to discuss an ad in The Onion, it costs me $1,000 and it doesn't get me 500 options, it only gets me two or three. Often I don't really love those two or three, but I don't want to pay for more so I just go for it."

He says the return on investment is tough to calculate, but he plans to launch more crowdsourcing queries. The time and monetary investment were minimal, quality of responses phenomenal, and the ability to control the creative process rewarding and productive, he says. "It's almost like a free shot."

Tips include giving potential responders lots of information about your company, the type of responses that you're looking for, and your target audience. Also be careful to attach an appropriate fee. Mervis sponsored a second crowdsourcing competition for an online video advertisement he hoped would go viral. The eight responses were so-so, and Mervis wonders if the $1,000 reward was too small to attract top talent.

"What if I doubled the reward money? Would I get double the number of good videos?" he asks. "That's the thing: There are no statistics to support any of this."

Here, Mr. Mervis has hit one of the largest open spots in the open innovation literature. Empirical evidence on the divers of efficiency and effectiveness of open innovation initiatives. A great field for further study -- and one that is in the focus of our Aachen research group in a couple of projects.

New book

  • 2. Auflage erschienen! Our German book on Open Innovation, Crowdsourcing and Customer Co-Creation2nd edition of our book on customer co-creation (published in German in April 2009) Reichwald & Piller: Interaktive Wertschoepfung: Open Innovation, Individualisierung und neue Formen der Arbeitsteilung. 2. Auflage 2009. Gabler Verlag, 29.90 EUR.

Contact & About Me

  • Who is blogging hereFrank Piller is a researcher, author and speaker on mass customization, open innovation and value co-creation since 1995. More information & contact.

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