Mass Customization & Open Innovation News

Distributed user manufacturing network started: Ponoko and ShopBot announce partnership to provide users access to over 6,000 digital fabricators around the world

During the 2007 US Presidential debates, journalist Tom Brokaw asked candidates Obama and McCain whether our challenges would be best solved by ... "funding a Manhattan-style project or by supporting 100,000 garages across America to encourage the kind of industry and innovation that developed Silicon Valley?"

A new website takes the second approach! Inspired by Tom Brokaw's question to the presidential candidates, 100Kgarages is a community of workshops all over the world that are run by "Fabbers", with digital fabrication tools for precisely cutting, machining, drilling, or sculpting the components of any user  project.

The site has been launched on Sept. 16 by Ponoko and ShopBot, expanding the opportunities for ordinary users to get almost anything custom made and delivered from local state-of-the-art digital makers.

I have written several times about Ponoko in my blog, an online marketplace for everyone to make real things. It brings together creators, digital fabricators, materials suppliers and buyers. Since its launch in 2007, more than 30,000 user-generated designs "have been instantly priced online" (the official wording in the press release, I believe this means "uploaded and finished", but not ordered and delivered).

ShopBot is a manufacturer of affordable, high-performance CNC tools for digital fabrication of wood, plastic and aluminum products. With more than 6,000 ShopBots in thousands of shops in the US and 54 countries around the world, ShopBot is one of the largest producers of CNC routers in North America.

With the cooperation of the both companies and the launch of the 100kGarages website, anyone can get their ideas made locally with the click of a mouse, and delivered within just a few days.

Users can go to the site to get things custom made by searching a map for a local garage workshop, or submitting a request and choosing from bids placed by a range of ShopBot owners to make almost anything. It’s free for everyone to search and submit requests, and for fabricators to post profiles and bids.

People are creating a wide range of products like tables, chairs, cabinets, car parts, signage, boats, musical instruments, gaskets, sheds, housing and all of those impossible to find things made from wood, plastic, metal and composite materials.

“Our partnership means everyone now has easy access to their own local 3D fabricator. This is the first step to providing a solution for the doers and makers out there who want to join in re-building America, one garage at a time.”, says ShopBot’s President Ted Hall in the press release.

In the moment, the site still looks a bit beta, but it is a great starting point and another sign of the coming age of user manufacturing.

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

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:

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

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.

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:

• Posting about the paper in the MIT blog.
• Reference to the article: Fabrizio Salvador, Martin de Holan and Frank Piller: Cracking the Code of Mass Customization. MIT Sloan Management Review, 50 (2009) 3 (Spring 2009): 70-79.
• Free online access to the paper.

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."

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

Embedded Toolkits: Participate in Our Survey on the Next Generation of Configurators in the Automotive Industry

My research group in Aachen is working on a nice project (EMOTIO) on the next generation of customization toolkits. Our idea is to extend the conventional configuration of custom products before you order the product by an embedded solution that would allow you to configure your product while you are using it!

We need your feedback on how you evaluate this idea. There is a short (15 min) survey that presents you some use cases of such an embedded toolkits:

Survey in English language: http://www.embedded-toolkits.com/survey/ (there also is a German language version) (it will take not more than 15 mins to answer).

Funded by the IMP-Project Fund within Germany's "Elite initiative", our project wants to pilot these toolkits and get a better understanding on their acceptance by users.

With our survey, we study this phenomenon in the automobile sector. Cars are rather complex products that include a wide array of features and characteristics. There also is a lot of configuration of cars before you buy it. But in the usage stage, you can just adapt your seats and similar changes. With some future technology, customizing a car while you are using it, however, could go much further!

In general, think of an embedded auto toolkit as a user interface that is supposed to enable drivers to change certain features or vehicle characteristics of their car at any time after the purchase. This idea is based on the assumption that users develop new customer needs during the usage period of a product. By using the product the users realize needs that they did not think about when buying the product. Thus, by the means of an “embedded configurator”, certain design decisions are postponed into the user domain and the fit to market can be improved. You will get the idea from the scenarios presented in the survey, so please participate!

Survey in English language und in Deutscher Version

We will publish a summary of the feedings here! For more information on this project, contact me or Frank Steiner.

Context information:

- Our internal project site with background information on this use case.
- A link to the general project website.

Personal Fabrication for Dummies -- Teaching Videos at Replicator, Inc.

I just discovered the great new blog by Joseph Flaherty, founder of a start-up called Replicator, Inc. While the company will launch in full speed in February 2009, they already were quite successful in securing seed money and attention in a number of important start-up competitions (MIT 100K  (semi-finals), Princeton (semi-finals), and the Rhode Island Business Plan Competition (runner up prize winner)).

I hope that we can meet Joseph at the MIT Smart Customization Seminar in three weeks.

Replicator, Inc., manufactures and sells custom consumer products. Their first product is custom jewelry for tween and teenage girls, sold under the name WhirlyBelle. This is made possible by combining web-based design tools with custom manufacturing

His company blog not just has a recent posting about 47 words you can not use on custom Nike sneakers (which I do not quote here to get my blog not banned from your corporate content filter). In another posting, he has a great chart about the price premiums you can gain with mass customization:

A great number of postings covers user manufacturing and the new opportunities for users to produce anything they want. In one of my favorite posts, Joseph explains all technologies that enable personal fabrication. You probably also could Google those, but Joseph created a great posting with small videos explaining all technologies.

Many people think 3D printers are the way this will happen, but there are half a dozen other amazing technologies that allow people to make anything they can imagine.

While by no means an exhaustive list, his list is a is a very convenient overview for anyone interested in how the idea user co-design meets manufacturing. As Joseph writes:

"Combined with web-based design tools these technologies could enable a change as profound as the industrial revolution: increasing the options for customers while reducing the environmental impact."

His posting shows examples of these machines in action and provides a glimpse of what is possible already today:

1. 3D Printers (some notable examples: Z Corp., Dimension, 3d systems, Objet, Desktop Factory, Paragon Lake, Figure Prints, EOS)

2. Laser Cutters  (Notable Examples: Epilog, Trotec, Etchstar, Ponoko, VersaLaser)

3. Waterjet Cutters (Notable Examples: OMAX, Flow Corp, OCC)

4. 2D Plotter Cutters (Notable Examples: Cricut, CraftRobo, Xyron)

5. Print on Demand (Notable Companies: Blurb, Lulu, Shutterfly)

6. Direct To Garment Printing (Notable Companies: Cafe Press, Zazzle, Spreadshirt, Spoonflower)

7. CNC Milling (Notable Examples: eMachine Shop, Tech Shop, Craftsman Compucarve)

8. CNC Embroidery (Notable Examples: Singer, Brother, Toyota)

9. Cut & Sew Construction (Notable Examples: NIKEiD, Timbuk2, Freitag)

10. 3D Scanning (Notable Examples: Z Corp., Next Engine, 3D Digital Corp., Corpus-e)

Go to his web site to watch all videos

The next generation of user design: Forget about CAD, just handdraw your design, and Ponoko will make it

While this may be small step for mankind, it is a large step for user co-design and customization. Until today, users who wanted to get a custom product had to be able to use at least an online configurator, or, in case they wanted larger freedom of creation as offered by user manufacturing sites like Ponoko, eMachineshop, Shapeways, Fabidoo, or others, they had to be able to use some graphik design software.

Now Ponoko makes co-designing even more intuitive and easier. The crew today launched their service Photomake. It turns digital photos of hand drawings into real products simply by uploading them to the Ponoko website.

The company is again one step further to its mission of making "it super simple for anyone to make anything that is on their mind, at low cost."

Previously at Techcrunch40, Ponoko launched Designmake for designers to make things on demand – over 10,000 have signed up. Earlier this year, they also launched Ponoko ID for shoppers to request goods to be made just for them by these designers. Now with Photomake they're inviting creative people who don't know how to use design software to participate simply by sketching what they want on a piece of paper and uploading a photo of it to get it made.

Derek Elley from Ponoko said in an e-mail that "One of the cool things about Photomake is the quality of the result – it's truly hand drawn. Because digital making is so very precise every tiny bump in the hand drawn creation is picked up and made for real. This gives a very natural and human feel to the things you make."

The trick behind Photomake is some very clever file conversion technology that is more accurate than anything that has come before it. It is designed so that what you draw is what is made, without any touching up required in a design software program.

This is a major revolution in the democratization of design and innovation. We know from empirical research that many users innovate and have creative ideas ahead of the market. Up to today, they either needed a manufacturer listening to them and turning their ideas into products. Or they had to have specific skills to turn their ideas by themselves into a design and get it produced. The later process was made much easier in the last few years, but still required skills in using design software and how to place a design on a machine. Now, even this hurdle blurs ... driven by new technology that allows this process at rather low cost.

So, go ahead and just hand draw your next Christmas presents.

Context:
- Press release by Ponoko on their new service.
- Video showing the entire process: http://www.ponoko.com/photomake
- On the upcoming MIT Smart Customization seminar, Cathy Lewis, CEO of Desktop Factory, will present what will be next: Transfer your custom designs into products in your home as easy as today printing a document.

Genometri is spinning-off new user manufacturing start-up, JuJups

Customization veteran Sivam Krish (CEO of Genometri.com) is in the progress of launching a new company, JuJups. The idea of JuJups is to create a kind of Über-Personalization site combining ideas we have seen at Ponoko, Shapeways, Fabidoo ... etc.

JuJups.com shall become a new generation 3-D design creation gateway that allows consumers to create their own 3D content. Through JuJups, a worldwide community of users will come together to co-create, share, and co-produce designs - designs that can be realized as real-world products.

3D printing and Rapid Manufacturing methods are now maturing into affordable and reliable technologies which are increasingly accessible to companies. Combined with online design tools, this is opening up a whole new dimension of product possibilities where products can be designed, personalized and customized by customers themselves. Given the great capabilities Genometri has with regard to 3D design tools, this is a venture to watch!

In a new blog, he is reporting about his venture. http://genometri.com/blog/ In today's posting, he provides a nice quote by Amazon Founder Jeff Bezos (old, but not known to me before):

"Before long, “user-generated content” won’t refer only to media, but to just about anything: user-generated jeans, user-generated sports cars, user-generated breakfast meals. This is because setting up a company that designs, makes and globally sells physical products could become almost as easy as starting a blog - and the repercussions would be earthshaking."

In his blog post, Sivam summarizes neatly that this already is happening. His company, Genometri, is working on some of the technologies that will take this much further. The prosumer economy is taking shape as the result of convergence of three major developments: 1. Online Content Creation, 2. Mass Customization, 3. Social Networking.

Read his full blog post for a good summary of recent companies in the field.

Keds & Zazzle Are Bringing Footwear Customization to a New Dimension

(updated - Aug 13, 2008) Customizing footwear has been a long theme in this blog. RYZwear recently offered a fresh approach to this (see my report), and now the evolution of custom footwear continued one more step. US shoe brand Keds just launched its new custom footwear offering, called Kedsstudio.com. While looking at the first glimpse like a copy of NikeID or Timberland's Custom, a closer look on the site convinced me that Keds went much further.

Keds is an iconic US brand that actually invented the term ‘sneaker’. Since 1916, Keds is offering its classic champion sneaker and a large variety of other styles. Keds is a subsidiary of the Stride Rite Corporation, which again is a unit of Collective Brands, Inc.. Collective Brands is the owner of Payless ShoeSource, a more than 4,500-store retail chain in footwear, and thus one of the very big guys in the international footwear market.

With kedsstudio.com, they created a mass customization offering that goes far beyond the present state of the art in this industry. Their advancements are with regard to two dimensions:

First, users can upload any design or picture on their shoe. So it is not just picking color options for pre-defined components of a shoe, but really getting what you want. Shoes are manufactured with an advanced digital printing technology that offers great variety in high quality. The customized sneakers are produced in China within 24 to 48 hours, and will be received by consumers within one to two weeks, depending upon the shipping method selected.

Secondly, and more interesting, Keds is one of the best examples of a new trend in mass customization: Keds actually did not build any mass customization operation of its own, but outsourced most of the process to mass customization intermediary Zazzle. Keds Studio is one of the finest examples for the benefits of the new MC infrastructure providers.

In an e-mail, Gregg Poulin, who initiated and implemented the Keds mass customization program as the e-commerce director at Keds, described how this collaboration worked (Gregg has left Keds to become CEO of compete.com). When Keds' management decided to profit from the mass customization trend, Gregg had to face a tough challenge:

"Essentially I had no budget and very little partnership dollars to create a custom shoe program that as you know can cost millions of dollars. In order to complete the vision I needed to be creative and find partners."

While browsing the web looking for a solution, he found my blog and a report on Confego, the company of Brennan Mulligan that later became part of Zazzle:

"One [solution] I found through your writings is Confego. They were the second key to the solution. I had the brand, they had the process/systems. Now I needed the community, which is where zazzle.com fit in."

With this partnership, Keds has beaten Adidas, Nike, Puma, Timberlands and the other large players in the industry with a very elegant solution: It truly is the first 'custom' shoe program that enables people to not only design their own shoes from the ground up but also to sell their own collection to others and make a profit. Gregg told me:

"Within 48 hours, there have been over 18,000 designs published on Zazzle. Can you imagine the dollars it would have taken an internal team to accomplish that feat? No inventory to carry, not guessing on what will sells. At $60 per pair everyone is making margins well above, including the factory!"

The configurator is executed well and has all the elements of a good mass customization configurator. It also features functionalities like sharing designs, getting inspirations, using templates, saving designs, etc. which are part of the Zazzle online experience. For Zazzle, Keds also is a large win as they now could add an entire new category to their assortment of customizable products. For Keds, mass customization is just seen as a continuity of what consumers used to be by their own:

"Since the launch of the Champion in 1916, consumers have been enhancing their Keds with their own personal style using markers, paints, pens and other creative tools," G. Ribatt, president and chief executive officer of The Stride Rite Corporation, Keds' parent company, is quoted in a press release.

"This growing form of expression was the inspiration for Keds Studio. Through our relationship with Zazzle, we can now offer Keds customers the opportunity to bring an uninhibited range of design options and a more professional design aesthetic to this classic shoe."

Keds Studio and its cooperation with Zazzle is a great case of what you can achieve in mass customization with creativity and little money by using the existing infrastructure of mass customization enablers. And, by the way, Zazzle does not care whether you are Keds or just an average consumer: They may not launch an entire new product line for you, but like every consumer, you can turn your creative ideas and market opportunities in your own offering (Spreadshirt or Cafepress are offering similar services).

Update Aug 13, 2008: In a mail from Zazzle, they told me that one week after the launch, more than 30,000 user-generated designs for custom shoes were created in the community.

Jeff Beaver, co-founder and chief product officer of Zazzle, reports:

“We have an incredibly diverse and talented community of designers, and had high hopes that the opportunity to create custom shoes would get them excited. We’ve simply been blown away by the response, both the volume and variety of user-generated designs have exceeded our expectations. 

Some of the most popular themes include art, music, animals and politics, but you can already find pretty much anything.  Developers are also taking advantage of the platform – within 48 hours after launch, one blogger created a Google Maps mashup so that you can get a map or satellite photo of your hometown on your new kicks.” 

RYZwear.com: Applying the Threadless Concept to Footwear

"At RYZ we’ve set out to create a people’s brand – a community of designers, sneakerheads and anyone that cares enough about art, fashion or sneakers to speak up. Together we’ll create sneakers that are designed and chosen, not by some big, faceless corporation, but by you.

Think of RYZ as a stage for designers to showcase their creativity and a forum for people to define what great sneaker design means. In other words, we just make comfortable sneakers – the rest is up to you."

This is how Rob Langstaff announced his new business just one month ago, ryzwear.com The hope of RYZ is to become the Threadless of footwear, connecting people who design custom sneakers with those that vote on the designs and purchase. I am wondering since long what could be good fields where the extremely profitable Threadless idea can be applied to, and footwear could be one option.

Rob Langstaff is not an outsider of the sneaker world. The former Adidas America Inc. president has turned the business model of its former employer upside down, Instead of assigning design jobs to inhouse designers, he is relying on online clusters of consumers to design products and figure out which ones to sell. "In Ryz's case, it's MySpace meets "American Idol," with footwear as the unit of expression", as an online report called the business model.

"The corporate design team is limited by its walls," Langstaff is quoted in the news report, "The corporation shouldn't be dictating what the consumer wears. The consumers should."

This is how RYZ works:

• Each month, Ryz will post a different standardized shoe silhouette on its Web site (a high-top shoe and a low-top shoe were the first two). Users can download the template and, using Adobe Photoshop, illustrate or add images across the shoe.
  
  
• Site visitors can rate and comment on submissions. After a month, a winner will be declared and Ryz will order a run of the winning design -- 100 pairs to start and 1,000 pairs by next year -- from a contract manufacturer in China.
  
  
• The winning designer will get $1000 for the start, plus royalties of $1/piece on ongoing sales, and get their profiles attached to each pair and a listing in Ryzwear.com's Hall of Fame.
  
  
• Two weeks after the contest ends, Ryz will sell the winning shoes on the Web and, for now, in Xebio Co., a leading Japanese sporting-goods retailer that owns a stake in Ryz. The retail price: $75 to $90 a pair.

By 2012, Langstaff hopes to allow users to design the entire shoe, from the shape of the sole to the shape of the eyestay. He also hopes to get into athletic wear. He expects to rely on customers to do most of his marketing.

Rob Langstaff is putting $4 million into his shoe startup, saying there is too great a disconnect between businesses and consumers. He expects to do $40 million in revenue by 2012 (which would be about half the time of Threadless' way to scale, but could work given his larger experience in the market and the higher price tags).

Interestingly, among some of the people helping Langstaff to set to the business is Mikal Peveto, a former footwear executive who started design-your-own shoe site Customatix in 2000. In case you have followed mass customization since its beginning, you should know Customatix. The company got much attention and had one of the best online configurators of its time. But it also did offer too much of a good thing, giving users really zillions of choices at a time when consumers were not really educated in mass customization configurators.

But Peveto believes Ryzwear can succeed where Customatix failed because consumers today are more comfortable interacting and purchasing online from less-established companies.  "Our timing wasn't great. We couldn't get people to buy because they didn't trust the brand," Peveto said. "Now is a completely different time than in 2000 because there are so many different brands that are valid."

So I am curious to see whether Mikal Peveto and Rob Langstaff's predictions come true. They took some serious modifications of adopting the Threadless models for their industry. But Threadless' customers are as much purchasing the membership in a club, a community, by purchasing t-shirts frequently at $15 a pop. I am not quite sure that this will work with $90 sneakers.

To develop however a great (and profitable) underground line of sneakers with a great story, their approach may work will. They may want to learn from Muji, the Japanese's retailer, and its approach to the model. Muji is not just letting customers vote on new designs, but also asks them to make a small cash payment on the item they really want to have in stores. Thus, they can much better predict what
people will purchase later. Such an approach also could benefit RYZ as it would connect the voting process closer with purchasing..

Context information:

A good article in Oregonlive told me first about RYZ

A recent article in the San Francisco Chronicle on crowdsourcing and user idea competitions is featuring RYZ, Threadless, and a number of other companies.

My previous reports about the CEC User Co-Design Competitionand Open Source Footwear.

The CEC Co-Design Contest: Open Innovation in the Footwear Industry

A year ago, I reported about the CEC User Co-Design Contest. Now, the results are in and the experiment is over. In the following guest article, Angelika Bullinger and Erik Hansen report about the contest. They are working at TUM Business School and were the project leaders of this contest. Here is their report:

During the last three to four years, we have seen a dramatic surge in interest in the principle of “open innovation”. “Open innovation” means the involvement of customers and other partners in the innovation process. By their creative input, many companies are significantly increasing their ability to source powerful products.

But how to meet with the creative minds outside your company?

For European shoe manufactures, an answer to this question is provided by the “CEC Co-Design Community (CE3C)”, a web-based platform that enables the integration of customers in the innovation process. The platform provides combinable modules for the interaction of the company with its customers and partners. For example, in the “mindstyle module”, customers get an analysis of their preferred style by intuitively selecting pictures out of number of photographs. The manufacturer gets information which trends are currently “hot”.

In another module, “product configuration” those shoes in the collection which can be customized are shown. By the data on individualized shoes, manufacturers are informed about customers’ preferences. Especially in combination, the modules of CE3C provide shoe manufacturers with rich information on their current consumers’ preferences. 

But preferences of current customers are not enough to your company? You want really innovative designs and get to know their creators? In this case, the “idea contest” is your solution. An idea contest is a forum in which passionate contributors from all over the world can exercise their creativity on account of a topic defined by the organisator. Prizes – and the recognition by the company – generate interest and drive participation. Typically, one company organizes an idea contest and submitted ideas are judged by a panel of employees.

The idea contest module of CE3C has already been very successfully tested - the “CEC Shoe Design Contest” was run between October and December 2007 on the platform. To involve customers more closely, a voting functionality allowed users to express their opinion on the submitted shoe designs. User votings were integrated the final decision-making on the winning designs.

The results of the CEC Shoe Design Contest have been very satisfying to the involved shoe manufacturers: In total, 63 highly innovative designs have been submitted. The active community of interested users (and submitters) has about 400 members who stem from nearly 50 countries around the globe. Both the unusual size of the community and the number of high-quality submissions indicate the power of the idea contest module of CE3C. The winning designs are currently manufactured and companies are getting in touch with the creative minds behind the designs.

You also want an idea contest for your company? You would like to meet with the still unknown designers? The CEC CoDesign Community (CE3C) stands ready for adaptation to your company’s particularities – and the established community only waits for the next idea contest on account of a thrilling topic. Let’s thus integrate and innovate!

For more information, contact Angelika Bullinger or Erik Hansen.

Here are some more results of the first contest in form of pictures:

Aberdeen Group Report Published: Configuring Profits to Order: Best Practices in Mass Customization in Industrial Markets

A few weeks ago I offered you the chance to participate in a study by Aberdeen Group, a technology research company. Now, the results of this research have been published. The study focused on the use of configurators and customization strategies in industrial markets (b-to-b). Many manufacturers here are seeking to win business by offering their customers products configured specifically for them.

However, capturing and validating exactly what customers want, accurately quoting orders, and still delivering products quickly is challenging. Companies that are successfully addressing these challenges are able to reap the benefits of higher product profitability. Some are even seeing product profit margins improve by up to 80%, just by using configurator solutions.

The research report found, that:

- Best-in-Class reduce write-offs by 26.2 times by minimizing order errors with sales configurators.
- Best-in-Class are 20% more likely to accurately predict costs used to develop quotes for custom products, allowing them to achieve higher profit margins.
- Best-in-Class are 14% more likely to meet the customer’s promised delivery date with design rules to automate the creation of sales and design deliverables
- Best-in-Class achieve higher customer satisfaction by offering 3.5-times as many customizable product features as Industry Average companies
- Best-in-Class are 18% more likely to hit revenue targets with integrated sales and product configurators.

The research found that the biggest performance differentiator of the companies surveyed is in their ability to predict cost. "The key to being profitable is in knowing what the costs will be and developing an accurate, yet competitive quote," the report states. "To accomplish this, companies must look at the unique challenges of their business and implement the capabilities and enablers that will provide more visibility and predictability to cost.”

Another finding also stresses the need of a stringend product configuration system and corresponding product structures. Best-in-Class companies report only US $31,400 in lost revenue due to quote or order errors. In comparison, the Industry Average report write-offs of US $823,900. Best-in-Class companies are better equipped to accurately capture what their customers want and process, engineer, and manufacture the order with far fewer errors. The research concludes:

"Companies who have not deployed a configuration solution will be at a competitive disadvantage and will forego the benefits of higher profit margins. A sales configurator alone can translate to profit margins that are 12% higher. An integrated sales, product and manufacturing configurator solution can mean profit margins that are 21% higher."

Context:
# Download a free copy of the report here.
# Posting about a similar report on the configuration practice of industrial companies.
# Configurator database: Get inspiration by browsing though hundreds of configuration solutions in all industries.

Un-Readymades: From Object to Experience. A study of mass customization from the perspective of industrial design

Interview with Martin Konrad Gloeckle, NYC, on consumer co-design and his series of "un-readymade" designs, a great interpretation of the customization trend

When I saw these pictures, I was fascinated immediately ... Martin Konrad Gloeckle, an Industrial Designer currently based in New York City, created some wonderful designs that are one of the best interpretations of the customization trend I ever saw. His designs are part of a study where he discusses the customization trend from the perspective of industrial design.

Born and raised in Germany, Martin relocated to the US in 1996, and recently finished his Master’s Degree in Industrial Design at the Pratt Institute in New York. Martin has additional degrees in Computer Science and Business Administration, and before returning to school had a successful career working for leading web and interactive advertising agencies both in Germany and the US. Martin’s design work has been featured in exhibitions, design blogs and magazines including New York Magazine, his award-winning Bendino lamp is currently produced and distributed in Europe.

Martin is the author of "Un-Readymades: From object to experience" – a study of mass customization from the perspective of industrial design. In this work, Martin has analyzed how consumers are moving away from being passive consumers to actively influencing and shaping their world. Parallel to this, consumers are increasingly looking for improved experiences, involvement, and personal expression. In return, user-generated content or the Do-It-Yourself movement are booming.

But how should product design react on this? Martin finds that up to today, most designers have not reacted on this trend and still are just focusing on providing ready-made, fixed and stable products. He also finds that conventional mass customization systems still do not provide a full user experience or often require advanced knowledge or tools.

In his study, he explores the next levels in this field. Based on research and design explorations, it proposes a framework for product design that engages the user and allows for deeper experience and involvement. It provokes a rethinking of the products we use and interact with on a daily basis, and presents several designs based on this.

In a recent interview, we spoke about his work and how he developed his design.

Martin, what is the key element of the design framework you propose to engage consumers deeper into experiences?

Well, the proposed framework actually has six major principles. However, these are based on two key points: A) Create design opportunities for the user, and B) Use a low-tech approach.

Let me start with the first point: What we can observe today in the online or two-dimensional world are increasingly active, involved, and creative consumers. This includes things like the so-called ‘user generated content’ of blogs, YouTube, Wikipedia and so on, as well as the whole field of desktop publishing, desktop video, desktop music etc. However, when it comes to the world of three-dimensional products, there is very little happening at this point. There are simply very limited opportunities available to the consumer.
The series of products I created tries to address this. Called ‘Un-readymades’ to express the involvement of the end-users, they provide consumers with opportunities to design, create, and express themselves.

Of course, there are other developments related to this trend. Things like the many online customization tools, the fabber and prototyping tools, and the increasingly available D.I.Y. services like Ponoko or Buglags to name a few. These however generally are very technology driven. And this is where the second point comes in. Technology has opened many areas to the average consumer. But at the same time there still often is the need for certain knowledge and tools, be it of hard- or software. Therefore, this is not accessible to everyone. In addition, the user is physically removed from these products during the design process. Rarely is there any direct interaction between the product and consumer. By using a rather low-tech approach, I am trying to address some of these issues.

Browsing over your web site, I was fascinated by the originality of your designs that incorporate your ideas. Can you illustrate your framework with one of your own designs?

One of my goals was to create a multitude of designs, to explore different areas and address different users as well as to show the flexibility of the framework. To pick one piece out, the ‘drawn’ vase is probably a good example. It is essentially a combination of a dry-erase board with an opening for a flower and a water container mounted behind it. You can use it on the wall or on the table. What the dry-erase board does is to allow the user to redesign its surface and thereby the vase.

So lets go through the six framework principles:

Enable user involvement: The vase is somewhere between an off-the-shelf product and a D.I.Y. project. While it provides the users with a starting point in form of the vase functionality, it allows them add to this.

Make it interactive: By drawing on the dry-erase board, the user directly and physically interacts with the vase, and thereby develops a closer relationship with it.

Provide room for play: While the vase offers a starting point in terms of functionaly, it otherwise literally provides an empty canvas. Not everything is predetermined, but is left open for playful exploration. Watching people creating all different kinds of designs with this was definitely one of the highlights of this project for me.

Keep it simple: I wanted these pieces to be approachable for everyone, meaning not requiring any extensive tools or knowledge. Everyone knows how to hold a pencil, so everyone can use this product. Of course, people‘s drawing skills differ, but that is were the erasable and forgiving nature of the dry-erase board comes in.

Make it personal: As the vase provides for more than just pick&choose within a predetermined selection, it really allows people to create very personal and unique pieces. No vase will ever look the same as any other.

Small Steps: The piece doesn’t require anybody to suddenly draw like an artist. Rather, the user can start with a very simple drawing. But as his confidence and capabilities grow, so can his created product.

What is the role of companies in your concept? What would you recommend a manager that wants to place your ideas into practice?

In terms of manufacturing, the beauty of these designs is that they do not require any major changes in the manufacturing infrastructure as is usually associated with mass customization. As the customization happens at the end user and not in the factory, the company still only needs to create one fixed product.

In terms of management, it probably more comes down to being open-minded and believing in the creativity of end-users. Basically giving the consumer more credit than most companies currently do.

At the same time, we of course need to realize that while customization is a major trend, it is still to be seen how much of the mainstream it will become. While especially Generations X and Y are increasingly interested in self-expression and involvement, the majority of consumers still prefers buying non-customizable products and maybe express themselves solely through selected purchases.

What did originally motivate your research? How did you choose this topic?

As I was researching potential thesis topics, certain personal interests of mine came up repeatedly. These are areas that I have always been fascinated by, like peoples desire to express themselves, peoples urge to create, the growing D.I.Y. movement, and finally new and evolving production methods. At one point, I realized that there might be a way to bring these different areas together, and to use this combination to enable and encourage creativity and self-expression for the consumer. And to simply provide for more joy and fun as part of a product experience.

Why do most industrial designers neglect the customization and self-impression trend? Do design schools educate your designers in these new topics?

First off, there are of course certain products where customization is not applicable, for example for safety reasons. Besides that, a couple of things come to mind.

For one, designing a product that is customizable means giving away some control of the final product. As a designer, you put a lot of time and thought into determining a very particular look, feel, and functionality to create something that addresses a specific need. While most products usually stay as intended when they leave your hands, with customizable pieces you control them only up to a certain degree. This is something not everyone is comfortable with, especially with more visually driven pieces.

In addition, there is also a school of thought with some designers that only they should be the ones ‘designing’. After all, that is what they went to school for and spent a lot of time on, learning how to do it right. According to them, the general consumer does not know about designing, and should not be allowed to do so.

This whole issue of ‘professional’ versus ‘amateur’ designer, across all areas from web over graphic to industrial design, is something we could easily talk about for hours. I personally do not subscribe to this rather elitist thinking, and believe that there is and always will be a place for both. However, and as in every other profession, we designers need to rethink our roles periodically, and adjust to a changing environment.

In terms of design school education, there is obviously an inherent delay of current trends manifesting themselves in the education curriculum. Which is not necessarily a bad thing. I believe the value of design school, besides teaching basics like form and color, is rather in teaching creative thinking. This together with providing the appropriate environment for exploration is the starting point. The rest is really up to the individual student, to investigate and explore different areas, and push his own limits as well as that of design in general.

What’s next for you now that you have finished this project?

In terms of the ‘Un-readymades’, I am starting to look into potential options of moving some of them out of the prototype stage and into production. Besides that, as I am done with my Industrial Design degree, I am also currently interviewing for a job. Things are still open though, so I guess I should use this opportunity to invite anybody looking for an Industrial Designer to take a look at my resume and portfolio on my website.

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

Well, this is a pretty grand and open question. Maybe to answer it in a similar open way, I would pick the human mind? It probably does not get much more mass-customized than that. And thinking of it, it actually fits pretty well in my framework. :-)

Contact Martin at martin@martin-konrad.com or http://martin-konrad.com
You can view an illustrated abstract of his work at http://martin-konrad.com/unreadymades

Zapfab: User-generated content meets 3D Printing

A new Ponoko-alike company is coming from Manchester in the UK! Zapfab Ltd is a user manufacturing start up that offers a new way of delivering individualized, customized products. As other companies in this field, they are combining the creativity of user-generated content with the power of 3D Printing (fabbing).

In a press release I got today, the company is described as follows:

"User-generated content is ubiquitous throughout the internet, from weblogs to YouTube videos. Zapfab builds on this trend, by providing a website where users can easily generate unique designs for 3D objects.

3D Printing is rapidly gaining ground as a way of creating real, physical objects from 3D design data. Zapfab provides an easy way to access this technology: Once you have generated a 3D design you can choose to have it 3D printed: Zapfab will 3D print the design and deliver the finished object to you.

The Zapfab website has two main areas: the Design Catalog and the 3D Customizer. The Design Catalog contains all the designs on the site and is a repository like Google's 3D warehouse. The 3D Customizer is where the customizing takes place: Each design can be customized in different ways: color, size, pattern, etc. and the 3D Customizer contains simple controls for each of the options. So, once a user has customized a design, she can save it back into the catalog for other people to see. And then they in turn can customize and build on her design.

“We see three main groups of users for Zapfab.com,” said Julie Wood, Zapfab Director, in the press release “First, we have made the 3D Customizer really easy to use, so that anyone can create a unique, customized design in just a few minutes.

Second, there are a range of users with 3D modelling skills, who will be able to upload their designs to the site; and we aim to make it easy for them to add customizations to those designs.

Third, users with programming or scripting skill will be able to create new, highly-customizable designs. And all the designs, from the simplest to the most complex, are customizable through the same easy-to-use 3D Customizer.”

At the moment, Zapfab’s Design Catalog contains over 100 customized designs, ranging from bowls to boxes and bangles. All of the designs can be 3D printed “as is”, or freely customized. It is a nice, but at this stage not too creative collection of things. But I hope to see much more activity on their side, and given that they are located in Europe, I also will try this service by myself in the next weeks and let you know about my experiences.

Participate at Industry Benchmarking: How good is your configuration practice?

Exclusive survey by Aberdeen Group wants to evaluate how companies are profiting from configuration. I was asked by Aberdeen to support this survey, and given their questions, I believe it is a good initiative.

How do you customize or configure your products to specific customer preferences, while maximizing profitability? The Aberdeen Group is looking to answer that question.

If your company offers a mass customization configurator, weigh in on the debate by taking a short 10 minute survey.

Each respondent who answers the survey will receive a complimentary full copy of the report containing this study's results (a $399 value). This report allows you to benchmark yourself against your industry peers. Individual responses will be kept strictly confidential and data will only be used in aggregate.

Questions the survey wants to ask:

# How do you capture and validate what your customer wants?

# What are you doing to develop accurate, yet timely quotes?

# Do you have anything in place to help automate repetitive or tedious steps of the sales or design process?

# Is reducing rework and returns of tailored products a concern for you?

Share your experiences to help us identify best practices for producing customized products that drive profitability.

We greatly appreciate your participation in this research effort and look forward to sharing our findings with you. BUT: Please only participate in the survey if you are offering customizable products in any industry.

Go here to the survey: aberdeen.com/survey/CustomIIMCP

Crowdsourcing methods are McKinsey's Prime Business Technology Trends to Watch In 2008

In the recent issue of McKinsey Quarterly, the business journal of strategy consultants McKinsey & Co, James Manyika, Roger Roberts and Kara Sprague discuss Eight Business Technology Trends to Watch In 2008. Five of those eight relate directly to the topics of this blog:

Four trends, Distributing Cocreation, Using consumers as innovators, Tapping into a world of talent, and Extracting more value from interactions are sub-sets of the larger Crowdsourcing idea.

(1) Distributing co-creation is just another term for our own "interactive value creation" or Benkler's "commons-based peer production" or Don Tapscott's "Wikinomics". No doubt that this is a mega-trend which has been described widely in the last years but which practical implementation just has started. In consequence, McKinsey estimates that 12% of all labor activity could be transformed by more distributed and networked innovation:

"Outsiders offer insights that help shape product development, but companies typically control the innovation process. Technology now allows companies to delegate substantial control to outsiders -- co-creation -- in essence by outsourcing innovation to business partners that work together in networks. By distributing innovation through the value chain, companies may reduce their costs and usher new products to market faster by eliminating the bottlenecks that come with total control."

Interestingly, however, in the entire McKinsey article is no word on open source or open licensing models ("commons-based") which are a main driver for the efficiency of distributed open systems of value co-creation. This may be perhaps too much for the typical reader of McKinsey Quarterly.

(2) Using consumers as innovators: Well, not really a new trend, Eric von Hippel is saying this since the 1970s, and since the beginning of industrial production consumers are inventing new products. The new trend, however, is that firms are seeing this potential and they increasingly are utilizing the capabilities for innovation. They are not just asking for feedback on their own creations, but they are integrating consumers actively in the creation of something new. MyKinsey is quoting Threadless here, but this is not a correct example for this trend as most the creators at Threadless are no consumers but experts!

A better example, quoted by the iRise Blog in a posting on the McKinsey article, is Dell's IdeaStorm, and, on the B2B front, Salesforce.com. This software company is using an application for users to make suggestions to improve their CRM software. The top ideas from this contest is receiving executive-level visibility.

(3) Tapping into a world of talent is the consequence of opening your innovation and value creation process:. The people reacting on an open call for participation in the " Distributing co-creation" idea are those who are the most talented to do this work (as they have relatively lower cost to fulfill the job):

"As more and more sophisticated work takes place interactively online and new collaboration and communications tools emerge, companies can outsource increasingly specialized aspects of their work and still maintain organizational coherence. Much as technology permits them to decentralize innovation through networks or customers, it also allows them to parcel out more work to specialists, free agents, and talent networks."

This leads to a further consequence, and their next trend: (4) Extracting more value from interactions. The more a company is relying for value creation in its periphery, the higher is its costs for coordination compared to production cost.

"As a result, a growing proportion of the labor force in developed economies engages primarily in work that involves negotiations and conversations, knowledge, judgment, and ad hoc collaboration—tacit interactions, as we call them. By 2015 we expect employment in jobs primarily involving such interactions to account for about 44 percent of total US employment, up from 40 percent today. Europe and Japan will experience similar changes in the composition of their workforces."

This is nothing new at all, the fact, that the so-called transaction cost are dominating the overall cost in a modern economy is known since several decades. But it is good that McKinsey are stressing this relationship again – as mastering these cost will become a major capability for firms which want to profit from crowdsourcing. Technology is leading this path:

"Technology tools that promote tacit interactions, such as wikis, virtual team environments, and videoconferencing, may become no less ubiquitous than computers are now. As companies learn to use these tools, they will develop managerial innovations—smarter and faster ways for individuals and teams to create value through interactions—that will be difficult for their rivals to replicate. Companies in sectors such as health care and banking are already moving down this road. […] But: Creating the business case for investing in interactions will be challenging—but critical—for managers."

(5) A last trend from their report is "Putting more science into management". Technology is continuously helping managers exploit ever-greater amounts of data in real-time to make smarter decisions. One of the business models which are enabled by this data-driven management is mass customization, named by McKinsey as "the holy grail of deep customer insight":

"The amount of information and a manager’s ability to use it have increased explosively not only for internal processes but also for the engagement of customers. The more a company knows about them, the better able it is to create offerings they want, to target them with messages that get a response, and to extract the value that an offering gives them. The holy grail of deep customer insight—more granular segmentation, low-cost experimentation, and mass customization—becomes increasingly accessible through technological innovations in data collection and processing and in manufacturing."

Go to the original article which has plenty of good references for further reading (requires registration, for a version of the full text of this paper, go to ZDnet).

Webinar: The Next Gen of Mass Customization: User Manufacturing, Instant Companies, and Customer Co-Creation (Nov 29, 2007 on your desktop)

How a new infrastructure is enabling consumers to become instant manufacturers – and your future competitor -- 10% discount for MC&OI Blog readers

I am coming back to your desktop. After the large success of an earlier webinar on mass customization, London based Pure Inisghts is organizing a second webinar on the theme, this time around my new favorite topic of user manufacturing.

The topic: We are used to have a networked laser printer on every desk in our office and in every home, enabling us to print documents on the spot which a few decades ago demanded a specialized manufacturer. The same may be happening with the production of many other goods. Today new production technologies ("fabbing") and advanced design software allow average users to produce almost everything – on their own desk. Welcome to the factory in your kitchen.

This session will discuss the upcoming user manufacturing trend, a development that recently is taking shape in larger scope and scale: User manufacturing refers to a public available software, manufacturing, and distribution infrastructure that enables creative users and customers to design, build, and sell own creations to a larger public – without the traditional investments in setting up a business. User manufacturing supplements – or substitutes – mass customization strategies which many companies have implemented. It also may become the most efficient strategy to serve the long tail of variants in many industries.

Consider Spreadshirt, one of the world's largest producers of graphic t-shirts. This company just allows everyone to create an own assortment of designs, and then sell this assortments in highly targeted retail outlets, online and offline, to a small market segment the user knows best. Thus, Spreadshirt does not have to predict the long tail of heterogeneity of fashion products, but just focuses on allowing users to create and sell this assortment by their own.

User manufacturing is enabled by three main technologies: (1) Easy-to-operate design software that allows users to transfer their ideas into a design. (2) Design repositories where users upload, search, and share designs with other users. This allows a community of loosely connected users to develop a large range of applications. (3) Easy-to-access flexible manufacturing technology. New rapid manufacturing technologies ("fabbing") finally deliver the dream of translating any 3-D data files into physical products -- even in you living room. Combining this technology with recent web technologies can open a radical new way to provide custom products along the entire "long tail" of demand.

User manufacturing builds on the notion that users are not just able to configure a good within the given solution space (mass customization), but also to develop such a solution space by their own and utilize it by producing custom products. As a result, customers are becoming not only co-designers, but also manufacturers, using an infrastructure provided by some specialized companies.

The webinar will discuss recent trends and case examples of the user manufacturing trend. We also will compare the business models of companies which are building on the user manufacturing trend and which implement and operate the underlying infrastructure ´for creative users to become manufacturers.

Planned session outline:

- A short review of conventional mass customization thinking

- Which recent trends and developments enhance these strategies and how mass customization is related to “The Long Tail” phenomena

- What is user manufacturing, and which trends does this strategy support?

- What are the components of an infrastructure that supports user manufacturing?

- A review of business models of established companies and recent startups which already successfully benefit from the opportunities of user manufacturing

- A discussion of the major challenges and open issues in this domain

- Session wrap-up: Idea for further action

To register, please go to http://www.pure-insight.com/webinars/mass-customization-next-generation and use promotional code aix (case sensitive!) wenn registering for a 10% discount.

Note: You also can download the webinar after its initial live broadcast – but only when joining live, you can interact and ask direct questions.

All further information can be found here.

Context information

- If you prefer to see the content of this webinar in action, a seminar on Fabbing and User generated Manufacturing in Essen, Germany, provides a great opportunity on Nov 22.

- My earlier posts on user manufacturing

- Article in CNN online on the fabbing trend

- Article in New Scientist on the fabbing trend

- Article in Make magazine on how to use a fabbing device

BMW’s Mini Brand Launches Custom Roof Designer Online

Evaluation of the new roof design toolkit and some ideas for improvements and additions

Driving a BMW-Mini often is seen as the ultimate expression of individualism. People paying the extra premium for a small, but fun car often select a Mini to express their individual lifestyle and to set themselves ahead from the crowd. For me, this always seemed to be a bit a contradiction, as I have seen very few really “cool” people driving a Mini, and at least in Germany, Mini drivers seem to follow a general pattern of belonging to a conservative upper middle-class medium aged segment living in larger cities. (I have, however, to admit that driving a Mini really is fun and a very nice experience).

Also, from a mass customization point of view, a Mini has rather limited customization offerings. While the configurator suggests plenty of choice options, they are rather limited, especially with regard to style customization like color combinations between body, roof, and interior. All choices seem to be perfectly balanced to deliver neatly tuned combinations fitting the Mini brand image as seen by its corporate parents.

But now, there is ultimate choice. Customers now can freely design the Mini’s roof with their very own design. The roof is one of the signature design features of the Mini. It is often selected in a different color than the body. And now you not only can select from 15 or so standard colors, but really design your own, as the German weekly Der Spiegel reports in its online edition.

Enter the Mini Roof Designer, a very well done playful online design toolkit that allows you to generate your own roof design. The configurator is full of nice gimmicks providing a great experience, but not really helping you to come up with a better design. As far as I could evaluate this configuration toolkit, this – in the moment – is a pure marketing gimmick. You can design your roof and save it, but that’s it.

According to the regularly well informed Der Spiegel, however, you also can order very soon your individual design in form a custom-made foil with your individual pattern that your Mini dealer will fix on your roof. (and in the Carscoop blog I read that the orders are available only in Italy for the time being, Germany will follow in June, Austria in the third quarter, with further countries being added later).

Given the high prices for extras for the Mini, 400 Euros for this service seem to be not too expensive. I bet there even will be fans ordering their custom roof stickers without even owning a Mini. And I am looking forward to see all the really custom designs printed on Mini cars and how they match the look of their owners. Have a look in the gallery of the Roof Configurator to see what I mean.

Nice idea. Some thoughts I had while playing around with the configurator how to improve this offering :

(1) It will be interesting to see if and how Mini approves all designs and whether there will be limits of what people can print. For the online gallery publicly showing your saved design, a manual approval process takes place. After I saved my Mini, the system told me that it will take ONE WEEK to approve my design before it is online. Hey, we are in an online, real-time, instant gratification world and the automotive industry is talking about the Three-Day-Car http://www.3daycar.com/!!

(2) It is rather difficult to come up with a nice design. The system offers many tools, but as an average user without design skills, it is difficult to come up with something creative. Easy-to-modify starting designs are missing. Also, I would have loved to get some more inspirations, perhaps by famous designers sharing their own Mini roof. And if I would be a professional designer, I would love to be able to upload a design made in Photoshop or any other professional design program using a template provided by BMW.

(3) The custom Mini roof sounds like a perfect idea for a new Threadless clone . Let the best in the world design roofs in form of an open (ongoing) competition, and let the community of Mini fans and owners evaluate the designs and vote on the winners. Then produce these designs in limited editions and sell them within days.

(4) Or a modification of the Spreadshirt idea: Let users design roofs, and sell their individual designs to others. Designs are then individually printed, and designers get a share of the proceeds. Perhaps this also is a great after-sales tuning idea. Think of transferring the BEMZ idea of tuning IKEA sofas onto Mini roofs: Create custom Mini roof covers and sell them independently for 200 Euros. Given that about 1 Mio. New Minis have been sold, this sounds like a nice market opportunity.

So many opportunities for mass customization in the automotive industry. Let’s see what is happening next.

Why do people want to co-create and to customize?

A new book by Lisa Johnson provides some good answers -- and some great new case studies, too.

Yes, we know today that modern consumers not just want to solely consume, but are active and co-creating and (a few of them) co-innovating – and want just what they want.
But why is this so? This still is one of the fundamental questions – also for companies that want to benefit from “crowdsourcing” or interactive value creation.

To answer it, you either have to rely on heavy sociological texts or studies from anthropologists, or on pretty weak trend assumptions by marketing consultants (I have summarized both discussions in my German MC books).

One of the few exceptions is the great book by Harvard Prof Shoshana Zuboff and her manager husband James Maxmin, “The support economy: why corporations are failing individuals and the next episode of capitalism” (London: Viking Penguin 2002), which contains a great analysis why the (US American) consumer wants more personal service and customized offerings.

The focus of Zuboff and Maxmin are baby boomers, the post-war generation now in its best living and spending age. However, most co-creation activities that are cool in the moment come from younger generations, today 14-to-40-year olds. Also these consumers are savvy, sophisticated, and particular – and they are becoming more and more immune to traditional advertising, while exploring the huge choice of “long tail” markets.

Divided by marketers in the Generation X (30+) and Generation Y (teens and twentysomethings), these groups shape today’s pattern of consumption and value creation. And Lisa Johnson, a marketing consultant, does a great job in her book “Mind your X's and Y's: Satisfying the 10 carvings of a new generation of consumers” (New York: The Free Press 2006) to describe why and how.

What I really liked about this book is that it is all about Web 2.0 and Social Commerce without even mentioning these terms, but bringing them into a more general, better founded and buzzword-free framework.

Her starting point:

“Whether we like it or not, recent technologies have changed how our brains operate. They have altered the way today’s consumers think – not just what they but, but how they buy, how they act and react, and which products and services they find compelling.”

Resulting form this is a different mindset that Johnson calls “the five essential criteria” which describe qualities consumers expect from all kind of products:

- Experience: The desire to get out and try new activities, to explore, text, and see what is possible.

- Transparency: The market as an antispin zone. Full disclosure for companies and consumers alike with accountable choices and decisions.

- Reinvention: Due to fast adaptation of new technologies that allow to do old things differently, markets are a place of constant change.

- Connection: Cooperation of people blending their talents and perspectives to improve the experience for everyone.

- Expression: Anything is possible. The desire to express the layered facets of ones personality and individuality by customization and personalization.

These five criteria inform how consumers operate in the market. And Johnson uses them to describe ten consumer cravings that cross industries and age brackets as they drive – in her opinion – every decision made by members of the Generation X and Y. Let me introduce five of them which seem more relevant for the themes of my blog. While the following quotes describing these trends are pretty much marketing-jargon, their description in the book is actually more profound:

Shine the Spotlight: Extreme personalization gives marketing a new face: "Clamoring for personal recognition. They’re itching to stand out, stand up, and be celebrated with their names in lights (or print or pixels). Brands that tap into this powerful need with highly creative efforts will get not only great buzz, but a whole new level of loyalty and brand ownership to match."

Make Loose Connections: The new shape of “families” and social networks. "This generation is rejecting traditional associations and club-style memberships in favor of loose connections that more accurately reflect their interests, lifestyles and busy days."

Filter Out the Clutter: Editors and filters step into a new role of prominence. "In a world that’s inundated with choices, editing is a critical market phenomenon and an important process in our daily lives. Consumers rely on editors to sift through the raw data and identify the top picks. As a result, many savvy brands are learning to build editing mechanisms into their brands, products, and websites.

Keep it Underground. The rejection of push advertising and the rising influence of peer-to-peer networks. "A select group of people discovers something new, from shoes to bands to politics to neighborhoods, and translates it to satisfy a much wider audience. This is the way of the underground."

Build it Together. Connected citizens explore their creative power and influence change. ".. we’ve only just begun to tap into the power of web-based networks. The Connected Generation is becoming intoxicated by their growing ability to spark change – both as consumer groups and end users. This awareness is spurring mass creativity and launching a power shift away from companies and into the hands of consumers."

And, just for record, the remaining five carvings are:

- Raise My Pulse. Adventure takes its place as the new social currency.
- Give Me Brand Candy. Everyday objects get sharp, delicious, intuitive design.
- Bring it to Life. Everyday activities are orchestrated to deliver a dramatic sense of theater.
- Go Inward. Spiritual hunger and modern media find common ground.
- Give Back. Redefining volunteerism and the meaning of contribution.

Regarding her first trend, Shine the Spotlight and Extreme Customization, she provides a number of good arguments why consumers want this kind of customization and expression of their personality – regarding the need for (mass) customization especially for product offerings that address aesthetic design and personalization:

- People are burned out. “Consumers are cynical and extremely educated about the entire marketing process. Add in a collective obsessions with celebrities, and people everywhere are longing to experience the insider treatment. They want to feel like someone really cares about their dreams and desires.”

- People have seen what is possible. New tools and websites allow consumers to share their unique personalities.

- There’s a sense of entitlement. “I deserve it and I am ready for it now, is the common attitude.

- People want profile in familiar formats.

- People want promotion without the appearance of self-promotion.

To illustrate this trend, Ms. Johnson uses a number of case studies which I personally find not too extreme or convincing, there are much better examples out there (like the new Adidas Pars Innovation Lab, DNA Style Lab’s idea or Build-a-Bear): Jones Soda that allows you to place personal labels on standard soda, Iamtoy.com, who create handcrafted superhero alter egos of your loved ones, DNA Artwork that uses your DNA for a custom picture. But you ge the point.

Among the many other, much better case studies in the remaining chapters of the book, is the venture of an active member of our mass customization community: Andreas Schuwirth (http://www.xxpo.de), who developed a body measurement solution for the bike market that allows a totally new sales experience there. The book describes in large detail the application of this system in a new chain of bike stores in the US, "roll:bike". These stores are envisioned by an industry outside, Stuart Hunter, who wants to provide customers a custom shopping experience with a highly edited and customer-centric store. The book describes here a great case study of an offline-customization (matching) system that really provides customer value.

What the book is missing, however, are all forms of co-creation that go beyond operational marketing or improvements of merit, but which do address topics like lead users or other forms of user innovation (Patty Seybold’s book does a better job here). Ms. Johnson stays in the traditional regime of thinking – but this is also where most co-creation activities do take place anyway.

I could go on with quoting from this book, but just recommend that you get a copy and read it for your self.

Offline Customization -- Morgan Miller Fashion Shoe Workshop in South Beach, Florida

Madeforone today discovered the link to an interesting story in the Miami Herald about another off line experience for footwear customization.

So to continue the stream of posting around this theme, here some extracts from the Miami Herald article. For me, the entire concept sounds very much like the Via Della Spiga Concept store of watch maker Swatch where consumers also can co-create (craft) their own custom watches in a store (see old posting on Swatch's customization store). I believe that there is still much growth potential in this business model.

So this is what you can do – since Nov. 1, 2006 -- in Miami at Morgan Miller (1634 Euclid Ave., Miami Beach, 305-672-6658), a customization boutique owned by Morgan Miller, 24, a graduate of Marymount Manhattan College with a bachelor's degree in communications:

“Ever find a pair of strappies you loved, except the straps were all wrong Now you can design your own—from the heel up—at Morgan Miller, a unique design-and-go shopping experience that takes only 30 minutes. At 24, designer Morgan Miller, owner of the new South Beach boutique, has put an innovative, rock star spin on the shoe-glutton movement.

''We provide the ingredients for women to be their own designers so they are able to put their own stamp on things,'' said Miller, a New Jersey native. Clients choose from a mélange of soles, straps and buckles to create a shoe exactly to their liking, at prices ranging from $150 to $500.

There's a buffet of kitten heels, cork and wooden wedges of various altitudes and attitudes. There are high heels, low heels and chunky heels in black or white lacquer. Straps can be had from more than 100 options, including lizard, python, ostrich, alligator, leopard-print hide and the leathers: patent, metallic and pearlized. Buckles can involve Swarovski crystals or faux bamboo Strap and buckle samples are attached with Velcro to a wall of black velvet so clients can handle all their options. And once the style combos are chosen, bubbly is served and the foot is measured.”

Another website, Daily Candy , describes the customization process:

Step 1: The base. Stiletto, kitten heel, cork platform — she’s got you covered, from beach to banquet.

Step 2: The strap. Go conservative with black or sex things up with turquoise python — there are plenty of fabrics and colors to choose from.

Step 3: The accessory. You’ve got more than 100 options: Bling out with crystals and jewels or keep it simple with a silver chain or nothing at all. Of course, you’re not expected to actually make the shoes. The in-house cobblers take care of that.

But in the end it is all about the experience, as the Miami Herald writes:

The boutique resembles a candy store for grown-ups. Big candy jars hold rhinestones and other embellishments. Crystal chandeliers illuminate the sparkling shop. The shoes, which can resemble those by Jimmy Choo, arrive a mere half-hour later—on Tiffany & Co. silver platters. ... A self-confessed shoe freak, Miller plans to expand her made-to-order shoe business to include handbags and belts, but with a longer turnaround of two-three weeks.

Context information: Previous postings on offline customization stores:
- Adidas Paris miAdidas flagship store
- Selve Footwear Customization Experience
- DNA Style Lab
- Korean iFashion project with virtual mirrors
- Personalization Stores collection- at CS Scout
- Via Della Spiga Concept store Posting in old newsletter

Adidas Finally Adds Experiment & Service to its Mi Adidas Product – New mi Adidas Innovation Center Opened in Paris

I recently wrote about the opportunities of bringing mass customization into stores and selling the experience as much as the custom product (see the DNA Style Lab posting). Now Adidas, a premier example of mass customization in my talks and lectures, has expanded its in-store presence with a huge new mi Adidas retail outlet in its new Paris flagship store.

The 1,750 square meter Paris adidas Sport Performance store occupies two floors on the Avenue de Champs Elysees and features a wide selection of adidas products. The core part of this store is a pimped mi-adidas sales system, called mi Innovation Center (mIC):

"The "mi Innovation Center" will change the way consumers shop and their expectations at retail. It is a true first and we are thrilled to premier the mIC in Paris offering customers a whole new dimension of interaction with adidas products," Karen Feldpausch-Sturm, Senior Vice President of Global Retail for Adidas, is quoted in a press announcement. Adidas, headquartered in Herzogenaurach, Germany, plans to roll out the new high-tech concept stores in major cities worldwide, including one in China in the run-up to the 2008 Beijing Olympics.

Features of the new customization unit in the mIC include:

# A large glossy, black cube is the focal point of the center. Here, customers can customize their own "mi adidas", using now a larger flat-screen configurator to alter the details of the shoes by simply pointing a finger to the screen. Laser and infra-red technology then translate the gestures into commands. Foot scanning and pressure scanning is done as in the mi adidas stores before.

# New is also a virtual mirror where users can see their personalized shoe on their own foot without even removing ones shoes!

# But customization is not only high-tech: Customers are accompanied by specially trained "adidas experts" who, like a personal trainer, advise on nutrition, exercise and products. With a portable hand-held PC, the sales associates record a consumer's personal data and desires, creating a user profile that he/she can view at their convenience via the internet.

# In addition to the cube, the center also provides some insight into new approaches of selling standard products: At a table, a sliding carriage can be moved over a desired shoe and then specific product information will appear on the screen via Radio Frequency Identification (RFID) technology.

Update: On YouTube is now a Video showing exactly the new mi adidas customization process (thanks to Rebang for the link).

I don't had the opportunity to visit this store in person, but a sneaker enthusiast posted a nice review on the BKRW blog (the reviewer seemed to have not heard before that Adidas is offering basically the same service since 2001, thus not in such a fancy retail outlet):

"Well, to be honest we were really impressed and can't wait to test it for real (don't worry we will be in the first row…) ! The concept is really simple, it's a kind of NIKE ID applied to performance shoes. It means that you can customize our own performance shoes, according to the way u need it. You can change the design, change the colors, add some words or some special tags, but most of all you can even materials of the shoes : sole, mid-sole, chassis, uppers, studs… The truth is that ADIDAS is pushing the whole performance concept with the even way of customizing your shoes, because even being in MI INNOVATION CENTER is a travel into the future: as we said you are running on a video carpet, each salesman has a touch screen tablet to change into real time your adjustments and preferences, while you are directing your mouse on the menu screen by the means of a laser system of pointing…"

Is all this just another marketing gimmick?, asks Business Week in a report about this store.

My answer is yes and no. Regarding customization of the product, it is just a pimped up version of the mi adidas retail units that are in place since years. But regarding the overall strategy of customization, it is a large step forward. For the first time, the company is not focusing on the custom product, but on the custom service and experience users get when purchasing the shoe. The custom nutrition program and fitness guides offer much more value as yet-an-other color-option at NikeID. So while Nike had an easy win with the Ipod-Nike-combination offering individual tracking of your running behavior, I think Adidas has beaten its competition with this integration retail innovation by far – if they are able to scale up this system and deliver what they promise.

Business Week quotes Fiona Fairhurst, director of Zero Point Zero One, a sports consultancy in Nottinghamshire, England, on this:

"These days if you look around the gym, everyone is their own fitness expert. People know how to use heart-rate monitors and measure their own level of hydration …An individual will steer clear of a brand that doesn't fit properly, no matter how exclusive that brand is. If you know that Adidas fits you perfectly and comfortably then they have a customer for life."

DNA Style Lab goes Beta: A new model for the custom t-shirt economy that also looks beyond the internet

If the number of new ventures started around one idea is an indicator for the strength of this trend, then custom t-shirts and related fashion items are the hottest area of mass customization in the moment. I lost track of all the recent announcements of new sites where users can co-design their t-shirts. Next to "established" forerunners like Spreadshirt, Cafepress, or Threadless numerous start-ups entered the customization world recently. Have a look on Adam Fletscher's t-shirt blog to get an overview in form of his great interviews with the founders of the players in this custom t-shirt economy.

So just let me introduce you to one of these upcoming sites: DNA Style Lab, the brainchild of Samantha McDermott, who got first experience with customized handbags in the late 1990s. Her idea is to combine elements of some of the existing systems of the custom t-shirt economy with new ideas.

The core idea is that the company commissions a number of artists from around the world. These artists are in varying stages of their careers, some are already more established, others are just getting known. Artists will contribute design elements which consumers than can place freely on different apparel products and accessories. Pricing of the products is modular: the more graphic elements an user selects, the more expensive the final product gets.

If artists allow, consumers can also change certain aspects of the supplied art. The company itself makes its profit from selling the core products (US $10-20 for American Apparel garments), artists get the full price users pay for the graphic elements they select (about $5).

Sounds very much like Stagr or Innertee ... sites which do not leave the entire co-design process in the hands of the consumer but propose to split the process: Experts provide the input and variety by basic designs, individual consumers get the freedom to combine these elements, providing them the experience but not the pain of a co-design process.

But what makes Ms. McDermott's venture really special is her plan to stay not just in the online world, but to move also to brick & mortar stores where customers can actually leave the store with an item they designed. I think this is what it requires to grow and scale the idea of aesthetically customized fashion products. In the end, the major value of a custom t-shirt or similar product is not additional ergonomic value due to better fit or function, but the hedonistic value of experiencing the co-design process itself and the rewarding feeling of the final product.

Mass customization pioneer Nike also discovered that just offering custom shoes online is not enough and thus opened its NIKEID Lab in New York's Elizabeth Street, and Puma even started offline with its great Mongolian BBQ. And one of the largest mass customizers – and a real role model for me – Build-a-Bear, has founded its fantastic growth story entirely on offline customization, selling in the end more the process of customizing a toy than the custom product itself.

Given the joy of shopping for fashion products for many consumers, a business model based on providing co-design in an offline environment could become a large success. There are some local players in this area (like Neighborhoodies in New York or George&Frank in Munich), but not really scalable and thought-though system that could replicate Build-a-Bear's success in the toy industry for the fashion industry.

For a start, however, DMA Style Lab is still an online business only. Its present toolkit is obviously very beta and demands a few minutes to learn, but then is easy to operate. The company told me that this will be improved very soon, including the order taking process. But you get already a good idea about the basic elements of the concept: The main focus today is on the artists who provide the work. This is a great combination of the co-design trend with its countertrend: strong orientation at external peers and idols.

They will be adding a "Soundlab" function soon -- discover independent artists (bands) so that you can listen to their music while designing you new t-shirts. As with all of these sites, functionalities to support the community of users and artists are crucial for success. Here, the usual tools like customer pages, upload of user photos, sharing of designs, forums, etc. will be implemented.

I am curious to see how these ideas will come into place and which segment of the market DNA Style Lab will be able to capture. The traditional market for custom graphic t-shirts (fashionable late teens and young tweens) has been occupied by the existing labels (many of them working in the traditional way without any customization). But Samantha McDermott and DNA Style Lab may be able to create a new market of custom customers, older and perhaps more sophisticated, also more interested in art than in music.

Context information: Here are some links to recent news around the custom t-shirt economy:

- Innertee (see my previous post) went beta last month
- STAGR plans to allow the customization of top brands (Great three-part interview on HipHipUK)
- And (if you speak German) a collection of recent posts on Exciting Commerce on Custom T-Shirts and related products,

Custom Fashion 2.0: How a new Korean project wants to lift mass customization in the apparel business to a new level

On Monday this week, the i-Fashion project was launched in Seoul, Korea. I was invited to speak at the opening event of this interesting initiative. Its objective is to create an entire infrastructure for mass customization in the fashion industry by integrating a number of technologies which today have not been applied in larger scale. Sponsored by the Korean Ministry of Commerce & Energy with about US $7 mil., it combines a consortium of 9 apparel companies and a few technology providers.

As you would expect from a high-tech country like Korea, the exhibition on the opening even was dominated by numerous huge flat panel screens. These screens were, however, no sheer illustration but actual part of a totally new selling process. The entire process builds on virtual models which are generated by a 3D body scan of a consumer. The customer can then create on a touch-screen kiosk her new apparel, including the design of the fabric. Designs are illustrated real-time on the customer's avatar. This avatar and virtual garments shall be also used in mobile applications (where South Korea is famous for) and traditional online shopping environments. Also this idea is not new, but has – to my knowledge – never been integrated in a real shopping infrastructure. One of the project partners, the Hyundai conglomerate, will open a test store in its department store chain already this year.

A co-speaker on an international seminar for this project was Prof. Nadia Magnenat-Thalmann, a leading expert in virtual modeling and the Director of University of Geneva's MIRALab. I had heard of this lab before, but was astonished to see the scope of its activities. Prof. Magnenat-Thalmann reported from her work as part of the LEAPFROG project, an European project with the objective to modernize and ultimately transform the European clothing sector into a flexible knowledge-driven high-tech industry. Drivers of the project are a radical move towards rapid customized manufacturing through flexiblization and integration of cost-effective and sustainable processes from fabric processing to customer delivery and a new focus on customer service. MIRALab contributed to this project with the development of a 3D virtual try-on platform, including real-time body sizing and cloth simulation.

Projects like i-Fashion and LEAPFROG are very important for the realization of mass customization in the clothing industry as they go beyond automatic pattern generation (based on 3D scans) or flexible manufacturing technologies, but try to create an integrated platform where most of the traditional physical design, manufacturing, and sales processes are shifted to the digital domain.

One of the interesting parts of the project i-Fashion project in this regards is the large scale application of digital-printing for high-end fashion items. This enables the efficient productions of individual patterns and may solve the problem of huge inventories which are required for customization on the component level. i-Fashion Project partner Yuhan-Kimberley demonstrated their latest existing technology during the opening event. I was surprised by the quality of the printing process, but also its speed and cost efficiency (comparable to normal paper photo printing). Also, the garments do not need any further processing or finishing after the printing process. This technology, which shall be improved even further in the project, but first of all integrated in a complete business model, could allow also the legions of custom t-shirt printer a more sustainable production technology compared to today's heat transfer process.

More project info in case you speak Korean: http://textile.konkuk.ac.kr/englishhome/index.html

Or contact the project;s director, Prof. Chang Kyu PARK from the Department of Textile Engineering at Konkuk University, Seoul (cezar@konkuk.ac.kr).

German: Special Issue of Die Unternehmung on Mass Customization (in German language)

(The following posting is in German language only as it covers a German language publication only. Sorry! )

Sonderheft "Mass Customization" der Fachzeitschrift Die Unternehmung (in GERMAN language)

Die Schweizer BWL-Fachzeitschrift (Die Unternehmung) hat unter Federführung von Prof. Manfred Bruhn ein gutes Sonderheft zu Mass Customziation mit starkem Marketing-Fokus herausgebracht (Ausgabe 3/2006).

Die Beiträge:

-- Kundenzufriedenheit bei Mass Customization: Eine empirische Untersuchung zur Bedeutung des Co-Design-Prozesses aus Kundensicht

-- Warum «Toolkits for User Innovation and Design» für ihre Nutzer Wert schaffen

-- Mass Customization: Strategische Option mit beschränktem nachfrageseitigem Erfolgspotenzial

-- Produktkonfiguration als Präferenzkonstruktion

Das Heft (Ausgabe 3/2006) kann für 17 Euro direkt beim Verlag bestellt werden: http://www.dieunternehmung.ch ==> Ausgabe 3/2006

Generative Design Software Helping Users With DIY Design

One of the core problems of turning customers into co-designers is the burden of choice and the design process itself. To modify a customizable object, one has to select from parameters, make choices, click through option lists, and make decisions what one likes. The same task is also often a burden for professional industrial designers when developing a new product. Design (and problem solving in general) is trial-and-error, and to proceed with such a process to an "optimal" design demands many iterations.

Here the idea of generative design comes in. Generative design allows to produce new designs automatically by the push of a button. A basic form, pattern, or object is automatically modified by an algorithm. The result: infinite random modifications of the starting solution (within a solution space set by the designer). This automatic generation of designs allows for a much faster trial and error process. Instead of crafting a few different designs, this technique allows to create thousands of different designs -- and choosing the best. It also allows for very new designs, as the process is not restricted to the imagination of the designer.

Or as this blog explains it:

"What if our products had genes just like our animals, insects and fish? Wouldn't it then be possible to consider a vast range of variation within product design standards, perhaps letting the ecosystem (marketplace) select on those traits that were most adaptive? "

That's the inspiration behind Genometri, a Singapore based company that has recently been promoting their new generative design technology. Their idea:

"Genometri is inspired by genetics, empowering the designer with the power of evolution--the design technology of life. It allows the rapid generation of a vast number of designs based on a generic model."

Consider the image below by Patrick Chia, which offers multiple takes on a simple stool base. All modifications are machine generated, not the result of a craft design process.

In the moment offered as an add-on to CAD packages like Solid Gold, Geometri's software Genovate allows designers to explore form, texture and color in infinite possibilities. Their key breakthrough is primarily the ability to create distinctive variations and the ease with which this generative model can be set up using standard parametric CAD packages. However, spinning this idea further and making this technology part of an online configuration toolkit could bring this power to consumers. This kind of tools will become an important enabler for users to become co-designers. They lower the burden of co-design drastically while still allowing for freedom of choice and an high degree of individuality.

Update: A nice application of generative design can be seen at www.futurefactories.com. This site by designer Lionel Dean uses the technology for designing light fittings. Coimbine this with rapid manufacturing and you have a great product idea ...

New Factory121 Watch Co-Design Toolkit Launched – Best-Of-Class Example For Online Configuration

After months of development and testing, the new configuration toolkit of Factory121, the Swiss custom watch manufacturer, has been launched. Already the earlier version of this toolkit has been a great example which I have used often as an illustration of a "perfect" online configurator for BtoC in my lectures and keynotes. The new version brought the tool on a new level, and is a model of what a good online configurator should be able to do.

It is a great example what is possible if a configuration tool is developed and implemented purposeful and with understanding of the specific demands of mass customization. The new version, launched in April 2006, has reinforced this evaluation and has set a new industry standard. There are still some minor bugs to be worked out and some possibilities for improvement remain (and co-founder Daniel Morf has told me that they are working on fixing these errors), but already at this stage the configurator is leading edge.

The main elements which I consider as best practice of the new 121TIME toolkits include:

- Different entry points into the configurator (direct, from the catalog, from an mailing, etc.)

- Strong and thoughtful pre-configuration (very important point to reduce complexity from the customers' perspective)

- Good structure of the different co-design levels (while rather complex and pretty filled, the screen nevertheless allows for a easy navigation between the different design options)

- High usability and representation of rather complex design opportunities, creating a flow experience of the user

- Strong rule set preventing "bad" designs (try to design an ugly watch, this is really difficult)

- Several options to safe, compare and share designs

- Very good "consultancy" and help functionality (plenty of fields explaining you all options)

- Strong and fast visualization (try the zoom function)

- Modular pricing system allowing each customer to purchase a watch according to her own willingness-to-pay (Factory121 is one of the very few companies in the customization BtoC market utilizing this opportunity)

- Possibility to use place the toolkit in a customized way in affiliate web sites.

While single aspects of this configurator may be matched by other online configurators, it is the combination of all of its features that makes the 121TIME toolkit superior to other. Try the tool here (as with many new internet tools, you need broadband for a good experience; but still sometimes the company's server performance seems to be slow): http://www.121time.com

Shoe Individualizer Selve Wins Retail Week's Product Innovation of the Year Award 2006

But European Footwear Manufacturers Seem Not to Care

"Mass Customization rules", the blog Exciting eCommerce recently commented on this year's nominations for the Webby Awards 2006, the leading international award honoring excellence in web design, usability and functionality, established in 1996. Three (of five) 2006 award nomination in the important retail category go to mass customization solutions: Sport brands O´Neill and Reebok for their online sneaker configurators and to Sherwin-Williams, a really well done configurator for home paints [Update: this site finally won teh award in this category!].

But also in the offline world, mass customization is a winning strategy. Selve, the Munich and London based provider of custom women's footwear, just won the prestigious U.K. "Product Innovation of the Year" Award by Retail Week. This is a further recognition of the excellence and pioneering work Claudia Kieserling and her U.K. partner Karen Macintyre are doing in this industry.

Selve has been the first company offering fully customized shoes for women in an affordable price range (180-250 Euro). Launched in Germany in 2001 and in the U.K. in 2004, Selve shoes are truly made-to-order in an Italian factory. Women can select colors, style options, heel heights, and more, and of course each shoe is perfectly fitted to the exact measurements of each foot. Recently, Selve also introduced a line of men's shoes in its Munich store.

It is surprising to see that not more footwear manufacturers are moving on this model. While there are several good footwear brands offering custom men's shoes, Selve is still the only company helping women to find the perfect fit. Market research conducted by the European Community, however, has shown that the market potential for women's custom footwear would be much larger. And with companies like Corpus-e, there are today also very affordable scanning solutions available to support 3D measurement (Corpus's scanners are much beyond the traditional 20,000 USD price tag of a conventional foot scanner). In addition, projects like the Euroshoe or CEC-made Shoe have provided all the necessary research and technology to produce custom footwear with mass production efficiency.

Still, the industry is not really reacting on the trend (contrarily to the sports good industry, where today EVERY large brand is offering mass customization). In the last year, more small Italian and Spanish footwear manufacturer went out of business than ever before. They can't compete with Asian manufacturers on standard shoes. But what I do not understand is that almost none of them are becoming entrepreneurs and provide mass customization capacity.

Selve and the few other existing brands are desperately looking for more reliable manufacturing capacity, their customers are waiting for days (in the London store) just to get an appointment to purchase shoes (there is no talk about price competition)! The market is there, but manufacturing seems not to care about. Due to lack of industry support, also the EuroShoe Factory is not really winning pace.

Hopefully the Retail Week Award and other recognitions will slowly change the conservative mindset of the remaining European manufacturers – before they are all dead and replaced by Asian competitors (which, by the way, are very happy to manufacturer custom products).

Full disclosure: I am on the board of directors of Corpus-e, and conducted joint contract research with Selve before.

Re-Post: Recent research studies on mass customization (from the MC Newsletter 3/2004)

Re-Post: I have republished these articles to make them better accessible for search on the blog. This article has been published first in the Newsletter No. 3/2004.

Three recent research studies on mass customization:

(1) Customers are willing to pay more for customized products

Together with Nikolaus Franke, Professor of Entrepreneurship and Innovation Management, I conducted a study on the value of toolkits for co-design (configuration) from the consumers' perspective. In our study, we asked (1) if customers actually make use of the solution space offered by the mass customization variety, and (2) if they are willing to pay for this option. Results are very promising.

For our study, we used a relatively simple, design-focused toolkit from the watch industry for a set of four experiments with a total of 717 participants, 267 of whom actually created their own watches. The heterogeneity of the resulting design solutions was calculated using the entropy concept, and willingness to pay was measured by the contingent valuation method and Vickrey auctions. Entropy coefficients showed that self-designed watches vary quite widely. On the other hand, significant patterns are still visible despite this high level of entropy, meaning that customer preferences are highly heterogeneous and diverse in style but not completely random.

We also found that consumers are willing to pay a considerable price premium. Their willingness to pay (WTP) for a self-designed watch exceeds the WTP for standard watches by far, even for the best-selling standard watches of the same technical quality. On average, we found a 100% value increment for watches designed by users with the help of the toolkit.

Taken together, these findings suggest that the toolkit's ability to allow customers to customize products to suit their individual preferences creates value for them in a B2C setting even when only a simple toolkit is employed. Alternative explanations, implications and necessary future research are discussed.

The full research will be published in the November 2004 issue of the Journal of Product Innovation Management ("Value Creation by Toolkits for User Innovation and Design", by Nikolaus Franke and Frank Piller, Journal of Product Innovation Management, Vol. 21, Issue 6, pp. 401-415 [ http://www.blackwell-synergy.com/links/toc/jpim ].

(2) Striking the balance between utility and complexity when marketing mass customized products

In this study, professors Benedict G.C. Dellaert and Stefan Stremersch investigate consumers' evaluations of different mass customization configurations when asked to mass customize a product. For instance, mass customization configurations may differ in the number of modules that may be mass customized. The authors find - in the context of mass customization of personal computers - that mass customization configuration affects the product utility consumers can achieve in mass customization as well as their perception of mass customization complexity.

In turn, product utility and complexity affect the utility consumers derive from using a certain mass customization configuration. More specifically, product utility has a positive, and complexity has a negative effect on mass customization configuration utility. The effect of complexity is direct as well as indirect, because complexity also lowers product utility.

The authors also find that consumers with high product expertise find mass customization configurations less complex than consumers with low product expertise and that for more expert consumers complexity has a less negative impact on product utility. The study has important managerial implications for how companies can design their mass customization configuration to increase utility and decrease complexity.

The full paper is forthcoming in the Journal of Marketing Research in summer 2005.

(3) Does mass customization pay? An economic approach to evaluate customer integration

Another paper that was available as a working paper already since a longer period of time has now been finally published. Together with Kathrin Möslein from London Business School and Christoph Stotko from our Munich research group we present a conceptual model to structure the costs and benefits of mass customization.

The paper provides an integrated view of value creation in mass customization based production models. While flexible manufacturing technologies are often seen as the main enabler of mass customization, we argue that modern information technologies play a similar important role. Their significance is based on enabling a distinctive principle of mass customization efficiently: customer integration into the production processes. The customer is integrated into value creation during the course of configuration, product specification, and co-design.

Customer integration is often seen as a necessity and source of additional costs of customization. However, we argue in this paper that customer integration may also be an important asset to increase efficiency and could pave the way for a new set of cost saving potentials. We coin the term 'economies of integration' to sum up these saving potentials.

Economies of integration arise from three sources: (1) from postponing some activities until an order is placed, (2) from more precise information about market demands, and (3) from the ability to increase loyalty by directly interacting with each customer. By examining and structuring the economic principles of mass customization the paper will give insights into the benefits, but also the constraints of a mass customization strategy.

The full paper is published in the journal "Production Planning & Control", Vol. 15, No.4, June 2004, pp. 435-444. The whole issue of this journal, edited Prof. Ian McCarthy from Simon Fraser University in Canada, is very worth reading. It is a special issue on mass customization and provides a very good selection of recent mass customization papers. You find the issue easily on the publisher's web site: Taylor & Francis, http://www.tandf.co.uk/journals.

An overview of recent customization offerings in footwear and apparel (Updated)

Footwear and apparel are the most common products being customized today. I get many e-mails asking about some major examples in these areas. Thus, here a short collection of some more recent examples. This is not a comprehensive list !! If you know an important example missing here, just e-mail me and I will be glad to include it in the list. Or just add a comment below (this list has been updated on Oct 27).

The following list was initiated by the web blog 'World of Custom, An Overview of Current Custom Consumer Offerings', as compiled by Jason Davis/Merge Design.

FOOTWEAR -- SPORTSHOES
(more detailed descriptions here)

Adidas Mi (http://www.adidas.com): Six shoes (running, soccer, tennis, indoor, basketball) with three areas of customization; fit (length and width of each foot), performance (outsole and midsole options and seasonal upper materials) and design (choosing from over 100 color combinations and embroidered lettering). All of which has to be done in person at select Adidas store locations.

Reebok Custom (http://www.rbkcustom.com): NEW! One of the best configurators with many features. But even if this is a perfect example of how a configurator should look alike, I am afraid that RBK will just be seen as a late follower, copying what everyone else in their industry does as well. There are no innovative customization features from the perspective of the consumer.

Converse (http://www.converse.com/converseone/): Three shoes (Chuck Taylors high and low and Jack Purcells) with the One Star coming soon. Custom color and embroidered lettering online using the Nike iD engine.

Nike iD (http://www.nikeid.com/): Fifty-one shoes (thirty-one for men, seventeen for women and three for kids) six bags, five watches and three golf balls. Custom color and lettering on Nike’s third generation site.

Puma Mongolian BBQ (http://www.puma.com/mongolianbbq/): Single style served up at hands on kiosks open for limited times at select Puma locations. Very tactile with a DIY flavor. There is also an on-line version replicating the in-store experiment.

Vans (http://shop.vans.com): Two shoes. Custom color and patterns online with a solid and well thought out interface for color selection.

Timberland (http://www.timberland.com/customboots/): new website, now with state of the art configurator, many color options for men and women (more extensive review here).

JG Customs (http://booktown.com/jgcustoms/): hand painted, real actual personalization, small batch sizes, DIY approach.

O’Neill: (http://www.oneill-action.com/designyoursneaker.php) open innovation experiment, co-creation of new styles and design competition, but no custom manufacturing

FootJoy Golf Shoes (http://www.myjoys.com/): Popular golf shoe. Custom color and individual length and widths for both right and left shoes.

FOOTWEAR -- DRESS SHOES

Selve (http://www.selve.net): Munich based custom footwear company for women's shoes. Latest design and custom fit (based on foot scan). Stores in Munich and London. Manufacturing in Italy.

Steve Madden (http://www.SteveMadden.com):Newly-launched “Design Your Own” collection on SteveMadden.com offers options resulting in a total of 4,221 combinations. Consumers can make their choices among product features such as heel height, pattern, material, finishing and color. Special as formal women's dress shoes -- no sneakers!

Leftfoot (http://www.leftfootcompany.com): Leading European provider of custom footwear for men. Stores all over Europe, production in Finland. Custom fit and design.

Otabo (http://www.otabo.com): Upcoming US brand and manufacturer for mass customized men's shoes. Growing number of stores, manufactured in the US (Florida).

APPAREL

Adidas Team (http://www.adidas.com): new Japanese offering, create your own team outfit, nice and easy configurator

Land’s End (http://landsend.com): Nine apparel pieces (Jeans, Chinos, Shits and a Jacket for men and women). Color and custom sizing all offered up on the Archetype engine.

Target, JC Penny, Tommy Hilfiger: Similar offerings to Lands’ End (mostly jeans and pants with a shirt or two). All use same Archetype engine.

MeJeans (http://mejeans.com): A new custom jeans maker in the US, offers more than 89 trillion possibilities for truly custom jeans, self measurement, rather complex configurator, for people loving and knowing jeans very well. Very good pricing (about 100 USD per pair). [more background information]

UJeans (http://UJeans.com): Founded in Oct 2005, this Canadian jeans manufacturers offers custom jeans as well, self measurement, again only for people knowing jeans very well. Good pricing (less than 100 USD per pair) and a great "workbook" to educate the customers about eans customization (the configurator is still very basic, though).

Polo Ralph Lauren (http://www.polo.com): Fourteen apparel pieces (four shirts and one tie for men, four shirts and one bikini for women and four shirts for kids). Basic color and monogram choice via straightforward web page.

Nunatak Kobuk Mountain Jacket (www.nunatakusa.com):
Custom hiking jacket; rather simple design, style choices come down to pockets on the front or inside and a hood. choice of nylon; custom arm and chest measurements for perfect fit (review here). Alternative offerings from Beyond, ME: www.beyondfleece.com

NeighborHoodies (http://neighborhoodies.com/): Growing chain of personalization stores. Plethora of base products (sweatshirts, t-shirts, pants, shorts, hats, underwear, baby clothes, etc.). All customized with lettering and iron-ons.

Spread Shirt (http://www.spreadshirt.com/): Much more than customized t-shirts, but opportunity for every user to open custom t-shirt shop and sell their own creations to others. Great business model, and one of the largest recent success stories.

CustomInk (http://www.customink.com/): Special to this site is its community orientation: Most customers do not customize for themselves, but for an entire group. Kind of peer-segmentation.

Route One (http://www.routeone-design.com/): Custom corporate clothing.

Pixeltees (http://www.pixeltees.com): Easy and simple t-shirt customization site. Many similar sites like this on the web.

Lids baseball caps (http://www.lidscyo.com)

GEAR

Time121 (http://www.factory121.com): Swiss made custom watches, high quality, many customization options, VERY nice configurator.

Fossil (http://www.fossil.com): Very simple customization offering, but reinforcing the trend.

Blancier (http://www.blancier.com): Anotehr custom watch manufacturer, but much less choice and options compared to Factory121.

Ultimate Ears Earbuds (www.ultimateears.com): Pricey earbuds with superior sound quality and custom buds based on silicone casts of customers' auditory canals and outer ears taken by an audiologist.

Timbuk2 (http://www.timbuk2.com): One bag (classic messenger in four sizes). Custom color, options and accessories through well built online site. One of the first mass customizers in existence. Powers also NikeID custom bags.

Freitag (http://www.freitag.ch/f-cut/): One bag. Based on custom, utilizing used truck tarps for base material with online interface that lets you select the actual pieces made to build your bag.

L.L.Bean (http://www.llbean.com): Three bags (boat tote, classic backpack and messenger bag). Custom color and feature selection (extra pockets, strap lengths, etc.).

Mass Customization Web Links

A collection of interesting sources on mass customization I found recently the web. All links (and many more) are also added to my collection of mass customization links on del.icio.us, a social bookmarks manager. It allows to easily add sites to personal collection of links, categorize those sites with keywords, and to share the collection with others. CONTRIBUTE to this mass customization link collection by marking interesting links with the tag 'mass_customization'. Then everyone can find them. Here is the list of recent mass customization tags on del.icio.us. And here some new interesting links:

(1) Body scanning is a major enabler to shift the focus of apparel production from large quantities of cookie-cutter clothes to one-of-a-kind articles with individualized sizing and design features. A great web page at Cornell University has plenty of information on body scanning.

(2) WeMadeByMe.com is a sophisticated new website selling customized shirts to really good prices. It offers some nice Flash features (powered by Shirtsdotnet.com), even if the core configuration process could need a bit more support functionality. But it is a promising new start of a new player in the European mass customization scene.

(3) Personalization Stores are nothing new, we have called this store-based configuration since years, and it was the usual form of customer interaction for customized goods before the internet, but CSCOUT, a German/US trend research consultancy, has just called the movement from the web to offline stores a major trend. Great for all who are in this game!

(4) European Management Review: Co-designing modes of cooperation at the customer interface. Implementing and operating personalization stores, or offline configuration systems, is not always easy. This is the topic of an academic article in the latest issue of the European Management Review (Issue 1/2005). The paper explores new modes of cooperation among customers, retailers and manufacturers resulting from co-design.