Core Course Innovation Session 3 PPT 3c

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INNOVATION STRATEGY OF 
COMPETITIVE COMPANIES AND 
ENTREPRENEURSHIP
Track Three : Diffusion of innovations
PPT 3c : Integrating users in the diffusion of innovation
Professeur RCM : Corinne Grenier
Main ideas – Integrating users in the diffusion process
 Users are not only consumers but Actors whose ideas and whose way of 
consuming products / services contribute to the diffusion of the innovation as 
well as the emergence of incremental innovation
 The design of the innovation is more and more an open process, including 
users (and partners, see Session 2)
 The product is not “closed” (stabilized) when it enters the market; it is 
modified through the “uses” (usages) of consumers 
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The content of PPT 3c
 Notion of use (“usage”) and attitudes of companies to dealing with creative 
consumers 
How to integrate users into innovation process (lead-users, communities of 
users)
 The notion of Open Innovation 
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Notion of usage : making the difference between:
- social use : “to do what ?”
- ergonomic use : “how to use it ?”
- economic efficiency : “how much does it cost ?” 
The notion of use we speak about: 
= What is important for the user : the real use of the product 
Notion of uses - “usage”
. The innovation is never used as the company has 
been expected. The consumers always have some 
space of freedom to invent their use of products
Think for instance to the 
IPod. Each of you has 
got specific and personal 
ways of using IPod
. What matters for companies: knowing how 
consumers use their products in their daily life –
and less how companies expect the consumers use 
the products
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Speaking about “use” is about speaking about “Creative Consumers” (1)
Notion of uses - “usage”
The notion of “Creative Consumers” and of uses (“usages”)
- Defined as customers who adapt, modify, or transform a proprietary offering (Berthon and 
al., 2007)
Uses defined as “Les arts de faire” of individuals by Michel de Certeau (1980)
- Users always have their own way of doing, their own “operational art”; consequently, 
they act differently than the a priori way of using products defined by companies (and 
incorporated in the formal framework of the product)
- For Michel de Certeau (1980) : there is always a creativity of ordinary people. Is is 
often a hidden and tacit form of creativity; each one invents his own manner to navigate 
(and experiment) among all the set of the products imposed. 
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Passive customer Active customer
Persuasion’s work Transaction’s work 
with individual 
buyers
Development’s work 
of consumer loyalty 
on the long term 
Customer as co-productor
of value
Period 70s., beginning 80 s. End 80 s, beginning 
90s.
90’s Years 2000
Nature of role and 
relationship with 
customer
Customer considered as passive buyer having only one preset role of 
consumption
Customer belongs to 
communities ; he creates 
value
Leaders state of 
mind 
An average statistical 
data 
An individual 
statistical data
The customer is a 
person with whom a 
good relationship has 
to be created
The customer is not simply 
one person, but embedded in 
social network, a figure of 
this social network 
Modes of 
interaction 
(customer/compa
nies)
Investigations and 
quantitative marketing 
studies ; very little 
feedback on the 
products launched
Call center, on line 
and phone assistance 
... Better 
identification of 
problems
Offer enriched by 
users observation ; 
feasible solutions 
elaborated from 
these observations of 
users’ common 
practices
Costumer is coproductor 
starting from his personal 
experiments ; having a real 
place and role in the design 
process
Mode and object 
of communication
Access to preset groups Marketing databases Relational marketing Active dialogue with 
customers which has an 
impact on design and 
product production.
Evolution in marketing practices 
Notion of uses - “usage”
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Speaking about “use” is about speaking about “Creative Consumers” (2)
Notion of uses - “usage”
Recognizing the uses of consumers is also a political move towards recognizing that 
consumers (as citizens) have something to do and to say 
 Political and social validity of various knowledge ; knowledge can be useful and relevant even 
if not validated by the scientific authorities (see for example Ethnosciences)
 Emerging strong controversy on the so called “specialized knowledge” (GMO, nuclear energy, 
sustainable development....) : citizens have something right to say and want to participate into 
these scientific debates : technology and technology-based development are not longer the 
responsibility of engineers
 Something we observe that citizens (as consumers, users…) are at the origin of innovations. 
They create interests for innovation instead of companies (see next page)
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Notion of uses - “usage”
Something we observe that citizens (as consumers, users…) are at the origin of innovations. They 
create interests for innovation instead of companies.
For instead, when patient create the AFM (Association Française contre les Myopathies – French 
Association against Myopathies):
- Patients and their families alert public authorities, biotech and pharmaceutical companies 
- They create a “public interet” and issues for all these parties to involve in research against 
myopathies
- consequences: AFM annual money raise campaign, pharmaceutical companies involved in R&D 
and real medical progresses in curing myopathies…
Non compulsory reading
. Callon et Rabeharisoa (1998), “L'implication 
des malades dans les activités de recherche 
soutenues par l'Association française contre les 
myopathies », Revue Sciences sociales et 
santé, Vol 16/3, . pp. 41-65.
Illustration
Compulsory reading
. Langstrup H. (2010), “Interpellating Patients as 
Users: Patient Associations and the Project-Ness of 
Stem Cell Research”, Science Technology Human, p. 
573-594
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Why companies may learn from the way consumers really use their products
Notion of uses - “usage”
 Very often, the user knows more than the producer; he invents what to do with the 
product and how to use is in his daily life => what constitutes critical insights for further 
innovation
 Sometimes, companies tend to make their innovating products much more complex (as 
if complexity means innovation…), by adding functionalities, technologies… which are 
not really useful for the consumers ; and such a move towards much more complexity 
makes the product expensive and difficult to be manipulated => learning from the daily 
uses of consumers may help companies avoiding these risks.
See the next 
page 
Non compulsory reading
. Poulain G. (2002) “l’innovation par l’usage”
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Risks and consequences of not taking usage into account (Poulain 2002)
Relevance Risks (examples) Consequences (examples) 
Technical Offering functions which do not meet the 
real needs or which remain non-
compatible with other systems 
These functions will not be used and those 
which are used, if they can not be modified 
when used, are likely to be obsolete quickly
Economic Asking the customers to pay for 
additional functions
Generally speaking, only 10 to 20% of the 
functions are used by consumers
Ergonomic Encountering difficulties in the use and 
the representation of the product 
Having to use the "hot line“ too much; 
returning the product because it doesnot fill 
the foreseen uses. 
. 
Social Massive rejection of the product, 
withdrawal from the market, mistrust 
campaign or denigration, etc.
Delays in the diffusion of the product, 
pressures from the market to deliver a 
principle of social precaution
Technical, social and 
economic
Increasing the Complexity of the 
technique, the use or the choice of the 
product, increasing required competence
Increasing the difference between 
innovating people and the reluctant 
Notion of uses - “usage”
When companies make innovating products too complex Illustration
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How companies may learn from users (1) 
Notion of uses - “usage”
 Companies evolve in their practices in managing relationships with consumers
. From KM – when companies unlock and integrate employees’ knowledge about customers, 
sales processes, and R&D
. To CRM – when companies manage knowledge about the customer in company’s data bases
. To CKM –when companies gain knowledge directly from the customer, as well as 
sharing and expanding this knowledge
The recent innovating approach in 
dealing with consumers 
Compulsory reading
. Gibbert and al (2002), “Five Styles of Customer 
Knowledge Management, and How Smart Companies 
Use Them To Create Value”, European Management 
Journal Vol. 20, No. 5, pp. 459–469,
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How companies may learn from users (2) 
Notion of uses - “usage”
Companies are not all ready to incorporate ideas and what they may learn from the uses of their 
consumers in their innovating process – see the next page end read the article of Berthon and al 
(2007)
Compulsory reading
. Berthon and al (2007), “When customers get clever: 
Managerial approaches to dealing with creative 
consumers”, Business Horizons, vol 50, p. 39-47
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Notion of uses - “usage”
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How to integrate users into innovation process
After having understanding why users and their daily uses as well as their knowledge are critical 
for innovating companies, we are going to examine three approaches companies mobilize.
Innovation process Innovation Diffusion process
Lead user 
Innovation process Diffusion process and improvement of innovation
Users common 
practices
Continuous Innovation process
Users common practices
What can be 
learnt from the 
customer?
1
2
Linux for instance 
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How to integrate users into innovation process
The lead-user
A concept introduced by Von Hippel (1978) : defined as an expert user, being at the ‘avant-
garde’ in one field, and having an interest in the evolution of the product, 
 The lead-user is an innovating consumer who “consumes” product during its stage of design 
and development within the company 
 Lead-user can not be simply “interviewed” because his main critical thinking and competences 
are not really formalized. Von Hippel explains that the lead-user has got a “sticky” knowledge. 
Consequently, he must directly experience and to with the innovation in progress 
Various ways to have access to the lead-user 
experiences: 
. Direct observation in real life
. Observation of life in lab (control of variables)
. Integration in the development of a prototype
Be careful: the lead-user is not :
. Opinion leader 
.The ‘Innovator” of Rogers’ model
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Sectors or firms using lead users in their innovation development process :
- Salomon (ski manufacturer) - Ikea
- Car manufacturer (Renault ...) - 3M 
- The “Kitchen lab” from Findus - Apple
- EDF (National electricity provider)
- “Eveil et Jeux” (club of parents lead users) 
How to integrate users into innovation process
Some illustrations (in French) - video
. L'innovation en amont - L'Approche des "Lead Users" – ZBA
Compulsory readings
. Rita Shor: what lead-user is
. Kraustsrunk (2011), “ Innovating Like 3M With Lead User”, in Business Management 
The lead-user
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How to integrate users into innovation process The lead-user
Testimony: Lead User Innovation At 3M
In the mid 90s, 3M realized that most of their innovations just involved incremental 
development to existing products. This limited the company’s competitiveness and 
financial performance, becoming a vicious circle. Growing the business meant a need 
for enabling an environment capable of delivering “serial breakthrough 
innovations“. 3M’s management started by setting a new goal: 30% of sales should 
be driven by new products.
“A new method for developing breakthrough products: the lead user process. The 
process [...] makes the generation of breakthrough strategies, products, and services 
systematic.”
Lead users are power users who happen to think, adapt, customize and even develop 
products well ahead of the commercial version. 3M worked on identifying promising 
savvy users and begun scheduling workshops and ethnographic research to gather their 
input. These are the kind of people who can help with uncovering emerging trends and 
solutions.
“Roger Lacey, head of the company’s Telecom Systems Division [...] says: the method 
brings cross functional teams into close working relationships with leading-edge 
customers and other sources of expertise.”
“Innovative product users often outnumber an individual company’s product 
developers.”
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How to integrate users into innovation process
The lead-user
The main characteristics of lead-user
 been “avant-gardistes” – ahead from their time
 hugely creative individuals
 abilities to face novel ideas
 with strong motivation in improving the class of products concerned with the 
innovation process 
 with deep expertise in their domains ; and especially expertise in the use of the 
products (they are consumer of the class of the products, and they have something to 
say from their daily practices)
To go further - Non compulsory reading
. Becheur et Gollety (2000), “Qui sont les Utilisateurs leaders ?
Une Etude Exploratoire de leurs Caractéristiques Déterminantes », conférence 
. Moeini A. and al (2006), “lead-user innovation”
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How to integrate users into innovation process
The lead-user
Videos:
Charles Leadbeater: The era of open innovation
http://www.ted.com/talks/lang/eng/charles_leadbeater_on_innovation.html
Other non compulsory reading
. Cova B. et Ezan P. , “le consommateur-collaborateur: activités, attentes et impacts - le 
cas du passionné de warhammer”,
. Chapel V. (2002), “archibal ou l’innovation par les usages”, conférence à l’Ecole de 
Paris 
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BtoB
BtoC
BtoE
Communities of interests
Communities 
of practices 
Vertical/
Horizontal
Community of 
researchers Learning
Healthcare
Community 
on line
« Home based uses»
(family, elderly people,
Young …)
Production worldEconomic worldSocial world
A large variety of communities => we are looking 
to Communties of users 
Hierarchical 
structures 
(project group 
……)
How to integrate users into innovation process
Communities
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What is Community of users: 
 Groups of consumers having an interest of the same kind of products and who exchange 
themselves information ; either independent from companies or encouraged and supported by 
companies (commercial sites ; Amazon.com ...) 
 Closed to the idea of “affinity group” 
 Closed to the idea of “Brand community” when individuals get together to share commun 
passion for one brand 
 Can be independent from companies or encouraged and supported by companies (e.g. 
Amazon.com)
 whenencouraged by companies: 
- Ability to establish dialogue with users
- Ability to capitalize knowledge
- BUT Ability to maintain autonomy and manage diversity; the community should 
be remain free to exchange information, even if unfavorable to the companies 
How to integrate users into innovation process
Communities
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How to integrate users into innovation process
Communities
A very well known, interesting and funny example: Lego 
Mindstorm:
MIT's Eric von Hippel: Open Innovation & LEGO Mindstorms
http://fora.tv/2008/04/08/MITs_Eric_von_Hippel_Open_Innovation
Illustration
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Can companies create or control communities of users ? 
1) Ability to establish dialogue with users : more adequate forms of relationships to create : 
reactivity, capitalizing knowledge
2) Ability to mobilize consumers
3) Ability to manage diversity :
4) Ability to conceive personal experiments jointly
5) Ability to know until where to intervene (degree of instrumentalisation)
How to integrate users into innovation process
Communities
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To conclude, this track largely deals with OPEN INNOVATION 
How to integrate users into innovation process
Open innovation
Notion introduced by Von Hippel as:
 Opening the boundaries of companies to consumers and lay people
 Integrating them into innovation process
 Catching their good ideas 
Non compulsory reading – to go further
. Von Hippel – Democratizing Innovation 
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How to integrate partners and users to sustain usage of 
social innovation – the Laerdal case 
• Social innovation is about the AED use (semi-automatic defibrillator) that, in France, any 
citizen can use to restore life and prevent cardiac arrest.
• In the Landes department (south west of France), some mayors decide to install AED in 
public places. But rapidely the question raised: installing AED in public places does not 
make the actual use of AED!!!
• The article describes how various stakeholders (mayors and their association, firemen 
brigade and Laerdal, supplier of AED) progressively develop a network and change / 
enrich the initial innovation (AED in public place) so that to create actual use. 
Compulsory reading
. Crespin F., Goglio-Primard K. and Grenier C. (2015): “The Dynamics of Managing 
Inter-Organizational Networks of Practice: Save Lives in Case of Cardiac Arrest”, 
Symposium on CoP, Toulon, France