1. Funded byAn Project User Integration in the Development Process of Innovative Communication Products and Services – An Interdisciplinary Approach 15. ITS Conference Berlin, September 6, 2004 Matthias Kempf Thilo v. Pape Institute for Information, Organization and Management Institute for Communication Science Ludwig-Maximilians-University, Munich

2. 20040720 User Integration.ppt 1 intermedia Projekt LMU München © 2004 Development Caused by the strong increase in importance of the resource customer, new models of innovation have evolved. 19501960197019801990 Customer not considered Technology Push Linear model Seller markets Marketing of minor importance 1950s – middle 1960s: s. Coupling Model Middle 1980er – early 1990er: Integrated Model Cooperations, especially integration of suppliers Parallelized activities Focus on speed of development Market in continuous alignment with R&D Early 1970s – middle 1980s : Coupling Model Phase of consolidation and rationalization Combination of TP and MP Innovation as …complex net of communication paths 1 Innovative approaches of customer integration 1990s – today: 5th Generation Innovation Faster cycles of innovation Increasing customer demands Individualization Cost pressure Innovation as Networking Process -Systems -Suppliers -Customers Customer in central role at start Middle 1960s – early 1970s Linear model Strategies of differentiation Rationalization of R&D comes to the fore Market Pull

3. 20040720 User Integration.ppt 2 intermedia Projekt LMU München © 2004 Lead User The prominent Lead User model and User Communities respectively have achieved remarkable results in some cases Lead User … are users who… - …have high motivation to industrialize the innovation - …have a high competence - … are not able to conduct production themselves Lead User are not representative Lead User anticipate the market demands previous to the majority (they are not Early Adopters) Lead Users conduct the innovation– function themselves, directed by and with the technological realization of the enterprise. Examples pipe suspensions (Hilti) parlor games (Ravensburger) Numerous adhesive products (3M) Also works in User Communities: - Sport communities (surfing, mountain biking, snowboard,…) - Open Source Software (Apache, Linux) Products are usually deployed in specific and quite limited technical environment with clearly defined target segments

4. 20040720 User Integration.ppt 3 intermedia Projekt LMU München © 2004 User Toolkits Toolkits empower the user find Innovations themselves in a defined solution space Difficulties for the Lead Users Information often hardly transferable (sticky information) Often user do not have the possibilities and resources to provide information. Solution: - Manufacturers provide a Toolkit - Solution space limited– inside these limits there are possibilities of variation by users (pre-defined solution modules) - Complete trial-and error-cycles - Design side of mass customization Examples Nestle: Production of customized foods for restaurant chains Open Source Software: STATA - Statistics software with standardized software-modules for multivariate data- analysis - Market Entry early 1990ies, today market leader Toolkits make the User innovate – in contrast to the Lead User approach the solution space is limited.

5. 20040720 User Integration.ppt 4 intermedia Projekt LMU München © 2004 Success Stories Lead User projects at 3M, for example, have achieved great successes CriteriaLUCom.p tools Novelty relative to competition 3,95 3,14 0,026 Fit with current strategic plan 2,40 3,96 0,001 Time to market 3,58 1,26 0,000 Global marketing potential 3,89 3,02 0,027 people resources required 2,11 1,19 0,005 Regulatory requirements for entry2,85 0,96 0,000 Capital required 1,68 0,57 0,000 Manufacturing fit / capacity 2,53 3,44 0,047 Probability of success 3,42 4,52 0,002 Quelle: Lilien/Morrison/Searls/von Hippel 2000)

6. 20040720 User Integration.ppt 5 intermedia Projekt LMU München © 2004 Innovation Management in Services In contrast to the development of physical goods, service innovation seems not to have strong backing of methods and proven concepts Market for physical goods fully developed und advanced conceptual approaches of Innovation management Factors for success empirical researched Well usable in practice Innovative approaches of user integration exist in form of the Lead User concept and User Toolkit Markets for immaterial Goods Hardly any mature conceptional model for services Partly empirical dubiously if innovation is performed systematically Not clear whether user integration / participation is relevant or not

7. 20040720 User Integration.ppt 6 intermedia Projekt LMU München © 2004 Key Question Are the concepts approved in the market for physical goods appropriate to successfully assist with the development of communication products and services?

8. 20040720 User Integration.ppt 7 intermedia Projekt LMU München © 2004 Social Institutions A Communication Studies-Perspective User Integration in the creation of interactive media Personal objects/services Three levels of communication products and services Technical artifacts Three levels of innovation Social institutionalization Negotiation of social functions and roles of the game Individual appropriation Highly flexible integration into everyday life Technical design Based on innovations in microelectronics, software development and transmission technology time Technical Design Social Institutionalization Personal Appropriation Three moments of innovation in the diffusion process

9. 20040720 User Integration.ppt 8 intermedia Projekt LMU München © 2004 Simulation of everyday uses Selection of Lead Users Abstraction from limited frame of reference Rapid Prototyping User Toolkits Lead User Approach Technical problem: functional fixedness A Communication Studies-Perspective Innovation phases in the course of diffusion User integration in the diffusion process User integration is too much considered as a technical Problem. The personal and social levels are neglected. personal technical social ? time Technical Design Social Institutionalization Personal Appropriation Anticipated Personal Appropriation Anticipated Social Institutionalization

10. 20040720 User Integration.ppt 9 intermedia Projekt LMU München © 2004 Empathic Design Watching consumers use products or services [...] in the course of normal, everyday routines. Leonard & Rayport, 2000 Drawbacks of Abstraction and Simulation The personal everyday context triggering re-invention through appropriation often cannot be simulated. personal technical social A Communication Studies-Perspective Problems of user integration on the personal level Integrating users in the innovation process should not mean isolating them from their everyday context.

11. 20040720 User Integration.ppt 10 intermedia Projekt LMU München © 2004 User-Innovations generated by a small number of Users (e.g. Lead Users) often cannot be scaled to a future market. The dynamics of social institutionalization Diffusion of interactive media is unlike diffusion of technical artifacts Media are changed in the course of their social institutionalization 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 70 60 50 40 30 20 10 Mio. Users Cell phone connections in Germany 1993-2003 Lead User Selection is not representative Lead Users are not representative for the mass of end consumers -Technology-friendly and -competent -Financially well-off The effects of critical mass Numerous applications depend on a critical mass of users which cannot be anticipated by small user groups. personal technical social A Communication Studies-Perspective Problems of user integration on the social level

12. 20040720 User Integration.ppt 11 intermedia Projekt LMU München © 2004 Modeling the personal process of appropriation Indications can be empirically deducted from existing or already terminated appropriation processes of established media products and services. Modeling the social processes of institutionalization on different social levels Exploring how social functions are being defined and negotiated among - small groups (families, peer-groups) - fragments of society (generations, professions) as well as - society as a whole, communicating through mass media personal technical social A Communication Studies-Perspective Empirically modeling appropriation and social institutionalization Exploring the underlying processes of appropriation and social institutionalization through fundamental research on existing innovations.

13. 20040720 User Integration.ppt 12 intermedia Projekt LMU München © 2004 Pointing out the limits to existing approaches Complementing existing approaches Technical Design Social Institutionalization Personal Appropriation Anticipated Personal Appropriation Anticipated Social Institutionalization Technical Design Social Institutionalization Personal Appropriation Past diffusion process Future diffusion process personal technical social Better Predicting future appropriation and institutionalization prediction Influencing future processes of appropriation and institutionalization through persuasion. persuasion An interdisciplinary approach to sensitize user integration for personal and social levels. An interdisciplinary approach Guidelines for a complementary research time

14. 20040720 User Integration.ppt 13 intermedia Projekt LMU München © 2004 www.intermedia.lmu.de Matthias Kempf Department für Betriebswirtschaft Institut für Information, Organisation und Management Ludwig-Maximilians-Universität München Ludwigstraße 28 VG II D - 80539 München Tel. +49 (0)89 / 2180 – 3767 E-Mail: kempf@bwl.uni-muenchen.de WWW: www.iom.bwl.uni-muenchen.de Veronika Karnowski Institut für Kommunikationswissenschaft Lehrstuhl für Kommunikationswissenschaft und Medienforschung Ludwig-Maximilians-Universität München Oettingenstr. 67 D - 80538 München Tel.: +49 (0)89 / 2180 – 9495 E-Mail: karnowski@intermedia.lmu.de WWW: www.ifkw.uni-muenchen.de Thilo v. Pape Institut für Kommunikationswissenschaft Lehrstuhl für Kommunikationswissenschaft und Medienforschung Ludwig-Maximilians-Universität München Oettingenstr. 67 D - 80538 München E-Mail: pape@intermedia.lmu.de WWW:www.ifkw.uni-muenchen.de Gefördert vomEin Projekt im Rahmen der Prof. Dr. Werner Wirth Institut für Publizistikwissenschaft und Medienforschung der Universität Zürich Andreasstr. 15 CH - 8050 Zürich Tel.: +41 (0)1 / 634 – 4661 Fax: +41 (0)1 / 634 – 4934 E-Mail: w.wirth@ipmz.unizh.ch WWW:www.ifkw.uni-muenchen.de www.ipmz.unizh.ch