Limited Wisdom of Crowds?

Nicholas G. Carr wrote an excellent article, “The Ignorance of Crowds,” about the limitation of crowd-sourcing or open source software. He focuses on the experience of Linux and Wikipedia. The masses primarily serve as bug-fixers for Linux, whose development is closely managed by a small team; Wikipedia is attempting to bring in similar control to address issues such as “The Flintstones” having twice as long an entry as Homer.

Carr argues that the choice is not “The Cathedral” or “The Bazaar” as presented in a seminal paper by Eric Raymond, but how to use both approaches. Further he argues that really radical or disruptive innovation is more likely to emerge from the Cathedral model led by a few elite leaders. 

Anyone involved in innovation should read the full article at:

http://www.strategy-business.com/article/07204

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Social Media Marketing will Drive Product Innovation

Note: This blog was written for the inaugural issue of Social Media Marketing Magazine and was originally posted at  http://bit.ly/smm169

Too much of what is being written about social media marketing (SMM) these days still has the ring of futurism. Wake up—the SMM era is already here! Companies are increasing their SMM budgets today, and their sales are being driven by customer-to-customer buzz at this very moment.

Much of the current focus on SMM by companies, as well as the business press, is about 1) designing marketing and PR to affect the C2C buzz, 2) monitoring how much and what is being communicated about their products and services, and 3) influencing the conversations about their products and services online. These direct efforts to create, monitor, and influence the online narrative of a company and its products will continue to be the focus of SMM strategy for most organizations.

However, SMM will also have a huge impact on marketing research and innovation in organizations. It’s no secret that many of the traditional marketing research tools (focus groups, surveys, brainstorming, and phone interviews) are woefully ineffective at uncovering the deep knowledge of customers and users that organizations today seek to enhance innovation.

More effective research methods, such as ethnography or individual interviews, have become more widely used but are viewed as excessively expensive or time consuming. SMM will change these economics. For example, online ethnography is already a growing area of study by anthropologists and marketers alike, and individuals are being engaged one-on-one synchronously, using Internet tools. These evolving online qualitative methods will provide better user insight and information to drive innovation.

Continue reading

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Group Ideation does not work…

 Group methods (compared to individual ideation):

  1. Produce significantly fewer ideas
  2. Generate ideas of lower average quality
  3. Produce fewer of the very best ideas, and
  4. In addition, groups are not effective at evaluating or ranking generated ideas.

Add-on ideas building on others ideas were generally lower quality than individual ideas. In short group ideation stinks.

My summary may be too kind… Stop killing ideas and wasting time!!

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Ethnography and Product Innovation

 Does Ethnography make the front end of innovation less fuzzy?

I have written several posts about the use of ethnography to gather good data from users. A recent article in the Journal of Product Innovation Management explores the topic in detail, including likely advantages from using ethnography and advantages of using in the early stage of innovation.

An abstract of the article can be read here:

http://www3.interscience.wiley.com/journal/118563685/abstract

Past posts have included:

http://servicecocreation.com/2009/06/22/in-search-of-innovation/

http://servicecocreation.com/2009/06/22/in-search-of-innovation/

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Global Innovation Tournament at RU

The entrepreneurship area at Stanford sponsors the GIT annually. Radford decided to participate this year. I was on the committee to run the event and it was the best “service” function I am involved in — beats the daylights out of faculty senate…

Student teams get a question of social significance and have 8 days to demonstrate a solution on youtube. This years question was given that the low savings rate in nations such as the US may have contributed to the global economic collapse (no Keynesians at Stanford…) how can we make saving fun?

The winners at Radford are listed below – look at some of them!

RU Winner Category YouTube URL for Viewing
Overall Independent Winner http://www.youtube.com/watch?v=CnN8HVlLcoA&hd=1
Overall Club Winner (Humor) http://www.youtube.com/watch?v=iMIm-CHiVqk
Fun Winner http://www.youtube.com/watch?v=E6pF8szlbPA
Humor Winner http://www.youtube.com/watch?v=S1V284FdUEw
Green Winner http://www.youtube.com/watch?v=odmaz5fXCT8
Ambitious Winner   http://www.youtube.com/watch?v=JhRN1EHoW_A
Out of the Box Winner http://www.youtube.com/watch?v=K4_K_hRGbVo
Creative Winner http://www.youtube.com/watch?v=-SMA6aaeyzk
Impact Winner http://www.youtube.com/watch?v=4jdmTMJNZag
Value Created http://www.youtube.com/watch?v=BnwtgaXX9Kw
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More on the UIC Center; Product Innovation

I have written about the UIC Innovation Center (sponsored by Motorola) and the multi-discipline (MBA-Design-Engineering) class on product innovation offered by the center before.

“Housed in a former grocery store on the UIC campus, the center has flexible space, industrial size bean bag chairs, rapid prototyping machines and the feel of a start-up (except for  expresso machines or ping pong tables).

The origin of the center was a year long innovation class that combines MBA students, design students and engineering students. The class is sponsored by a company that seeks innovation ideas.”

Dell is funding the class this year. BusinessWeek has an interesting article about their motives in doing so:

http://tinyurl.com/UICInnovation

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More Zombie Theory

In my previous post I talked of two theories/ideas that are popular in marketing despite having a preponderance of evidence that they are inneffective or untrue:

  1. Group brainstorming or focus groups for idea generation
  2. Maslow’s Hierarchy of Needs

Several readers either posted or e-mailed suggested additions to the list (I did not vet their assertions):

You only use 10% of your brain. It seems the evidence for this claim came from an experimenter who slowly peeled brain material from a pigeon and looked for cognitive impairment(!)

Cost-cutting from preventative medicine. A friend in healthcare says that accept for a few conditions, evidence indicates that prevention costs money.

Product life-cycle. A marketing professor challenged me to find a study that predicts a life-cycle unless it is deliberately managed. If the model doesn’t predict it may be a tautology or even and ad-hoc justification for mismanagement.

Any thoughts on these or would you propose more???

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UIC Innovation Center: NPD Education

A cross-discipline approach to innovation education

A week ago Friday the UIC Innovation center held an open house and reception for academics attending the AMA Summer conference in Chicago. Al Page, professor of Marketing at the University of Illinois at Chicago, and Stefanie Lenway, Dean of the UIC Business School discussed the Center, which was funded from a multi-million dollar grant from Motorola.

Housed in a former grocery store on the UIC campus, the center has flexible space, industrial size bean bag chairs, rapid prototyping machines and the feel of a start-up (except for  expresso machines or ping pong tables).

The origin of the center was a year long innovation class that combines MBA students, design students and engineering students. The class is sponsored by a company that seeks innovation ideas. Motorola was an early sponsor and was pleased with the results.

There was an impressive collection of new product development scholars at the conference in addition to Dr. Page, including Abbie Griffin,  Anthony Di Benedetto, Gina Colarelli O’Connor , Peter Koen, and many others.

More about the exciting interdisciplinary educational effort at:

http://randdlab.com/visions/january06/education.php

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Zombie Theory

It is hard to totally disprove a theory or idea in social sciences — there is always some possibility that a different experimental design or a new sample will show that it works in certain circumstances. However, if we are scientists we must be willing to discard an idea or theory after a reasonable number of rigorous studies have failed to find support.

Sometimes that doesn’t seem to happen even after significant evidence is in. If an idea or theory is intuitive or attractive it may live on even after significant counter evidence is in place. Two examples leap to my mind:

  1. Maslow’s Hierarchy of Needs, and
  2. Brainstorming and Group Ideation

Maslow’s hierarchy of needs is probably one of the most tested hypotheses of social psychology. There is evidence in favor of the categories of needs, although they may be modified and updated, but there is not evidence of a hierarchy of the needs.

Despite the extensive evidence, a textbook I use in Sales Management bases its argument for non-monetary compensation on the hierarchy. I saw a paper delivered in a conference recently that was totally based on the hierarchy. Maslow’s hierarchy seems so intuitively appealing that empirical evidence is not sufficient to kill it.

Brainstorming and Focus groups for ideation continues, as I noted in a recent posting, despite 50 years of evidence that compared to group methods, individual brainstorming or interviewing:

  1. Generated more ideas,
  2. Generated better ideas,
  3. Generated the best ideas, and
  4. Better discerned the best ideas.

However group methods are fun and create an illusion of effectiveness.

If hundreds of studies cannot dissuade researchers and practitioners from bad theory, what should a social scientist do? (Rule out silver bullets and head shots…)

Can you suggest other candidates for a list of zombie theories — bad theory and ideas that linger well beyond death?

Posted in Customer Research Methods | Tagged , , , , , | 7 Comments

Cola Co-creation

Coca-cola has developed new dispensing machines that contain up to thirty flavors that can produce up to 100 different types of soda. The machines can be reset realtime and communicate so that coke can introduce a new soft drink and observe sales results immediately.

This is “rapid protoyping,” “probe and learn,” and “effectuation” for sweetened drinks — strategies usually associated with high tech products. Read the details in the Information Week article:

http://tinyurl.com/qrddol

The next step?

Why not employ the technology in vending machines and allow users to create their own drinks? COLA CO-CREATION

Posted in Co-creation or User collaboration, communication, Customer Research Methods, experiential innovation, Experiment, Internet effects, Process Innovation | Tagged , , , , , , | Leave a comment