User-Driven Innovation

Report: User-Driven Innovation. Context and Cases in the Nordic Region. Nordic Innovation Centre, 2008.

Download report via http://www.nordicinnovation.net/prosjekt.cfm?id=1-4415-246

(see also: User Innovation)

Defintion

"“User-driven innovation makes use of information on customers, user communities and customer companies. It engages users as active participants in innovation activity. The key aspect of user-driven innovation is information on user needs, whether these needs are already identified, still hidden or potentially emerging. Information and communication technology in particular, offers various new opportunities and means of acquiring information on users and engaging them in innovation. The aim of user-driven innovation policy is to raise market actors’ awareness of new innovation tools. It also seeks to create a social infrastructure supporting user-driven innovation while removing obstacles to and boosting incentives for innovation activity.” (http://www.experientia.com/blog/finlands-user-driven-innovation-policy/)

Report

"The Nordic Innovation Centre recently published a report on user-driven innovation in the Nordic region.

The 137 page report describes in detail what user-driven innovation actually is, outlines the current state of affairs in each of the five countries (Denmark, Finland, Iceland, Norway, and Sweden), showcases what companies are doing through a number of case studies, and sets out what the public sector can do to support these activities.

The case studies in particular describe some of the most important companies in the region, including Danfoss and DSB in Denmark, Outotec in Finland, CCP in Iceland, Tine in Norway, and Electrolux in Sweden.

Interestingly, the report also features two international company cases to illustrate non-Nordic examples of systematic user-involvement in concept innovation: Intel and Valve." (http://www.experientia.com/blog/user-driven-innovation-in-the-nordic-region/)

Abstract

"The nature of innovation is changing. An increasingly globalized society, enabled by information and communication technologies (ICT), has changed the process of value creation and shifted the balance of power between firms and individual consumers – or users. Companies can no longer rely solely on operational efficiency or technological superiority in order to create a competitive advantage.

Today, companies must also find ways to define and deliver unique experiences, together with users, in order to survive. However, this requires a paradigm shift – both a change in mindset and adjustments to current working practices.

In this report, the process of defining unique experiences together with users is referred to as user-driven innovation. User-driven innovation encompasses both an understanding of true user needs and a systematic involvement of users in the innovation process.

The report explains a number of market forces and academic underpinnings, and presents an overview of the context regarding user-driven innovation in each of the five Nordic countries. The report also presents concrete examples of how companies employ user-driven innovation processes.

Finally, the report suggests a number of policy-level activities which could be undertaken to strengthen both the understanding and practical competencies related to user-driven innovation." (http://www.experientia.com/blog/user-driven-innovation-in-the-nordic-region/)

Examples

For the links to the cases and companies, go here at http://www.openp2pdesign.org/blog/archives/418

"The report shows some detailed research about these cases:

Danish Case A: the Danfoss Group Water Vision Project Industry: The Danfoss Group is a leading global manufacturer of components and solutions for Refrigeration & Air Conditioning, Heating & Water and Motion Control.

Danish Case B: DSB - Creating increased value for DSB’s customers Industry: Transport service

Finnish Case: Outotec – “More out of Ore” Industry: Leading global provider of process solutions, technologies and services for the mining and metallurgical industries

Icelandic Case: CCP Industry: Producer of massively multiplayer online games in the entertainment products and services industry.

Norwegian Case: Tine – “Innovating Food” Industry: Norway’s largest food company, a dairy cooperative owned by 17,400 Norwegian milk farmers

Swedish Case: Electrolux – “Thinking of Users” Industry: Globally-leading producer of appliances and equipment for kitchen and cleaning

USA: Valve – Innovative User Communities as a Part of a Business Model Industry: Valve is a producer of computer games (http://www.openp2pdesign.org/blog/archives/418)