Open Innovation Eco-system and Toolbox - Towards an organic community of LEGO Innovators - Stiven Kerestegian
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Stiven Kerestegian
Senior Manager, Open Innovation
The LEGO Group
Open Innovation Eco-system and Toolbox
Towards an organic community of LEGO Innovators…
Presentation overview
• Very
short
intro
to
the
LEGO
Group
• Current
Innova6on
situa6on
• Building
a
reputa6on
of
openness
LEGO
Mindstorms
LEGO
Architecture
LEGO
Cuusoo
• Building
knowledge
about
Open
Innova6on
Influen6al
quotes
Four
value
pools
Implementa6on
plan
• Building
Open
Innova6on
toolbox
LEGO
Ideas
T-‐shaped
innova6on
Our Foundation the LEGO Brand framework
Broad product assortment (more than 60% renewed each year) Hard deadlines….
Requires
an
integrated
and
aligned
process
2013 2014 2015
P
Portfolio P0 P1 P2 P3
Dev.
Process
M
Product
M1 M2 M3 M4 M5 Launch 1HY
Dev.
Process
M
Product M1 M2 M3 M4 M5 Launch 2HY
Dev.
Process
P
Portfolio
Dev.
PorKolio
management
Process
PMD
-‐
Market
Integration PMD
-‐
Customers
PMD
-‐
GSC
Understanding core challenges of an
innovation project……
Established processes are under pressure
“The
recent
decline
in
innova0on
can
be
a2ributed
to
…..
rigid
development
approaches
such
as
stage-‐gate
development
processes,
Six
Sigma,
and
project
office.
These
processes
have
uninten0onally
(but
effec0vely)
made
changes
during
development
more
difficult,
disrup0ve,
and
expensive”.
Preston
G.
Smith
Author
of
‘Flexible
Development:
Building
Agility
for
Changing
Markets’
The end of the stage-gate model as we know it?
The
rumors
of
the
death
of
the
stage-‐gate
model
are
highly
exaggerated!
However,
it
must
be
supplemented
with
new
and
more
agile
innova6on
tools.
This
is
where
Open
Innova6on
comes
into
the
picture.
Why Open Innovation at The LEGO Group
User Driven Organization
Crowdsourcing / Collective Intelligence
Co-creation (design & development)
Innovation Eco-system
Participation is the new brand
99.99% of the worlds smartest people don’t work for us
Most radical innovations come from non-domain experts
The
LEGO
Group,
Technology
and
Open
InnovaCon:
SCven
Kerestegian
Being T-shaped, working T-shaped
Kids & Fans
Companies &
Institutions
Diverse
internal input
Internal
Experts and
their teamsIn 1998, we launched LEGO Mindstorms, a robotics toolkit
7
years
of
development
7
LEGO
engineers
+
MIT
3
weeks
aKer
launch
1000
hackers
engaging
Amazing
results
emerged
LEGO
MINDSTORMS
2nd
Gen,
co-‐created
with
lead
users
Alpha
Rex
Spike
Tribot
RoboArm
T-‐56
Build a business that… Celebrates the past, present and future of architecture and Inspires future architects.
Adam Reed Tucker, LEGO Architecture
ll!
Packing in the kitchen e, mom’s is fu
Adam’s garag September
@ DC Chica
go
1 test SKU 1 test SKU 1 test SKU
200 2x2000 2x10000
MIP I MIP II MIP III
July 2007 October 2007 July 2008 Jan 2009 May/July 2009A reputation of being open was built…
Talented users continue to amaze us 2004 – 10 minutes 2011 – 5,3 seconds
A global and self-organized community of adult LEGO users emerged
In 2012, we are in contact with 200
independent LEGO user groups
126 LEGO User 24 LEGO User
Groups 50 LEGO User Groups
Groups
3.900 169.000
members 31.000 members
membersIn 2012, users shared their LEGO creations
face to face with 9,5 million people at
518 events globally…
23
LEGO User Communities – who are they?
Organized
over
1.000
41%
are
parents
shows
and
events
since
2008
with
15
mio
visitors
75%
are
between
25-‐44
years
old
Run
100s
of
blogs
and
websites
60%
have
completed
a
Bachelor
degree
+
Have
shared
more
than
10
mio
pics
Most
employed
in
and
videos
online
technical
fields
(33%)
100.000
AFOLs
are
Employed
in
arts,
asked
for
advice
by
design,
media
(9%)
friends
and
family
Male
86%
Female
14%
Brand
Affinity
Pyramid
Lead
Users
1:1 Community
Connected Community
Active Households
Covered Households
Households with children
The LEGO Group Marketing 25The Shinkai 6500
Road to 10.000 votes on LEGO CUUSOO
MinecraK
2
days
External as well as internal contributors have willingly shared
their experiences and ideas…
“99.99%
of
the
smartest
people
in
the
world
don’t
work
for
us.”
External
Quote
However they
probably grew
up playing
with LEGO
“People
don’t
have
to
work
for
us
to
work
with
us.”
bricks
Internal
Quote
“Most
of
our
radical
innova0ons
come
from
people
who
are
not
domain
experts.”
External
Quote
“I
am
scared
to
look
at
external
ideas
because
we
don’t
want
to
get
sued.”
Internal
Quote
“OI:
Don’t
even
touch
it
if
it
is
not
demanded
by
your
very
top
management.”
External
Quote
“Consumers
of
today
are
intelligent,
they
are
crea0ve
and
they
have
an
opinion…
And
they
expect
you
to
listen!”
Internal
Quote
A constant inflow on ideas but no established process….
4 Value Pools
All Employees Entrepreneurs
Kids and AFOLs Companies &
Institutions
The
LEGO
Group,
Technology
and
Open
InnovaCon:
SCven
Kerestegian
Eco-system
Join
Discover
ParCcipate
Contribute
LEGO
Community
Challenges
&
Ideas
InnovaCon
Toolbox
My
Home
(profile)
SoluCons
&
InspiraCons
Propose
New
Ideas
InnovaCon
Collaborate
&
Ideas
Portal
Co-‐create
SoluCons
Open
Collaboratkion
Open
Ecosystem
ConCnuous
MoCvaCon
Framework
&
Reengagement
The
LEGO
Group,
Technology
and
Open
InnovaCon:
SCven
Kerestegian
OI = Design Problem = Opportunity
“Design drives innovation; innovation powers brand; brand builds loyalty; and
loyalty sustains profits. If you want long-term profits, start with design.” Marty Neumeier
less Management more Orchestrating
Design a compelling Participation Experience
That enable the Harvesting of Collective Intelligence
The
LEGO
Group,
Technology
and
Open
InnovaCon:
SCven
Kerestegian
The
LEGO
Group,
Technology
and
Open
InnovaCon:
SCven
Kerestegian
Simple
InnovaCve
IntuiCve
Value
+
Adequate
Inspires
EffecCve
Change
- +
DesignThe emergence of the
organic brand eco-system
”Yellow”
by
Nathan
Sawaya
Value creation in the brand
eco-system - how?
o SEE the resourceful user in your consumer.
o CREATE ways for the outside world to easily
participate in your value creation.
o PRACTICE WIN – WIN in everything you do.
o BE CLEAR about rules and expectations.
o Let the brand ecosystem do the HEAVY LIFTING.
o BE as OPEN and transparent as possible.
o START SMALL, experiment, and improve as you go
along.
o Innovate WITH and FOR the brand ecosystem.
Image:
Nathan
Sawaya
and
Dean
West,
2013
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