"Pathbreaking research by a group of scholars including Eric A. von Hippel, a professor of technological innovation at M.I.T.'s Sloan School of Management, suggests that the traditional division of labor between innovators and customers is breaking down.
Financed by the British government, Mr. von Hippel and his colleagues last year completed the first representative large-scale survey of consumer innovation ever conducted.
What the team discovered, described in a paper that is under review for publication, was that the amount of money individual consumers spent making and improving products was more than twice as large as the amount spent by all British firms combined on product research and development over a three-year period.
"We've been missing the dark matter of innovation," Mr. von Hippel said from his office in Cambridge, Mass. "This is a new pattern for how innovations come about." "
von Hippel and Baldwin also produced a related, intriguing paper in 2009 that can be found here http://hbswk.hbs.edu/item/6325.html entitled "Modeling a Paradigm Shift: From Producer Innovation to User and Open Collaborative Innovation." The conclusion of the paper reads: "We conclude by observing again that we belive we are in the midst of a major paradigm shift: technological trends are causing a change in the way innovation gets done in advanced market economies. As design and communication costs exogenously decline, single user and open collaborative innovation models will be viable for a steadily wider range of design. They will present an increasing challenge to the traditional paradigm of producer-based design - but, when open, they are good for social welfare and should be encouraged."
It's critical to distinguish a consumer's increased ability to amplify a brand's successes and failures from his or her actual control over the story a brand tells. In the purest sense, consumers have always wielded immense influence with their wallet. That their votes are now cast on public websites long before the ballots are counted on confidential P&Ls only makes it easier for marketers to react more quickly.
If brands were in "control" back when their only option was to launch expensive print, TV and out-of-home campaigns -- and then wait several months to see the sales data -- then, by comparison, modern media has made them practically omnipotent.
Many businesses have invested in multi-channel campaign management systems, giving them the ability to execute campaigns across e-mail, direct mail, and the Web seamlessly. We classify our campaigns as transactional, promotional, and experiential, among others. When we look at reports, we often compare campaign performance against previous campaigns or similar programs running in parallel. While this focus on campaign management has made e-mail one of the most profitable direct channels in the marketer's arsenal, it has clouded our view of something more important: relationship management.
If e-mail marketers are focusing on campaign-level strategy and execution, who is left to focus on the broader relationship between the brand and consumer and how content, cadence, and channel preference all come together to create a relationship of trust between the brand and the consumer?
Let's look at some examples of how a focus on the relationship changes the way we look at the programs we run and inevitably makes e-mail campaigns more effective.
Despite a shaky economy, many web companies are in hypergrowth. This is reminiscent of the five-year period over a decade ago when companies like Amazon, Netscape, eBay, Yahoo, Google and PayPal were built.
One challenge, which isn't new, is the battle for consumer attention. If you're looking to grow your user base, is there a best way to cost-effectively attract valuable users? I'm increasingly convinced the best way is by harnessing a concept called social proof, a relatively untapped gold mine in the age of the social web.
What is social proof? Put simply, it's the positive influence created when someone finds out that others are doing something. It's also known as informational social influence.
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Yet another point of view Paul: http://wp.me/p1IFEp-7h
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Oreo's Dunk in the Dark Super Bowl viral tweet was 'a big win' but also 'a big failure' according to Mondelez VP of global media and consumer engagement, Bonin Bough.
Guest Blogger
How Zappos makes social media a part of its company culture
By Guest Blogger on January 10, 2011 | 1412317 Commentshttp%3A%2F%2Fsmartblogs.com%2Fsocialmedia%2F2011%2F01%2F10%2Fhow-zappos-makes-social-media-a-part-of-its-company-culture%2FHow+Zappos+makes+social+media+a+part+of+its+company+culture2011-01-10+13%3A32%3A19Guest+Bloggerhttp%3A%2F%2Fsmartblogs.com%2Fsocialmedia%2F%3Fp%3D14123
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This post was written by SmartBrief technology editor Susan Rush.
When it comes to social media, Zappos.com just gets it. Social media is not just a business strategy, it should be part of the culture, said Zappos' Thomas Knoll during the "Social Media in Action: Philosophies, Strategies and Tactics That Consistently Win" panel discussion at the International Consumer Electronics Show on Friday.
Knoll said too much emphasis is often put on the "media" part of social media, adding that he is "a much bigger fan of the social part." The goal of social media is to connect and build relationships with customers.
YouGov BrandIndex shared some findings with us regarding brand perception around Groupon in light of the company's (what some might refer to as) blunders.
A spokesperson for the firm tells WebProNews, "With two strikes under its belt within 10 days of each other (Super Bowl ad, flower debacle), how's Groupon consumer perception faring? People love the bargains of Groupon, but they are becoming increasingly dissatisfied with what's been going on."
"YouGov BrandIndex looked at three scores to get a much fuller picture -- buzz (what are you hearing), satisfaction (are you a satisfied customer) and value (does this give you good value)," he says.
Strongly identifying with an organization or workplace can change people's lives in profound ways, according to a new study in the Journal of Consumer Research.
The iMedia 25: Brands Redefining Social Media list recognizes the brands that have done the best job of engaging consumers through the myriad social media platforms. But beyond mere engagement, these brands have used big ideas, bold action, and smart thinking to leverage passionate online audiences in a channel that is still quite new. Collectively, these are the brands that move, shape, lead -- and listen to -- the conversations that define social media.
Creating, finding and sharing compelling content can prove to consumers that a company knows its territory, is a thought leader in its industry and wants to help customers keep up-to-date on important developments. Marketers are placing an ever-greater emphasis on content marketing's ability to add value for targets and prospects.
Customer-orientation and vision need to complement each other in order to stimulate breakthrough innovation. A visionary approach is essential to secure long-term success as well as to provide truly differentiating offerings to the market. However, this vision cannot be defined in a vacuum without customer insights. These insights are gained through shifts in focus from
solutions to needs and broad understanding of customer's context, andmarket majorities to minorities, i.e. unserved consumers with dedicated needs.This leads me to the following conclusion: Innovation based on needs of edge customers tends to result in higher likelihood of breakthroughs than involving average customers in solution development. When it comes to breakthrough innovation, a customer-centered vision seems to be indicated.
I am not Jonathon Paige.
There is no Jonathon Paige. There is no SummerHoopScoop. In fact, there never was. A little over two months ago the college basketball season ended and the long off-season of recruiting events and commitment speculation began. Messageboards and popular basketball news sources began to populate with recruiting interviews, videos, news stories, and rumors. The summer circuit circus began and college basketball fans dug in for the slow rolling waves of recruiting information to parse through. Of course, the real issue is-- who's information can be trusted? Sometimes it feels to fans like recruiting services and "experts" are just sorting through twitter feeds and regurgitating third-hand information.
However, a funny dynamic develops as a result. When a recruiting "source" brings good news to a fan base, it is instantly credible and plenty are willing to defend the source with recollections of previous information provided that proved correct. When a recruiting source brings bad news, it is open season. "Never heard of this guy"... "probably some opposing fan base's blogger" .... "I doubt he knows what he is talking about." In short, fans believe what they want to believe.
So, out of boredom and sincere interest in the relationship between the internet, recruiting services, and consumers, I created Jonathon Paige.
Mobile quiz startup Qrank will announce next week that it has raised a seed round of funding, including an investment from early Twitter VP of Product Jason Goldman. Qrank is building out a platform that will let any organization with a backlog of content use it to create smart, fast-paced mobile trivia games. The games incorporate social networks, location, chat and other social features. It sounds awesome.
Goldman is one of five investors in a convertible note of $350,000, ReadWriteWeb has learned and the company has confirmed. The company will use the funding to build a self-service platform, acquire more high-profile customers and complete an analytics dashboard. The existing consumer app gets high marks for responsiveness and user engagement.
Most marketing departments work hard to establish a flawless reputation for their product or service. But new research from Tel Aviv University is showing that perfection is not all it's cracked up to be.