Towards an organic community of LEGO Innovators - KEA
Towards an organic community of LEGO Innovators - KEA
Towards an organic community of LEGO Innovators - KEA
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<strong>Towards</strong> <strong>an</strong> org<strong>an</strong>ic <strong>community</strong> <strong>of</strong> <strong>LEGO</strong> <strong>Innovators</strong>…Stiven Kerestegi<strong>an</strong>Senior M<strong>an</strong>ager, Open InnovationThe <strong>LEGO</strong> GroupOpen Innovation Eco-system <strong>an</strong>d Toolbox
Presentation overview• Very short intro to the <strong>LEGO</strong> Group • Current Innova6on situa6on • Building a reputa6on <strong>of</strong> openness <strong>LEGO</strong> Mindstorms <strong>LEGO</strong> Architecture <strong>LEGO</strong> Cuusoo • Building knowledge about Open Innova6on Influen6al quotes Four value pools Implementa6on pl<strong>an</strong> • Building Open Innova6on toolbox <strong>LEGO</strong> Ideas T-‐shaped innova6on
Our Foundationthe <strong>LEGO</strong> Br<strong>an</strong>d framework
Broad productassortment (moreth<strong>an</strong> 60%renewed eachyear)Hard deadlines….
Requires <strong>an</strong> integrated <strong>an</strong>d aligned process 2013 2014 2015PPortfolioDev.ProcessP0P1P2P3MProductDev.ProcessMProductDev.ProcessPPortfolioDev.ProcessM1 M2 M3 M4 M5 Launch 1HYM1 M2 M3 M4 M5 Launch 2HYPorKolio m<strong>an</strong>agement PMD -‐ Market IntegrationPMD -‐ Customers PMD -‐ GSC
Underst<strong>an</strong>ding core challenges <strong>of</strong> <strong>an</strong>innovation project……
Established processes are under pressure“The recent decline in innova0on c<strong>an</strong> be a2ributed to ….. rigid development approaches such as stage-‐gate development processes, Six Sigma, <strong>an</strong>d project <strong>of</strong>fice. These processes have uninten0onally (but effec0vely) made ch<strong>an</strong>ges during development more difficult, disrup0ve, <strong>an</strong>d expensive”. Preston G. Smith Author <strong>of</strong> ‘Flexible Development: Building Agility for Ch<strong>an</strong>ging Markets’
The end <strong>of</strong> the stage-gate model as we know it?The rumors <strong>of</strong> the death <strong>of</strong> the stage-‐gate model are highly exaggerated! However, it must be supplemented with new <strong>an</strong>d more agile innova6on tools. This is where Open Innova6on comes into the picture.
Why Open Innovation at The <strong>LEGO</strong> GroupUser Driven Org<strong>an</strong>izationCrowdsourcing / Collective IntelligenceCo-creation (design & development)Innovation Eco-systemParticipation is the new br<strong>an</strong>d99.99% <strong>of</strong> the worlds smartest people don’t work for usMost radical innovations come from non-domain expertsThe <strong>LEGO</strong> Group, Technology <strong>an</strong>d Open InnovaCon: SCven Kerestegi<strong>an</strong>
Being T-shaped, working T-shapedKids & F<strong>an</strong>sDiverseinternal inputComp<strong>an</strong>ies &InstitutionsInternalExperts <strong>an</strong>dtheir teams
In 1998, we launched <strong>LEGO</strong> Mindstorms, arobotics toolkit
7 years <strong>of</strong> development 7 <strong>LEGO</strong> engineers + MIT 3 weeks aKer launch 1000 hackers engaging Amazing results emerged
<strong>LEGO</strong> MINDSTORMS 2nd Gen, co-‐created with lead users Alpha Rex Spike Tribot RoboArm T-‐56
Build a business that…Celebrates the past, present <strong>an</strong>dfuture <strong>of</strong> architecture <strong>an</strong>dInspires future architects.
Adam Reed Tucker, <strong>LEGO</strong> ArchitecturePacking in the kitchenAdam’s garage, mom’s is full!September @ DC Chicago1 test SKU2001 test SKU2x20001 test SKU2x10000MIP I MIP II MIP IIIJuly 2007 October 2007July 2008J<strong>an</strong> 2009 May/July 2009
A reputation <strong>of</strong> being open was built…
Talented users continue to amaze us2004 – 10 minutes 2011 – 5,3 seconds
A global <strong>an</strong>d self-org<strong>an</strong>ized <strong>community</strong> <strong>of</strong> adult<strong>LEGO</strong> users emerged
In 2012, we are in contact with 200independent <strong>LEGO</strong> user groups126 <strong>LEGO</strong> UserGroups3.900members50 <strong>LEGO</strong> UserGroups31.000members24 <strong>LEGO</strong> UserGroups169.000members
In 2012, users shared their <strong>LEGO</strong> creationsface to face with 9,5 million people at518 events globally…23
<strong>LEGO</strong> User Communities – who are they?Org<strong>an</strong>ized over 1.000 shows <strong>an</strong>d events since 2008 with 15 mio visitors Run 100s <strong>of</strong> blogs <strong>an</strong>d websites Have shared more th<strong>an</strong> 10 mio pics <strong>an</strong>d videos online 100.000 AFOLs are asked for advice by friends <strong>an</strong>d family 41% are parents 75% are between 25-‐44 years old 60% have completed a Bachelor degree + Most employed in technical fields (33%) Employed in arts, design, media (9%) Male 86% Female 14%
Br<strong>an</strong>dAffinityPyramidLeadUsers1:1 CommunityConnected CommunityActive HouseholdsCovered HouseholdsHouseholds with childrenThe <strong>LEGO</strong> GroupMarketing 25
The Shinkai 6500
Road to 10.000 votes on <strong>LEGO</strong> CUUSOOMinecraK 2 days
External as well as internal contributors have willingly sharedtheir experiences <strong>an</strong>d ideas…“99.99% <strong>of</strong> the smartest people in the world don’t work for us.” External Quote “People don’t have to work for us to work with us.” Internal Quote However theyprobably grewup playingwith <strong>LEGO</strong>bricks “Most <strong>of</strong> 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 w<strong>an</strong>t to get sued.” Internal Quote “OI: Don’t even touch it if it is not dem<strong>an</strong>ded by your very top m<strong>an</strong>agement.” External Quote “Consumers <strong>of</strong> today are intelligent, they are crea0ve <strong>an</strong>d they have <strong>an</strong> opinion… And they expect you to listen!” Internal Quote
A const<strong>an</strong>t inflow on ideas but noestablished process….
4 Value PoolsAll EmployeesEntrepreneursKids <strong>an</strong>d AFOLsComp<strong>an</strong>ies &InstitutionsThe <strong>LEGO</strong> Group, Technology <strong>an</strong>d Open InnovaCon: SCven Kerestegi<strong>an</strong>
Eco-systemJoin Discover ParCcipate Contribute <strong>LEGO</strong> Community Challenges & Ideas InnovaCon Toolbox My Home (pr<strong>of</strong>ile) InnovaCon & Ideas Portal SoluCons & InspiraCons Open Collaboratkion Propose New Ideas Collaborate Co-‐create SoluCons Open Ecosystem Framework ConCnuous MoCvaCon & Reengagement The <strong>LEGO</strong> Group, Technology <strong>an</strong>d Open InnovaCon: SCven Kerestegi<strong>an</strong>
OI = Design Problem = Opportunity“Design drives innovation; innovation powers br<strong>an</strong>d; br<strong>an</strong>d builds loyalty; <strong>an</strong>dloyalty sustains pr<strong>of</strong>its. If you w<strong>an</strong>t long-term pr<strong>of</strong>its, start with design.” Marty Neumeierless M<strong>an</strong>agement more OrchestratingDesign a compelling Participation ExperienceThat enable the Harvesting <strong>of</strong> Collective IntelligenceThe <strong>LEGO</strong> Group, Technology <strong>an</strong>d Open InnovaCon: SCven Kerestegi<strong>an</strong>
The <strong>LEGO</strong> Group, Technology <strong>an</strong>d Open InnovaCon: SCven Kerestegi<strong>an</strong> Simple IntuiCve InnovaCve Value + Adequate EffecCve Inspires Ch<strong>an</strong>ge -+Design
The emergence <strong>of</strong> theorg<strong>an</strong>ic br<strong>an</strong>d eco-system”Yellow” by Nath<strong>an</strong> Sawaya
Value creation in the br<strong>an</strong>deco-system - how?o SEE the resourceful user in your consumer.o CREATE ways for the outside world to easilyparticipate in your value creation.o PRACTICE WIN – WIN in everything you do.o BE CLEAR about rules <strong>an</strong>d expectations.o Let the br<strong>an</strong>d ecosystem do the HEAVY LIFTING.o BE as OPEN <strong>an</strong>d tr<strong>an</strong>sparent as possible.o START SMALL, experiment, <strong>an</strong>d improve as you goalong.o Innovate WITH <strong>an</strong>d FOR the br<strong>an</strong>d ecosystem.Image: Nath<strong>an</strong> Sawaya <strong>an</strong>d De<strong>an</strong> West, 2013
Th<strong>an</strong>k you for listening!?!
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