User Open Innovation-Based Business Model Developing Circle
12.1 Cases
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J.J. Yun, Business Model Design Compass, Management for Professionals, DOI 10.1007/978-981-10-4128-0_12
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User Open Innovation-Based Business
Nike+ Community, consumers are encouraged to present their ideas to improve existing products or even to suggest new products. The community systematically collects these ideas, comments, and opinions, which are reflected in Nike’s product creation, eventually leading to the innovation of new products. Fourth, Nike+ sys- tematically analyzes customers’ data, where exercise and activity results are shared and made public. Nike+ makes use of this data actively to produce innovative prod- ucts. Table 12.1 presents the analysis results of Nike+ as an excellent example of a co-creation case given that the ideas received from Nike customers through Nike+
become the source of the company’s various innovations.
Nike+ is a platform that goes beyond serving as a community for users, as it also connects the direct/indirect requirements and expectations of customers to the pro- duction of innovative products and the innovation of existing products. In addition, this platform offers new means of entertainment and ideas to customers, such as the
Fig. 12.1 Nike+ home page (Source: https://secure-nikeplus.nike.com/plus/)
Table 12.1 Nike+ as an excellent example of a co-creative engagement platform
Learn directly from the behavior of its customers
Generate new ideas rapidly Experiment with new offerings quickly
Get direct input from customers on their running preferences Build deeper relationships and trust with the community Generate “sticker” brand collateral
Source: Ramaswamy and Gouillart (2010, pp. 11–12)
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combination of running and music with competitive exercises and performances. In summary, Nike+ is a prime example of a company that provides new ways to attain customer satisfaction in product consumption, where the customers also have a say in the innovative efforts of the company.
As increasing numbers of people use smartphones and smart watches, users of Android phones as well as iPhones can download the Nike+ Fuel App, the Nike+
Running App, and the Nike Training App. The ecosystem of Nike+ is rapidly expanding. In addition, without the need to purchase a separate smart sensor, similar to the type built into Nike shoes, a user can simply download the Nike+ app and then use it as he or she runs while carrying a smartphone or wearing a smart watch.
In this way, a user can enjoy Nike Plus, that is, potential customers, as well as exist- ing customers of Nike, directly become objects of the company’s innovation.
In the sports market, where the competition among many sports companies is already fierce, Nike uses Nike+ as a tool to introduce new products and services continuously and to demonstrate the company’s consistent creation of new experi- ences for its customers. In the mature industry, a company actively presents new customer experiences, requirements, and expectations for the successful creation of new product and service business models (business models).
12.1.2 Starbucks
Two months after returning as CEO of Starbucks in January 2008, Howard Schultz launched the MyStarbucksIdea.com website, with these words:
Welcome to MyStarbucksIdea.com. This is your invitation to help us transform the future of Starbucks with your ideas—and build upon our history of co-creating the Starbucks Experience together… So, pull up a comfortable chair and participate in My Starbucks Idea. We’re here, we’re engaged, and we’re taking it seriously. (Ramaswamy and Gouillart 2010, p. 22)
Schultz organized the My Starbucks Idea platform for customers, as described in Fig. 12.2, with the motto “SHARE. VOTE. DISCUSS. SEE.” As of January 2016, the site remains very active (Table 12.2).
The many ideas received from Starbucks customers through the platform pertain to products and services, falling into various categories, such as Building a Community and Social Responsibility. The business models of the latest product types implemented from customers’ ideas are Bienvenue, the Almond Croissant (January 27, 2016), Simplifying a Favorite (New Green Tea Latte Recipe) (January 7, 2016), and Welcome Latte Macchiato to the Espresso Menu (January 5, 2016). In other services or processes prompted by customers’ ideas, innovative business mod- els such as Starbucks Music on Spotify (January 19, 2016; the music playlists played in Starbucks), the Digital Coffee Passport ((January 13, 2016) with this pass- port, customers gain access to stamps and other information and can keep track of each cup they drink, and more), and Starbucks Delivery in Seattle (December 2, 2015) are continuously created and applied.
12.1 Cases
The cafe culture of Europe has a longer history than that of the USA. Moreover, it has been a long time since the cafe culture was combined with local culture to represent the principles of each European nation. This proves the difficulty of con- tinuously creating new product and service business models in the coffee industry.
However, through the My Starbucks Idea platform, Starbucks is able consistently to craft new products and services inspired by customers’ ideas.
Fig. 12.2 My Starbucks Idea (Source: MyStarbucksIdea.com)
Table 12.2 The reality of My Starbucks Idea (as of January 27, 2016)
Products idea Coffee and espresso drinks 45,861 Frappuccino beverages 6478 Tea and other drinks 13,487
Food 23,000
Merchandise and music 11,283
Starbucks card 23,434
New technology 5942
Other product ideas 14,562 Experience ideas Ordering, payment, and pick-up 12,319 Atmosphere and locations 23,108 Other experience ideas 14,899 Involvement
ideas
Building community 6774
Social responsibility 11,421 Other involvement ideas 6714
Outside USA 2203
Source: MyStarbucksIdea.com
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12.2 User Open Innovation-Based Business Model