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Title: Demokratiiï¸ a︡ v deÄstvii
WonderClub
Item Number: 9780911971934
Publication Date: January 1994
Number: 1
Product Description: Demokratiiï¸ a︡ v deÄstvii
Universal Product Code (UPC): 9780911971934
WonderClub Stock Keeping Unit (WSKU): 9780911971934
Rating: 3.5/5 based on 2 Reviews
Image Location: https://wonderclub.com/images/covers/19/34/9780911971934.jpg
Weight: 0.200 kg (0.44 lbs)
Width: 0.000 cm (0.00 inches)
Heigh : 0.000 cm (0.00 inches)
Depth: 0.000 cm (0.00 inches)
Date Added: August 25, 2020, Added By: Ross
Date Last Edited: August 25, 2020, Edited By: Ross
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$99.99 | Digital |
| WonderClub (9290 total ratings) |
Kevin Colligan
reviewed Demokratiiï¸ a︡ v deÄstvii on June 02, 2010Oh shit this book was good. 170 pages of meat.
Users are now innovating for themselves.
The idea is that the process of innovation has moved, at least in part. Traditional thought says that manufacturers would send marketers to research user need and then send that data to the R&D department where they would attempt to create a solution. This is increasingly false. Users now do their own innovation.
Technology has advanced to the point where users can perform more of their own R&D. Manufacturers are now specializing in scaling production rather than identifying user need.
This process has increased the pace of innovation since users and manufacturers need to interact less. Instead of cycling from user to manufacturer and back until the innovation is complete, users now speed through their own cycle and then pass a finished idea off to manufacturers who speed through their cycle. Less interface between the two means less time stopping and starting. This system flows faster.
A central idea is that the tools of innovation have moved towards the centers of information. The users now have the tools to leverage their specialized knowledge. This means that less information needs to be passed from system to system. This transfer of information was the slowest part of the innovation cycle. Users would have to tell manufacturers what they wanted. Manufacturers would inevitably get it wrong (through no fault of their own, they just don't have the knowledge that the users have so they make simple mistakes that would have been caught by any user-innovator).
Some random tidbits:
1. User-innovation is different from that of manufacturers. They tend to be more disruptive while manufacturer-innovation tends to be sustaining.
2. Manufacturers and users have different incentives. User-innovation is more in line with user needs.
3. User innovation communities where everyone freely reveals knowledge are increasingly facilitated by communication tools. This technological change is distinct from advances in design and prototyping tech.
I forgot. The beginning of the book is all about why users freely share their innovations. Namely they get reputation and monetizing their innovations is too hard. Patents are expensive and don't work well.
Quotes:
"Users are unique in that they alone benefit directly from innovations. All others (here lumped under the term "manufacturers") must sell innovation related products or services to users, indirectly or directly, in order to profit from innovations."
"Three specific contributors to transaction costs; (1) differences between users' and manufacturers' views regarding what constitutes a desirable solution, (2) differences in innovation quality signaling requirements between user and manufacturer innovators, and (3) differences in legal requirements placed on user and manufacturer innovators."
"Companies that produce products and solution types that have close functional equivalence from the user's point of view can look very different from the point of view of a solution supplier."
"There is typically an information asymmetry between user and manufacturer with respect to what will be the best solution. Manufacturers tend to know more than users about this and to have a strong inventive to provide biased information to users in order to convince them that the solution type in which they specialize is the best one to use."
"Histories of the user-developed improvements to stressed-skin panel construction showed that the user-innovator construction firms did not engage in planned R&D projects. Instead, each innovation was an immediate response to a problem encountered in the course of a construction project. Once a problem was encountered, the innovating builder typically developed and fabricated a solution at great speed, using skills, materials, and equipment on hand at the construction site. Builders reported that the average time from discovery of the problem to installation of the completed solution on the site was only half a day."
"Need-intensive tasks within product-development projects will tend to be done by users, while solution-intensive ones will tend to be done by manufacturers."
"Innovators are using their membership in two distinct communities to combine previously disparate elements."
"Consider "business stealing". This term refers to the fact that commercial manufacturers benefit by diverting business from their competitors. Since they do not take this negative externality into account, their private gain from introducing new products exceeds society's total gain, tilting the balance toward over-provisioning of variety." (race to the bottom, innovation in value-capture vs. value-creation)
"A kite manufacturer began downloading users' designs from Zeroprestige.com and producing them for commercial sale. This firm had no internal kitesurfing product development effort and offered no royalties to user-innovators - who sought none. It also sold its products at prices much lower than those charged by companies that both developed and manufactured kites." (great example of the separation of manufacturing and R&D)
"(1) Manufacturers may produce user-developed innovations for general commercial sale and/or offer a custom manufacturing service to specific users. (2) Manufacturers may sell kits of product-design tools and/or "product platforms' to ease users' innovation-related tasks. (3) Manufacturers may sell products or services that are complementary to user-developed innovations."
"Firms can make a profitable business from identifying and mass producing user-developed innovations or developing and building new products based on ideas drawn from such innovations. They can gain advantages over competitors by learning to do this better than other manufacturers. They may, for example, learn to identify commercially promising user innovations more effectively than other firms."
"Product-development processes traditionally used by manufacturers start with market researchers who study customers in their target markets to learn about unsatisfied needs. Next, the need information they uncover is transferred to in-house product developers who are charged with developing a responsive product. In other words, the approach is to find a user need and to fill it by means of in-house product development."
"Snowballing relies on the fact that people with rare interests or attributes tend to know others like themselves. Pyramiding modifies this idea by assuming that people with a strong interest in a topic or field can direct an inquiring researcher to people more expert than themselves."
"How do we square these findings with the arguments, put forth by Christensen (1997), by Slater and Narver (1998), and by others, that firms are likely to miss radical or disruptive innovations if they pay close attention to requests from their customers?...The [Christensen:] value network framework would predict that the innovations toward which the customers in von Hippel's study led their suppliers would have been sustaining innovations. We would expect disruptive innovations to have come from other sources...My findings, and related findings by others as well, deal with innovations by lead users, not customers, and lead users are a much broader category then customers of a specific firm...Listening to the voice of the customer is not the same things as seeking out the learning from lead users."
"Present practice dictates that a high-quality toolkit for user innovation will have five important attributes. (1) It will enable users to carry out complete cycles of trial-and-error learning. (2) It will offer users a solution space that encompasses the designs they want to create. (3) It will be user friendly in the sense of being operable with little specialized training. (4) It will contain libraries of commonly used modules that users can incorporate into custom designs. (5) It will ensure that custom products and services designed by users will be producible on a manufacturer's' production equipment without modification by the manufacturer."
"Probably only in the case of physical products where the interaction between product and production methods are not clear will geography continue to matter deeply in the age of the internet."
Mary Macleod
reviewed Demokratiiï¸ a︡ v deÄstvii on May 27, 2019Great book .... Good context
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