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Users' Role in Innovation Processes in the Sports

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Users' Role in Innovation Processes in the Sports September 2009 Users’ role in innovation processes in the sports equipment industry – experiences and lessons • Categorisation of different users and types of innovations in the sports equipment industry • Presentation of different firms’ experience with user involvement in innovation practice • Examples of user involvement in innovation processes in the sports equipment and outdoor industries Authors: Hans Olav Bråtå, Svein Erik Hagen, Atle Hauge, Tanja Kotro, Mikko Orrenmaa, Dominic Power, Petteri Repo Participants Finland Sweden National Consumer Research Centre University of Uppsala Tanja Kotro Dominic Power Senior Researcher Professor Mikko Orrenmaa Atle Hauge Research Assistant Ph.D. Petteri Repo Senior Researcher Norway Eastern Norway Research Institute Hans Olav Bråtå Senior Researcher Svein Erik Hagen Senior Researcher III IV Title: Users´ role in innovation processes in the sports equipment industry Nordic Innovation Centre project number: 07028 Author(s): Hans Olav Bråtå, Svein Erik Hagen, Atle Hauge, Tanja Kotro, Mikko Orrenmaa, Dominic Power, Petteri Repo Institution(s): Eastern Norway Research Institute, National Consumer Research Centre, University of Uppsala Abstract: The main objective of this project is to contribute to our knowledge about user-driven innovation and to suggest how knowledge on user-driven innovation may be included in innovation efforts and systems both for the sports equipment industry and for other industries. The study is primarily based on case studies of how firms within the Nordic sports equipment and outdoor industry involve users in their innovation efforts. Our studies concentrate on firms producing equipment for winter sport and outdoor recreation. The study builds upon a large number of interviews with firms and key persons as well as extensive analysis of available written material and research literature. The results focus on the identification of certain key user groups in the sports equipment innovation cycle: user innovators, professional and sponsored users, enthusiastic amateurs, passionate insiders and chains and retailers. We consider the extent to which these users influence or take part in innovation processes within technical design, visual design, branding and the development of product systems. The report concludes with policy recommendations for how firms may take advantage of each user group. In this respect we present some key points and examples on firms’ interaction with users in innovation processes. Other recommendations consider public policy and suggest that public policy ought to encourage firms to take advantage of knowledge held by those groups. In society a large number of user groups exist and public policy ought to stimulate use of their knowledge for a broader purpose, including societal development. Merging user groups in order to stimulate cross sector development, in addition to organising meeting places may be a theme for public policy at the regional level. Topic/NICe Focus Area: Innovation policy, Business management ISSN: Language: Pages: English 54 Key words: User driven innovation, UDI, sport, outdoor, open innovation, lead users, passionate insider, consumer, design, branding, Nordic Distributed by: Contact person: Nordic Innovation Centre Hans Olav Bråtå Stensberggata 25 Senior Researcher NO-0170 Oslo Eastern Norway Research Institute Norway Postboks 223, 2601 Lillehammer, Norway Tel: + 47 913 78131 / Fax: + 47 61 25 41 65 [email protected] / www.ostforsk.no V Executive summary The main objective of the project is: • To enhance our knowledge on user-driven innovation and to suggest how knowledge of user-driven innovation may be included in innovation efforts and systems both for the sports equipment industry and for other industries. This main objective is met. The study has achieved this aim by: • Presenting a categorisation of different users and types of innovations in the sports equipment industry • Presenting what we have learnt about firms’ experience with user involvement in innovation practice • Presenting examples of user involvement in innovations processes in the sports equipment and outdoor industries Method The study is primarily based on case studies of how firms within the Nordic sports equipment and outdoor industry engage in innovation, especially if and how they approach users as a source of innovation. A large number of firms in Finland, Norway, Sweden and Canada were contacted and key persons were interviewed. In addition to interviews, written material, brochures, the internet, reports, journals, newspaper articles were a valuable source of information. Our studies concentrated on firms producing equipment for winter sports and outdoor recreation: skis, snowboards, poles, clothing etc. The project findings are presented in a series of chapters that each deal with different groups of users. The sports- and outdoor equipment industry is very dynamic and constantly changing, so the cases we present should be seen as illustrative examples rather than a final and definitive answer to how firms can or should interact with users. Five main categories of users emerged from our research as central to user-driven innovation in sports equipment. Main results We found the following categories of users to be particularly important to innovation in the Nordic sports equipment industry: • User innovators • Professionals and sponsored users • Enthusiastic amateurs • Passionate insiders • Chains and retailers VI The extent to which these users influence or take part in innovation within technical design, visual design, branding and product systems varies. Chapters 1 and 2 outline the research around user-driven innovation and what can be learnt from other studies. Chapters 3-7 are each dedicated to one specific type of user and innovator. User-innovators These are users who change existing equipment or develop new equipment. We found that: these can be important players and what they do with their equipment ought to be observed and mapped. It is also important to follow user communities and subcultures and to look for emerging sports equipment in different sectors and equipment that originates in other kinds of sport. Professionals This category includes athletes, adventures and explorers. A key lesson for firms is that they should try to select a few athletes who can give cutting-edge feedback. These users are good testers but this type of testing has to be complemented with testing on how and when ordinary users really use the products. Professionals are especially important to firms’ brand building and marketing innovation. Enthusiastic amateurs Complaints and comments from enthusiastic amateurs are valuable. Firms ought to follow open online forums or develop their own forum. Surveys, interviews, focus groups and observations also give valuable information. Enthusiastic amateurs are important for communicating brand values. Passionate insiders Firms ought to take advantage of and involve their employees in innovation as much as possible. Firms can encourage insiders to take part in sports and support (and learn from) their hobbies and passions. It is vital to hire the right passionate insiders and acknowledge them as valuable. They ought to be considered as integral partners in company development rather than simply employees. Chains and retailers In-store buyers and users as distributors and retailers can play an important role in innovation. Stores are frontlines for interaction with customers and shop floor workers have valuable direct experience of consumers’ needs and preferences. They also have a central role in shaping consumer preferences and defining the leading edge products. Involving retailers and distributors at an early stage can give equipment producers an important head start. VII User involvement: Recommendations for innovation policy and societal benefit: • Users have to be lifted into innovation policy in a systematic way and innovation policy ought to emphasize that different groups of users exist; and that each group of users may play different roles in solving different types of problems. Innovation policy has to focus on how users can be involved in different kinds of innovation. A necessary part of this, however, is that intellectual property rights cannot be ignored. • Policy at a regional level ought to be developed in a manner that makes it immediately useful for firms and civil society actors. Policy oriented towards user-driven innovation backup can tap into existing systems of business advisors and regional business education programs. The highly developed programs of short courses and ad hoc support such organizations offer are an ideal place for the inclusion of information on user-driven innovation and training/information on user interaction techniques and methodologies. • Users, as citizens, are already invited into regional policy: e.g. in the planning of regional economic development frameworks and in areas such as planning and building legislation. In this context strengthening an awareness of user perspectives and forums for innovation can help regional authorities plan for the inclusion of users in future regional innovation initiatives as well as in the development of public services that have a bearing on the sporting infrastructure. • Regional authorities can greatly help firms reach those professional, amateur and passionate visitors that, even temporarily, enrich the spectrum of local users and enthusiasts. • Regional policy might also consider how it can encourage users from different
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