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Orchestrating Innovation with User Communities in the Creative Industries☆

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Orchestrating Innovation with User Communities in the Creative Industries☆ Technological Forecasting & Social Change 83 (2014) 40–53 Contents lists available at ScienceDirect Technological Forecasting & Social Change Orchestrating innovation with user communities in the creative industries☆ Guy Parmentier, Vincent Mangematin ⁎ a University of Grenoble Alpes/CERAG, Grenoble, France b Grenoble Ecole de Management, Grenoble, France article info abstract Article history: The digital creative industries exemplify innovation processes in which user communities are Received 6 December 2011 highly involved in product and service development, bringing new ideas, and developing tools Received in revised form 13 March 2013 for new product uses and environments. We explore the role of user communities in such Accepted 14 March 2013 co-innovation processes via four case studies of interrelations between firms and their Available online 21 April 2013 communities. The digitization and virtualization of firm/community interactions are changing how boundaries are defined and how co-innovation is managed. The transformation of Keywords: innovation management is characterized by three elements: opening and redefining firm Online communities boundaries; opening of products and services to community input and reducing property rights; User and reshaping organization and product identities. Innovation in collaboration with user Innovation communities requires firms to orchestrate their communities and their inter-relationships to Video game Community management encourage the creativity and motivation of users, and develop the community's innovatory Co-innovation capacity. © 2013 Elsevier Inc. All rights reserved. 1. Introduction common to say that gamers can simultaneously be both users and developers, but what is new is that the blurring of firm The digital creative industries exemplify innovation pro- frontiers in digitized industries allows for fluid interactions cesses where users bring new ideas, develop tools to play, create between user communities and firms [3,4]. new game environments, and innovate directly. The digital Users participate in online user communities, which support creative industries are creative industries based on digital and stimulate the diffusion of on-line products. The digitization content. Theses creative firms engage with user communities of content and virtualization of interactions between firms and [1] – whetheramateursorhardcorevideogamers– to promote their user communities changes the definition of boundaries new scenarios, games or ways of using existing devices [2],and between the two, and may even modify their respective the two converge to share in developing new products, even if identities. Firms not only interact with individual users, they they value them for different reasons (users for the pleasure of also have relationships with organized communities [5].The playing and the chance of using their individual creativity to goals, values and organization of firms and user communities improve the product, and firms for the chance that such differ, even though they collaborate actively in creating new innovations offer for increased turnover and profits). It is products and services, and in order to manage innovations, firms orchestrate their relationships with online user commu- ☆ The authors would like to thank the participants of the OI seminar series nities who co-develop innovations and thus achieve on-going at Grenoble Ecole de Management, the anonymous reviewers and Dr. Elke product transformation [6].Leaduserapproach[7] mostly Schuessler as editor of the special issue for their helpful comments on the reports interactions between the organization and individuals. different versions of the paper. Usual caveats apply. Digitalization and the subsequent virtualization of interactions ⁎ Corresponding author. E-mail addresses: [email protected] (G. Parmentier), changethenatureoftherelation.Usersareformingcommu- [email protected] (V. Mangematin). nities, leading to a new model of innovation; and the online user 0040-1625/$ – see front matter © 2013 Elsevier Inc. All rights reserved. http://dx.doi.org/10.1016/j.techfore.2013.03.007 G. Parmentier, V. Mangematin / Technological Forecasting & Social Change 83 (2014) 40–53 41 community innovation model emphasizes the central role of 2.1. Innovation with digital on line communities community which blurs the boundaries of organization, and requires additional understanding of what communities are, The lead user approach developed by von Hippel describes how they work and how they interact with firms. how firms source new knowledge from users who have Based on four case studies to maximize the variety of themselves experimented intensively with the product and contexts we examine two original case studies (Trackmania and who are expecting benefits from the improvements to which Freebox), for which we collect and analyze data, and two they contribute. Although it underlines the role of distributed indirect case studies based on secondary data (Propellerhead knowledge in the innovation process, the lead user approach and MySQL) for which we explore the interrelations between maintains a clear distinction between users and firms. In firms and their online user communities to co-innovate concrete terms, the company identifies lead users and invites on-going product development. We examine the activities of them to participate in workshops within the company in order three communities which are closely related to the firms to help design new products [10,11] but while lead users bring involved and one that is independent — in each case, we study new ideas and knowledge, the company remains the undisputed interactions between communities and firms, and the ways in owner of any resultant new product concepts: the innovation which creativity and innovations are stimulated or restrained. process remains internal, the boundaries are clearly defined and The paper characterizes the co-innovation process with user the firm orchestrates its relationships with individual lead users communities. [6]. The next section introduces the theoretical background, Mahr and Lievens [12] examine the creation of innovation by highlighting gaps in the knowledge about user communities in lead users in virtual communities, describing their traits and the digitized creative industries, and considers the need to analyzing how such features contribute to the innovation manage interactions between firms and on-line user commu- process. They find that lead users in virtual communities tend nities at the micro (i.e. firm) level. We then discuss our to propose solution-focused contributions which provide greater methodology, outline the cases and provide a detailed repre- value to the firms than problem-focused solutions, and have sentation of our findings, before discussing the results in the valuable expertise along design and usability dimensions. Lead light of existing theory and drawing implications for manage- users in virtual communities are more likely than regular lead ment practice and for the digital creative industries. The paper users to make contributions on their own initiative, and more contributes to existing theory in three ways: first digitization of likely to codify their contributions, so providing the firm with firms' interactions with online communities increases fluidity of more valuable innovations. Pitta and Fowler emphasize the role their interactions and allows co-innovation process [3,4,8]; of communities of interests, and identify community leaders, second it underlines the blurring of the boundary between those who are highly involved in such forums [13], and find that existing and on-going product, since the community of users they can play a key role as coordinators of such communities. contributes to changing the product on a continuous basis (Web Burger-Helmchen and Cohendet [2] extend this approach from 2.0 spirit). Third, it emphasizes the blurring of boundaries lead users to online communities; focusing on the game between firm and communities. As digitization progresses, user industry, they produce a categorization of user communities: communities become the new loci of innovation in the creative developers, testers, hardcore players and average users. The industries, blurring the boundaries between firms and their communities of users who interact with different firms and communities, as well as the differentiation between production communities to produce new video games tend to involve the and post-production. Users are involved in developing products first three first types. Dahlander and Magnusson [1] define which are only stable only for short periods. The identities of “harnessing a community” as “accessing a community to extend user community and firm become merged in ‘product commu- [a firm's] knowledge base, aligning [its] strategy with that of the nities’ shared by both parties. Orchestrating their user commu- community and assimilating the work developed within the nities becomes a central firm concern, as the continuum community in order to integrate and share results”. between creation, production and post-production allows Burger-Helmchen and Cohendet analyze the practical interac- communities and firm to retain their own identity but at the tions between firms and communities, emphasizing the same time to collaborate in the on-going development of the alignment of interests between the two. On-line communities, usage and utility of products. with their lack of structural mechanisms,
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