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Lead User Research for Breakthrough Innovation

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Lead User Research for Breakthrough Innovation
LEAD-USER RESEARCH FOR BREAKTHROUGH INNOVATION
Lead-user research can help companies uncover both unmet customer needs and the innovative solutions that leading-edge users are developing to meet those needs.

Ivy Eisenberg
OVERVIEW: The best companies often work closely with their customers to uncover needs and wants that can be translated into new or improved product or service offerings. The lead-user research method goes a step further, looking not only to the typical customer, but to those users whose needs and preferences lead the market. These lead users, as they are called, will modify products or use them in unforeseen ways to meet their needs. The lead-user research method was developed as a systematic way to mine the insights and innovations of these lead users. Since it was pioneered in the late 1990s, the leaduser method has evolved and grown. This paper offers an update on the use of the method and on adaptations to increase its efficiency using online search and communities as well as an overview of lessons learned from experiences on more than 20 lead-user projects. KEY CONCEPTS: Lead-user research; Customercentered innovation; User innovation Most companies want the same thing—a healthy pipeline of breakthrough products and services that will provide robust and steady profits. To achieve this, companies often reach out to their customers directly in order to tap into what matters most to the people who will purchase their products and services. There is much to be learned from one’s current and potential customers. The lead-user research method goes beyond other customer-centered approaches, seeking insights not only from customers but from “lead users,” users who are so far ahead of the industry that they see no choice but to invent solutions to meet their needs. Lead users are tapped for their understanding of future needs, but even more, these visionaries provide solutions—or keys to potential solutions—for the companies that can discover these



References: Belz, F-M., and Baumbach, W. 2010. Netnography as a method of lead user identification. Creativity and Innovation Management 19(3): 304–313. Churchill, J., von Hippel, E., and Sonnack, M. 2009. Lead User Project Handbook: A Practical Guide for Lead User Research Teams. Cambridge and Minneapolis: Lead User Concepts, Inc. http://web. mit.edu/evhippel/www/Lead%20User%20Project%20 Handbook%20(Full%20Version).pdf (accessed October 18, 2010). Flanagan, Chris. 2008. Building lead-user research into an innovation platform. [Weblog entry, January 1.] Chris Flanagan. http:// businessinnovationfactory.com/weblog/archives/2008/01/lead_ user_research.html (accessed October 8, 2010). Hassan, S. S. 2008. Bringing lead-user innovations to the market: Research and management implications. SAM Advanced Management Journal 73(4): 51–54. Heinerth, C., and Potz, M. 2006. Making the lead user idea-generation process a standard tool for new product development. Presentation at the Fourth International Workshop on User Innovation, Munich, July 13–14. Lilien, G. L., Morrison, P. D., Searls, K., Sonnack, M., and von Hippel, E. 2002. Performance assessment of the lead user ideageneration process for new product development. Management Science 48(8): 1042–1059. Lüthje, C., and Herstatt, C. 2004. The lead user method: An outline of empirical findings and issues for future research. R&D Management 34(5): 553–568. Orr, J. E. 1996. Talking About Machines: An Ethnography of a Modern Job. New York: Cornell University Press. Taylor, W. C. 2006. To charge up customers, put customers in charge. New York Times, June 18. http://www.nytimes.com/2006/06/18/ business/yourmoney/18mgmt.html (accessed October 6, 2010). Thomke, S., and Nimgade, A. 1998a. Innovation at 3M Corporation (A). Business Case 9-699-012. Harvard Business School. Thomke, S., and Nimgade, A. 1998b. Innovation at 3M Corporation (B). Business Case 9-699-013. Harvard Business School. Thomke, S., and Nimgade, A. 1998c. Note on Lead User Research. Business Case 9-699-014. Harvard Business School. User Innovation Research Initiative 2010. User Innovation Research Initiative Vienna. http://www.wu.ac.at/entrep/forschung/ userinnovation/leaduser/index (accessed October 18, 2010). von Hippel, E. 1986. Lead users: A source of novel product concepts. Management Science 32(7): 791–805. von Hippel, E. 2005. Democratizing Innovation. Cambridge, MA: MIT Press. Free PDF download available at http://web.mit.edu/ evhippel/www/books.htm. von Hippel, E., Churchill, J., and Sonnack, M. 1998. Breakthrough Products and Services with Lead User Research. Cambridge and Minneapolis: Lead User Concepts, Inc. von Hippel, E., Thomke, S., and Sonnack, M. 1999. Creating breakthroughs at 3M. Harvard Business Review 77(5): 47–56. Weckström, C. 2009. The full value of lead-user innovation. [Weblog entry, February 1.] Cecilia Weckström. http://ceciliaweckstrom. com/2009/02/01/the-full-value-of-lead-user-innovation/ (accessed October 6, 2010). Reprints IMPROVING PRODUCT-DEVELOPMENT PROCESSES Fifty-one RESEARCH • TECHNOLOGY MANAGEMENT articles on this subject are now available in paperback. To order, see inside back cover. Learning from the Best New Product Developers Portfolio Management in New Product Development: Lessons from the Leaders Best Practices for Managing R&D Portfolios New Problems, New Solutions: Making Portfolio Management More Effective Assessing Technology Projects Using Real Options Reasoning Resolving Uncertainty in R&D Portfolios Critical Success Factors for New Product Development Learning is the Critical Success Factor in Developing Truly New Products Assessing Transition Readiness for Radical Innovation Speeding Development Cycles What First-to-Market Companies Do Differently Satisfy Customers While Speeding R&D and Staying Profitable Managing Risk as Product Development Schedules Shrink Roadmapping Integrates Business and Technology Transforming New Product Development Improving the Performance of New Product Teams Strategic Partnering for Developing New Products … AND MORE 58 Research . Technology Management

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