1. What are the similarities and differences between a community-driven product development process and a traditional product development process within a firm?
With Threadless’ innovative business model there are quite a few differences in the product development cycle. First, there are no designers. This is a huge point of parity, the community not only drives the demand of the product but also drives the supply of the designs as well. This changes the dynamics of the company from a few controlling the direction of the company to a larger community having much more input into what should be produced. The community produces and votes on the shirts so there is already a known interest in the product in contrast to a traditional company where products can be hit or miss.
Secondly, the marketing for a traditional company dictates how the audience should perceive their products. At Threadless, there is a very small core team because they only facilitate and produce what the community wants. The marketing is mainly done through word of mouth. They have incorporated a new way to engage their community beyond social media by having them vote on their website. T-shirts are voted on without bias and therefore are more of an open environment to find what people truly enjoy.
Third, Threadless facilitates designer feedback and engagement with the community. This is done regularly through blogs and interaction with the community. For a traditional product, designers usually on use focus groups in order to gain feedback during development stages. This open communication allows for more polished and successful sales.
There are still similarities between Threadless and traditional companies in many ways. Logistically, Threadless still faces the same challenges as normal product companies. How do they meet demand with an ever changing product line and how do they cut costs? Outsourcing and delivery are still very similar with a