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Horizontal Innovation Networks: By and for Users
Assessing the Viability of Horizontal Innovation Networks
In evaluating whether user generated innovation is good or bad for a company including if user innovation can happen independently from manufacturers, the insights and knowledge provided in Horizontal innovation networks - By and For Users (von Hippel, 2007) serves as the basis of this analysis. The integration of user-generated innovations into the product development process, and to the extent to which innovations' benefits and unique position within a manufacturers' marketing mix are analyzed in the context of social networks being the platform for open innovation (Bernoff, Li, 2008).
Defining the Value of User-Generated innovation
Relying on microeconomic analysis and the frameworks of free revealing supported by examples from open source software and the development of the Apache Server software in addition to several other examples Horizontal innovation networks - By and For Users (von Hippel, 2007) illustrates the value of user-generated innovation. Based on an analysis of the data provided the argument can be made that user-generated innovation is highly effective as a means to collaboratively create products and services that can differentiate themselves over the long-term in competitive markets. The analysis does not however go into enough depth of analysis about the potential of horizontal innovation to create disruptive innovation over the long-term, which is critical for any innovative process to re-order an industry...
The reliance on horizontal innovation throughout social networking is prevalent in the rapid growth of Facebook and Twitter followers and the continual redefining of the new product development process in each of these companies as it relates to user's concerns about privacy, security and the scalability of each into being e-commerce platforms over the long-term (Bernoff, Li, 2008). User-generated innovation is highly effective for companies who must stay in step with their customers as product lifecycles and the pace of disruptive innovation from multiple sources can quickly redefine the competitive landscape (Jaspers, Van den Ende, 2010). Missing however from the von Hippel analysis is the path to disruptive innovations driven by customers' passion to completely re-order and augment a brand over time, which is what Apple is seeing in the ecosystem surrounding the iPod, iPhone and now the iPad. Apple has successfully creating multiple ecosystems around these product platforms, freeing their loyal and passionate fans to create their own product lines, businesses, and most important, user experiences every time these devices are used (Scanlon, 2007).
Integrating Customers into the New Product Development Process
Many manufacturers struggle with this aspect of their new product development and introduction (NPDI) process, often having highly formalized advisory councils and methods for gaining their feedback. It is rare to have customers actually involved daily in the new product design and development process, yet…
References
Bernoff, J., & Li, C.. (2008). Harnessing the Power of the Oh-So-Social Web. MIT Sloan Management Review, 49(3), 36-42.
Bucci, A., & Parello, C.. (2009). Horizontal innovation-based growth and product market competition. Economic Modelling, 26(1), 213.
Jeffrey H. Dyer & Kentaro Nobeoka. (2000). Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal: Special Issue: Strategic Networks, 21(3), 345-367.
Per Hilletofth, & David Eriksson. (2011). Coordinating new product development with supply chain management. Industrial Management + Data Systems, 111(2), 264-281.
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