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Ogilvy Public Relations Worldwide
Aug 24

Co-Creation Grows Into a Viable Business Model

There’s been a lot of interesting discussion recently on how to best leverage channels like Twitter to communicate.  This post talks about a bit about the co-creation of new social experiences that drive conversation and engagement in innovative ways, with the potential to then communicate the co-creation activity across multiple channels - including Twitter, Facebook, Youtube and Flickr.

More than ever before, people have tools to help them co-create products and services in social environments.  It’s an exciting trend that’s still very much in its infancy.  Many of us are familiar with Cafepress, Zazzle and Nike’s custom shoes NIKEiD program.  These were early - and still successful - examples of firms that help people remix and create everything from shoes to skateboards.

We’re now seeing signs of continued evolution of this general trend, in areas as diverse as fashion, fabrication and finance. The ideas these companies are introducing will change the way a range of industries introduce, sell and market products.  For marketers, these companies all demonstrate useful and innovative approaches to genuine engagement of audiences around co-creation.

Instructables (DIY)
Part of the rapidly growing online “fab” and DIY trend, this site provides one of the best communities centered around creating almost anything - including an Electric Umbrella, Pulled Chicken, a Cardboard Frisbee and even Homer Simpson’s 3D Doughnut Trophy. The site reaches over 4 million monthly unique visitors globally.

Polyvore

Polyvore (fashion)
Polyvore has taken traditional fashion magazine models and adapted them to create a vibrant community around remixing fashion items.  You can assemble a collage of products that look good together, rate others’ attempts at the same, and click through to purchase items in collages. Polyvore reports strong growth, and over 900,000 registered users.

Polyvore

Prosper (loans)
In an environment where financing is hard to come by, Prosper fills a real need in an innovative and thoughtful way.  Read real people’s reasons for seeking loans, check ratings and default histories, request a loan yourself, and create/invest in a custom loan “portfolio”.  Prosper has facilitated over $180 million in loans. Also check out similar site Lending Club.

Prosper

Got any other examples?

17 Responses to “Co-Creation Grows Into a Viable Business Model”

  1. Ian Sohn Says:

    Irfan: This is a great post. Thanks for sharing some really interesting examples. Just for the sake of starting a discussion, how would you respond to the statement that average consumers are NOT designers, product developers, marketers, etc.? What if co-creation results in mediocrity?

    I wrote a recent post (a bit off topic) in which I said the following:

    … [Don] Draper eschewed market research for his own instinct – that’s what he was paid for. And do you think [Berry] Gordy – the genius behind Motown – would have considered even for a second consulting Twitter as he was developing The Jackson 5, Smokey Robinson or The Supremes? “What” Gordy might ask, “do everyday people know about picking a single? Next thing you know they’ll want to name the album and decide what Diana wears on stage.”

    Anyway, curious to hear your thoughts.
    -Ian

  2. Irfan Says:

    @Ian

    The most effective co-creation sites provide us with “assisted co-creation”. Much like computers help us do our jobs better, the best sites make it easier for average people to create exceptional (or at least interesting) things.

    For example, Prosper provides a tool to allow you to create a loan by distributing risk across multiple borrowers; Polyvore’s tools make collage creation simple - and the site provides lots of examples of highly rated collages you can learn from.

    But can assisted co-creation compete with the very best? That’s a complicated question - for Prosper, we could tell if people are creating loans that outperform traditional loan packaging companies. For Polyvore and Instructables, the answer is less clear, but it’s certainly interesting to watch.

  3. Laura Kofoid Says:

    Irfan, love the post. And I completely agree that the best sites allow an average person to create something above average. However, at Laudi Vidni (a luxury handbag company that offers a high level of customization) , we also believe that beauty really is in the eyes of the beholder. If a person loves what she’s creating, then who cares if others don’t? It seems design has become something to be judged and rated. Rather, we give women the tools to create something that speaks to her, which is what fashion should be.

  4. Ian Sohn Says:

    Laura: Again, for the sake of discussion …

    If beauty is really in the eye of the beholder, then why do designers even exist? What, for example, is Armani’s relevance? Or even The Gap for that matter?

    I can’t buy that we’ve suddenly stopped caring about what others think; and as long as we’re pleased with how we look, then that’s good enough.

    No way.

    Actually, it’s the opposite behavior of what a scientist might say keeps our species alive - we need to attract in order to live.

    What I think is that we want to feel like we’ve had a say in the creation - as long as the final product is still up to standards that others [be they strangers, co-workers, spouses, etc.] accept.

    Thoughts?

  5. walter Says:

    The first co-creation web site (long ago) was the one from the toy maker Lego. With an application you can create your own virtual toy and the the company ships you the actual pieces.

  6. Laura Kofoid Says:

    Ian,

    For the sake of discussion…it is possible for both to be true. I can appreciate someone else’s design. I can also like what I like that may not be appreciated by others.

    I came face-to-face with this yesterday.

    We had a photo shoot for our bags. I inadvertently brought a bag that I personally didn’t like. The photo stylist loved the bag–it was her favorite. Never in my life would I have guessed that to be someone’s favorite bag (we made it because we needed a sample out of available leather). Should I now say she has “bad taste”? Or do I? Because she likes that bag, can she not like Balenciaga?

    But I do agree that the final product must be up to standards that others (AND the customer) accept. I think that has been a problem with some custom products in the past. The process is great. The product isn’t.

  7. Promotional Products Says:

    This is an interesting subject. Thanks for opening my eyes to it and giving great detail.

  8. Danny Wong Says:

    to jump onto this discussion:

    i am on-board with Laura that it is complicating and frustrating to try to figure out how to offer a consumer a variety of customizable options, without giving them too many (for the sake of information overload) and too little (because they will not be able to create a product that lives up to their standards.

    companies also have to bear in mind that giving too many options to the consumer will raise raw costs, which results in higher pricing, which would cause the consumer to be less likely to make a purchase.

    also, for the sake of argument:
    i would argue that Prosper is not a form of co-creation. i would define it as co-operation. i see co-creation as the consumer and business working to build a product/service together. and the way i define it, a case can be made that Prosper allows consumers to work together to create a service. but I believe a loan is far different from a normal consumer product like what Blank Label offers (custom casual button-down shirts, dress shirts and suits)

  9. Let’s hope Fab won’t be a fad at The TrendWatch Says:

    [...] wave of innovation brought by Web 2.0 technologies, with a sustainable co-creation by thousands of users, is now expanding to the physical world. The signs are there: from hacker (in [...]

  10. Let’s hope Fab won’t be a fad Says:

    [...] wave of innovation brought by Web 2.0 technologies, with a sustainable co-creation by thousands of users, is now expanding to the physical world. The signs are there: from hacker (in [...]

  11. Irfan Kamal Says:

    @walter

    Yes, the LEGO.com Factory (factory.lego.com) is a great example of co-creation. Looking forward to the evolution of the experience.

    @Laura

    Seems like some of the distinguishing factors of the most successful co-creation sites center around how social and collaborative the experience is. So, I’d say the experience is probably as important as the end product. It’s got to be fun and entertaining (and easy) to create high quality things. Beyond that, it’s all about personal style.

  12. Robert Says:

    For a product that will not be mass-produced, appeal to the end user is surely what matters. I have in mind a book that can be downloaded for local printing at home, or a custom assortment of parts (similar to the lego example).

    If a futuristic 3D model fabrication system were used as a home “printer” for a custom piece of art will we come to have intellectual property issues if someone wants to produce multiple items?

    By the way, was choosing the upholstery and color of a new car an early type of co-creation despite the lack of instant/internet gratification?

  13. Planner Reads » Blog Archive » Let’s hope Fab won’t be a fad (via feedly) Says:

    [...] wave of innovation brought by Web 2.0 technologies, with a sustainable co-creation by thousands of users, is now expanding to the physical world. The signs are there: from hacker (in [...]

  14. Musings on Marketing Says:

    [...] http://blog.ogilvypr.com/2009/08/co-creation-grows-into-a-viable-business-model/ [...]

  15. Florida Refi Says:

    I would define it as co-operation. i see co-creation as the consumer and business working to build a product/service together. and the way i define it, a case can be made that Prosper allows consumers to work together to create a service. I can appreciate someone else’s design. I can also like what I like that may not be appreciated by others.

  16. Wooden Toy Chest Says:

    I also believe that if provided with the right tools and resources, consumers can be better designers. Fashion’s greatest beauty should come from its distinction. It is varied. Co-creation will really boost the system. More power.

  17. Irfan Kamal Says:

    @Wooden Toy Chest

    Yes, will be interesting to watch how products coming out of companies like Fashion Stake and Justproud perform.

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