A common mistake of those new to open innovation & research is to confuse the practice of co-creation with that of crowdsourcing. As a result I thought I would give a quick guide to both, hopefully clearing up any confusion people might have.
Co-creation
Co creation is the act of company stakeholders collaborating directly with selected (usually smaller) groups of consumers to work on a specific brief. This can take place on-line in communities or offline in workshops. The aim of co-creation is to develop ideas together with consumers that meet their needs and fulfill business requirements of the company.
Benefits
-Produces more robust products and ideas that consumers want to buy and companies can produce
-Faster way of generating new & disruptive ideas and solving problems
-Immerses companies in the lives, aspirations and needs of their consumers
-Builds strong and lasting relationships between companies and consumers
Examples of Co-creation in Practice
Crowdsourcing
Crowdsourcing is the act of a company taking a function once performed by employees and outsourcing it to a large community of people in the form of an open brief. This is primarily undertaken by individuals on-line who compete against each, with the winning idea being voted for by the community or by the company (more like a competition).
Benefits
-It is cost effective as companies pay by results
-The company can tap a wider range of talent than might be present in its own organization
-By listening to the crowd, companies gain consumer insight
-The community may feel a stronger relationship with the company which is the result of an earned sense of ownership through contribution & collaboration
