Innovation exists at the intersection of invention and value and the best approach to create value is a new technique called value Co-creation. Co-creation not only describes a trend of jointly creating products. It also describes a movement away from customers buying products and services as transactions, to those purchases being made as part of an experience. Value is co-created with customers when a customer is able to personalize his/her experience using a firm's product-service proposition to a level that is best suited to get his/her job(s) or tasks done. In this chapter of the Beyond Stage Gate series we describe to how use Co-creation to increase the probability of successful new product and service introductions and how it fits in the entire innovation management ecosystem. We present a case study of how iPad Apps for Augmentative and Alternative Communication (AAC) have disrupted the market for AAC devices.

1. Value Co-Creation AND iNNOVATION case study: assessment of ipad apps for augmented and alternative communication ProductCamp Austin August 6, 2011 Jose A. Briones, Ph.D. Twitter: @Brioneja www.Brioneja.com

2. Agenda Introduction Background to Value Co-Creation Value and Innovation Value Definition and Pricing Introduction to Spiro-Level System for Innovation Management Value Co-Creation Case Study: iPad Apps for Augmentative and Alternative Communication (AAC) www.Brioneja.com Twitter: @Brioneja

3. Legalese “The fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright” - Copyright Act of 1976, 17 U.S.C. § 107 www.Brioneja.com Twitter: @Brioneja

4. Introduction Product innovation has been described as the way out of today’s difficult business environment. The rate of success of development projects, in particular disruptive innovation projects remains too low. We believe that a reason for the low success rate is the erroneous application of analysis methods designed for incremental innovation to projects with high levels of uncertainty www.Brioneja.com Twitter: @Brioneja

5. In this chapter of the Beyond Stage Gate series we describe to how use Co-creation to increase the probability of successful new product and service introductions and how it fits in the entire innovation management ecosystem. www.Brioneja.com Twitter: @Brioneja

6. Background Value Co-Creation is a new approach to create value Co-creation not only describes a trend of jointly creating products. It also describes a movement away from customers buying products and services as transactions, to those purchases being made as part of an experience (1,2). www.Brioneja.com Twitter: @Brioneja

7. Value is co-created with customers when a customer is able to personalize his/her experience using a firm’s product-service proposition to a level that is best suited to get his/her job(s) or tasks done (3). www.Brioneja.com Twitter: @Brioneja

11. Safety

12. Love and Belonging

13. Esteem

14. Self-actualization

15. Self-trascendencewww.Brioneja.com Twitter: @Brioneja

17. Cost-plus

18. Competition-driven pricing.

19. Customer-driven pricing

20. Minimum Return on Investment (ROI)

21. Cost in use analysis

22. Value in use analysis

24. www.Brioneja.com Twitter: @Brioneja The Concept of “Hard” vs. “Soft” Value in Use Hard or objective value in use is value which can be readily quantified by the customer: “cash out the door” Raw material savings Energy savings Reduction in spare parts cost Product Features Soft or subjective value in use are benefits that, while real, can not be quickly quantified or monetized immediately by the customer. Improved safety Improved quality Environmental/Green benefits Ease of use User Experience (UX)

25. www.Brioneja.com Twitter: @Brioneja C. Christensen’s Disruptive Innovation Models Twitter: @Brioneja www.Brioneja.com

26. The Spiro-Level™ 3-D Approach to Innovation Resources Launch Quadrant IV Quadrant I Roadmap/Timeline Idea Generation Level 3 Risk Analysis VOC 2 Customer Testing 1 Time Time Technology Assessment Supply Chain Analysis Business Case Value in Use Analysis Regulatory IP Strategy Prototype Development Quadrant II Quadrant III Resources www.Brioneja.com Twitter: @Brioneja

27. www.Brioneja.com Twitter: @Brioneja Relationship Between Spiro-Level and Project Type

28. www.Brioneja.com Twitter: @Brioneja Relationship Between Spiro-Level and Value Creation www.Brioneja.com Twitter: @Brioneja

30. Value Co-Creation Case Study iPad Apps for Augmentative and Alternative Communication www.Brioneja.com Twitter: @Brioneja

31. Augmented & Alternative Communication Augmentative and Alternative Communication (AAC) refers to methods and devices that supplement or replace speech and writing when these are temporarily or permanently impaired Best known example: Stephen Hawking www.Brioneja.com Twitter: @Brioneja

32. AAC Technology Until a few years ago AAC communication devices consisted of bulky electronic boards costing over $7 K each www.Brioneja.com Twitter: @Brioneja

33. Disruption in Action www.Brioneja.com Twitter: @Brioneja

34. Disruptive Innovation: iPad and AAC iPad apps are being used by special needs children, such as those who have speech impediments as a communication tool New apps give a person the ability to communicate basic needs and interests through the use of pictured images and corresponding audio. www.Brioneja.com Twitter: @Brioneja

35. AAC Apps Symbols and Graphics www.Brioneja.com Twitter: @Brioneja

36. Steve Jobs on the iPad and Special Needs "We take no credit for this, and that's not our intention," Mr. Jobs said, adding that the emails he gets from parents resonate with him. “Its use in therapy wasn't something Apple engineers could have foreseen” "Our intention is to say something is going on here," and researchers should "take a look at this.“ www.Brioneja.com Twitter: @Brioneja

37. Analysis of iPad Apps for AAC Proloquo2Go TouchChat Expressive One Voice iComunicate Grace Features vs. Usability (UI/UX) Price vs. Value www.Brioneja.com Twitter: @Brioneja

38. Features vs. UX/UI Features Images & Symbols Can add more images # of Audio Voices Can Record Voices Create phrases Can add categories Text to speech Quality of audio Automatic conjugations Word prediction In-App expansion UX/UI Usability/Navigation (UI) Customization Communication capability Visual appeal www.Brioneja.com Twitter: @Brioneja

39. AAC Apps – Features Analysis www.Brioneja.com Twitter: @Brioneja

40. Customization Customization to the individual’s communication level and needs is critical for usability www.Brioneja.com Twitter: @Brioneja

41. UX/UI How easy is it to use, navigate? How much knowledge is required about programming or manuals? How simple and intuitive is to setup and customize to the individual’s communication level and needs? What is the level of communication capability that the app can provide? www.Brioneja.com Twitter: @Brioneja

42. UX/UI Capability Ratings www.Brioneja.com Twitter: @Brioneja

43. Pricing/Sales Ranking www.Brioneja.com Twitter: @Brioneja

44. Features vs. UX/UI www.Brioneja.com Twitter: @Brioneja Features/ Capability TouchChat Proloquo2Go Area of Opportunity Expressive OneVoice iCommunicate Grace UX/UI

45. Co-Creation Project Hewlett-Packard’s “Hacking Autism” Volunteer group of software developers teaming up with leading autism specialists to develop groundbreaking, touch-enabled applications for the autism community http://hackingautism.org/ www.Brioneja.com Twitter: @Brioneja

46. Summary www.Brioneja.com Twitter: @Brioneja Value Co-Creation offers the best opportunities to disruptive innovations Value Co-Creation is more than joint development, it is the ability of a customer to create or customize his/her own experience using your product/service offering The iPad has become a very powerful Co-creation tool that triangulates manufacturer, developer and end-user

47. Acknowledgements Thanks to Smarty Ears, LLC for allowing me to be part of this exciting new field of product development www.smartyearsapps.com www.Brioneja.com Twitter: @Brioneja

48. Contact Information Brioneja@SpyroTek.com www.Brioneja.com Twitter: @Brioneja www.Brioneja.com Twitter: @Brioneja

49. References C K Prahalad and VenkatRamaswamy2000 Harvard Business Review article, “Co-Opting Customer Competence”. C K Prahalad and VenkatRamaswamyHarvard Business School Press, The Future of Competition WimRampen, The future of marketing - understanding value co-creation. http://wimrampen.com/2009/08/07/my-personal-definition-of-business-with-customer-value-co-creation/ The Entrepreneurial Mindset, 2000, Innovation Killers, 2008, Harvard Business Review www.Brioneja.com Twitter: @Brioneja

50. TouchChat is a registered trademark of Silver Kite Proloquo2Go is a registered trademark of AssistiveWare Expressive is a registered trademark of Smarty Ears, LLC OneVoice is a registered trademark of Acapela Group iCommunicate is a registered trademark of Grembe, Inc. Grace is a registered trademark of Shining Glow Dilbert is a registered trademark of Scott Adams, Inc. iPad is a registered trademark of Apple, Inc. www.Brioneja.com Twitter: @Brioneja