Value added of social media in open innovation community - the perspective of a community-hosting company that produces B2B products presented at Academic Mindtrek Conference 2014 #mindtrek14

1. Value added of social media in open innovation community -the perspective of a community- hosting company that produces B2B products
Jari Jussila1, Heli Aramo-Immonen2, Hannu Kärkkäinen1,
Jani Lyytikka3,
1 Tampere University of Technology, Department of Information Management and Logistics
2Tampere University of Technology, Pori Unit
3Deloitte Finland
Academic Mindtrek Conference 2014 #mindtrek14

2. Aim of our research
•To improve understanding on how social media and open innovation communities can be used to create value for the development of B2B product
–We present a single case study that represents a unique case regarding open innovation community and social media use in the development of complex B2B products.
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3. Value network analysis as a research framework
1.Exchange analysis –What is the overall pattern of exchanges and value creation in the system as a whole? How healthy is the network and how well is it converting value?
2.Impact analysis –What impact does each value input have on the roles involved in terms of value realization?
3.Value creation analysis –What is the best way to create, extend, and leverage value, either through adding value, extending value to other roles, or converting one type of value to another?
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4. Value network between end users, experts and
industrial B2B company (exchange analysis)
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National
Instruments
End user
External
experts
Product web casts and videos
Publishing Software code
Rewarding
Product news
Answers to questions
R&D ideas
Developed software code
New product consepts
Questions and feedback
Customer loyalty
Lines describe tangible value exchanges and dashed lines describe intangible value exchanges
Industrial B2B
Company
Customers,
end users,
and experts

5. Transactionanalysis
Impactanalysis
Deliverables
From
(discove-redonlinecommu-nityactor)
To
1)Activitiesgenerated
2)Impactscausedbytransactions
Intangible
R&Dideas
Enduser,externalexpert
CaseCompany
1)Makinguseofideasinproductdevelopment
2)a)ReducedneedofR&Dresources
b)Extendedknowledgeaboutproductsandcustomerneeds
Tangible
Developedsoftwarecode
Enduser,externalexpert
CaseCompany
1)Testingsoftwarecode
2)a)ReducedneedofR&Dresources
b)Extendedknowledgeaboutthedevelopedtechnology
Tangible
Newproductconcepts
Enduser,externalexpert
CaseCompany
1)Makinguseofnewproductconceptsinproductdevelopment
2)a)Newcustomerdrivenproductconcepts,decreasedR&Dcostsb)Extendedknowledgeaboutcustomerneeds
Intangible
Questions/feedback
Enduser,externalexpert
CaseCompany
1)Askingquestions
2)a)Moreresourcestomaintaindiscussionsb)Extendedknowledgeaboutcustomerneedsandincreasedcustomerloyalty
Intangible
Customerloyalty
Enduser,externalexpert
CaseCompany
1)Activeenduserinvolvementintheprocesses
2)a)Increasedsalesnumbersb) Increasedsenseofcommunityinvirtualplatforms.Increasedcustomerrelationshipquality
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The impact of the value transaction to the case organization (impact analysis)

6. 5C categorization of social media roles
Tools
Purpose
Applicationexamples
Communicating:publishingandsharingcontent
Blogs,mediasharingsystems, discussionforums,microblogging, instantmessaging
Publish,discuss,expressoneself, showopinion,share,influence, store
Blogger,WordPress,Flickr, YouTube,Twitter, SlideShare,Prezi
Collaborating:collectivecontentcreation
Wikis,sharedworkspaces
Createcontenttogether, collaboration,produsage
Wikipedia,TWiki, GoogleDocs,MatchWare
Connecting:networkingpeople
Socialnetworks,communities,virtualworlds
Socialise,network,connect,play, entertain
Facebook,LinkedIn, SecondLife,WorldofWarcraft,HabboHotel
Completing:adding,describingandfiltering
Tagging,socialbookmarking, syndications,add-ons
Addingmetadata,describingcontent,subscribingupdates, combining,serendipity
GoogleReader,Del.ici.ous, Pinterest
Combining:mixingandmatching
Mash-ups,platforms
Combiningothertoolsandtechnologiesaccordingtosituationandneeds
GoogleMaps
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Source: Vuori 2011

7. Roles of social media in value creation analysed by 5C categories
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TransactionType
The role of social media in value creation analysed by 5C categories
Deliverables
5C category
Tangible Exchange
New product concept development
Connecting
Tangible Exchange
New product concept testing
Connecting
Collaboration
Tangible Exchange
Rewarding
Connecting
Communicating
Intangible Knowledge Exchange
New product and service ideas
Connecting
Communicating
Collaborating
Intangible Knowledge Exchange
Feedback for R&D
Connecting
Communicating
Intangible Knowledge Exchange
Userexperiencedata
Connecting
Communicating
Intangible Knowledge Exchange
Taylor made user specific news
Communicating
Intangible Knowledge Exchange
Answering to feedback/questions
Connecting
Communicating
Other Intangible Exchange
Rewarding and sense of community
Connecting
Communicating
Other Intangible Exchange
Customer loyalty
Communicating
Connecting

8. Discussion
1.What different tangible and intangible value exchanges can be identified from the perspective of studied B2B company from an online open innovation community?
–We could find in the case company’s value exchange analysis that there were several tangible exchange artefacts, including e.g. new product concept development, new product concept testing and rewarding
–Intangible value exchange took place via knowledge exchange such as new product and service ideas, customer feedback for R&D, user experience data collected, tailor made user specific news and answering to feedback questions
2.What is the role of social media in supporting the tangible and intangible value exchanges?
–We argue that social media has a significant supportive role for supporting the value transactions from the perspective of the community hosting B2B -company in the studied open innovation community. Social media supported both tangible and intangible value transactions identified in the study. Social media also made it easier and more efficient to use customer not only as innovation resources providing e.g. ideas and feedback for products, but enabled also co- creation of knowledge about new solutions, concepts and customer needs
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9. See also related research
•Ketonen-Oksi, S., Multasuo, J., Jussila, J., Kärkkäinen, H. (2014). “Social Media Based Value Creation in Innovation Community in Mechanical Engineering Industry”, European Conference on Social Media (ECSM 2014), 10-11 July 2014, Brighton, United Kingdom, 649- 655.
•Helander, N., Jussila, J., & Kärkkäinen, H. (2013). Value Creation in Business-to-Business Crowdsourcing. International Journal of Knowledge Society Research (IJKSR), 4(4), 52-63. http://www.igi- global.com/article/value-creation-in-business-to- business-crowdsourcing/106060
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