What has changed in the Lead User Concept?

The Lead User Concept

The concept of LEAD USER is mentioned first time by Eric von Hippel in his article from 1986. The article's primary purpose is a characteristic of LEAD USERS and a way to find LEAD USER in connection with market research companies and involvement of LEAD USERs in the development process. According to Von Hippel LEAD USERS of a new product, service or process is characterized by two characteristics: (1) LEAD USERs see needs that will be general in the markets, but they see them long before the majority of other users. (2) LEAD USERs draw from their position significant benefits of having a solution for these needs. This means that LEAD USERs whose current (strong) needs become general in a market months or years later and it by involving LEAD USERs the company achieve development benefits early in the process. Therefore LEAD USER-theory represents a criticism of previous methods used in connection with R & D activity. Von Hippel and Urban (1988) demonstrate empirically that the LEAD USER-method can identify LEAD USERs and names LEAD USER-innovation for the customer-focused paradigm where LEAD USERS are used actively as part of the company's market research and R & D activities. Since then, other contributions have come a long(eg Coyne: 2000; Herstatt & von Hippel: 1992; Intrachooto: 2004; Lettl et al.: 2008; Von Hippel: 2007).

Lilien et al. (2002) demonstrates that LEAD USER as idea generator which gives better results than traditional methods. The results were measured by sales, market share and product novelty. Lettl et al. (2008) describes a case study of 4 LEAD USERs, where the LEAD USERs take risks to radical innovations that incumbents do not want to take. Enkel et al. (2005) use the LEAD USER method in conjunction with the integration of customers in innovation processes and Lettl et al. (2008) demonstrates how LEAD USERs without being in a company develop radical innovations. Unlike documenting empirical case studies of LEAD USER method of construction and engineering industries, the benefits of using LEAD USER method is limited so long that it can not find customers with the right knowledge and capabilities and selection of the right type of customer (Intrachooto : 2004; Standard et al.: 2005). Another criticism is that it is uncertain whether LEAD USERs’ needs always correspond to the needs of the ordinary user. As a way to find sources of innovation, the usability is therefore limited, if not innovation focuses on individual needs, combined efforts for innovation creation is not mandatory, and the size and complexity and make it impossible to test for a single person (Intrachooto: 2004). A knowledge perspective on this issue draws Carlile (2002), demonstrating that knowledge, which contributes to solving the problems in a function to prevent the problem solving and knowledge creation across functions.

The LEAD USER concept is a part of the user-driven innovation. User-driven innovation covers different types of users involved in the development of products, processes or services, and the concept has been observed since the 1960s (Enos: 1962; Freeman: 1968; Von Hippel: 1976). One of the advantages of involving users in the development process is that a greater proportion of the user's tacit knowledge is activated and brought to the company rather than if the user is not involved. There are several definitions of user-driven innovation and who the user is. Eg. Jon-Arild Johannesen define user as the next participant in the next step. This means the users exist across the value chain, from suppliers to employees in the company and the customers who purchase the product. User and LEAD USER is not the same as LEAD USER-driven innovation because that perspective includes only experts in the relevant field development (von Hippel: 1986; Lettl: 2008). Another angle on the "users" is to distinguish between consumer and producer. Von Hippel describes the 2007 users (not lead) as firms or individual consumers who expect to benefit by using a product or service. Unlike manufacturers expect to benefit by selling a product or service (von Hippel: 2007). Eg. profit suppliers of innovation-related materials innovation by selling the produced materials. Following this observation it is not only users, but also non-users (non-users), who contributes with knowledge in innovation networks (Von Hippel: 2007). These distinctions give respectively (1) to analyze the business as well as individuals who LEAD USER and is therefore a development of LEAD USER method of 1986, as udelead userkkende is Undertaking as innovator and (2) relevant knowledge in development found in other than experts (LEAD USER). The presence of certain types of consumers, in other words, plays a crucial role in ensuring an innovation created. It is particularly pronounced when consumers possess specific knowledge about the product to be developed (Jeppesen & Molin: 2003). The former is supported by the fact that it is often LEAD USERS who lead and head the development of radical innovations and not to the same degree of business (Lettl et al.: 2008).

Lead User in Networks
It is very rare that researchers of LEAD USERs use the network as the analytical perspective and as organizational form. Eg. analyzes Lillie et al. (2002) LEAD USER project teams in an organization (3M). However LEAD USERs is in terms of the newer LEAD USER-literature (Lettl et al.: 2008) defined by beeing Innovation Networkers(IN). Innovation Networkers is LEAD USERs with an entrepreneurial nature, which establish and lead the innovation network which includes experts from universities, research institutions and commercial companies for production, sales and marketing. In this way LEAD USER creates a situation which is usually initiated by companies in connection with LEAD USER projects. The participants in the network contributes with knowledge throughout the innovation process and is a necessity for a transformation of the product for salable product possible. In all four case studies of Lettl. et al.(2008) demonstrated that LEAD USER involved participants with other skills and knowledge to ensure innovation success (eg, individuals, knowledge and production organizations). Lettl et al. (2008) summarizes the background to why LEAD USERs initiated the network as followed: "high pressure problem, a conceptual solead usertion at hand, the relead userctant position of established manufacturing firms as well as a lack of competencies and resources were two antecedent the networking acitivities observed among LEAD USERS “, p. 226. This, plus the potential for opportunity recognitionis increased by previously acquired knowledge (Lettl et al. 2008) indicates that the authors are of the opinion that the sum of powers in the network more than the individual user or team skills.

Conclusion and Criticism of Lead User
Since Von Hippel (1986) introduced its LEAD USER method it has been empirical tested withl results that both supports and rejects the applicability of the method. One possible reason for the approach in practice has not always worked may be that Von Hippels early empirical work has focused on high-tech companies, and is therefore not valid for all types of industries. The LEAD USERmethod also states, that is the experts who help to create the best innovations in a given field (Von Hippel: 1986; Lettl et al.: 2008). It can be discussed whether "leading-edge" positions are necessary in the production, sales and marketing skills(Intrachooto: 2004). Eg. It is seen in the recent literature that innovation can be initiated by both users and enterprises (Lettl et a. 2008).

From a timing perspective, the above discussion indicates that LEAD USER- literature has moved from being a customer-focused paradigm, where only the LEAD USERs contribute to innovations in the direction of being a network-oriented approach, (1) where the knowledge and skills from other players than lead users are necessary elements in achieving successful innovations (2) where not only are companies who initiates innovation, and (3) the LEAD USER-method require specific conditions to work ((Intrachootoo: 2004).