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 Logistics2 Tampere University of Technology, Pori Unit

3 Deloitte Finland

Academic Mindtrek Conference 2014 #mindtrek14

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.

8.11.2014 2

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?

8.11.2014 3

Value network between end users, experts and

industrial B2B company (exchange analysis)

8.11.2014 4

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

Transaction analysis Impact analysis

Deliverables From

(discove-red online commu-nity

actor)

To 1)Activities generated

2)Impacts caused by transactions

Intangible R&D ideas End user, external expert Case Company 1) Making use of ideas in product

development

2) a) Reduced need of R&D

resources

b) Extended knowledge about

products and customer needs

Tangible Developed software code End user, external expert Case Company 1) Testing software code

2) a) Reduced need of R&D

resources

b) Extended knowledge about the

developed technology

Tangible New product concepts End user, external expert Case Company 1) Making use of new product

concepts in product development

2) a) New customer driven

product concepts, decreased

R&D costs b) Extended

knowledge about customer

needs

Intangible Questions/ feedback End user, external expert Case Company 1) Asking questions

2) a) More resources to maintain

discussions b) Extended

knowledge about customer

needs and increased customer

loyalty

Intangible Customer loyalty End user, external expert Case Company 1) Active end user involvement in

the processes

2) a) Increased sales numbers b)

Increased sense of community in

virtual platforms. Increased

customer relationship quality

8.11.2014 5

The impact of the value transaction to the case

organization (impact analysis)

5C categorization of social media

roles

Tools Purpose Application examples

Communicating: publishing and sharing content

Blogs, media sharing systems,

discussion forums, microblogging,

instant messaging

Publish, discuss, express oneself,

show opinion, share, influence,

store

Blogger, WordPress, Flickr,

YouTube, Twitter,

SlideShare, Prezi

Collaborating: collective content creation

Wikis, shared workspaces Create content together,

collaboration, produsage

Wikipedia, TWiki,

GoogleDocs, MatchWare

Connecting: networking people

Social networks, communities, virtual

worlds

Socialise, network, connect, play,

entertain

Facebook, LinkedIn,

SecondLife, World of

Warcraft, Habbo Hotel

Completing: adding, describing and filtering

Tagging, social bookmarking,

syndications, add-ons

Adding metadata, describing

content, subscribing updates,

combining, serendipity

GoogleReader, Del.ici.ous,

Pinterest

Combining: mixing and matching

Mash-ups, platforms Combining other tools and

technologies according to situation

and needs

GoogleMaps

8.11.2014 6

Source: Vuori 2011

Roles of social media in value

creation analysed by 5C categories

8.11.2014 7

Transaction Type 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 User experience data 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

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

needs8.11.2014 8

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

8.11.2014 9

10

FOR MORE INFORMATION SEE

NOVI RESEARCH CENTER:

Twitter: @Noviresearch ja @tietojohtaminen

NOVI research center’s website

https://www.tut.fi/novi/

Slideshare: http://www.slideshare.net/Noviresearch

YouTube: http://youtube.com/noviresearch

NOVI RESEARCH CENTER

TUT.FI/NOVI

TWITTER: @NOVIRESEARCH