The Move to Product Development 2.0
| Product Development 1.0 | Product Development 2.0 | |
| Primary Customer Interaction Channel: | Telephone, Mail, Face-to-Face, One Way Media (Print, TV, Radio, etc.), e-mail | World Wide Web, e-mail, IM |
| Source of Innovation: | Organizations | Customers |
| Innovation Cycle: | Months, Years | Minutes, Hours, Days, Weeks |
| Content Creators: | Internal Producers | External Producers |
| Feedback Mechanisms: | Market research, satisfaction surveys, complaints, focus groups | Analytics, online requests, user contributed changes |
| Customer Engagement Style: | Controlled, well-defined process | Spontaneous and chaotic |
| Product Development Process: | Upfront design | Less upfront, much more emergent |
| Product Architecture: | Closed, not designed for easy extension or reuse by others; walled garden | Open, very easy to extend, refine, change and add on to, ecosystem friendly, designed (and legal) for widespread remixing and mashups |
| Product Development Culture: | Hierarchical, centralized, Not Invented Here, somewhat collaborative, expert-driven | Egalitarian, decentralized, remix instead of reinvent, highly collaborative, Wisdom of Crowds |
| Product Testing: | Internal, dedicated test groups, hand-picked select customers | Users as testers |
| Customer Support: | Customer Service | User Community |
| Product Promotion: | One-Way Marketing and Advertising | Viral propagation, explicit leveraging of network effects, word of mouth, user generated and other two-way advertising |
| Business Model: | Product Sales, Customer Service and Support Fees, Service Access Charges, Servicing High Demand Products | Advertising, Subscriptions, Product Sales, Servicing All Product Niches (The Long Tail), Unintended Uses |
| Customer Relationship: | External Buyer (Consumer) | Partner and -- increasingly remunerated -- Supplier (Consumers as Producers ) |
| Product Ownership: | Institution, particularly executive management and shareholders | Entire User Community |
| Partnering Process: | Formal, explicit, infrequent, mediated | Ad hoc, thousands of partners online, disintermediated |
| Product Development and Integration Tools: | Heavyweight, formal, complex, expensive, time-consuming, enterprise-oriented | Lightweight, informal, simple, free, fast, consumer-oriented |
| Competitive Advantage: | Superior products, legal barriers to entry (IP protections), brand name advantage, price, popularity, distribution channel agreements | #1 or #2 market leader, leveraging crowdsourcing effectively, mass customization, control over hard-to-create data, end-user sense of ownership, popularity, cost-effective customer self-service, audience size, best-of-breed architectures of participation |
via: http://web2.wsj2.com/product_development_20.htm
