Is it safe to involve your customers in your business?

A few weeks ago, Holly Green wrote a nifty post on Blogging Innovation titled, "Making the Leap to Disruptive Innovation".  Her main premise is that getting your customers involved in the product development process can not only set you apart from your competition, it can also set your company up for "disruptive innovation," essentially innovation that can leapfrog you ahead of your competition.

While this sounds like a great concept, a number of organizations I have talked to have expressed some trepidation and even fear in getting their customers involved, and have cited a number of concerns that are preventing them from getting off the snide including:

• What if we can't control how are customers work with us?
• What if we can't do what they are asking us to do?
• If we open this up will our secrets get out?
• What if what they want will cannibalize our revenue stream?
• What if we don't have enough people to handle the load?

I think you get the picture, the question is, are their concerns valid?

In IBM's resent survey of 1,500 CEO's "Capitalizing on Complexity, "  http://www-935.ibm.com/services/us/ceo/ceostudy2010/index.html they found that of the 1,500 or so companies they interviewed, a small % outperformed their competitors, the market, and their previous year's results, and there are many factors that contributed to their successes.  One of the common themes, however, was the following observation that they made:

"The most successful organizations co-create products and services with customers, and integrate customers into core processes".

What has made these organizations different and more successful than their peers is their willingness to involve their customers (and business partners, and a broader group of employees) in the development of new products and services, and in how they communicate. 


Look at Best Buy  (twelpforce, IdeaX), and Cisco Systems (iPrize). 


Both organizations are reaping rewards by opening up their companies to ideas, and the results they are getting not only help the bottom line, but they also serve to build loyalty, recruits for employment, and always on focus groups. 

So how can you go from "I can't" to "I can"  when you are challenged to get your customers involved?

Here are a few thoughts:

1. Identify a small project and simply go for it.  By this I mean pick an area of your business that has a manageable customer base, pick an attainable goal or outcome you are hoping for, and ask for help. It is important to set and publish your objectives, and also set a timeframe for responses.  It doesn't hurt to provide a coupon or some other type of incentive to get the ball rolling.  Keep it simple!  Ultimately, your key takeaway here be to learn from the practice round.  Look for how people respond to your requests, and make sure you document it!
2. Don't be afraid to say no!  Inventors fail a lot more often than they succeed!  The same will happen with capturing ideas.  Most of the ideas you get will not help your bottom line, but there will be a precious few that you can reap huge rewards from.  Like in item #1, make sure you communicate your objectives, and share ideas with your customer community. When people can see ideas in context, they appreciate the transparency, and can understand when their idea doesn't make the cut.
3. If your customers figure out a way to cannibalize your revenues..... My guess is your competitors can, too. If you are really concerned about customers identifying holes in your business, you probably have some issues with your business model you need to address.  Have your customers help you before they help your competion by buying from them!

So, is it safe?