PHD Student : Ana Elisa Martins Pacheco de Castro Supervisor: Prof. Dr. Roberto Sbragia

1. Integrating leader-users’ knowledge: Evaluating the absorptive capacity of different technological companies. PHD Student: Ana Elisa Martins Pacheco de Castro Supervisor: Prof. Dr. Roberto Sbragia São Paulo University

2. Agenda • Context • GapfromLiterature • QuestionPoint • LiteratureReview • Conceptual Model • Methodology • ExpectedContribuitions

3. Context • Environment is changing • The increased flow of knowledge (ICTs): • The information created and transmitted via the Internet, telephone networks and private networks reached more than 900 billion gigabytes (IDC, 2010); • People are getting more technological; • Restructuring of old business models eg: music industry; • Emergence of new business models based on external knowledge – Youtube; Wikipedia; Red Hat.

4. Context • P&D: • Commoditizationoftechnology X Reducedcostsandrisks • Knowledge’ specialization • Risingcollaborationnetworks complexity • Firms invest in greater product variety but are less able to differentiate themselves and the concern about how to create value have become the dominant themes for managers. • The meaning of value and the process of value creation are rapidly shifting from a product- and firm-centric view to personalized consumer experiences.

5. Context • Innovation Process • Lean • Organizational and systems integration • Flat and flexible organizational structures • Bank developed data (information integration) • Rapid prototyping • Efficient sharing of knowledge • -

6. Context How to resolve these issues? • Challenge for companies • Increase internal knowledge • Improve the user experience • Reduce costs and risks • Expand the product line, but focused • -

7. What does theliteraturesay UsersCollaboration Innovation AbsortiveCapacity (ZAHRA; GEORGE, 2002, VON HIPPEL, 1986)

8. 1. Lead users have new product or service needs before the others consumers 2. Lead users expect to benefit significantly by finding a solution to their needs. Lead user (VON HIPPEL, 1986) Churchill etal, 2009

9. Conceptual Logicon ZAHRA; GEORGE, 2002, P. 192 ) AbsortiveCapacity Potential Realized - Knowledge source andcomplementary - Prior Knowledge • CompetitiveAdvantage • Flexibility • Innovation • Performance Acquire Transform Assimilate Exploitation Social integrationmechanism Regimes ofapropriability Activation triggers

10. What has been said

11. What has not been said yet • There are few studies that address all dimensions of absorptive NPD (DUCHECK 2013); • Many studies have dealt with the integration of lead users in a specific phase of DNP, usually in the early stages (ENKEL,E.; KAUSCH, C.; GASSMANN, 2005; VON HIPPEL, THOMKE; SONNACK, 1999; LUTHJE E HERSTATT, 2004; OLSON; BAKKE, 2001; LAURSEN, SALTER, 2006; OLIVEIRA; VON HIPPEL, 2011; VON HIPPEL, 1988; ENKEL,E.; KAUSCH, C.; GASSMANN, 2005), but few talk about how this integration can happen in more advanced stages of the NPD process. • Studies talk about absorptive capacities in different companies but no one evaluates the absorptive differences of different sectors with the aim of linking the different absorptive practices to the results of innovation leaders users.

12. What has not been said yet • Few studies that address all dimensions of absorptive NPD (DUCHECK 2013); • Many studies have dealt with the integration of lead users in a specific phase of DNP, usually in the early stages (ENKEL,E.; KAUSCH, C.; GASSMANN, 2005; VON HIPPEL, THOMKE; SONNACK, 1999; LUTHJE E HERSTATT, 2004; OLSON; BAKKE, 2001; LAURSEN, SALTER, 2006; OLIVEIRA; VON HIPPEL, 2011; VON HIPPEL, 1988; ENKEL,E.; KAUSCH, C.; GASSMANN, 2005), but few talk about how this integration can happen in more advanced stages of the NPD process. • Studies talk about absorptive capacities in different companies but no one evaluates the absorptive differences of different sectors with the aim of linking the different absorptive practices to the results of innovation leaders users.

13. QuestionPoint How do companies absorb lead-user's knowledge and which kind of contribution this knowledge brings to innovations’ outcomes in companies with different technologic demands?

14. LiteratureReview Colaborative Perspective Typology Firm’sResult Perspective Practices Perspective Knowledge’s Perspective Routines MarketOriented Acquire Toolkits Lead User Assimilate TechnologyOriented Motivation Transform Users Companies EarlyAdopter Explore Communication FIRMS University Routineuser Coordination Supplier Competidors Laggards UserInnovation (VON HIPPEL, 1988) OPEN INNOVATION (CHESBROUGH, 2003 USER INNOVATION (VON HIPPEL, 1988) Literature Perspective ABSORTIVE CAPACITY TODOROVA; DURISIN, 2007 Innovation

15. Conceptual Model

16. Methodology • Multiplecase’sstudy (6 projects in different industries) • Time Dimension: Longitudinal • Retrospective Case • Triangulation: documentsandenterviews • Analises Unit: UserInnovation’s Project • Respondent’sprofile: marketing/ sales, manufactureandP&Dpeople.

17. Variables: AbsorptiveCapacity 1- rotines (how is theintegration) 2- toolkits (mode of interaction, intensity of relationship, nature of the relationship ResultsofInnovation 1-Marketoriented: raising expectations, minor modifications of the product, product development, with greater acceptance, reducing errors in the development. 2 -Orientedtechnology: Significantimprovement in productquality; developmentofnewproductsorservices Lead Users 1- Individual orcoletive 2- From the nature of knowdledge: market-orientedortechnology-oriented TechnologicalDemand (Services; TI; Indústria) Variables:

18. Absorptive Capacity of Lead Users Knowledge Rotine Toolkits Acquire Assimilate Transform Lead UserColletive Exlplore Rotine Toolkits Techinical K Acquire Assimilate Lead Users Individual Transform Exlplore Rotine Natureofthe Project Toolkits Acquire Assimilate Transform Lead UserColletive Rotine Exlplore Market K Toolkits Acquire Assimilate Lead Users Individual Transform Exlplore

19. Service Service Inovation’sResults In Service Industry Industry Inovation’sResults In Industry Innovation’s Outcomesfrom Lead User IT Company IT Company Inovation’sResults In IT Companies

20. Contribution AcademicContribuitions: 1- Lead UserInnovation – by comparing the behavior for lead users in different sectors and segments. 2- AbsortiveCapacity - by showing how users leaders’ knowledge can be incorporated into all phases of NPD. 3- InnovationStrategy – by connecting such different results arising from the absorption of lead users knowledge in different sectors. Manager Contribuitions: Theresultsofthisstudy are relevant for companysofdifferentsegmentsthatseeking to involveappropriateusers in NPD. In a more timely manner, this study aims: 1- Display the ways of involving lead users in different phases of DNP. 2- Clarify the types of problems that can be solved by lead users and suggest some ways to protect this knowledge (appropriabily); 3- Pointing different forms of relationship and communication most appropriate choices of different types lead users (individual and collective); 4 - Increase understanding of the innovative possibilities from the integration of lead users in NPD.

21. Thank you

22. absorptivecapacity ResultsofInnovation Lead Users Demanda Tecnológica (Serviços; TI; Indústria) (ZAHRA; GEORGE, 2002, VON HIPPEL, 1986....)