Lead user

The lead user was originally introduced by Dr. Eric von Hippel in 1986. Lead users are users of products that exhibit two key features: The first is that they expect fairly high benefits from addressing their needs, which ultimately helps them innovate. The second feature is that they are at the forefront of the most important trends in a given market, which helps them meet specific needs much sooner than many users in a given market. These users create product innovations by adapting them to their needs. Thus, lead users can provide a direct contribution to the tasks of developing new products. Very often they develop prototypes of new product solutions for themselves and also for their communities (E. Keller 2013, p. 427).

The Lead User Method

The company applies the lead user method if it has already completed the road map creation process and has defined a strategic search field. The methodology involves four major steps (E. Keller 2013, p. 428-429):

1. The start phase - This phase involves defining the goals and establishing a cross-functional team. It is important to ensure that the solutions found are sufficiently suited to the strategy, research and development as well as the capabilities and production goals of the company. Also, wide anchoring reduces the risk of problems resulting from the fact that external solutions for the company are sought.
2. Identification of major needs and trends - In this phase, you should choose three to five major trends. To be able to choose these trends, interviews with experts, information from online forums and literature studies are obtained. Their function in this process is the ability to regularly search for leading users and narrow down the problem. Trends are those dimensions in which lead users are always ahead of the mass market.
3. Identification of users leading those trends - This phase is dedicated to searching for potential users. Earlier studies usually used a mass control method in which a large sample of users was systematically filtered to identify those users who achieved the highest scores in both dimensions of major users. Recently, lead user surveys are increasingly using the pyramid method to identify lead users. Recent studies show that pyramid search strategies have higher efficacy compared to screening.
4. The lead user workshop - In the last phase, identified leading users take part in several-day workshops, in which members of the company from various functional areas also participate. During the event, there are brainstorming sessions, group discussions and other tasks aimed at using the creativity of the participants. Their ideas and concepts can be commercialized by the company (E. Keller 2013, p. 428-429).

Examples of Lead user

• The automotive industry: Automotive lead users are often people who are passionate about cars, and they are always looking for ways to improve the performance and design of their vehicles. They often customize their cars to make them faster, more powerful, or more visually appealing.
• The medical industry: Lead users in the medical industry are often doctors and scientists who are looking for ways to improve the effectiveness of treatments. They may develop new treatments or use existing treatments in new ways to help their patients.
• Technology industry: Lead users in the tech industry are often people who are constantly looking for ways to improve existing products and services. They may be the first to try out a new piece of software or hardware and provide feedback on how it can be improved. They may also develop entirely new technologies that can help solve existing problems.

Advantages of Lead user

• Lead users can provide valuable insight and market intelligence because they are at the forefront of the most important trends in a given market. This helps to identify upcoming customer needs and opportunities for innovation.
• Lead users can be a source of new product ideas, as they are likely to be familiar with the latest developments in the market and can provide ideas for products that could be beneficial to a wider market.
• Lead users are often the first to adopt new products and technologies, so their feedback can be used to refine and improve those products before they are released to the general public.
• Lead users can help to spread word-of-mouth about new products, as their enthusiasm for the product can encourage others to try it out.
• Lead users can contribute to the development of products themselves, as they often have the knowledge and skills to develop prototype products and provide feedback on them.

Limitations of Lead user

The lead user concept has some limitations, which include:

• Lead users are not always available for product development. As such, companies may not have access to their expertise and knowledge.
• Lead users cannot necessarily predict future trends and needs, so their insights may not be relevant for the long-term success of a product.
• Lead users tend to have specific interests and needs, which may not be representative of the entire market.
• Lead users are often focused on their own needs, so they may not take into account the needs of other users in the market.
• Lead users may not have the resources required to develop new products. They may not have the financial resources, knowledge, or expertise to develop a product on their own.
• Lead users may not be able to provide feedback on product development in a timely manner, which can slow down the process.

Other approaches related to Lead user

In addition to Lead User (LU) innovation, there are other approaches related to user innovation. These include:

• Co-creation, which is a collaborative process where users and businesses work together to create products and services. It is a form of user-driven innovation that involves customers and companies working together to create solutions that are tailored to the needs of both parties.
• Customer Journey Mapping (CJM) is a method used to understand customer experiences when interacting with a company’s products and services. It involves mapping out the customer journey from initial contact to the final purchase. CJM can help companies identify areas of improvement and opportunities for innovation.
• Open Innovation is a process that encourages companies to source ideas from outside of the organization. It involves leveraging external resources such as customers, suppliers, and partners to develop new products and services.

In summary, there are several approaches related to user innovation, such as Co-creation, Customer Journey Mapping, and Open Innovation. Each of these approaches can help companies innovate by leveraging the creativity and knowledge of their users.

Lead user — recommended articles

Chief innovation officer — R&D project — Creation of knowledge — Innovation and creativity — Knowledge and experience — Innovative thinking — Heuristics — Radical innovation — Value innovation

References

• Blecker T., Friedrich G., Hvam L., Edwards K. (2006), Customer Interaction and Customer Integration, GITO mbH Verlag
• Kessler E. (2013), Encyclopedia of Management Theory, SAGE Publications, Inc.
• Sänn A. (2017), The Preference-Driven Lead User Method for New Product Development: A Comprehensive Way to Stimulate Innovations with Internal and External Sources, Springer Gabler
• Schweisfurth T. (2012), Embedded Lead Users inside the Firm: How Innovative User Employees contribute to the Corporate Product Innovation Process, Springer Gabler

Author: Agnieszka Damian