The User Innovation Research Initiative is a research program which aims to deepen our understanding of the phenomenon of user innovation and is hosted by the Institute for Entrepreneurship and Innovation at the Vienna University of Economics & Business Administration.

Companies can equip their customers with virtual tools which allow them to design their own products. How does this work?

• Flexible manufacturing systems have only recently started to enable companies to respond to each customer's individual preferences with an individual product in (almost) mass-production efficiency.

• Toolkits for User Innovation and Design build the interface between manufacturers and customers.

• The core idea is to outsource the task of designing new products to users by equipping them with a toolkit which enables them to convert their ideas into individual products.

• These toolkits allow trial-and-error experimentation and deliver immediate (simulated) feedback on the potential outcome of design ideas.

• Once a satisfactory solution is found, the design can be transferred into a firm's production system and the resulting self-designed product can be delivered to the customer.
• Due to the novelty of this phenomenon, research into the shifting of innovation and design tasks from manufacturers to customers is still in its early stages.
• However, interest in this field is growing fast, as many start-ups as well as big players like Dell, Nestlé, Nike, and International Flavors and Fragrances have started to empower their customers with toolkits.

T-Shirt Designer

Ski-Designer

In this line of research, we aim to analyze the implications of this radically new manufacturer-customer interaction for both customers and manufacturers. The research issues we address here include the following:

• The value toolkit-based products deliver to customers: Are users willing to pay more for self-design? If yes, where does this value increment stem from?

• User-toolkit interaction: What should toolkits look like? Which toolkit characteristics maximize ease of use and facilitate problem-solving?

• Implications of toolkits for a firm's strategy: How does the toolkit approach change a company's business model? How can companies efficiently switch from serving multi-customer segments to 'markets of one'?

Fonds zur Förderung der wissenschaftlichen Forschung

Jubiläumsfonds der Oesterreichischen Nationalbank

Wiener Wissenschafts-, Forschungs- und Technologiefonds

• Franke, Nikolaus, Schreier, Martin. 2010. Why customers value mass-customized products: The importance of process effort and enjoyment. Journal of Product Innovation Management, Vol. 27, 1020-1031. Download

• Franke, Nikolaus, Schreier, Martin, Kaiser, Ulrike. 2010. The "I designed it myself" effect in mass customization. Management Science, Vol. 56, 125-140. Download
  

• Franke, Nikolaus, Keinz, Peter, Steger, Christoph. 2009. Testing the Value of Customization: When Do Customers Really Prefer Products Tailored to Their Preferences?. Journal of Marketing, Vol. 73 (5), 103-121. Download
  

• Franke, Nikolaus, Schreier, Martin. 2008. Product uniqueness as a driver of customer utility in mass customization. Marketing Letters, Vol. 19 (2), 93-107. Download

• Schreier, Martin. 2006. The value increment of mass-customized products: An empirical assessment. Journal of Consumer Behaviour, 5/4, 317-327.
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• Franke, Nikolaus, Piller, Frank. 2004. Value Creation by Toolkits for User Innovation and Design: The Case of the Watch Market. Journal of Product Innovation Management, Vol. 21 (6), 401-415.
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• Franke, Nikolaus, von Hippel, Eric. 2003. Satisfying Heterogeneous User Needs via Innovation Toolkits: The Case of Apache Security Software. Research Policy, 32, 1199-1215.
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• Franke, Nikolaus, Piller Frank. 2003. Key Research Issues in User Interaction with User Toolkits in a Mass Customization System. The International Journal of Technology Management, Vol. 26 (5/6), 578-599.
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• Franke, Nikolaus, Schreier, Martin. 2002.
  Entrepreneurial Opportunities with Toolkits for User Innovation and Design. The International Journal on New Media Management, Vol. 4 (4), 225-234.
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We have presented our research in this area at several international conferences, including:

• Academy of Management (Annual Conference)
• American Marketing Association (Summer Educator Conference)
• European Academy of Management (Annual Conference)
• International Product Development Management Conference
• World Congress on Mass Customization and Personalization

We also accompany and consult firms as well as start-ups interested in the toolkit approach. This might include:

• Planning the appropriate business model

• Market research to evaluate potential benefits and risks

• Conceptual development and improvement of the toolkit

• Usability tests

One example of a recent partner is Edelwiser, an Austrian ski producer