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15.8.2010 Co-creation and open innovation key for brands

Brand owners aiming to meet the challenges of the digital era should focus on co-creation, open innovation and consumer insights, according to a study.

McKinsey, the consultancy, reported there are currently 4 billion cellphones, 450million mobile web users and 68million people posting blogs and product reviews online.

One key response to such trends is "distributed co-creation" - or generating ideas for possible new goods, services and advertising campaigns in partnership with the internet audience.

McKinsey revealed that 70% of senior executives believed online communities provided a chance to create significant value.

Procter & Gamble, the FMCG giant, has leveraged this opportunity via its Vocalpoint.com site dedicated to mothers, who can share their views about its brands with friends and other netizens.

"In markets where Vocalpoint influencers are active, product revenues have reached twice those without a Vocalpoint network," McKinsey said.

Amazon, eBay and Google are some of the pioneers in the field, assessing details like where to locate buttons on websites and the order in which content should be displayed to confirm what drives engagement and sales.

Elsewhere, Capital One, the financial services specialist, appointed a team of analysts, IT staff and marketers to segment its customers and develop products, participating in around 65,000 tests a year.

Ford, PepsiCo, and Southwest Airlines all operate systems to monitor the buzz on properties like Facebook and Twitter, helping them gain a real-time appreciation of shopper perceptions and habits.

The evolving climate also means corporations can profit from "imagining anything as a service", McKinsey continued.