The development of a user network as a way to re-launch an unwanted product

A common situation in product development is that of product failure and the need for re-launch. This paper presents findings regarding how one firm successfully re-launched a product through the ex-post development of a user network. The producer, Biacore, had to re-launch its biosensor product or lose a (sic)50 million investment. The firm identified and interacted with multiple potential lead-users in order to generate new use applications. The firm benefited from the successful development of a set of new applications, innovative users, and sales. As sales of the product increased, Biacore created marketing channels as diffusion mechanisms for the encouragement of direct and indirect user-to-user interaction. These were a way to spread the costs of user support when the firm standardised how it interacted with users. Some follower-users were able to benefit from lead-users who became lead teachers; other follower-users became non-users of the product. This paper illustrates three main roles for the firm in developing a user network: creating lead-users, organising directed applications development and facilitating user-to-user interaction. (C) 2007 Elsevier B.V. All rights reserved.