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LEGO CUUSOO
What happens when you throw open the
doors to the proverbial LEGO factory?
June 15, 2012

Tim Courtney
Senior Consultant, New Business Group
tim.courtney@LEGO.com
@timcourtney
©2011 The LEGO Group   Page 2
Photo credit: eBay user virginia_kukaj



©2011 The LEGO Group                                  Page 3
Photo credit: Joe Meno
                       Photo credit: eBay user virginia_kukaj



©2011 The LEGO Group                                 Page 4
Photo credit: Brickset



©2011 The LEGO Group                Page 5
Products by fans for fans.




              ©2011 The LEGO Group   Page 6
Involving top users in design.




               ©2011 The LEGO Group   Page 7
A Unique Fan Partnership




             ©2011 The LEGO Group   Page 8
Photo credit: eBay user virginia_kukaj



©2011 The LEGO Group                                Page 10
6 million submissions over 70 years.
                                    Photo credit: bturn.com



             ©2011 The LEGO Group                 Page 11
6 million submissions over 70 years.

             ©2011 The LEGO Group   Page 12
What is Crowdsourcing?


•   Distributed problem-solving and production model.
•   Open call for solutions.
•   The “crowd” submits solutions.
•   Solutions are owned by the entity that made the open
    call.
•   Submitters are compensated either monetarily, with
    prizes, or with recognition.




                                                Source: Wikipedia
                       ©2011 The LEGO Group
                                                            Page 13
©2011 The LEGO Group   Page 14
©2011 The LEGO Group   Page 15
©2011 The LEGO Group   Page 16
©2011 The LEGO Group   Page 17
CUUSOO
CUUSOO = WISH
Your LEGO wish.
©2011 The LEGO Group   Page 22
©2011 The LEGO Group   Page 23
©2011 The LEGO Group   Page 24
©2011 The LEGO Group   Page 25
©2011 The LEGO Group   Page 26
PAGE 28
Rapid Growth
Growth of User Accounts




                 ©2011 The LEGO Group
                                        Page 30
Weekly Active Users




                 ©2011 The LEGO Group
                                        Page 31
©2011 The LEGO Group
                       Page 32
Minecraft




            ©2011 The LEGO Group
                                   Page 33
49 Hours to 10,000

    Day 2
             Minecraft            Hayabusa            Shinkai
                           vs.                  vs.
             2 days               77 days             420 days




                                                      Minecraft
                                                      Hayabusa
                                                      Shinkai

            Week 11                                        Week 60



                                                                 Week 60

                         ©2011 The LEGO Group
Minecraft




Today Minecraft boasts over 32MM subscribers
and 6.2MM paid users.
                      ©2011 The LEGO Group
                                               Page 35
©2011 The LEGO Group
                       Page 36
©2011 The LEGO Group
                       Page 37
Summer Review Qualifiers




                 ©2011 The LEGO Group   Page 38
4000
                                                                                                8000




                                                       2000
                                                                                 6000
                                                                                                       10000




                                                   0
                         day 1
                        day 15
                        day 29
                        day 43
                        day 57
                        day 71
                        day 85
                        day 99
                       day 113
                                                                                                               Days to reach 10,000




                       day 127
                       day 141
                       day 155
                       day 169
                       day 183




©2011 The LEGO Group
                       day 197
                       day 211
                       day 225
                       day 239
                       day 253
                       day 267
                                             Town
                                                       Zelda




Page 39
                        Image Credit: NIKE
                                             Western
                                                                      DeLorean
                                                                                        EVE Rifter
The Value of a Project
Concept + Audience +
 Model + Product Fit

       ©2011 The LEGO Group
                              Page 42
A good model can build an audience.




A good model can help build an audience too.


                      ©2011 The LEGO Group
                                               Page 43
A good model gives focus to a
project, and can heavily influence the final
product.




                   ©2011 The LEGO Group
                                               Page 44
An external community can help build an
audience too.




                  ©2011 The LEGO Group
                                          Page 45
Long Supporter Tail




Compiled by LEGO CUUSOO user GlenBricker
                    ©2011 The LEGO Group
                                           Page 46
Supporters vs. Ranking




Compiled by LEGO CUUSOO user GlenBricker
                    ©2011 The LEGO Group
                                           Page 47
Complexity of Production
Image Credit: NIKE




©2011 The LEGO Group            Page 50
Image Credit: NIKE




©2011 The LEGO Group            Page 51
We give you this palette…




                                          Image Credit: NIKE




                  ©2011 The LEGO Group   Photo credit: Alex Howe
                                                     Page 52
In these color combinations…




                                                       Image Credit: NIKE

                                        Photo credit: LEGO CUUSOO User Fugazi


                 ©2011 The LEGO Group                           Page 53
Image Credit: NIKE




©2011 The LEGO Group            Page 54
What happens when you
reach 10,000?

The LEGO Review
Summer Review Qualifiers




                 ©2011 The LEGO Group   Page 56
Quarterly Review Cycle


•   Reviews happen once per quarter, starting
    June, September, December, and March
•   All projects that reach 10,000 supporters in the timeframe
    are reviewed on their own merits
•   Of the projects that pass, we can pick one for production
    each quarter
•   Other projects that pass are queued and may receive a
    later production slot




                        ©2011 The LEGO Group
                                                           Page 57
Phases of the LEGO Review




    Brand Fit    Business Case



                     License
                   Agreements



                  Model Design          Final Review




                 ©2011 The LEGO Group
                                                       Page 58
What factors influence the review?


•   Does it fit the LEGO brand?
•   Can we secure a license for it if needed?
•   Does it conflict with anything we are already doing?
•   Is it a concise idea that we can easily produce?
•   Can we build an attractive model at a market price?
•   Does it depend on new element molds?
•   What is the sales potential of the product?




                        ©2011 The LEGO Group
                                                           Page 59
Learn more about passing the
review on our blog:

http://legocuusoo.posterous.com


             ©2011 The LEGO Group
                                    Page 60
From Project to Product
A good concept with an audience can go
from this…




                 ©2011 The LEGO Group
                                         Page 62
…through model development…




Product concepts by LEGO designer Steen Sig Andersen
                     ©2011 The LEGO Group
                                                       Page 63
What is the value of an idea?




Product concepts by Bjarne Panduro Tveskov
                     ©2011 The LEGO Group
                                             Page 64
Late stage concepts by Steen Sig Andersen
                      ©2011 The LEGO Group
                                             Page 65
…to final product.




                     ©2011 The LEGO Group
                                            Page 66
©2011 The LEGO Group
                       Page 67
Open Beta:
High Learning Curve
The genuine Lean Startup mindset:
launch soon, iterate frequently, fail
fast, test everything.

-Eric Reis and Dave McClure


                ©2011 The LEGO Group    Page 69
Learning & Building as We Go



                                                                           Acceptable
Plagiarism                  Pre-Moderation                                  Content




             Guidelines &                          Project Rejections                    Business
             House Rules                        (Shaun, Firefly, MLP, SW                Integration
                                                        Bucket)




                                             ©2011 The LEGO Group                                     Page 70
©2011 The LEGO Group   Page 71
What fits our brand?




                  ©2011 The LEGO Group
                                         Page 72
Acceptable Content


•   LEGO CUUSOO yields mass market products that we
    put our name on
•   The House Rules contain a framework for what content
    the LEGO Group allows in its products
•   We pre-moderate all content before it is
    published, however we can’t give each new IP an
    exhaustive analysis.
•   For cases that are borderline, the LEGO Group makes
    the final determination.




                       ©2011 The LEGO Group
                                                       Page 73
Who owns an idea?


•   Plagiarism
•   Idea/Theme Squatting
•   Two projects referring to the same IP
•   What if TLG already had that concept in development?




                       ©2011 The LEGO Group
                                                           Page 74
But that was MY idea!




Original comic: http://thedoghousediaries.com/3535

                                   ©2011 The LEGO Group
                                                          Page 75
Value = Concept +
    Audience

      ©2011 The LEGO Group
                             Page 76
Looking Ahead
What’s next?


•   Summer Review
•   Community Development
•   Website Design/Redesign
•   Business Integration




                     ©2011 The LEGO Group
                                            Page 78
6 million submissions over 70 years.
                                    Photo credit: bturn.com



             ©2011 The LEGO Group                Page 79
Thank you. Questions?

Tim Courtney
tim.courtney@LEGO.com
@timcourtney

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LEGO CUUSOO at Brickworld 2012

Notas do Editor

  1. ----- Meeting Notes (1/31/12 12:46) -----Thanks, Brad, for having me here this morning. I'm here to tell you the story of where the LEGO Group has taken ----- Meeting Notes (1/31/12 13:20) -----Thanks, Brad, for having me here this morning. Hi everyone. I'm here to pick up the story where Brad left off. Today at the LEGO Company we have a platform called LEGO CUUSOO, that gives any of our fans the opportunity to see their ideas become an actual LEGO product.
  2. When I was young, I would draw up designs and send them to LEGO. Susan Williams would write me back and tell me that they could not accept my unsolicited idea.A year ago I would have been sitting in these seats with you listening to Paal Smith-Meyer present about CUUSOO.It’s been quite the transition going from a fan’s perspective to learning how TLG works and representing TLG.
  3. When I was young, I would draw up designs and send them to LEGO. Susan Williams would write me back and tell me that they could not accept my unsolicited idea.A year ago I would have been sitting in these seats with you listening to Paal Smith-Meyer present about CUUSOO.It’s been quite the transition going from a fan’s perspective to learning how TLG works and representing TLG.
  4. ----- Meeting Notes (1/31/12 13:20) -----Here are some of the products we co-created with fans, starting with the Blacksmith Shop.
  5. ----- Meeting Notes (1/31/12 13:20) -----We also sought out the best LEGO MINDSTORMS builders in the world to help us determine what parts and functions would go into our first major re-release of LEGO MINDSTORMS, the LEGO MINDSTORMS NXT kit. We involved our consumers directly in the product development process, and they told us the elements they wanted the most. This helped us bring something to market that struck a chord with the mass market in a way it couldn't have otherwise. We're privileged to have passionate fans who both tell us what they want and evangelize the LEGO brand on their own.
  6. ----- Meeting Notes (1/31/12 13:20) -----We're looking for our fans to share their LEGO ideas with us...
  7. How do you make it so everyone who has great ideas can participate?We’re looking to capture a broader variety of ideas.
  8. How do you make it so everyone who has great ideas can participate?How do you make it so the most popular items rise to the top?
  9. How do you make it so everyone who has great ideas can participate?
  10. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----It officially launched at MineCon, a convention held in Las Vegas last November. But what's more interesting is Mojang had already built up a large, passionate community of people playing their Alpha and Beta releases, and they funded their startup by actually charging access to the Alpha.
  11. Started in 2000.They hold a design competition for the best t-shirt artwork and print and sell the winning designs. They're one of the most notable and successful companies built with a business model of crowdsourcing.This model solicits ideas from the community, leverages the community to upvote the best designs (measuring demand and providing market research), pays the artist, and then sells the product back to the community and to a consumer audience.
  12. Started in 2000.They hold a design competition for the best t-shirt artwork and print and sell the winning designs. They're one of the most notable and successful companies built with a business model of crowdsourcing.This model solicits ideas from the community, leverages the community to upvote the best designs (measuring demand and providing market research), pays the artist, and then sells the product back to the community and to a consumer audience.
  13. Started in 2000.They hold a design competition for the best t-shirt artwork and print and sell the winning designs. They're one of the most notable and successful companies built with a business model of crowdsourcing.This model solicits ideas from the community, leverages the community to upvote the best designs (measuring demand and providing market research), pays the artist, and then sells the product back to the community and to a consumer audience.
  14. Crowdsourced product designInventor and Contributors share in credit and revenue
  15. Partnership with CUUSOO System, tested in Japan for two yearsExpanded globally to test the concept on a large scaleDifferent from Threadless, Kickstarter, and Quirky as we are taking a traditional business and opening a portion of it to crowdsourced ideas.Open innovation - allow external ideas to shape new developmentsSharing risk and reward
  16. ----- Meeting Notes (1/31/12 13:20) -----CUUSOO is a Japanese word that roughly translates to "wish."
  17. ----- Meeting Notes (1/31/12 13:20) -----Your LEGO Wish.
  18. ----- Meeting Notes (1/31/12 13:20) -----Here's a look at what the homepage looked like for the Japanese version.
  19. ----- Meeting Notes (1/31/12 13:20) -----Here are some of the original ideas we received on the Japanese platform. You can see a working LEGO candle, a stacking outlet system, an alarm clock, and the funniest one I see on the bottom left actually has a call out pointing to the fact it has "real water" in the moat.
  20. ----- Meeting Notes (1/31/12 13:20) -----This is the artwork he submitted. He was trying to depict his LEGO version of a deep sea submarine called the Shinkai 6500. It's goes deeper than any other submarine in the world that carries a live crew.
  21. ----- Meeting Notes (1/31/12 13:20) -----Here is the Shinkai in it's final box.
  22. ----- Meeting Notes (1/31/12 09:08) -----Once the model reaches the 1000 supporter threshhold, it goes into a review process. A team at LEGO reviews the model, builds the business case, and decides whether or not we are going to produce it.
  23. ----- Meeting Notes (1/31/12 09:08) -----Here is a view of the Hayabusa box.
  24. ----- Meeting Notes (1/31/12 09:08) -----After LEGO CUUSOO succeeded in Japan, we decided to open it up to the global market. For Japan, we required 1,000 people to support a project to be considered. For the global market, we raised that number to 10,000.We opened LEGO CUUSOO to the global market in October of last year.
  25. ----- Meeting Notes (1/31/12 09:08) -----And here's a look at the LEGO CUUSOO homepage. Users quickly get an idea of what they can do -- they can browse models, support ones they like, and create their own projects too.
  26. ----- Meeting Notes (1/31/12 09:08) -----After LEGO CUUSOO succeeded in Japan, we decided to open it up to the global market. For Japan, we required 1,000 people to support a project to be considered. For the global market, we raised that number to 10,000.We opened LEGO CUUSOO to the global market in October of last year.
  27. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----It officially launched at MineCon, a convention held in Las Vegas last November. But what's more interesting is Mojang had already built up a large, passionate community of people playing their Alpha and Beta releases, and they funded their startup by actually charging access to the Alpha.
  28. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----It officially launched at MineCon, a convention held in Las Vegas last November. But what's more interesting is Mojang had already built up a large, passionate community of people playing their Alpha and Beta releases, and they funded their startup by actually charging access to the Alpha.
  29. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----We were surprised when the Minecraft project caught the attention of Mojang and their fans. Minecraft is a construction game and it has many similarities to LEGO as a building toy. Once Mojang linked to the LEGO CUUSOO project, it actually brought our servers to their knees because the traffic was coming in so quickly.
  30. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----Here's a shot of the Minecraft concept model on the new LEGO CUUSOO site. In the orange box, you can see the word "Achieved." This is usually a ticker that tells you the number of votes.
  31. ----- Meeting Notes (1/31/12 09:08) -----So, Minecraft, our third LEGO CUUSOO project, reached the required 10,000 supporters for the new global platform within two days, where it took the second model I showed you, the Hayabusa, 77 days to reach 1,000 in Japan.
  32. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----In less than two months, someone submitted a project based on the popular game Minecraft.Minecraft is a very popular new game that lets you mine for raw materials and build in a 3D world.
  33. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----Here's a shot of the Minecraft concept model on the new LEGO CUUSOO site. In the orange box, you can see the word "Achieved." This is usually a ticker that tells you the number of votes.
  34. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----Here's a shot of the Minecraft concept model on the new LEGO CUUSOO site. In the orange box, you can see the word "Achieved." This is usually a ticker that tells you the number of votes.
  35. ----- Meeting Notes (1/31/12 13:20) -----I'm going to recap just a little bit about what Brad just shared. Then we'll move into what LEGO CUUSOO is, and I'll tell the story of how it started in Japan and what we've seen now that we've succeeded there and launched our global beta. We'll then conclude with the promise and the opportunity we give our fans, and share some of the ways we are fostering user engagement on the platform.
  36. Crowdsourced product designInventor and Contributors share in credit and revenue
  37. ----- Meeting Notes (1/31/12 13:20) -----We're looking for our fans to share their LEGO ideas with us...
  38. What makes a good project? Is it the model? Should we just vote up the best MOCs on CUUSOO?
  39. It’s a bit more than that. LEGO CUUSOO builds an audience around a concept, and a good project has to be a good fit for a LEGO product.
  40. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----It officially launched at MineCon, a convention held in Las Vegas last November. But what's more interesting is Mojang had already built up a large, passionate community of people playing their Alpha and Beta releases, and they funded their startup by actually charging access to the Alpha.
  41. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----It officially launched at MineCon, a convention held in Las Vegas last November. But what's more interesting is Mojang had already built up a large, passionate community of people playing their Alpha and Beta releases, and they funded their startup by actually charging access to the Alpha.
  42. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----It officially launched at MineCon, a convention held in Las Vegas last November. But what's more interesting is Mojang had already built up a large, passionate community of people playing their Alpha and Beta releases, and they funded their startup by actually charging access to the Alpha.
  43. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----It officially launched at MineCon, a convention held in Las Vegas last November. But what's more interesting is Mojang had already built up a large, passionate community of people playing their Alpha and Beta releases, and they funded their startup by actually charging access to the Alpha.
  44. Cuusoo – 20.000 brugere1300 projekter/ideer----- Meeting Notes (1/31/12 09:08) -----It officially launched at MineCon, a convention held in Las Vegas last November. But what's more interesting is Mojang had already built up a large, passionate community of people playing their Alpha and Beta releases, and they funded their startup by actually charging access to the Alpha.
  45. ----- Meeting Notes (1/31/12 09:08) -----After LEGO CUUSOO succeeded in Japan, we decided to open it up to the global market. For Japan, we required 1,000 people to support a project to be considered. For the global market, we raised that number to 10,000.We opened LEGO CUUSOO to the global market in October of last year.
  46. Uncharted Territory
  47. 1:1 business model, mass customization
  48. Compared to what we’re doing, it’s like a coloring book.
  49. LEGO CUUSOO gives you this pallette
  50. Crowdsourced product designInventor and Contributors share in credit and revenue
  51. Design by Me is 1:1, where LEGO CUUSOO asks people to submit a concept that will make an attractive, marketable mass product.
  52. When you open the doors, who knows what kinds of things people are going to submit?
  53. We need your participation. You need to participate to get what you want, too.