The lead user method for identification of new product and service concepts is built around the idea that the richest understanding of new product and service needs is held by "lead users." Such users can be systematically identified, and the information they hold can be used for purposes ranging from new product and service development to the development of corporate strategy. Product and service concept development methods that incorporate inputs from lead users are currently being adopted by a number of companies. In this article we report on the successful use of the lead user method in the field of electronic home banking services. Methods used in this case study are described in detail, and four general "lessons from the learning curve" with respect to lead user method practices are presented in a final discussion section: (1) the value of identifying lead users via a networking process rather than by surveys of likely user populations; (2) an "innovation first" approach to lead user identification; (3) the value of understanding lead user systems when developing new product and service concepts; (4) learning from vs. adopting lead user innovations.
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