Exploring the Inbound and Outbound Strategies Enabled by User Generated Big Data: Evidence from Leading Smartphone Applications

The Open Innovation paradigm has been increasingly considered as a relevant approach to innovation. Among the different sources, end users are particularly meaningful. Scholars have highlighted several methods and strategies to involve them in the innovation process by asking, observing, and giving them the chance to actually co‐create. Digital technologies are expanding the span of opportunities in this direction, gathering a huge amount and variety of data, while the end user enjoys a digital product; these data can be called “user generated big data” (UGBD). The aim of this research is to understand whether UGBD can contribute in user innovation and to highlight the enabled strategies to create value through them. Leveraging on a multiple case study (Twitter, Spotify, Strava, and Deliveroo), the paper first classifies UGBD among the methods to foster user centered innovation, and then it defines two strategies to create value relying on UGBD. First, companies can leverage on a “using data” strategy—addressing both the end user or other player in the ecosystem—fostering service innovation through an inbound approach. Second, a “selling data” strategy can be pursued, addressing new clients and fostering business model innovation, enlarging the company's value chain in an outbound perspective.