Exploring innovative ways for companies to engage with customers through the internet in developing new products

This study seeks to explore new ways in which firms are involving customers in the development of new products, using on-line tools. These internet enabled methods allow companies to `design with´ their customers. Based on literature, this paper explores different ways in which firms can `design with´ their customer and introduces a conceptual matrix to position these alternative strategies. Three specific approaches are explored further through secondary data relating to firms which have already implemented a `design with´ strategy. This paper concludes with a simple model which aims to guide firms in the transition towards a `design with´ approach and to better exploit the potential offered by web-based methods for engaging customers early in product design.