Online Consumer groups represent a large pool of product know-how. Hence, they seem to be a promising source of innovation. At present, except for open source software, little is known about how to utilize this know-how for new product development. In this article we explore if and how members of virtual communities can be integrated into new product development. We explain how to identify and access online communities and how to interact with its members in order to get valuable input for new product development. This approach we term “Community Based Innovation”. The Audi case illustrates the applicability of the method and underscores the innovative capability of consumers encountered in virtual communities.
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