Nice threads
Threadless is a great success story of a business model built entirely on co-creation. The idea is fairly simple; users create a tee shirt design and the community votes on whether it should be produced. If your design is selected, you get paid. Co-creation is as close as you can get to involving your user in the design process. Allowing the community to decide whether a product is produced or not certainly lowers the risk of new product launches. Also consider the benefits of a global R&D department that only gets paid when they produce.
Guy Kawasaki posted this short interview with their Chief Creative Officer.
