by David Dencker

In 2006 LEGO launched ‘LEGO Factory’ a website which allows users to download a program enabling them to build virtual 3D LEGO models and upload them to ‘LEGO Gallery’ in order to display them for the online LEGO community. Subsequently, the user and other users can purchase the bricks and build the model in real life. When the user purchases his own model it is mass customization. When the model is made available online and purchased by other users, however, it is a new business model. 

The Long Tail Innovation Model comprises structural changes in NPD cost, making niche products profitable and a source of substantial revenue, by employing user innovation and online communities. As a business model, the Long Tail Innovation Model presents a systematic approach to the business logic behind Long Tail Innovation. This model could instigate a post mass production paradigm.