This article does a good job of outlining how Lego struggled with the notion of opening up its innovation model and listening to its adult customers. Similar to Microsoft and hackers of the Kinect, Lego had to decide, "Do we sue them or embrace it," when faced with hackers of their Mindstorms products. Ultimately Lego embraced user innovation and saved their company. This article also discusses how adults have left high paying jobs to become "Lego Ambassadors" or Lego artists and make their own designs.
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An excellent example of how firms can actually profit by being more open and releasing control of its innovation activities. This type of opening up requires a considerable degree of humility and is something that most firms are reluctant to do. Lego, like P&G & Microsoft finally got this. More firms will be jumping on this open bandwagon soon.