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Unleashing the Wisdom of Crowds

A New Approach to Collaborative Innovation

What is Social Innovation?

Leveraging the power, insight and wisdom of crowds to generate new ideas through “networked brainpower” that produces results exponentially more valuable than the sum of the individual parts.

aka: crowdsourcing, co-creation, idea engines, etc.

Why Now?

• 84% of executives believe innovation is the key to growth (Source: McKinsey, 2010).

• 45% see innovation as one of their top three priorities (Source: BCG, 2010).

• Value proposition = Speed to market

“…research shows when employees don’t feel involved in the workplace, they tend to withdraw. They don’t engage in all the extra activities that aren’t required for the job, such as helping a coworker, staying late or taking on extra responsibilities. It’s not the formal, required part of the job, but it’s certainly necessary for the organization to succeed.” Prof. of Management Ethan Burris The McCombs School of Business

Value Prop = Employee Engagement

“101 Reasons We Shouldn’t Do This…”

• No issues to date: IP issues handled in guidelines.

• No issues to date: Code of ethics handled in guidelines.

• A major challenge: Idea Management Process critical.

• No issues to date: Executive sponsors critical.

• Few issues to date: Model good behavior, clear guidelines, effective moderation.

• Legal: IP issues that may lead to disputes and litigation.

• HR: Violating code of ethics and employee rights.

• Marketing: Capacity to assess and respond to ideas.

• IT: Get in line.

• Everyone: Concern about the quality of ideas and their abusing an open channel.

Perceived Issues Reality

Motivation Is A Key Ingredient

GameMechanics

Fun

Competition

CommunityRecognition

Rewards

Successes

Dell’s Ubuntu (Linux) Laptop

Starbucks Splash Sticks

Cisco’s New Co.

Unleashing the Wisdom of Crowds| Paul Walker & Jeff Hunt | November 2010 | Crowdsourcing | Business Use Only

Rhinnovation

The Flavors Of Social Innovation

Types of Social Innovation

Open to All

Focused/Specific

By Invite Only

Wide Open

Foldit

Foldit

P&G Pulsonic Toothbrush

Results• “Connect & Develop” has

led P&G to a 60% increase in productivity

• P&G’s Innovation success rate increased to approximately 80% from 35% (Ind. avg. is 30%)

• While…• Internal R&D spend

decreased by 30%• Investment in R&D as a % of

sales dropped from 4.8% to 3.4% (2000-2007)

10 Key Learnings

1. Ensure executive sponsor and real commitment to invest in new ideas.

2. Agree on and win buy-in and commitment for an Idea Management Process & Timing, from collection to assessment to decision and response.

3. Provide “focus” for community members’ ideas based on priority needs and opportunities.

4. Community manager and moderators need to be passionate, empowered and enabled to engage community members in real-time.

5. Give employees the opportunity to submit ideas. They can be evangelists for the initiative.

| Unleashing the Wisdom of Crowds| Paul Walker & Jeff Hunt | November 2010 | Crowdsourcing | Business Use Only

10 Key Learnings

6. Invite trusted VIPs to seed the platform prior to launch to model “good behavior” and show some activity to new members.

7. Have a plan to keep the program fresh and interesting – brainstorms around specific topics, sharing progress, etc.

8. Recognize top contributors on the site and in other appropriate forums – this is one of their top motivations.

9. Celebrate ideas that are implemented and make a big deal out of their contributors.

10. Establish Key Performance Indicators (KPIs) and make sure the team is assessing performance and taking steps to improve it. Importantly, this also should be across the idea management process.

11. Ensure the selected software platform can’t be easily gamed, supports the idea management process.| Unleashing the Wisdom of Crowds| Paul Walker & Jeff Hunt | November 2010 | Crowdsourcing | Business Use Only

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Unleashing the Wisdom of Crowds

A New Approach to Collaborative Innovation