Integrating Crowdsourcing into your Overall Innovation Strategy
Alpheus BinghamFounder of InnoCentive, Inc
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InnoCentive, 2014
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WIRED, 2006
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Open Innovation, 2004
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InnoCentive, Inc 2001
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All seekers bailed
Ben
5000
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Crowdsourcing at InnoCentive: Year One
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Crowdsourcing and Major Pharma
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Diversity has a critical mass
• Risk management demonstrated prior to advantages of diversity
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A “Controlled” Experiment in Crowdsourcing
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Crowdsourcing: A value proposition
• Diversity of thought• Spot market engagements• Risk distribution to solvers
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Barriers to adoption
• Cultural: NIH• Identity: Solvers, not seekers• Organizational: reward mechanisms• Process: Outside workflow
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Innovation Process Paradigms
• Phased Review 1960s NASA
• Stage Gate 1980s COMMERCE
• Open Innovation 2004 COMMERCE
• Challenge Driven Innovation 2011
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Innovation and Development Skills: stage/gate systems
Copyright 2010: Alpheus Bingham, do not distribute without author’s permission.
INSIDE
OUTSIDE
• Inside (80%)• Hypothesis generators (10%)• Data/proto generators (60%)• Designers (5%)• Project coordinators (5%)
• Outside (20%)• Scaling data generators (20%)
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ALS
CHALLENGE DRIVENINNOVATION
Dissection
Copyright 2010: Alpheus Bingham, do not distribute without author’s permission.
Channel selection and distribution Evaluation and option selection
Integration
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Innovation and Development Skills:Channel orchestration systems
Copyright 2010: Alpheus Bingham, do not distribute without author’s permission.
INSIDE
OUTSIDE
• Inside (20%)• Project dissectors (3%)• Orchestrators (3%)• Assemblers (4%)• Evaluators (10%)
• Outside (80%)• Hypothesis generators (10%)• Data/proto generators (70%)• Designers (5%)
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Innovation Channel Selection
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The Roots of CDI
“Challenge Driven Innovation, CDI, shares DNA with the modularity processes, earlier described by Carliss Baldwin and Kim Clark of Harvard Business School. In CDI, a portion of the larger project is formulated as a challenge, in which a “challenge” essentially represents the problem statement for a block of work that can be modularized and in most cases rendered “portable.” That is, such a block of work can be outsourced or insourced as an integral unit. The central processes to this framework are those of dissection, channel distribution, and integration.”
Carliss Y. Baldwin and Kim B. Clark, Design Rules: The Power of Modularity, vol. 1 (Cambridge, MA: MIT Press, 2000). And “Managing in an Age of Modularity,” Harvard Business Review 75, no. 5 (September–October 1997): 84–93.
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Why Challenge-drive Innovation Works
Challenge-driven Innovation unlocks your innovation potential
Communities collaborate around well-defined “boundary objects”
Boundary objects create a common reference point and language
Enable “constructive arguments” (collaboration)
Example: a clay model or prototype of an automobile
Designers look at aesthetics, engineers consider aerodynamics
Well-formed Challenges are uniquely effective as boundary objects
Rich in information, but abstracted to engage diverse thinking…”just-right” challenges
Must be actionable, sponsored, owned
In contrast, “ideas” are loosely defined, not clearly owned, and create less impact
Challenges help to transform organization, process, and culture
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Evaluation of the Open Innovation Pilot Program between NASA and InnoCentive, Inc.
It really IS Rocket Science
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Over 2,900 Solvers from 80 Countries Participated
Open Innovation Program Reach
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NASA Pilot Challenges – Phase 1
Challenge Title - CenterProposals Submitted
Award Details
Improved Barrier Layers … Keeping Food Fresh in Space - JSC
22 One Partial Award
Mechanism for a Compact Aerobic Resistive Exercise Device – JSC/GRC
95 Fully Awarded
Data-Driven Forecasting of Solar Events - JSC 11 Fully Awarded
Coordination of Sensor Swarms for Extraterrestrial Research - LARC
37 Three Partial Awards
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http://blogs.forbes.com/haydnshaughnessy/2011/05/05/can-we-crowdsource-a-cure-for-cancer/
“…we are taking two main
pathways with crowdsourcing.
There is the trivial – my
apologies to Dell and
Starbucks – where we use the
crowd to provide feedback on
product features. And there is
the profound – where we use
adjacent areas of expertise to
cast new light on scientific and
industrial challenges
(the Innocentive model).”