Lisa Thorell Rutgers University PDS - Keynote Address, June 7, 2011
Start Innovating Already.
A Punk View of 13 Poisons to Open Innovation& Building Engaged Communities
Off the Grid PR
Off the Grid PR
Build It All Yourself
Slow time to market High Fixed Costs Closed Pool of Talent
POISON
1
Source: © Henry Chesbrough, 2006
Off the Grid PR
That model arose in the early 1900s.
Economies of scale – Coordinating large numbers of people – Limit Liability
Concerns of the day were…
Off the Grid PR
Today we buy in more quickly…
Off the Grid PR
Months from purchase to discard of a cell phone for a person living in the US or UK.
Months from purchase to discard for a cell phone user in Japan.
The number of iPods you would own if you upgraded to every new iPod that had come onto the market from 2001 to 2009.
We throw out more quickly…
18
Source: Rachel Botsman & Roo Rogers book ‘What’s Mine Is Yours: How collaborative consumption is changing the way we live (2011)
1812
Off the Grid PR
Creating 100 gigapascals of pressure
Source: http://www.mckinseyquarterly.com/The_challenges_ahead_for_supply_chains_McKinsey_Global_Survey_results_2706Nov 2010
Off the Grid PR
Also rocking our world…
Source: McKinsey Quarterly Riding Asia’s Digital Tigers
Off the Grid PR
Rocking it still more: Hyper Innovation
Source: Adrian Ott, The 24-Hour Customer: New Rules for Winning in a Time-Starved Always-Connected Economy
Off the Grid PR
What’s a way to go faster?
Take in more ideas from outside?
Spin out ideas for others to use?
Solution: Punch more holes in the funnel.
Off the Grid PR
Open Innovation
Source: © Henry Chesbrough, 2006
ANTIDOTE
Off the Grid PR
Get to Market Faster
Off the Grid PR
Break into Partner Markets
Off the Grid PRTransfer risk to someone else
Off the Grid PR…If they can’t get your product.
Make your customers crazy-scream with rage…
Off the Grid PR
Employees as Lifeblood2
Expensive fixed assets
Salary independent of performance
POISON
• As Bill Joy said,•
“There are always more smart people outside your company than inside it.”
Bill Joy, Founder, Sun
Microsystems Partner, Kleiner Perkins
Off the Grid PR
Crowdsourcing:Lifeblood on steroids
Example: Netflix $1 Million Challenge
Pay only on Performance
ANTIDOTE
Off the Grid PR
Crowdsourcing:Netflix $1 M Challenge
Netflix $1 Million Challenge
55,000 Engineers Enter
A huge virtual workforce Decrease HR costs: Talent finds you!
ANTIDOTE
Crowdsourcing:Netflix $1 M Challenge
Movie Recommendation Engine Improved 10%
Problem Solved: 5 2 years
Decrease Time to Market
ANTIDOTE
Off the Grid PR
The Human Resources Department3
Off the Grid PR
Hire People HR would Never HireANTIDOTE
Off the Grid PR
ANTIDOTE
People HR would Never Hire
1760 A self-educated clock maker invents longitude
1990’s Design firm Ideo creates up the best-selling kid’s toothbrush by working with anthropologists
2006 A home-schooled coder invents WikiLeaks
2007 An oil-industry outsider provides the solution for cleaning up oil spills borrowing from the concrete industry
.
.
Diversity + Will-to-Win Trump Superstars
ANTIDOTE
Off the Grid PR
Off the Grid PR
Trad Market Research
Great…brilliant clarity on the past Usually company internalBudget-constrained sample size
4
SecondaryResearch
Interviews
SurveysFocus
Groups
Roundtables
Off the Grid PR
Customer Crowdsourcing
MyStarbucksidea
Build it? No!
Up-to-minute 24 x 7 customer feedback
Community vetted
Social Proof of Open Brand
ANTIDOTE
Off the Grid PR
Customer Crowdsourcing
MyStarbucksidea
Build it? No!
• Over 100,000 ideas
• 100 ideas launched
• Note Starbucks did not build this. They license
the platform from SalesForce.com
ANTIDOTE
Off the Grid PR
Profitability
• Limits Shape-Shifting
• Makes C-levels risk-averse
Animate with Annual Report, Investors, SEC sliding up under NI.You own a company that
sells a product, like tee-shirts5
Off the Grid PR
You run a community thathappens to sell tee-shirts
DecreaseTime to Market
Source: http://www.ithnk.com/category/co-creation/
ANTIDOTE
Off the Grid PR
Share Community II(The Sequel)
Play your community forward (new markets)
Dell laptops – Havaianas flipflops– Griffin iPhone accessories
ANTIDOTE
Advertise
Advertise
Off the Grid PR
Your BalkanizedWeb 1.0 Website 1.0)6
You control. You make your customers come to you.
Off the Grid PR
Source: http://www.slideshare.net/davewrightjr/redesigning-nprorg
Problem: In 2008 the average public radio station listener visited their local radio station website only 2x per month.
Off the Grid PR
Different NPR Customers needed Different news formats
Different platforms
Off the Grid PR
GiveItAway GiveItAwayGiveItAway Now
• 400,000 new stories
• 500,000 audio files
• 30,000 blog posts
• Content from dozens of NPR station affiliates
NPR Content For Free
ANTIDOTE
Off the Grid PR
An Open API for Developers to Access
Result: more formats, more platforms
Off the Grid PR
Source: http://www.npr.org/templates/archives/archive.php?thingId=125099093
Business as Usual
Own the facilityBuild out a kitchenOperate set hoursServe familiar foodCharge as much as the
market will bear.Advertise in newspapers
and radio
7
Off the Grid PR
7
Off the Grid PR
Business Unusual: LudoBites
Restaurant/ Kitchen
Operate StdBusiness Hrs.
ChargeMarket Prices
Serve Familiar
FoodAdvertise
Borrow Someone
Else’sKitchen
Announce by Surprise +
Limited opening
Pay ForwardSavings
Serve One-of-a-Kind
Food
UseSocial Media
Chef Ludo’s famousCheese CupCake
“The main reason to thinkoutside the box
is there is no more oxygen leftinside the box.”.
Lisa Thorell
The Econolapse
Off the Grid PR
You need to own it to sell it.8
Under-utilized assets Sitting inventory
Off the Grid PR
The The New Share Economy
You broker others’ owned spaces.
ANTIDOTE
Off the Grid PR
Better than Zipcar…
Example companies how they do it.
You can broker others’ under-used cars.
ANTIDOTE
Off the Grid PR
Example companies how they do it.
Saatchi & Saatchi showed you can even broker ad space in Out-of-the-Office email auto-replies.
ANTIDOTE
Off the Grid PR
Example companies how they do it.
To cost-share its rent fees, Best Buy is offering shelf space to other retailers.
ANTIDOTE
Off the Grid PR
IP Control & Lawyers
9
Off the Grid PR
Off the Grid PR
Strategically Mine Knowledge
Source: http://blogs.hbr.org/cs/2011/05/stop_obsessing_with_ip_rights-.html
ANTIDOTE
Off the Grid PR
Netflix again…ANTIDOTE
Database Shared
SolutionGained
Solution Shared
Off the Grid PR
ToToxic Boxes
Regarding your industry cost structure as immutable & unassailable.
10
Taxes
Net Income
Operating
Expenses
Cost of Sales
SalesRevenue
Off the Grid PR
The monsters who guard the Net Income box
Annual ReportSEC Investor
s
Net Income
It’s not that I’m against fiduciary responsibility. It’s the fear of shape-shifting and risk aversion that the monsters can engender.
Net income can beIncreased by payingattention to other boxes…
Off the Grid PR
Exploring NonToxic Boxes: Service Blueprinting
http://priyankashetye.com/html/medsystem.html
ANTIDOTE
Off the Grid PR
Business is serious stuff…11
Use of leaderboards to inspire frequent use & competence-by-competition.
Reward points that can be converted to product upgrades or discounts .
Badges for frequent contributions, levels achieved, other milestones.
ANTIDOTE
Gartner Forecasts 50% of Businesses will Gamify by 2015
Off the Grid PR
How Many Prizes did Netflix Give away?
http://offthegrid-pr.com/socially-responsible-pr/2009/9/28/six-marketing-lessons-of-the-netflix-crowdsourcing-experimen.html
ANTIDOTE
Off the Grid PR
The Excruciating Politeness of Poser Innovation
Observation: OI consultants tend to PR their best client case studies.
OpenInnovationWhitewashing ->
12
Off the Grid PR
A Wikileaks for Open InnovationCase Studies?
How can we learn if we can’t see the parallel universe of failures?
ANTIDOTE
Off the Grid PR
Open Innovation as a “Try on”
No. Do or do not. There is no try.
13
Off the Grid PR
Open Innovation as a Necessity
If they didn’t...LudoBites
P+G Connect+ develop
NPR
Threadless
Another high-overhead restaurant in arecessionary economy.
More small agile CPG competitors
96% of listeners would not access online.
Another commodity tee-shirt company
ANTIDOTE
Off the Grid PR
Customers saying “Meh…”
Find New Markets
DecreaseFixed Costs
Whose products/tech can you build
on?
How do you get closer to your community?
What assets doyou have to
barter?
What can you build for others?
Whose products/tech/space/people
can you partner with?
How do you motivate them
to become addicted to your
product?
Transformers ask…
DecreaseTime to Market
What can you give away for others to
build on?
Off the Grid PR
Moral of the story:
Stomp on poisonous snakes.
Transform. Start Innovating Already…
Off the Grid PR
