innovation crowds: myths and maturity
DESCRIPTION
From the classic "Extraordinary Popular Delusions and the Madness of Crowds" (from 1841) through "The Wisdom of Crowds" (2004) and the rise of Web 2.0, at a glance, it looks like ANY organization can just tap into a community, grab the best ideas and take them to market. But "crowdsourcing" isn't magic - and all too often, without planning, process, management and metrics, you're likely to end up with a "flat-lined crowd" (the "the silent majority") or outright "mob" ("innovation insanity"). Where are YOU and your COMPANY in the innovation maturity curve? Where does your community align or disengage? Find out how to assess where to start, dangers to watch out for, and how to increase the odds of successful innovation communities. Expert commentary provided by Dan Keldsen, Innovation Principal at Information Architected, and ranked as one of the Most Influential Enterprise 2.0 Bloggers by SeekOmega.com and Top Analyst Bloggers and Twitters by Technobabble 2.0, for two years running. Find him on twitter @dankeldsen. This presentation was given on Thursday April 29, 2010, on a webinar hosted by Awareness Networks. Thanks to Mike, Christine and the Awareness Team for hosting the discussion, and to the several hundred who registered and sat in on the webinar. Keep an eye on www.InformationArchitected.com for the follow-on whitepaper, with further depth on the survey-based research we'll be publishing in May 2010.TRANSCRIPT
Innovation Crowds:Myths and Maturity Dan Keldsen, Principal at Information Architected
www.InformationArchitected.com
Hashtag for today
#innodan
About Dan• Principal at Information Architected• 16 Years in Industry, Public, Private & Non-Profit• Founding Member of the
Innovation Lab of Perot Systems• 2x Judge of “The Innovation Challenge”
– The Worldʼs Largest MBA-based Open Innovation Project, run by Idea Crossing
• Ranked One of Top 5 Most Influential Enterprise 2.0 Bloggers (by SeekOmega.com)
3 Main Points for Today
1. Enough proof points to demonstrate both the need and the benefit in Actively Innovating - no more excuses
2. Examples of where your peers are - and where you are likely to be lagging
3. How to best focus Crowdsourcing for Innovation - regardless of the crowd
First,What is Innovation?My definition doesnʼt matter...
YOUR definition, or perhaps your boss or someone higher up, is what matters.
Without defining Innovation in the CONTEXT of YOUR business, how can get MORE innovation, or get better at it?
BTW - “More Innovation” is a recipe for disaster - FOCUS...
License 2 Innovate
Avoid Innovation ParalysisGive yourself a
License 2 Innovate
E - i - T
Crowd Power (Cuts Both Ways)
The Viral Temptation
Do or do not... there is no try.
The question is... why?
“innovation is over-rated, our
company is doing just fine!”
S&P 500 - Jan 03 to Apr 10
Oct 07
Sept 08
Mar 09
For Those Who ARE Innovation
The Ride is Safer, Mostly
For Innovation Masters... Apple
The Rocket Ride
The Economic Crisis Has Caused an Increase in the Importance ofInnovation in My Organization
Strongly Disagree
Disagree
Undecided
Agree
Strongly Agree 23%
46%
13%
2%
1%
Source: www.InformationArchitected.com (2009 Innovation Research)
If the Economy Isnʼt Pushing You to InnovateHow about your competition?
No Yes, But Not Effectively Yes, and Effectively
11%
23%
66%
Do You Believe Your Competitors are Actively Using Crowdsourcing?(Note: Early Release Data)
Source: www.InformationArchitected.com
34% of Competition is Active Already,
How Far Behind Do You Want to Be?
Top Three of Top Three Benefits
Increased IdeaGeneration Volume
22%
New Customers,New Segments
35%
Increased Diversityof Innovation Sources
43%
Top Benefits
What are the top three potential BENEFITS of Crowdsourcing to your business?(Note: Early Release Data)
Source: www.InformationArchitected.com
Seeing NewOpportunities First
29%
Ability toOutrun
Competitors29%
CustomerSatisfactionand Loyalty
43%
2nd Most Important Benefits
Reputationand Brand
Image43%
IncreasedInnovationCapacity
30%
New Customers,New Segments
28%
3rd Most Important Benefits
Kaizen, Lean, and 1,000,000
Estimated that there are 200 scientists/engineers elsewhere in the world who are just as good
P&G determined they needed to changefrom "not invented here" to
enthusiasm for “proudly found elsewhere"
For every individual P&G researcher
Source: P&Gʼs New Innovation Model (Harvard Business Review. 2006)
There are more smart people OUTSIDE of your organization, than INSIDE. Guaranteed.
But there are also more people within your company who are not CURRENTLY being tapped for “innovations” than youʼre using today.
Feel like doubling your odds?
Show Me The Innovation!
Not Applicable
Planned
Implemented
Subset of EmployeesAll Employees
CustomersPartners
Suppliers
Subset of EmployeesAll Employees
CustomersPartners
Suppliers
Subset of EmployeesAll Employees
CustomersPartners
Suppliers 1%
8%
90%
4%
11%
85%
5%
15%
79%
10%
17%
73%
20%
10%
70%
5%
27%
68%
7%
53%
41%
21%
49%
30%
25%
26%
49%
35%
17%
49%
26%
23%
51%
43%
28%
29%
47%
32%
21%
39%
22%
39%
46%
12%
42%
Planning vs ImplementingIn Your Organization, What Community or Communities did you target
or will you target with Crowdsourcing? (Note: Early Release Data)
Source: www.InformationArchitected.com
2008 (2 years ago) 2010 (Now) 2015 (5 years out)
Employees
Business Partners
Customers
Consultants
Competitors
Associations, etc.
Internal Sales and Service Units
Internal R&D
Academia 12%15%16%17%
20%22%
35%37%
41%
Most Significant Sources of Innovative Ideas
Source: IBM
Who to Target?Target Crowds By Where the Most Value Is
Where are you weak with Innovation right now? Where are you STRONG?
Orientation to Change
DeveloperExplorer
Ways of Deciding
External Internal
Person Task
Manner of Processing
What’s your VIEW?
Source: Geoffrey Moore - Dealing With Darwin
Innovation Maturity and the Chasm
Bad News: You’re Already Behind SOME Of The Innovation-SavvyGood News: Active Innovation Management Is Still Fairly Rare - Start Now!
Good News/Bad News
No Involvement
Some Experimentation, Not Sure of Value
Some Experience, Mixed Results
Used in Special Circumstances 10%
18%
34%
34%
How Would You Rate the Use of Crowdsourcing by Your Company?(Note: Early Release Data)
Source: www.InformationArchitected.com
Content Context
Community
FocusingInnovation Efforts
Who benefits from the value of your innovation?
Buyers?End users? Which end?
Multiple customers?Suppliers?
Employees?Partners?
Content Context
Community
Multiple Communities?
Content Context
Community
Content Context
Community
Content Context
Community
Content Context
Community
Top Three of Top Three Risks
EffortRequired
in ManagingCommunity
Relationships30%
TimeRequiredto Start
Crowdsourcing34%
IntellectualProperty/
OwnershipConcerns
36%
Top Risk/Concern
What are the top three potential RISKS/CONCERNS ofCrowdsourcing to your business? (Note: Early Release Data)
Source: www.InformationArchitected.com
ExpertiseRequiredto Start
Crowdsourcing25%
EffortRequired
in ManagingCommunity
Relationships34%
TimeRequiredto Start
Crowdsourcing41%
2nd Most Important Risk/Concern
Fear ofCompetitorAccess to
Communityand Ideas
27%
ExpertiseRequiredto Start
Crowdsourcing35%
EffortRequired
in ManagingCommunity
Relationships39%
3rd Most Important Risk/Concern
If you donʼt have the tools to create & vet ideas at scale...
How can you hope to compete with MASTERS of innovation?
“That’s not a knife... THIS is a knife” Crocodile Dundee
Whereʼs the gold?
Creating ideas is part of the problem, finding the BEST is the real challenge
and most aren’t equipped well
Attribute Listing
Idea Generation Tools (Creative Thinking)
Idea Focusing Tools (Critical Thinking)
Morphological Matrix Force-Fitting SCAMPER Brainstorming
Hits and Hot Spots ALoU
Paired Comparison
Analysis
Sequencing: SML
Evaluation Matrix
Recent Engagements• GE (5)• HP • Sun Microsystems (3)• Centura Health• Avaya Global Systems• Kelloggʼs (4)• Velcro USA (4)• Fish and Richardson (2)• PepsiCo (3)• Association of Equipment Manufacturers (4)• United States Air Force/Air National Guard (2)• Cooper Tire (2)• Dialogic (2)
(Parenthetical # indicates multiple sessions, typically classes of 20-30 people at a time)
Recent Engagements (Contʼd)• Univ. of Tennessee Business School (5)• Univ. of Denver Business School• University of Toronto • Ryerson University• University of Scranton• Capilano University• Time Warner• Eastman Chemical (3)• FedEx (5)• Buckeye Industries (2)• Interaction Associates (2)• Deloitte (Canada)• Colorado/Iowa/Oklahoma Performance Excellence
(State Baldridge programs) (3)• Chinese Government (STM)
Dan KeldsenCo-founder, Principal
[email protected]/dankeldsen
617-933-9655Details on Innovation Workshop at
bit.ly/bSONfr orwww.informationarchitected.com/innovate
Q & A
Continue on twitter #innodan