2.3.14

The Future of Innovation,ideas and problem solving

Shaun AbrahamsonPeter RyderBastian Unterberg

February 3, 2014

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Agenda

• Background and Context What Have Crowds Been Doing

• What’s Next • Why Process (And Technology) Is Important

• Case Study

Jovoto’s Processes, Platform and Community in Action

Background And Context

“Re-Imagination of Nearly Everything – Powered by New Devices, Connectivity + UI + Beauty”

“Magnitude of upcoming change will be stunning”

“Re-Imagination of R&D … Minted: 85K Designs Submitted, 4MM Monthly Visits Quirky: 87K Designs Submitted, 365K Registered Users” Mary Meeker, partner KPCB

Crowds in the “Re-imagination” landscape

Analysts See Crowdsourcing Trending Based on Connectivity

“…thanks to the merger of globalization and the IT revolution … which is radically transforming how knowledge and information are generated, disseminated and collaborated on to create value … the high wage, medium-skilled job is over.”

“To be in the middle class you may need to consider not only high skilled jobs, but also more non-traditional forms of work… a form of entrepreneurship. This could be leveraging your skills through Task Rabbit … or your spare bedroom through AirBnB.” (Quoting McKinsey Global Institute) Thomas Friedman, NY Times, Nov 10, 2013

2013

Crowds in the “Re-imagination” landscape

Analysts See Changes In The Workforce Environment

“Given that production could be carried on without any organization that is, firms at all, why and under what conditions should we expect firms to emerge?”

Ronald Coase, About 75 years ago

Where have Crowds come from

Firms Before Crowds – A Function of Transaction Costs

Experimentation, New Technology/Business Models and …

Crowds Are here

BRIGHTIDEAS

Labo

r

Cap

ital

Ass

ets

Influ

ence

Dat

a

Sharing, Commenting, Reviewing

Open Innovation, Co-Creation, Micro Tasks

Crowd Funding, Crowd Lending

Collaborative ConsumptionCollective Intelligence, Analytics, Algorithms

New Buzzwords Based on Lower Costs/Broadband/Markets

Putting crowds in context

Source: Mary Meeker presentation at All things D.

Disruption to existing business and …

Wikipedia Peer Production

Complimenting/changing Existing Models

- Increase Product Throughput – Getting Ideas - Shift from Internal to External: 90-10, 50-50

- Speed to Innovation - Engaging Nimble Partners – Finding Talent

- Harness Corp. Assets, Reduce Time-to-Mkt. - Empower/Transform Internal Organization

- Improve Return on Investment - Evaluating Ideas

- A New Business Model

Global Companies and Startups Using Crowds to Unlock Value

Many Organizations Try Crowdsourcing With Mixed Results

But Not everyone is successful

Alex F. Osborn (the O in BBDO)“when it comes to thinking, let’s try to act as if we were two people – at one time, a thinker upper, a producer of ideas; at another, a weigher of ideas”About 65 years ago

Lower Costs + Internet Scale +Brainstorming = Crowdstorming

A solution: Brainstorming To Crowdstorming

Next Step: Seeing crowdstorming as Process

Structured and Repeatable

What’s Next: Process

Ask the Right Question

Asking a “Virtual Community” vs. Issuing a RFP

Ask the Right Question

Source: Business Model Canvas, Alexander Osterwalder, Yves Pigneur

Outcome: What Should We Innovate

Ask the Right Question

Story and Inspiration: How Should We Ask

MoneyExperience

Attention

Good

Stuff

Fair incentives

“GAMES” Motivate the Crowd

Financial Reward Good, Money, Attention

Fair Incentives Good: “Ecoimagination helps our customers save billions of dollars and reduce their environmental impact.”

Attention: Media campaign, website, public announcement of winners

Money: $500K in prize money; over $50M in investment

Result: GE has brought over 100 products to market since launch in 2005

Fair incentives

Transparent and Delivering on Promises

Fair Incentives

A Little Bit of Alchemy

Recruiting Talent/Building Coalitions

Recruiting a Community is a Little Like Marketing a Product

Existing Platform/Community

Celebrity Judges Media Partners(15M Media Impressions)

Coalition Partners: Expertise and Media

Recruiting Talent/Building Coalitions

Coalition Partners: Existing Crowd and Branded Market

Recruiting Talent/Building Coalitions

Existing Platform

Market Partners

How you execute

Do You Want Ideas … Feedback … Evaluation …

Continuum of Community Relationships Patterns

Case study - Jovoto

Crowdstorm Technology & ProFessional Creative Community

Crowdstorm Technology & ProFessional Creative Community

Crowdstorm Technology & ProFessional Creative Community

Crowdstorm Technology & ProFessional Creative Community

end-to-end crowdstorm process

Idea Creation, Feedback, Evaluation

Social Creative process

Challenge, Competition, Social, Transparent

Finding the Pearls

Multiple Evaluation Layers

Planning the Project Set-UpOpen Social Conversation

Turning the challenge into a media event

Planning the Project Set-UpLIMIT Participation

To Support Legal Concerns: IP Management, Confidentiality

Best Case – Victorinox Swiss Knifes

Selection Process Involved Crowd, Experts and Fans

TASK: Designs uniqueness „more than a red pocket knife“ that would evoke impulse purchases.

SET-UP:Open, Social Challenge with multiple evaluation layers.

RESULTS:1300+ design concepts in thousands of versionsBest selling design edition

The Future of Innovation,ideas and problem solving

Shaun AbrahamsonPeter RyderBastian Unterberg

February 3, 2014