Fostering open innovation

UNIVERSITA’ DEGLI STUDI DI BRESCIAFACOLTA’ DI ECONOMIA

CORSO DI LAUREA IN ECONOMIA E GESTIONE AZIENDALE

Fostering open innovation with

the power of the crowd

di Elisabetta Roncalli

ANNO ACCADEMICO 2012/2013

Fostering open innovation with the power of the crowdSource: Kickstarter.com , 2014

Kickstarter surpasses $1 billion in crowdfunding pledges

5.7 backers from 224 countries

57.000 projects fully funded

3 March 2014

Fostering open innovation with the power of the crowd

Democratizing innovation

From

Radical

Push

Closed

To

Incremental

Pull

Open

Fostering open innovation with the power of the crowdSource: Chesbrough H., Brunswicker S., May 2013

Empirical research context:open innovation and firm performances

Fostering open innovation with the power of the crowd

Potential and limits of an open innovation strategy at a firm level

“There is an inverted U-shaped curve relationship between open innovation and firm performances”

Druid Conference 2013

Fostering open innovation with the power of the crowd

Personal re-working

Critical factors of open innovation

Fostering open innovation with the power of the crowd

Can users really compete with professionals?

Source: Poetz M. K., Schreier, 2009.

User ideas score higher on average in terms of novelty and customer benefit, but lower in terms of feasibility.

Fostering open innovation with the power of the crowd

Crowdsourcing analysis

How can an organization apply collective intelligence through crowdsourcing to create a competitive advantage?

Definition

Specific goal

“Crowdsourcing is the act of taking a job traditionally performed by a designated agent and outsourcing it to an undefined, large group of people in the form of an open

call”.Howe, 2006

Business model

Three elements:1) An open call;2) The crowd;

3) The use of internet;

Fostering open innovation with the power of the crowd

The diffusion of crowdsourcing

“Crowdsourcing is crossing the chasm”Geoffrey Moore

Source: crowdsourcing.org

Fostering open innovation with the power of the crowd

The diffusion of crowdsourcing

Crowdfunding in Italy

Source: Italian crowdfunding Network

Fostering open innovation with the power of the crowd

case-history

Source: news.eyeka.net

Crowdsourcing can really pays-off compared to more traditional ways of developing marketing strategies.

The community of over 260,000 consumer-creators across 150 countries.

• 500.000 video views;• Award for the “Best social idea”; • +1.8% market share.

• The highest View-Through-Rate throughout the campaign;

• The lowest cost-to-conversion at 54% against historical average.

• Cost saving of 92% against average agency fees

Fostering open innovation with the power of the crowd

Who does really benefit?

Crowdsourcing Co-creation

Outsourcing a task to the crowd; One-to-many activity; Main goal: reducing cost and time-to-

market; The crowd creates a great idea for

you; Winning is the reward; Short-term involvement.

Creating shared value with the crowd; One-to-one activity; Main goal: creating engagement; The crowd works with you to make a

good idea great; Engagement is the reward; Long term involvement along product

life cycle. Personal re-working

Giffgaff and the Payback system

Excellent customer service:

130,000 questions asked 100% of the questions were answered by the community; The average response time for questions is within just three

minutes. The top earning giffgaffer earned over £13,000, and he is using

that to pay University;

Source: Giffgaff.comFostering open innovation with the power of the crowd

Co-creation is the new frontier

Fostering open innovation with the power of the crowd

Coca-cola - Freestyle dispenser McDonald’s -“My Burger Campaign”

Final insights

What does it mean today?

Customer Order Decoupling point. Source: Corniani M., 2008.

Fostering open innovation with the power of the crowd

Thank you for your attention

Fostering open innovation with the power of the crowd