The world’s breakthrough platform. 1.Explore a problem(s) you care about 1.Play and discover potential challenge ideas 2.Discover a clear pathway to solve.

The world’s breakthrough platform

1. Explore a problem(s) you care about

2. Play and discover potential challenge ideas

3. Discover a clear pathway to solve your problem through innovation

Goals for Today!

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PETER DIAMANDISFounder - XPRIZE, Co-Founder - HeroX

“As a stimulus to the courageous aviators, I desire to offer a prize of $25,000 to the first aviator to cross the Atlantic in one flight, from Paris to NY or NY to Paris.”

- Raymond Orteig, 22 May 1919

From Impossible to Possible

• $10 Million purse from Ansari family

• Privately funded teams• 3 person crew• 100 km altitude• Two flights within 2 weeks

Problem Challenge Possibility• No commercial space flight to date• No active space flight industry• Unfathomable dream

OCTOBER 4TH, 2004MOJAVE DESERT

Opening a New Era…

History Was Made

Aggregate prize purse, prizes over $100,000U.S. $ Millions

Recent large-purse prizes• Ansari X PRIZE (1996); $10M

• MPrize (Methuselah Mouse) (2003); $4M

• NASA Centennial Challenges (2003); $2M

• Netflix Prize (2006); $1M

• Google Lunar X PRIZE (2007); $30M

• Mo Ibrahim Prize for Achievement in African Leadership (2007)

• Progressive Auto X PRIZE (2007); $10M

• Saltire Prize (2007); £10M

• Virgin Earth Challenge (2007); $25M

• Energy Free Home Challenge (2008); $20M

Incentive Competitions are the new black:

There have been 60+ competitions in the past 10 years with$250M in total purses

0

50

100

150

200

250

300

350

400

1970 1975 1980 1985 1990 1995 2000 2005

There’s been a surge in prize capital since 1970

Source: McKinsey & Co. “And the winner is…,” 2009

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Benefit from the Leverage ofIncentive Competitions

Open Innovation

ClosedInnovation

Increase ROI and reduce

R&D costs by only paying for

success

$10 mil purse to winner

Pay for failure

26 Teams spent $100 million

10’s to 1,000’s of teams

spending 5x-10x your investment

to find your solution

26 Teams Competing

1 Team

12B in Media Impressions

(Exponential)

Increased brand awareness by

engaging customers and

innovators

Limited marketing spend

Investment

ResourcesMedia Set your own

deadline, guaranteeing your speed to market

Time

Set Timeline for a Solution & Incentivized

Sense of Urgency

Missed deadlines

$1B+Industry start

Opening Up to Open Innovation

FROM CLOSED INNOVATION

Plan-Decide-ExecuteExisting ProcessesInternal Resources

Top SecretPay for failed attempts

TOOPEN INNOVATION  

Diversify-Select-AmplifyNew ProcessesLeveraging others resourcesOpen and ExponentialPay only for success

What would that kind of change mean for you?

Wendy Schmidt Oil Cleanup X CHALLENGE $1.4 MA challenge award offered by the X PRIZE Foundation

The Challenge: Efficiently capturing crude oil

from ocean water.

Completion Time14 Months

Innovators350 Teams

ResultsThe top Oil Recovery Rate was 4 times the industry standard from 1,100 gallons per minute to 4,600 gpm

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San Antonio MX Challenge$500,000A challenge award offered by Rackspace powered, Geekdom

The Challenge: Build a bridge between Mexico and San Antonio for technology entrepreneurs that benefit both nations

Completion Time18 Months

Innovators40 Teams and counting

ResultsIn progress: Activities and programs to build this bridge

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Goldcorp Challenge$575,000A challenge award offered by CEO of Goldcorp, Rob McEwen

The Challenge: Locate the gold reserves of a failing mine.

Completion Time12 Months

Innovators1,200 Teams from 50 countries

Results6 Million ounces of gold located, resulting in a $9B company valuation

What would that kind of change mean for you?

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Student Success Challenge$50,000A challenge award offered by Ellucian

The Challenge: Develop new and creative ways

to address the factors that determine student success

Completion Time8 Months

Innovators11 universities

ResultsIn progress – hundreds of submissions flowing in already!

How It Works

Design

• Identify your problem

• Set the goal, challenge metrics and guidelines

• Discover existing innovators

Launch

• Announce the challenge

• Recruit innovators

• Engage and build community excitement

Run

• Support and encourage innovators

• Report on progress

• Community engagement

• Competition administration

Award

• Judging

• Announce

• Present

• Publicize

Results

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Creating a challenge is about taking a problem and translating it into a competition. The most important part about a competition is WHERE you set the bulls eye.

It’s about asking the right question that will motivate people to solve the problem….FOR you!

Health Warning! You will naturally want to try and SOLVE your own problem. Restrain yourself.

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Keys to a Strong Challenge

1. Clear, objective, measurable target (finish line)

2. Open to anyone 3. Results driven, but pathway agnostic4. Compelling purpose 5. Difficult but achievable

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Challenges are Customizable

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Medium

Low

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When Designing a Challenge, there are a variety of levers that can be pulled on in order to determine the “right” competition that will motivate innovators to get involved.

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Workshop Materials

Option 1: Create a Challenge on HeroX.com profile (recommended)

Option 2: Digital Copy of Today’s presentation in PPT, PDF, and word – https://heroX.com/workshop

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YOU NAME EMAIL

CHALLENGE TITLE

PRIZE AMOUNT

DURATION

ID YOUR PROBLEM

COREISSUES

INTENDED BREAKTHROUGH

GUIDELINES

30-SECOND PITCH

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YOU NAME EMAIL

CHALLENGE TITLE

What is the competition name? Does it capture the essence of the competition? Is it cool?

PRIZE AMOUNT What will attract innovators? What will competitors need to spend to achieve the goal?

DURATION How long will it take to accomplish the guidelines?

ID YOUR PROBLEM

What’s the issue that you’re facing or that you want to take on?

COREISSUES

Why do you have the problem that you do? What’s stuck or not working? When you peel back the obvious layers by asking yourself “Why is this the way that it is?”, what do you find at the core?

INTENDED BREAKTHROUGH

What do you plan on changing or transforming through this competition? What might the world around you look like on the day after the competition is won? Your world can be your organization, your industry, your country, or even the world at large.

GUIDELINES What is the feat that a winning team must accomplish in order to be crowned the victor? Start by thinking about the attributes that a solution should have. From there, take those attributes and put known metrics/parameters next to them. From there, set clear targets for those metrics that are hard to hit! Make sure they are clear, measurable and objective.

30-SECOND PITCH What is your elevator pitch that conveys the boldness of your vision and the clarity of what you’re measuring simultaneously? Can you get it down to 30 words or less?

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EXAMPLE A.CHALLENGE TITLE

Ansari XPRIZE PRIZE AMOUNT $10 Million

DURATION 8 years

ID YOUR PROBLEM

I want to fly into space but I can’t buy a ticket or get there outside of the government system; the government is too slow.

COREISSUES

There is no money being invested in private human spaceflight; Everyone thinks it is the province of government, there is no regulatory framework.

INTENDED BREAKTHROUGH

Have a privately funded team fly to space in a reusable vehicle and prove to the world that this is possible – spark a commercial industry.

GUIDELINES • Teams must be privately financed (>90% private financing) • The Spaceship must be able to carry 3 adults• Spaceship must reach a minimum altitude of 100 kilometers • Must land safely and fly again within 14 days • Passengers must land in good health after second flight • No more than 10% of the dry mass can be replaced between flights

30-SECOND PITCH $10M prize to the first team to usher in an era of privatized spaceflight.

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EXAMPLE B.CHALLENGE TITLE

Goldcorp Gold Challenge PRIZE AMOUNT $575,000

DURATION 1 year

ID YOUR PROBLEM

• How do we find more gold in our 50+ year old mine?

COREISSUES

• Not enough staff to do work• Cultural barriers (e.g. the long held belief that all data should be proprietary) and technical (e.g.

amount of data to work through) stand in the way

INTENDED BREAKTHROUGH

• Locate gold deposits.• Develop new ways to use existing data to ID gold reserves• Bring in new thinkers• Change how the company (and industry) ID’s mining opportunities in the future • Reduce costs• Increase efficiency• ID new gold acquisition opps.

GUIDELINES • Analyze the 50+ years of geological data provided by Goldcorp• Predict where to find the largest gold reserves

30-SECOND PITCH Competition to identify and use predictive methodologies and open source innovation to find the next 6 million ounces of gold.

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EXAMPLE C.CHALLENGE TITLE

Wendy Schmidt Oil Clean-Up X Challenge

PRIZE AMOUNT $1.4 Million

DURATION 1 year

ID YOUR PROBLEM

How do come up with better ways to clean up oil spills on the surface of the ocean before it sinks, causing further damage?

COREISSUES

Technical barriers and  (e.g. limited effectiveness of separation technologies) and environmental conditions (e.g. wave action and temperature variation, to sediment and shoreline types) stand in the way.

INTENDED BREAKTHROUGH

• Clean oil spills faster• Create better technology and machinery for oil clean up• Remove oil from water and water from oil • Prevent harm to animals from oil and from oil cleanup techniques• To increase the efficiency and scope of efforts to clean up oil spilled into the environment.

GUIDELINES • Achieve the highest Oil Recovery Rate (ORR) above 2500 gallons/min• Minimum Oil Recovery Efficiency (ORE) of at least 70% oil to water collected

30-SECOND PITCH $1.4M competition to the best team that can clean up ocean oil spills faster than the existing industry technologies.

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YOU NAME EMAIL

CHALLENGE TITLE

PRIZE AMOUNT

DURATION

ID YOUR PROBLEM

COREISSUES

INTENDED BREAKTHROUGH

GUIDELINES

30-SECOND PITCH

ASK YOURSELF

What’s the issue that you’re facing or that you want to take on? What keeps you up at night? What’s not working in your world? It can be a) social b) marketplace or c) commercial

Examples:

• Today, I can’t get to space unless I am an astronaut.• Oil spills happen in the ocean and they destroy it.• Our costs are high and our lead time is long. We’re

losing opportunities. 29

PRIZES WORK WHEN: PRIZES DON’T WORK WHEN:

When the best solution is not obvious but the desired outcome is clear and measurable.

When the area is poised for growth due to influx of capital, consumer demand, or industry movement.

X

When people don’t think that it’s solvable. When the area is on lockdown by the government.

X

When capital is not available or available, but not focused.

There are unclear rules or finish line. X

When incentives are misaligned. Trying to solve an unsolvable problem. X

When industry constrains any change or transformation.

The solution is too easy or already available. X

When society constrains any change of transformation.

No one is interested in trying to solve the problem.

X

When solutions are mainly governmental and there is no private market to drive efficiency.

No one is interested in the results of the competition.

X

If there are few competitors in the market. Someone can cheat or game the system to win.

X

Is this a viable problem for a challenge?

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YOU NAME EMAIL

CHALLENGE TITLE

PRIZE AMOUNT

DURATION

ID YOUR PROBLEM

COREISSUES

INTENDED BREAKTHROUGH

GUIDELINES

30-SECOND PITCH

ASK YOURSELF

Why do I have this problem? What do I find when I peel back the obvious layers and ask myself “Why is this problem the way that it is?”. What do I find at the core?

Examples:

• Everyone thinks that space can only be accessed through government projects.

• Oil companies don’t care about the damage they cause.

• Traditionally, raw material suppliers have controlled this process and manufacturers have had to answer to that.

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Let’s look at this example …

PROBLEM

Many of San Antonio’s

neighborhoods lack access

to grocery stores and

high-quality, fresh healthy

food – this results in

obesity and diabetes.

Lack of access to fresh food options.

Why?

Lack of commercial

interest. Why?

Lack of desired

consumers for

commercial entities.

Why?

Commercial entities

want to go where

demand is and there’s no demand.

Why?

Existing consumers don’t buy

fresh produce.

Why?

Fresh produce is expensive.

Why?

They don’t know to buy fresh food.

Why?

They don’t want to buy fresh food.

Why?

Cost to produce is high. Why?

Import/export agreements put pressure on local US farmers.

It is believed to take too much time

and effort to cook.

They were never taught about healthy food and/or preparation.

Why?

Their parents were busy working & more hours

worked meant fewer hours preparing

food.

Core Issues…

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YOU NAME EMAIL

CHALLENGE TITLE

PRIZE AMOUNT

DURATION

ID YOUR PROBLEM

COREISSUES

INTENDED BREAKTHROUGH

GUIDELINES

30-SECOND PITCH

ASK YOURSELF

What challenge am I facing in my world that I would love the solution to? What do you plan on changing or transforming through this competition? What might the world around you look like on the day after the competition is won?

Examples:

• I could go to space whenever I wanted to.• Oil spills could be handled quickly and safely,

preventing further marine life and industry damage.

• We could produce more and on our own terms.33

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YOU NAME EMAIL

CHALLENGE TITLE

PRIZE AMOUNT

DURATION

ID YOUR PROBLEM

COREISSUES

INTENDED BREAKTHROUGH

GUIDELINES

30-SECOND PITCH

ASK YOURSELF

• What are the attributes of a solution? • What are the metrics you’re interested in

measuring? • What are the targets?

Examples:

(See table on next page)

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Exploring Guidelines:Breakthrough Desired Attributes

of a Solution Metrics Targets

Ex. 1 Go to space whenever.

• Separate from the gov’t

• Earth-based space flight

• Safe• Repeatable

• Funding ($)• Altitude (km)• Passenger health

(vitals)• Frequency

(#/time)

• >90% privately funded• 100km above Earth• 100% health maintained for

3 adults• 2x in 2 weeks

Ex. 2 Easy oil spill cleanup and recovery.

• Fast• Targeted/Efficient

• Oil Recovery Rate • Oil Recovery

Efficiency

• 2x current ORR• >70% ORE

Ex. 3 Supply chain independence and innovation.

• Rapid• High productivity• High quality

• Speed (rate)• Amount (units/time)• Strength (Defects

Per Unit)

• From design to delivery with 1 week lead time

• 1,000,000 widgets a year• <1%

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Finish Line Variants

• Past the Post (First team to achieve)

• Past the post w/ deadline

• Bake-off (A head-to-head, date certain, best performance)

• Bake-off w/minimum (exceed a threshold)

• Annual – A head-to-head, date & time certain, best above a minimum threshold, repeated annually.

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YOU NAME EMAIL

CHALLENGE TITLE

PRIZE AMOUNT

DURATION

ID YOUR PROBLEM

COREISSUES

INTENDED BREAKTHROUGH

GUIDELINES

30-SECOND PITCH

ASK YOURSELF

• Ask yourself• What is the competition name? • Does it capture the essence of the competition?• Is it cool/catchy? Will people remember it?

Examples:

• Ansari X PRIZE• Wendy Schmidt Oil Cleanup XCHALLENGE

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YOU NAME EMAIL

CHALLENGE TITLE

PRIZE AMOUNT

DURATION

ID YOUR PROBLEM

COREISSUES

INTENDED BREAKTHROUGH

GUIDELINES

30-SECOND PITCH

ASK YOURSELF

• What will attract innovators? • What will competitors need to spend ($) to

achieve the goal? • How much time will they need to spend to

solve this?

Examples:

• $10M• $1.4M• $250,000

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Intellectual Property:

Philanthropic Options

• IP is retained by winner

• IP is put into open domain

Commercial Options

• IP is 100% owned by the challenge sponsor

• IP is licensed by the challenge sponsor

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YOU NAME EMAIL

CHALLENGE TITLE

PRIZE AMOUNT

DURATION

ID YOUR PROBLEM

COREISSUES

INTENDED BREAKTHROUGH

GUIDELINES

30-SECOND PITCH

ASK YOURSELF

• How long will it take to accomplish the guidelines?

Examples:

• $10M• $1.4M• $250,000

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Number of Phases:

As many as you need to address the problem• Phase 1: Plan (Business, Research, Pilot)

$ granted

• Phase 2: Pilot

$ granted

• Phase 3: Full Implementation

$ granted

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YOU NAME EMAIL

CHALLENGE TITLE

PRIZE AMOUNT

DURATION

ID YOUR PROBLEM

COREISSUES

INTENDED BREAKTHROUGH

GUIDELINES

30-SECOND PITCH

ASK YOURSELF

• What is your elevator pitch that conveys the boldness of your vision and the clarity of what you’re measuring simultaneously?

• Can you get it down to 30 words or less?

Examples:

• $10M to the first team that builds a privately funded spaceship, carries 3 adults safely to 100KM altitude, 2x in 2 weeks.

• $1.4M to the team that achieves the highest Oil Recovery Rate (ORR) above 2500 gallons per minute at a minimum Oil Recovery Efficiency (ORE) of at least 70% oil to water collected.

• $250K to the first team that produces a manufacturing method with a 1 week lead time, produces 1,000,000 widgets a year, with a defect level of <1%.

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Thank youLet’s create a competition together! Please reach out to us at:

[email protected] & [email protected]