Open Innovation & Crowdsourcing

Paul Sloane

What is……

•  Open Innovation?

•  Crowdsourcing?

Longitude Prize

•  Launched in 1714 – £10,000 for a method that could determine

longitude within 60 nautical miles (111 km) – £15,000 for a method that could determine

longitude within 40 nautical miles (74 km) – £20,000 for a method that could determine

longitude within 30 nautical miles (56 km)

John Harrison

Who is using OI?

•  Unilever •  Kraft Foods •  Psion •  LG Electronics •  Nokia •  Intuit

•  P & G •  IBM •  Reckitt Benckiser •  Dell •  Kimberley Clark •  Johnson & Johnson

How Open are you?

•  How many ideas from outside the organisation did you implement last year?

•  Could someone with a great idea for your company easily reach the right person?

•  Are you actively looking outside for ideas?

Models for Crowdsourcing

Instructions

Invitations

Directed

None

Few Everyone

Models for Crowdsourcing

Instructions

Invitations

Directed

None

Few Everyone

Directed, Invitational

Suggestive, Invitational

Directed, Participative

Suggestive, Participative

Models for Crowdsourcing

Instructions

Invitations

Directed

None

Few Everyone

Suggestive, Participative

Dell’s Ideastorm

Suggestive, Invitational

IBM’s Idea Jam

Directed, Invitational

P&G C&D, Innocentive

Directed, Participative

Deep Water Horizon

What can you get from Crowdsourcing?

•  Wisdom / Intelligence

•  Creation

•  Voting

•  Funding

Examples •  Wisdom / Intelligence

•  Creation

•  Voting

•  Funding

•  Starbucks •  Innocentive

•  iStockphoto •  Threadless

•  X Factor •  Google

•  Crowdcube

What does the Crowd get?

Cause Achievement Social Learning

Examples Cause Achievement Social Learning

•  Starbucks •  Manor Labs

•  Cisco iPrize •  Topcoder

•  Threadless •  Mountain Dew

•  Netflix Prize •  Crowdspring

Ten Tips for OI Success

1.  Define what you want to achieve

2.  Set Goals

3.  Measure your level of openness

4.  Define your challenge

Ten Tips for OI Success

5.  Choose your method

6.  Design your portal

7.  Think win/win

Ten Tips for OI Success

8.  Put the right people on the case

9.  Get a good legal agreement

10. Maintain high-level involvement

What Ideas do you have?

•  Identify a crowdsourcing opportunity for your business

•  Which model would you use? •  How would it work? •  What would the crowd get? •  What would you get?

psloane@destination-innovation.com