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English version of my observations and conclusions on Open Innovation. Presented at Hochschule Lucerne, Switzerland on Ocotober 3rd, 2012. Interesting questions from students were: Question: Why do you pay innovators for their time/effort rather than to follow the winner takes it all approach? What if people performe weak in a process? Answer: Because in our process it is not possible to allocate one single author to an idea. The creative content is based on our process setup, a collective result. This is why we pay everybody equally. We don't see Innovation as a game/contest, we see it rather as a form of crowd labour. Being is hard work and it doesn't take a genius. Based on the fact that all innovators answer a whole set of subquestions throughout the process, we can diffuse the risk of receiving bad content from one person. After all, it's just not fair. In our tests we weren't facing quality issues, but of course, had to deal with people who were trying to misuse the system. However, this issue remains manageable with our platform and approach. In our tests we measured about 5% of participants who tried to add random/sabotage content. We are very convinced that we can bring this number with the right quality management tools. >>> Question: Are you already online? Answer: We have a functional prototype which is online but we are going to take it down as we are finalizing our commercial version of yutongo. >>> Question: Are you giving support to customers with setting up a project? Answer: Not in a consulting sense. But the app is based on a step-by-step process and we put all our strength and own creativity in reducing complexitiy and the self explanatory character of the website. You shouldn't be an expert to setup a project with yutongo. >>> And a bunch of more questions I unfortunately can't remember. Thanks Hochschule Lucerne for having me and for asking questions. Asking question is very good advisor if you are planning to be creative. Creativity starts with asking the right questions! Best! Sandro Morghen, CEO & Co-Founder of yutongo
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«Thoughts on Open Innovation»
Sandro Morghen, yutongo
Hochschule Luzern, 03.10.2012
Sandro Morghen
• 14 years of experience in the innovation industry
• 11 years BrainStore idea factory, among the first companies worldwide to offer ideation services on a systematic scale • Head Idea Production, one of the main authors of
the BrainStore creativity approach
• Main Learning: creativity and innovation development is an industrial process • And: innovation is all about creativity
Sandro Morghen
• Co-writer of first German Crowdsourcing Report (on Open/Crowd Innovation)
• Contributor to crowdsouringblog.de
Sandro Morghen
• More 600 than ideation projects (most >100K CHF), many fortune 500 companies: Telekom, Daimler, Nokia, GM, P&G, Henkel etc.
• In Africa, Australia, Europe, USA
Sandro Morghen
• Now: CEO & Co-Founder von yutongo.com • Idea Crowdsourcing application low subscription
fees, self-service and a native creative process • Companies and organisations worldwide, any size
Crowdsourcing 2012
Crowd microtasks
Let the crowd solve working orientated tasks (e. g. «Resize 1’000 jpg
files» or «Make a research on…»
Crowd wisdom
Collect knowledge, predictions,
live data and more e.g. Wikipedia
Crowd funding
Collect funding from the crowd
Crowd creatives
Develop elaborated creative work like logo
design, industrial design, copy text etc.
Crowd innovation
Collects innovations and ideas from a crowd
= Open Innovation
What is Open Innovation?
Opens innovation processes to the outside world.
«Also folks from ‘outside’ have good ideas which bring value to the company».
Web driven.
Crowd driven.
External and/or internal.
How does it work?
Open Innovation Plattform
atizo, innocentive and 50 others
Open Innovation Accelerator
Corporate Innovation Plattform
e.g. Tchibo Ideas, mystarbucksidea.force.com
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Jury/ Customer
Participants
Customer
Consulting (Humans)
Creative Problem
z. B. «Ideas for the next
beverage trend coming up»
WIN
WIN
WIN
WIN
Why has it become popular?
PR, Brand Loyalty, (Social Media) Marketing.
Customer insights.
Collect many ideas.
External fans, consumers, experts, creatives, nerds bring variety in innovation pipelines.
Made possible through Web 2.0 revolution
So far, so good.
Observations on Open Innovation and some
conclusions
What do we need so Open Innovation and related phenomen increases in volume significally and through this, the planet
becomes a little bit more creative?
9 very personal observations and conclusions on
Open Innovation
1 Observation
Open Innovation is NOT creativity, but innovation only grows through
creativity. Quality and sophistication of creative processes used in Open
Innovation are still subject to improve. Like a lot.
1 Observation
Open Innovation needs intelligent, inspiring tools and principles for
creativity driven collaborative delevopment of ideas.
1 Conclusion
2 Observation
Studies show: In order to successfully launch an idea in the market, you need
up to 4000 – 5000 single ideas and thoughts to be collected, compressed,
refined and re-combined.
2 Observation
Processes in Open Innovation need to be natively designed to orchestrate an
interplay between lots of content and the reduction of the content. Quality can only
grow from mass.
2 Conclusion
3 Observation
Participants in Open Innovation processes act like «Idea Rambos». Lone figthers, disconnected from
others who fight their own battle. In the moment of idea creation, Idea
Rambos are alone. We call this: «Collaborative Loneliness».
3 Observation
We need agile idea intervention troups who operate in a collaboratively
connected manner. Platforms will need to display that in their processes.
3 Conclusion
4 Observation
4 Observation
Whoever is exposed to a brainstorming process (online or
offline), is scared to share «wrong» ideas. This is an enormous blocking mechanism in creative processes.
Anonymization de-blocks the creative flow and stimulates the ideation process.
Processes in Open Innovation need to build on the concept of anonymization.
4 Conclusion
Eliminate group conformity, foster mutual inspiration.
4
Mutual inspiration leads to more
diverse, out-of-the-box and unique
ideas.
Two aspects of creative work in groups
Wrong understanding of group conformity,
negative group dynamic, scared to
share «wrong» content.
Conclusion
4
Eliminate group conformity, foster mutual inspiration.
Mutual inspiration leads to more
diverse, out-of-the-box and unique
ideas.
Two aspects of creative work in groups
Wrong understanding of group conformity,
negative group dynamic, scared to
share «wrong» content.
Conclusion
5 Observation
For many companies and organisation, Open Innovation is like Christmas; you do it once a year, it was nice but that
was it. It‘s not a cultural changer.
5 Observation
Inject «Crowdsourcing thinking» into companies’ DNA; the reflex to approach
creative problems collaboratively. It requires specifically designed tools.
«I get help from others when I need ideas, external or internal, even also for my little daily
tasks»
5 Conclusion
6 Observation
6 Observation
Compensation of innovators through the Winner-takes-it-all principle
is not transparent to participants. It‘s time consuming for customers and it‘s
unfair in its core.
We need to learn that each participation in a creative process
contributes to an innovative solution. Because participants inspire each other.
And each contribution needs to be compensated in a repeatable, fair and
systematic way.
6 Conclusion
$ $ $
7 Observation
$ $ $ Innovation is a key driver for every firm. And yet: 99% of companies
worldwide are excluded from affordable Open Innovation services.
7 Observation
We need to re-think business models: Low priced. Self-service. Self-explaining.
In order to make the planet more creative, we need scaling mechanisms.
7 Conclusion
8 Observation
Open Innovation today: It‘s a regional phenomenon.
8 Observation
We need global platforms. The interlinking of innovators from different
cultural backgrounds leads to better and more diverse ideas and to an
improved creative output.
8 Conclusion
9 Observation
The option to tackle a problem from many different angles is a key asset in creative problem solving. Current platforms simply ignore this option.
9 Observation
Open Innovation platforms need to integrate multi-view-angle thinking in
their creative processes.
9 Conclusion
Obviously, we’re working on it…
How does it work?
Case Study «Innovative mobile app»
Situation
Case Study «Innovative mobile app»
Step 1
Case Study «Innovative mobile app»
Step 2
Case Study «Innovative mobile app»
Step 3
Case Study «Innovative mobile app»
Step 4
Case Study «Innovative mobile app»
Step 5
Where do we stand at?
• Early prototype live on www.yutongo.com (soon to be removed by «coming soon» message) • Self financed
• Working on first commercial release of application • Acquired substantial seed investment; provides us
some air • Commercial Launch: asap
Some testing experiences
• Test Challenge «Mobile App Revolution» • Ca. 15 participants (Europe, USA, Asiea, South east asia) • Ca. 2500 Idea fragments, 100 complete ideas • Microsalary/Person: 5$, 10 – 15 min
• Test Challenge «Dental Implants»
• 276 participants, (Europe, USA, Asiea, South east asia) • Ca. 1500 Idea fragments, 550 complete ideasof • Microsalary/Person: 1$, 5 – 7 min, partly also paid per
number ideas (tested several schemes)
Thank you for your
attention!
