1 enhancing the open model through the use of community 3rd annual open innovation las vegas, nv...

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Enhancing The Open Model Through The Use of Community

3rd Annual Open InnovationLas Vegas, NVApril 6 - 8, 2009

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DecisionAnalyst Proprietary and Confidential

Obligatory introductory

bit…

Decision Analyst is an international marketing consulting and research organization Founded in 1978 Largest independently-owned research

firm in the U.S.

We’re known for: Providing custom qualitative and

quantitative research Our panel of over 8 million individuals

worldwide

Established our Insights & Innovation business unit in 2001 Marketers and researchers specializing

in understanding customers/consumers, and new product and service innovation

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In 2001 launched the Imaginators®, a proprietary innovation community of just over 2000 highly creative individuals 250,000 individuals tested to date Must rank in top 4% to be accepted into the

Imaginators

®

Technical 14%

Student 8%

Blue collar 7%

Not employed outside the home 7%

Marketing/sales 7%

Executive/upper management 6%

Education 6%

Retired 6%

Unemployed 4%

Medical 3%

Other 32%

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Joel West 2/ 22/08 http://blog.openinnovation.net

The original goal of [Open Innovation: Researching a New Paradigm] was to provide an up-to-date and complete orientation to the academic study of open innovation… we tried to come up with a comprehensive framework for open innovation research by categorizing what had been done and what might be done.

...when I went to write my keynote for one of the [European Academy of Management] tracks on open innovation, I realized that we’d left out communities.

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Open Innovation

“Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively.”

Chesbrough

2006

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Open Innovation

“Open innovation is using the market rather internal hierarchies to source and commercialize innovations.”

West 2008

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Community

“A group of people who have been brought together, or have brought themselves together, under a common umbrella and who are having a conversation with each other.”

Community 2.0 Conference

Las Vegas 2007

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Community falls way

down on the list

Firm-to-firm collaboration

Firm-to-university collaboration

Hunts and challenges

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That’s not to say no

one’s using community

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Is community just for

high-interest, high-

involvement consumer

products?

Why isn’t community

used as an innovation

source by companies

that…

…are in categories that aren’t consumer-centric, or that are highly technical?

… are already considered innovative?

… already have a successful innovation process in place?

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Assumption: Most

customers (especially

consumers) can’t truly

contribute – they can

offer mundane or

incremental ideas, but

not true innovation.

Forty percent of consumer community members offer suggestions that solve urgent problems

Fifteen percent of those suggestions are considered to be a completely new product

How Communities Support Innovative Activities: An ExplorationOf Assistance And Sharing Among End-users

Franke & Shah 2003

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Assumption:

Community is like a box

of chocolates – you

never know what you’re

going to get.

The reliability of using communities can be greatly enhanced based on what the community is willing to invest

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Assumption: Research

brings the consumer/

customer into the

innovation process.

Research can feed the innovation process, but it can’t replace it

Short in duration

Environment does not elicit innovation

Evaluative or exploratory process

Respondents aren’t necessarily innovative

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Six steps to making

community a viable

source of actionable

open innovation.

Start with a clear purpose in mind Decide who should comprise the

community Communicate your end goal clearly

and appropriately to the community Create the right environment Motivate them in meaningful ways Maintain the quality of the

community

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Start with a clear

purpose in mind

Know your goals and make sure the use of the community aligns strategically with company objectives

Share

You’ve probably taken some great digital pictures of your friends or family. But how often do those pictures make it out of your camera and into an actual frame for others to see and enjoy?

Introducing Share, the innovation from (wireless brand) that allows you to easily display your images so they can be enjoyed by all.

The Share is a full-feature cell phone that also comes with two digital picture frames.

To share images, just:

• Use Share's advanced, quick-capture digital shutter camera to take your pictures

• Connect Share to a picture frame either wirelessly, via USB, or remotely

• Select the images you want to send to that specific frame

• Push the “Share” button and it immediately sends your picture to the frame

You can even program Share so that it updates each frame with new images according to a schedule you set. And frames can be networked together to show the same images.

Don’t let your pictures sit in your camera collecting digital dust. Bring them out for everyone to see with (wireless brand)'s

Share.

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Decide who should

comprise the

community.

“All-inclusive” is great for vacations, but not for innovation Learn who can and will contribute Don’t be afraid to be critical

There is no magic community member number Start with the 100/10/1 rule and go from

there “Qualified” members = smaller

community

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Communicate your end

goal clearly and

appropriately to the

community.

Innovation flourishes in a defined environment

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Communicate your end

goal clearly and

appropriately to the

community.

40 Imaginator community members in the EU

Collaborate on ideas for a new confection One group was given “free reign” The other group received clear direction and

relevant tools Effectiveness of each approach

evaluated on: Number of distinct idea categories Relevance in addressing the task Originality of the ideas

The Case for In-the-Box Innovation, Callahan, Ishmael & Namiranian 2005

Ideas Categories RelevanceOriginality

Index

Non-Directed 512 29 92% 1.515

Directed 696 39 99% 1.585

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Create the right

environment.

To compete, or not compete…?

“If an innovator believes that revealing innovation-related information will allow a rival to outperform him, the likelihood that the innovator will reveal this information will decrease unconditionally.” (Franke and Shah, 2003)

Bound By The Power Of One

Seek out innovation springboards

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Motivate them in

meaningful ways.

Franke & Shah 2003

Decision Analyst, Imaginator Study 2009

Community Member Motivation

Community members should assist others 92.6%

It is fun to create something jointly 78.6%

It is the norm for members to collaborate for free 74.1%

If I collaborate, others will collaborate with me 35.7%

I enjoy advice as an expert 32.0%

I want to use the product myself 40.7%

It is nice to receive recognition 10.7%

I was paid well for my assistance 7.1%

Imaginator Motivation

Outlet for creativity and innovativeness 46%

Working with other creative people 25%

Money 11%

It's who I am 11%

Influence what goods & services are offered 3%

Monthly newsletters 3%

Like the projects 1%

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Maintain the quality of

the community.

Be sure the members have everything they need to be valuable contributors

Assess member’s contributions over time

Don’t be afraid to remove members from the community

Keep them busy

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RevolutionEvolution

Turn-key, outsourced innovation

communitiesCustom

innovation communities Internally

developed & managed

communities

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So if you remember

only three things…

Community can be a viable open innovation source

Six simple steps to making an innovation community effective

How you approach using innovation communities can be evolutionary or revolutionary

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Gwen Smith Ishmael, Decision Analyst Insights & [email protected]

604 Avenue H East, Arlington, Texas 76011-3100817.640.6166

http://www.decisionanalyst.com http://secondarydata.com Blog: www.ideaflow.com Twitter: @Gwen_Ishmael

1 enhancing the open model through the use of community 3rd annual open innovation las vegas, nv...

Documents

decisionanalyst proprietary

imaginator community

smaller community

share button

decisionanal proprietary

new images

great digital pictures

wireless brands share