THE HISTORY OF PRIZES                                        “OPEN INNOVATION”                                         PRI...
A PRIZE RENAISSANCE                                          “THE ANSARI X PRIZE”                                         ...
PRIZE GROWTH & EXPERIMENTATION             “SUCCESS STORIES & CAUTIONARY TALES”                                        *  ...
PRIZE INVESTMENT       “VENTURE PHILANTHROPY & INNOVATIVE GOVERNMENT”       Source of New Prize Capital (since 2000)*     ...
A PRIZE TYPOLOGY*                                  “REWARDING OR AWARDING”* Morgan, J (2008), “Prize Induced Innovation.” ...
A PRIZE TYPOLOGY*                        “A SHIFT IN AWARENESS”                   Before 1991                   After 1991...
A PRIZE TYPOLOGY*                                “IDEATION OR DEMONSTRATION”* Morgan, J (2008), “Prize Induced Innovation....
A STANDARD PRIZE TYPOLOGY                    “FOUR QUADRANTS” ACADEMICS,ADVOCATES &                               ENTREPRE...
PRIZE OUTCOMES“TODAY‟S DISCUSSION”
PRIZE PLANNING & DEVELOPMENT            “DRIVING INNOVATION & CHANGING PUBLIC PERCEPTIONS” FEEDBACKUx
PRIZE PLANNING & DEVELOPMENT             “PRIZE INCENTIVES & OTHER DRIVERS” FEEDBACKUx
PRIZE PLANNING & DEVELOPMENT                 “NEW MINDSHARE & MEDIA” FEEDBACKUx
PRIZE PLANNING & DEVELOPMENT                 “CREDIBILITY & COVERAGE” FEEDBACKUx
PRIZE PLANNING & DEVELOPMENT             “ENGINEERING THE PLAYER EXPERIENCE”  FEEDBACKPUxx
PRIZE PLANNING & DEVELOPMENT                      “VERTICAL VALUE”   FEEDBACK  FEEDBACKPUxx
PRIZE PLANNING & DEVELOPMENT                      “LATERAL VALUE”   FEEDBACK  FEEDBACKPUxx
THE ARGUMENT FOR OPEN PRIZES                               “WHO ARE PRIZE SOLVERS?”                                       ...
ENSURING TRAINSPARENCY & FAIRNESS                     “NORMALIZATION”OBJECTIVE CRITERIA            SUBJECTIVE CRITERIA    ...
SUBJECTIVE CRITERIA                         “OPEN, FAIR & DILIGENT”SUBMISSIONS        NORMALIZATION                 BANDWI...
SAMPLE PRIZE MARKETING CAMPAIGN                     “AT WHAT COST?”$ $ $            $    $(A B C)          D    E         ...
OUTREACH TACTICS & COMMUNICATIONS        “TIGER TEAMS & NETWORKING”                             INDUSTRY                  ...
TRACKING PRIZE OUTCOMES“MEASURING AGAINST GOALS & OBJECTIVES”
A PRIZE PROCESS                                  “STAGES & GATES”     REFERRAL MODULE                                  REF...
MAPPING THE PROCESS                                        “SUPPORTING DOCUMENTATION”STAGE TWO: Teams Registering to Compe...
INSPIRING A PRIZE CULTURE“START WITH UNDERSTANDING BASIC MOTIVES”
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RAND Lecture: INCENTIVE ENGINEERING (17 Jan12)

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Lecture before the RAND Corporation, re: INCENTIVE ENGINEERING - video of lecture is also available at...

http://youtu.be/mjULNBc-5ZQ

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RAND Lecture: INCENTIVE ENGINEERING (17 Jan12)

  1. 1. THE HISTORY OF PRIZES “OPEN INNOVATION” PRIZE HISTORY TIMELINE* 1714 1775 1795 1895 1900 19191567 2012 BRITISH ALKALI NAPOLEAN CHICAGO DEUTSCH ORTEIG LONGITUDE PRIZE FOOD TIMES-HERALD PRIZE PRIIZE PRIZE PRESERVATION PRIZE FOR AUTO PRIZE MOTORS CHARLES LINDBERGH CROSSES THE ATLANTIC RAYMOND ORTEIG 9 TEAMS SPEND $400K “TO WIN $25K” * Knowledge Ecology International, Research Note 2008:1 (http://url.ie/dzyk)
  2. 2. A PRIZE RENAISSANCE “THE ANSARI X PRIZE” $1BB+ $100MM $10MM $2.5MMCREATING LEVERAGE: 26 different approaches proposed from a wide range of entrants („96-„04). ARCA SPACE TRANSPORT DA VINCI PROJECT CANADIAN ARROW ROCKET PLANEARMADILLO AEROSPACE STAR CHASER PABLO DELEON 26 TEAMS / 7 NATIONS SPEND $100 MILLION TO WIN $10 MILLION“VIRGIN GALACTIC LEASES WINNING TECHNOLOGY” 3 BILLION+ MEDIA IMPRESSIONS MOHAVE AEROSPACE VENTURES WINS $10 MILLION
  3. 3. PRIZE GROWTH & EXPERIMENTATION “SUCCESS STORIES & CAUTIONARY TALES” * (1970-2009)* McKinsey & Company (2009), “And the Winner Is…” (http://url.ie/dzyj)
  4. 4. PRIZE INVESTMENT “VENTURE PHILANTHROPY & INNOVATIVE GOVERNMENT” Source of New Prize Capital (since 2000)* GROWING SEGMENT* McKinsey & Company (2009), “And the Winner Is…” (http://url.ie/dzyj)
  5. 5. A PRIZE TYPOLOGY* “REWARDING OR AWARDING”* Morgan, J (2008), “Prize Induced Innovation.” innovations, MIT Press, 3(4). (http://url.ie/dzym)
  6. 6. A PRIZE TYPOLOGY* “A SHIFT IN AWARENESS” Before 1991 After 1991* McKinsey & Company (2009), “And the Winner Is…” (http://url.ie/dzyj)
  7. 7. A PRIZE TYPOLOGY* “IDEATION OR DEMONSTRATION”* Morgan, J (2008), “Prize Induced Innovation.” innovations, MIT Press, 3(4). (http://url.ie/dzym)
  8. 8. A STANDARD PRIZE TYPOLOGY “FOUR QUADRANTS” ACADEMICS,ADVOCATES & ENTREPREURS,KEY OPINION INVESTORS & LEADERS RISK-TAKERS
  9. 9. PRIZE OUTCOMES“TODAY‟S DISCUSSION”
  10. 10. PRIZE PLANNING & DEVELOPMENT “DRIVING INNOVATION & CHANGING PUBLIC PERCEPTIONS” FEEDBACKUx
  11. 11. PRIZE PLANNING & DEVELOPMENT “PRIZE INCENTIVES & OTHER DRIVERS” FEEDBACKUx
  12. 12. PRIZE PLANNING & DEVELOPMENT “NEW MINDSHARE & MEDIA” FEEDBACKUx
  13. 13. PRIZE PLANNING & DEVELOPMENT “CREDIBILITY & COVERAGE” FEEDBACKUx
  14. 14. PRIZE PLANNING & DEVELOPMENT “ENGINEERING THE PLAYER EXPERIENCE” FEEDBACKPUxx
  15. 15. PRIZE PLANNING & DEVELOPMENT “VERTICAL VALUE” FEEDBACK FEEDBACKPUxx
  16. 16. PRIZE PLANNING & DEVELOPMENT “LATERAL VALUE” FEEDBACK FEEDBACKPUxx
  17. 17. THE ARGUMENT FOR OPEN PRIZES “WHO ARE PRIZE SOLVERS?” TOXICOLOGY DRUG PATHOLOGY FRACTAL ALGORITHMS DISCIPLINE + 3o DISCIPLINE + 8o DISCIPLINE + 9o DISCIPLINE + 4o DISCIPLINE + 5o DISCIPLINE + 6o DISCIPLINE + 7o DISCIPLINE + 10o CHRYSTALLOGRAPHY $25,000.00 NEW CHEMICAL COMPOUND WINNERS ARE 6 DEGREES OR MORE SEPARATED FROM THE TARGET DISCIPLINEKEY TRAITS OF PROBLEM SOLVERS: Winners are technically or socially marginal to problemdomains (increasing distance between problem domain & personal expertise).EFFECTIVE TRAITS OF PRIZE DESIGN: The more intellectually diverse the pool of competitors themore likely problems get solved (in science women are more likely to win).“Problems exhibiting high uncertainty (multi-dimensional inputs) benefit most from contests.”
  18. 18. ENSURING TRAINSPARENCY & FAIRNESS “NORMALIZATION”OBJECTIVE CRITERIA SUBJECTIVE CRITERIA TRAIT RUBRICS (HOW IS CONTENT JUDGED?): STATISTICAL NORMALIZATION: 5-10+ Reviews/Proposal
  19. 19. SUBJECTIVE CRITERIA “OPEN, FAIR & DILIGENT”SUBMISSIONS NORMALIZATION BANDWIDTH JUDGING (PROPOSALS) (REVIEWS PER PROPOSAL) (TIME TO JUDGE) (REVIEW PANELS) 10 JUDGES 5 REVIEWS/PROPOSAL 1 HOUR/PROPOSAL20 PROPOSALS (10 PROPOSALS/JUDGE) (100 REVIEWS) (100 HOURS OF JUDGING) (10 HOURS/JUDGE) 5 REVIEWS/PROPOSAL 3 HOURS/PROPOSAL 10 JUDGES20 PROPOSALS (100 REVIEWS) (300 HOURS OF JUDGING) (10 PROPOSALS/JUDGE) (30 HOURS/JUDGE) 25 JUDGES 5 REVIEWS/PROPOSAL 3 HOURS/PROPOSAL100 PROPOSALS (200 PROPOSALS/JUDGE) (500 REVIEWS) (1,500 HOURS OF JUDGING) (100 HOURS/JUDGE) 100 JUDGES 5 REVIEWS/PROPOSAL 3 HOURS/PROPOSAL (100 PROPOSALS/JUDGE)200 PROPOSALS (1,000 REVIEWS) (3,000 HOURS OF JUDGING) (300 HOURS/JUDGE)
  20. 20. SAMPLE PRIZE MARKETING CAMPAIGN “AT WHAT COST?”$ $ $ $ $(A B C) D E $10+ MM (USD) MEDIA BUDGET
  21. 21. OUTREACH TACTICS & COMMUNICATIONS “TIGER TEAMS & NETWORKING” INDUSTRY ASSOCIATIONS LOCAL GOVERNMENT REGIONAL SUBJECT AUTHORITIES MATTER EXPERTS NONPROFITS ACADEMIC FOUNDATIONS INSTITUIONS COMMERCIAL INTERESTS INVESTORS PHILANTHROPISTS EMPLOYERS CREDIBLE CONNECTORS COMMUNITY ACTIVISTS BUSINESS INCUBATORS
  22. 22. TRACKING PRIZE OUTCOMES“MEASURING AGAINST GOALS & OBJECTIVES”
  23. 23. A PRIZE PROCESS “STAGES & GATES” REFERRAL MODULE REFERRAL NETWORK1 (NETWORKING INTERESTS) (VIRAL DISTRIBUTION) REGISTRATION MODULE REVIEW PROCESS2 (FORMALIZING INTEREST) (ADMINISTRATIVE) CONTRACT: PART ONE Y/N3 (MEDIA RIGHTS/WARRANTIES) REVIEW PROCESS (LEGAL & COMPLIANCE) CONTRACT: PART TWO4 (COMPLIANCE) Y/N SUBMISSION MODULE51 (RECEIVING PROPOSALS) REVIEW PROCESS (CRITICAL)52 VARIABLE DATA SET Y/N6 AWARD MODULE (TRANSFER/CEREMONY) AWARD
  24. 24. MAPPING THE PROCESS “SUPPORTING DOCUMENTATION”STAGE TWO: Teams Registering to Compete…1 REFERRAL MODULE REVIEW PROCESS (CAPTURING CANDIDATES) (ADMINISTRATIVE) REGISTRATION MODULE Follow-up2 (SCREENING CANDIDATES) SUPPORTING DOCUMENTATION: REGISTRATION PACKAGE (AGREEMENT) N/Y  Agreement NEGOTIATE TERMS Ensures: Compliance; PASS TO Media Rights; SUBMISSION Logistics.
  25. 25. INSPIRING A PRIZE CULTURE“START WITH UNDERSTANDING BASIC MOTIVES”

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