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  • Alph to revise so it shows both commercial, government and non-commercial
  • Note to Alph to revise (?)
  • Full or partial on all 7 2 full 5 with partial, 2 with multiple winners
  • Full or partial on all 7 2 full 5 with partial, 2 with multiple winners
  • © 2008 InnoCentive, Inc. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY - DO NOT REPRODUCE.
  • © 2008 InnoCentive, Inc. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY - DO NOT REPRODUCE.
  • © 2008 InnoCentive, Inc. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY - DO NOT REPRODUCE.
  • Awarded Solution Value Challenge Owners quantified the benefit of their solutions awarded based on other tools. (Those tools used in comparison included SBIR, contract resources or internal team development.) Results varied from $150,000 value (time independent for Solar Forecasting) to $25,000 for packaging concepts addressing Medical Consumables Tracking. Total Value: $410,000 Diverse Solver Network and Submissions Value NASA Challenge Owners realized benefits in access to the InnoCentive Open Innovation Marketplace: A diverse network of experts in which considerable time and resources would be applied in finding and managing these resources. The ability to evaluate the solutions in a pay only for success model created a significant value that is difficult to measure completely. It was determined by the pilot evaluation team that a benefit of $25,000 per challenge would be applied. Reduced Internal Resource Burden InnoCentive provides an experienced Client Services team of consultants and scientists to professionally develop the challenge statements and manage the program for the NASA Challenge Owners while using the InnoCentive Open Innovation Marketplace. Additionally NASA legal resources were not required to create contracts and agreements with the eleven-awarded solvers. An estimated 250 hours were saved per challenge resulting in a $122,500 savings based on a $70/hour burdened rate.

Bingham.alph Bingham.alph Presentation Transcript

  • Execute Challenge-Driven Innovation Dr. Alpheus Bingham Founder and Member, Board of Directors Steven Domeck Innovation Manager, NASA Program
  • The Leadership Paradox "To be a god, at least to be a creative one, one must relinquish control and embrace uncertainty.  Absolute control is absolutely boring.  To birth the new, the unexpected, the truly novel - that is, to be genuinely surprised - one must surrender the seat of power to the mob below . – Kevin Kelly -
  • Infinite players enjoy being surprised. Continuously running into something one didn't know will ensure that the game will go on. The meaning of the past changes depending on what happens in the future. – Carse -- LEADERSHIP
  • “ The race is not always to the swift nor the victory to the strong; but that IS how you bet.”
  • Power Function
  • We sold more books today that didn't sell at all yesterday than we sold today of all the books that did sell yesterday.” Josh Petersen – Amazon employee
  • Power Function
  • What is an expert?
  • Swift and the Strong
  • “ Most of the smart people work somewhere else.” -Bill Joy, Sun Microsystems-
  • Swift and the Strong : Work Someplace?
  • Swift and the Strong : Work Someplace? Likelihood of solving a tractable domain-appropriate problem to be posed in the future.
  • Likelihood of solving a tractable domain-appropriate problem to be posed in the future. “ Most of the smart people work somewhere else.”
  • Likelihood of solving a tractable domain-appropriate problem to be posed in the future. “ Most of the smart people aren’t “smart”.”
  • We have learned some things..
    • Chat rooms vs. “expert” help desks.
      • MAC slow crash
      • Nikon 24mm w/ D100
    • Linux vs. Windows
    • Talk radio vs. reference librarian
    • Grad school observations
    • The Blogosphere
    • Wikis
  • Stock Market Do you want the CEO to set the share price every morning ?
  • InnoCentive Operations Seeker Companies Solvers InnoCentive was an experiment in open innovation. It worked. Proprietary and Confidential
  • InnoCentive Website
  • InnoCentive Operations Seeker Companies Solvers The Net@Work Proprietary and Confidential 220,000
  • Diversity
    • Generates more approaches to challeng e
    • Lateral thinking -- Approaches from out side ‘discipline’
    • Prior solutions
    • “ AHA” effect (Archimedes in the tub)
    • Sets up options for downstream proces sing (avoids “dangerous idea”)
    • Build a solver community
    • Currently >135,000 registered solvers
    • Outreach: China, India, Russia, Kazakhst an , Poland, Turkey, Israel
  • Spot Market
    • No bricks, no mortar,
    • No hires, no fires,
    • No term sheets, no lawyers, no contracts
    • Instant access -- Always on
    • Does require use skills
    • Defined terms of engagement
    • Online solver agreement
    • Web-based Project rooms
  • Risk Management
    • Community takes on the risk
    • Pay only for results, not efforts
    • Bounty hunting business model
    • Diversify utilities
  • Where does solving power come from in a crowd? The Three “-ities”
    • Heterogeneity
    • Marginality
    • Serendipity
  • Space is mostly empty E
  • Space is mostly empty E
  • Space is mostly empty E E E E E E E E E E E E E E E E
  • Marginality “ Because individuals become socialized to the norms and beliefs of their fields and organizations, remaining at the margins while keeping up to date and actively pursuing access to resources offers those marginalized a different set of perspectives and heuristics than those at the core of the professional establishment.” McLaughlin. 2001. Optimal Marginality: Innovation and orthodoxy in Fromm’s revision of psychoanalysis. The Sociological Quarterly . 42 (2) 271-288.
  • Experience/Circumstance Skill/Training Clear Challenge
  • Can you “find” Archimedes in his bathtub
  • “ I was thinking about tear gas….” The serendipity of ideas….
    • 1000+ Challenges posted
      • 200-300 per year lution
    Challenge Model Success
    • 500+ Awards to date
      • Solvers are from private sector, academia, consulting, retirees, consultants, CROs, everywhere
      • Average award size trending up
      • Many solutions in review/pending
    • 35-40% Solve rate
      • Trending upward
  • Boeing, Airbus, Russian Space Program NASA HR Potential Home Astronomers Sprint Engineers Home Makers etc Logic of Scarcity vs. the Logic of Abundance
  • Case Study Evaluation of the Open Innovation Pilot Program between NASA and InnoCentive, Inc.
  • Pilot Goals
    • The intent of the NASA Open Innovation Pilot Program was to discover:
      • The benefits of utilizing Open Innovation methodologies for NASA Challenge Owners
      • The utility of Open Innovation tools to solve NASA Challenges
      • The effectiveness of the Challenge-Driven Innovation platform
  • Report Methodology
    • InnoCentive and the NASA Pilot Program team evaluated the results of seven pilot Challenges,
      • Surveyed over 2,900 solvers who participated in these Challenges
      • Nineteen interviews took place with
        • Eleven NASA personnel in three Centers
        • Eight solvers from four countries
  • Open Innovation Program Reach Over 2,900 Solvers from 80 Countries Participated NASA Johnson Space Center SLSD – SA NASA Glenn Research Center NASA Langley Research Center
  • NASA Pilot Challenges – Phase 1 Challenge Title - Center Area of Expertise Proposals Submitted Award Details Improved Barrier Layers … Keeping Food Fresh in Space - JSC Material Sciences 22 One Partial Award Mechanism for a Compact Aerobic Resistive Exercise Device – JSC/GRC Engineering 95 Fully Awarded Data-Driven Forecasting of Solar Events - JSC Mathematics 11 Fully Awarded Coordination of Sensor Swarms for Extraterrestrial Research - LARC Theory / Biology 37 Three Partial Awards
  • NASA Pilot Challenges – Phase 2 Challenge Title - Center Area of Expertise Proposals Submitted Award Details Medical Consumables Tracking - GRC Engineering 56 Three Partial Awards Augmenting the Exercise Experience - JSC Systems 18 One Partial Award Simple Microgravity Laundry System - JSC Engineering 108 One Partial Award
  • Data-Driven Forecasting of Solar Events
          • This NASA Challenge was looking for a method to predict the onset, intensity or duration of an SPE. Input was sought for techniques such as ensemble forecasting, multivariate statistics and Bayesian time-series analysis may be able to provide progress towards a solution.
    • The deliverable and technical requirements were the following:
    • Ability to predict SPE’s with greater than 2 sigma confidence better than random events.
    • Detailed document carefully outlining the approach taken
    • An example application of the approach applied to real historical data.
    • Confidence limits of predictions for 5-10 historical SPEs.
  • Data-Driven Forecasting of Solar Events
          • Bruce Cragin, academic background is in engineering and applied physics (B.S. Cornell, Ph.D. UCSD). Started his career as a research scientist specializing in waves and in plasma instabilities. In 1997 he changed careers to radio engineering, most recently, with Sprint Nextel Communications, provided the winning submission. “Though I hadn’t worked in the area of solar physics as such, I had thought a lot about the theory of magnetic reconnection.”
    His Submission was fourteen pages of written explanation complete with the algorithm and data results. A supplemental Excel spreadsheet containing the validation and all referenced data.
  • Data-Driven Forecasting of Solar Events
          • NASA Challenge Owner Response
    “ The submission was very thorough. It addresses the challenge requirements and exceeds them with respect to forecast confidence and to random prediction. Questions posed back to the Solver were thoroughly addressed. This solution holds promise and the Seeker is highly interested in working with the Solver on potential implementation into an operational framework. It appears that the Solver is from within the Heliophysics community. This submission is approved.” Dr. Dan Fry, Scientist, Space Radiation Analysis Group
  • Measurable Benefits Found CDI Benefit Item Calculation Awarded Solution Value Summary of the acquired value of the awarded solutions Diverse Solvers and Process Value
      • Access to an expanded expert network
    • Pay only for Performance
    Reduced Internal Resource Burden
      • Efficient process for Intellectual Property transfer
      • Promotes effective use of established resources
  • Qualitative Benefits Found CDI Benefit Item Calculation Identify Future Collaborators New contacts and resources identified with winning solvers Improved Research Process
      • Enhanced ability to frame research needs
      • Challenge definition skills
    Fostering Cultural Change
      • Move from Not Invented Here to Proudly Found Elsewhere
      • Ability to fail fast
  • Lessons Learned – NASA Challenge Owners
    • The concept that you can go outside of NASA and receive valuable information from non-related people has been validated .
    • Because this method is so unique, the training and use of examples help the team to identify a challenge.
    • Common problems experienced were Challenge owners wording their problem with a predisposed solution in mind.
    • The Challenge Requirements should identify undesirable technologies . Avoid received solutions already known.
    • Scheduling blocks of time for the evaluation team is critical as most of your time is spent on this task. (~60-80 hrs)
  • NASA Challenge Owner Feedback
    • “ The challenge owners and NASA evaluators have got to be as forward thinking and visionary as the submitters to an Open Innovation Challenge. We are a NASA group with NASA evaluation processes, if a submission does not look like a NASA answer, I am not sure it would be selected without forward thinking. This is mainly because it does not look like something we are already doing or familiar to us. It is more the culture of NASA that will change us to be more visionary.” Melvin Ferebee - Langley Challenge Owner
  • Lessons Learned – From Solver Survey
    • Winning solutions and Solvers were found outside the traditional corporate workplace .
    • NASA Solvers reported that their expertise is not directly within the challenge discipline ; reinforcing the value of diversity.
    • NASA Challenges resonate with more than one dimension of a Solver’s motivations and provide more stickiness.
    • 98% of NASA Solvers would like to work on more NASA challenges in the future.
  • Questions
    • Steve Domeck [email_address]
    • Alph Bingham [email_address]