Associations Next Crowdsourcing the Creation of Value Moshe Pritsker, Ph.D, JoVE Chuck Davis, InnoCentive Jeff De Cagna, Principled Innovation Peter Turner, MCI Group August 19, 830-945am Connecting Great Ideas and Great People

Session Flow What would you like to takeaway? The what & why of crowdsourcing How it could work for associations? JoVE case study InnoCentive case study Q&A Players to watch & learn Research on Co-creation For more information

What would you like to takeaway?

The what & why of crowdsourcing

How it could work for associations?

JoVE case study

InnoCentive case study

Q&A

Players to watch & learn

Research on Co-creation

For more information

What is crowdsourcing? Benefits Taps a wider network for knowledge & skill Lowers costs to create products/services Speeds time to market Promotes shared risk & rewards with others Builds stronger customer loyalty Could help with Attracting younger members Solving the volunteer leader drain Sources of funding Fresh ideas and knowledge Improves the member experience Increases participation Content or Product Co-creation Peer Production Crowdsourcing Crowdfunding

Benefits

Taps a wider network for knowledge & skill

Lowers costs to create products/services

Speeds time to market

Promotes shared risk & rewards with others

Builds stronger customer loyalty

Could help with

Attracting younger members

Solving the volunteer leader drain

Sources of funding

Fresh ideas and knowledge

Improves the member experience

Increases participation

How it could work in associations?

Moshe Pritsker, Ph.D. Journal of Visualized Experiments JoVE

InnoCentive Case Study – How It Works Tuesday August 19, 2008 Chuck Davis Director, Open Innovation Solutions Region: Western USA & Canada and APAC [email_address]

Product Development Life Cycle & InnoCentive Front-End of Innovation New Product Development Launch to End of Life Apply InnoCentive Here to Find Solutions Internal Sources Employees Databases External Sources Customers Partners Internet Patent Searches Competitive Info $ $ $ $ $ $ $ $ $ $ $ $ $

InnoCentive.com Website Overview

Meet A Seeker You Tube: http://www.youtube.com/watch?v=gGaLUTpfxxo Local: C:UserscdavisDesktopSolver VideosOSRI Case Study 5MB.mov

1. Challenge Ideas Seeker team members and InnoCentive collaborate on ideas InnoCentive helps formulate Challenge Step 1: Challenge Formulation & Posting 3. Abstract Developed Open to Global Solver community Publicly available information Objective: attract interest 2. Seeker Review Standard disclosure process Legal, scientific, technical and commercial issues resolved Seeker approved final version Protecting anonymity and confidentiality POSTING

1. Challenge Ideas

Seeker team members and InnoCentive collaborate on ideas

InnoCentive helps formulate Challenge

3. Abstract Developed

Open to Global Solver

community

Publicly available

information

Objective: attract interest

2. Seeker Review

Standard disclosure process

Legal, scientific, technical and commercial issues resolved

Seeker approved final version

2. Confidentiality Agreement Signed by Solver Binding confidentiality between Seeker and Solver License to evaluate (transfer to full license on award) Standard contract terms outlined 3. Solver Opens Project Room Full confidential details Anonymity preserved Project Room: secure, private communications Step 2: Information Access 1. Posted Challenge Viewed by Solvers Solvers evaluate abstract Solvers decide to work on challenge Details gated by binding agreements, online security

2. Confidentiality Agreement Signed by Solver

Binding confidentiality between Seeker and Solver

License to evaluate (transfer to full license on award)

Standard contract terms outlined

3. Solver Opens Project Room

Full confidential details

Anonymity preserved

Project Room: secure, private communications

1. Posted Challenge Viewed by Solvers

Solvers evaluate abstract

Solvers decide to work on challenge

Step 3: Support, Submission & Award 1. Support & Submissions From Solver to InnoCentive Via individual Project Room only InnoCentive reviews and organizes InnoCentive answers Solver questions to increase solution quality and success potential 2. Submission Evaluation Seeker reviews all submissions Can ask for clarification from Solvers 3. Submission Selection Vetting by InnoCentive Validation by Seeker Seeker chooses best solution Auditable process ensures integrity Facilitated evaluation, verification, and IP transfer

1. Support & Submissions

From Solver to InnoCentive

Via individual Project Room only

InnoCentive reviews and organizes

InnoCentive answers Solver questions to increase solution quality and success potential

2. Submission Evaluation

Seeker reviews all submissions

Can ask for clarification from Solvers

3. Submission Selection

Vetting by InnoCentive

Validation by Seeker

Seeker chooses best solution

Auditable process ensures integrity

Step 3: Support, Submission & Award 4. Solver Verification Solver authority verified Appropriate employer waiver Wet signatures 5. Award Awardees transfer Intellectual Property Rights Non-Awardees retain their Intellectual Property Rights InnoCentive administers payment Facilitated evaluation, verification, and IP transfer

4. Solver Verification

Solver authority verified

Appropriate employer waiver

Wet signatures

5. Award

Awardees transfer Intellectual Property Rights

Non-Awardees retain their Intellectual Property Rights

InnoCentive administers payment

Meet A Winning Solver YouTube: http://www.youtube.com/watch?v=5_ucQKWmxdk Local: C:UserscdavisDesktopSolver Videos OSRI Meet the Solver 5MB.mov

YouTube:

http://www.youtube.com/watch?v=5_ucQKWmxdk

Local:

C:UserscdavisDesktopSolver Videos OSRI Meet the Solver 5MB.mov

Your Questions

Players to Watch & Learn New Players JoVE InnoCentive ArtistShare SellaBand Nature’s Precedings Open Architecture Network Radio Open Source Corporate World Gannett’s New Production Model NikePlus Mn Public Radio’s Public Insight Network Slim Devices

New Players

JoVE

InnoCentive

ArtistShare

SellaBand

Nature’s Precedings

Open Architecture Network

Radio Open Source

Corporate World

Gannett’s New Production Model

NikePlus

Mn Public Radio’s Public Insight Network

Slim Devices

Research on Co-creation Bain & Co - Customer-Focused Innovation Forrester Study - Customer Content, Participation, Purchasing Forrester Study 2006 - Audience Segmentation Gallup 2006: Strengths Development Culture & People Engagement HBR Study: Community Built Around Product Sells More Product How Business Uses Web 2.0 Tools - McKinsey Study Incentivizing Online Community - Various Innovation Using Emerging Business Units - London School of Business 2003 Innovative Service Concepts in the US - PeerInsight Lead User Method - MIT Sloan Rosabeth Moss Kanter - DNA of Organizational Confidence User Generated Content Motivators - BCG 2002 We the Media: Grassroots Journalism - Center for Citizen Media

Bain & Co - Customer-Focused Innovation

Forrester Study - Customer Content, Participation, Purchasing

Forrester Study 2006 - Audience Segmentation

Gallup 2006: Strengths Development Culture & People Engagement

HBR Study: Community Built Around Product Sells More Product

How Business Uses Web 2.0 Tools - McKinsey Study

Incentivizing Online Community - Various

Innovation Using Emerging Business Units - London School of Business 2003

Innovative Service Concepts in the US - PeerInsight

Lead User Method - MIT Sloan

Rosabeth Moss Kanter - DNA of Organizational Confidence

User Generated Content Motivators - BCG 2002

We the Media: Grassroots Journalism - Center for Citizen Media