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3 cs of innovation 2.0 - crowdsourcing competition collaboration - Hutch Carpenter at E20Forum


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3 cs of innovation 2.0 - crowdsourcing competition collaboration - Hutch Carpenter at E20Forum

  1. 1. 3 Cs of Innovation 2.0<br />Crowdsourcing, Competition, Collaboration<br />Hutch Carpenter<br />VP of Product<br />@bhc3<br />
  2. 2. 2<br />What is this “innovation” you speak of?<br />Innovation: A change in a product offering, service, business model or operations which meaningfully improves the experience of a large number of stakeholders<br />
  3. 3. 3<br />Multiple Forms of Innovation<br />create new market<br />Low risk, many competitors<br />High risk, high reward<br />radical technology change<br />minimal technology change<br />Customer experience; cost savings<br />High risk, defensive strategy<br />manage existing market<br />
  4. 4. 4<br />Innovation = ROI<br />Leading innovators generate 430 basis points more in shareholder return than do average companies<br />My entire year has been a quest to find quantifiable ROI… Finance agreed - it ain't easy.<br />Where we did quickly find quantifiable business value was during an ideation proof of concept. Ideas that are discovered and turned into action have produced dollarized return of business value.<br />Laurie Buczek<br />Social Computing Program Manager at Intel<br />All I Want For Christmas is my E2.0<br />
  5. 5. 5<br />Innovation 1.0: Two Centers of Innovation<br />
  6. 6. 6<br />Innovation 2.0: Employees Rule!<br />
  7. 7. Crowdsourcing<br />7<br />
  8. 8. 8<br />Crowdsourcing? What is that?<br />Crowdsourcing: Soliciting the ideas, knowledge, experiences and judgment of a large, diverse group of people to solve a problem<br />
  9. 9. 9<br />Diversity of Inputs Drives Idea Quality<br />Diversity Means Quality<br />Prof. Ron Burt, Structural Holes & Good Ideas<br />Crowds of people, each calling on their own incomplete and private information, are able to arrive at optimal solutions as well as, or better than,a small group of smart people.<br />Diversity in crowds expands a group’s set of possible solutions.<br />Idea Assessment<br />James Surowiecki, <br />The Wisdom of Crowds<br />high diversity of connections<br />low diversity of connections<br />
  10. 10. 10<br />Crowdsourcing Brings Edge Perspectives In<br />customers<br />customer service<br />customers<br />IT<br />marketing<br />R&D<br />account mgt<br />manufacturing<br />sales<br />product<br />finance<br />customers<br />customers<br />field operations<br />
  11. 11. 11<br />Three Models of Crowdsourcing<br />Crowdsourced Submissions<br />Crowdsourced Feedback<br />Selection by Experts<br />Crowd Sentiment, Expert Decision<br />Crowdsourced Submissions<br />Crowdsourced Selection<br />Crowd Decision<br />Selection by Experts<br />Crowdsourced Submissions<br />Expert Decision<br />
  12. 12. 12<br />Crowdsourcing Isn’t Immune from the 1:9:90 Participation Ratio<br />Estimated distribution of employees’ propensity to share ideas<br />Number of Employees<br />typical idea suggestion curve<br />Propensity to formulate & submit ideas<br />low<br />high<br />
  13. 13. 13<br />Goal-Setting Changes the Participation Ratio<br />Goals Stimulate Employee Idea Sharing<br />Number of Employees<br />goal-driven ideation curve<br />ideas increase due to goal-setting<br />typical idea suggestion curve<br />Propensity to formulate & submit ideas<br />low<br />high<br />
  14. 14. 14<br />Why Does Goal-Setting Work?<br />Signals increased management attention to ideas on a topic<br />Sets an expectation of participation<br />Establishes a target the community can rally around<br />It creates an event orientation<br />
  15. 15. 15<br />Goals Must Relate to Tangible Outcomes<br />Product Delivery Value Chain<br />Product Design<br />Procure-ment<br />Manu-facturing<br />Distribu-tion<br />Marketing<br />Customer Experience<br />What are the top emerging use cases of our product?<br />How do we increase throughput by 10%?<br />How do we increase fleet fuel efficiency by 10%?<br />How do we increase customer sat. scores 20%?<br />“Used in development of green technology”<br />“Reduce truck idling time during morning loading”<br />“Pre-build components for later install”<br />“Route service calls by component, not vertical”<br />
  16. 16. Competition<br />16<br />
  17. 17. 17<br />Two Senses of Competition<br />System Competition<br />Individual Competition<br />Competition: Process of determining how a finite resource will be allocated among a set of alternatives<br />Competition: Actions taken to advance in a given endeavor, satisfying one’s internal need to excel<br />
  18. 18. 18<br />Innovation Thrives on Soft Competition<br />
  19. 19. 19<br />Marketplace Competition for Best Ideas<br />Competition reduces innovation friction<br />
  20. 20. 20<br />Paragone Creates an Innovation Meritocracy<br />During the Renaissance, paragone implied the placing of two artists’ individual works side by side in order to judge them, weigh them, distinguish them, and critique them.<br />Sofia’s idea<br />Using rivalry to spur innovation<br />Bernard T. Ferrari and Jessica Goethals<br />McKinsey Quarterly<br />Wisdom of the crowd distinguishes among submitted ideas<br />Maximo’s idea<br />
  21. 21. 21<br />Paragone Creates Performance Curiosity<br />Greater freedom to innovate and decide which ideas are best leads naturally to a desire to better understand one’s own performance.<br />Feedback<br />benchmarking<br />recognition<br />
  22. 22. 22<br />Game Mechanics Are Performance Metrics<br />…Translates to<br />Activity…<br />Authoring<br />activity currency<br />Interacting<br />collaborator badge<br />Positive Feedback<br />reputation score<br />Professor Andrew McAfeeShould Knowledge Workers Have Enterprise 2.0 Ratings?<br />
  23. 23. 23<br />Game Mechanics Are Reinforcement<br />Behavior achieved is what you actually reward. Pavlovian but true. To achieve full value of 2.0 need tech + culture.<br />I would suggest that @ replies in twitter trigger a dopamine response. And thus the addiction. Who's with me? /via @cammybean /// I am :)<br />Laurie Buczek (tweet)<br />Social Computing Program Manager<br />Intel<br />Claire Flanagan (tweet)<br />Senior Manager, Enterprise Social Collaboration<br />CSC<br />Social incentives reward and reinforce the goals in innovation<br />
  24. 24. Collaboration<br />24<br />
  25. 25. 25<br />When I Say “Collaboration”, I Mean…<br />Collaboration: Building toward a defined outcome through the interactions and input of multiple people<br />
  26. 26. 26<br />Typical Collaboration Is Poorly Suited for Innovation<br />Standard collaboration group formation is…<br />…great for project execution…<br />…but limiting for innovation.<br />Group Composition and Decision Making: How Member Familiarity and Information Distribution Affect Process and Performance, 1996 (pdf)<br />
  27. 27. 27<br />Collaboration Based on Emergence<br />
  28. 28. 28<br />Innovation Requires Emergence and Structure<br />Emergent Collaboration<br />Structured Collaboration<br />crowdsourcing<br />competition<br />
  29. 29. 29<br />Reward Innovation Collaboration as Much as Idea Origination<br />What people focus on<br />Need to make collaboration as important as origination<br />The work that makes eureka possible<br />The Work of Innovation<br />Scott Berkun<br />Author, The Myths of Innovation (pdf)<br />
  30. 30. 30<br />Make Collaboration Sexy and Worthwhile<br />Purposeful Work<br /><ul><li>Stokes one’s passion
  31. 31. Part of project team
  32. 32. Solves a burning issue for me</li></ul>Social Incentives<br /><ul><li>Community feedback on your input
  33. 33. Milestone achievements
  34. 34. Reputation rating</li></ul>Recognition<br /><ul><li>Acknowledge team, not just originator
  35. 35. Publicize collaboration achievements</li></li></ul><li>31<br />Spigit: Innovation Driven by Enterprise 2.0<br /><br />Hutch Carpenter<br />VP of Product<br />@bhc3<br />