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Open Innovation and What it Means to You


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Open Innovation and What it Means to You

  1. 1. BSI<br />Open Innovation andWhatitMeanstoYou<br />Marketing 2.0 Conference, Paris 2010<br />
  2. 2. Jointheconversation<br />MARKETING 2.0 CONFERENCE<br /><br />
  3. 3. M2C Conference: <br />March 22nd, 2010<br />Open Innovation and What it Means to You<br />Bonnie Kiesling<br />VP Marketing<br />InnoCentive, Inc.<br />
  4. 4. O•penIn•no•va•tion1. n. a methodology for harnessing collective intelligence in a world of widely distributed knowledge 2. adj. a creative approach for encouraging fresh thinking to accelerate the development of breakthrough ideas<br />
  5. 5. Entire Planet of Problem Solvers<br />I have a problem<br />I have a solution<br />
  6. 6. Crowdsourcing isn’t New …<br />LONGITUDE PRIZE<br />Offered by the British government through an Act of Parliament in 1714 for a simple and practical method for the precise determination of a ship's longitude. <br />In total, over ₤100,000 was given in the form of encouragements and awards, the significant winner was John Harrison who received ₤14,315 for his work on chronometers from 1737 to 1764.<br />Source: Wikipedia<br />John Harrison’s Chronometer H5<br />
  7. 7. Another Example …<br />ORTEIG PRIZE<br />$25,000 reward offered in 1919 by hotel owner Raymond Orteig to the first allied aviator(s) to fly non-stop from New York City to Paris or vice-versa. By1924, aviation technology had advanced to the point that numerous competitors vied for the prize.<br />Relative-unknown Charles Lindbergh won the prize in 1927 in his aircraft Spirit of St. Louis. <br />Lindbergh became the first solo pilot to cross the Atlantic non-stop in a fixed-wing aircraft<br />Source: Wikipedia<br />Charles Lindbergh and Raymond Orteig<br />
  8. 8. BACKGROUND<br /><ul><li>GoldCorp, Inc - a struggling business that wanted to increase its mining success rate in an old mine called in Canada
  9. 9. The CEO decided they should share all available company-owned geological data (the proprietary crown jewels) of the mine with everyone on the Internet
  10. 10. They offered $575,000 prize money to the whoever that could use the data to tell them to find at least 6 million ounces of gold</li></ul>RESULTS<br /><ul><li>1,400 scientists, engineers, and geologists from 50 countries started their virtual exploration
  11. 11. Goldcorp drilled 4 of the winners' targets and have hit on all 4
  12. 12. The prize winner? Fractal Graphics, a software firm based in Perth – never seen a mine, doesn't understand the gold business
  13. 13. The company shot from US$100 million to US$9 billion in revenue</li></ul>The GoldCorp Story<br />
  14. 14. Our Opportunity to Use Open Innovation and Crowdsourcing on a Massive Scale is …<br />Why Now? The Perfect Storm! (Don Tapscott)<br />Technology Revolution<br />Demographic Revolution<br />Social Revolution<br />Economic Revolution<br />
  15. 15. The InnoCentive Open Innovation Marketplace<br />Seekers works with InnoCentive to formulate aChallenge and award<br />InnoCentive posts Challenge on its public Marketplace of 200,000 global Solvers<br />Solvers view Challenges and submit solutions<br />Seeker selects winning solution &awards Solver<br />Solver transfers intellectual property to Seeker<br />
  16. 16. Solutions from Unlikely Places<br />1989 Exxon Valdez Oil Spill<br />Oil Spill Recovery Institute (OSRI) formed shortly thereafter and is chartered with developing recovery techniques.<br />Oil Remains on Floor of Prince William Sound Today<br />Brightest minds in the industry could not solve the problem of separating frozen oil from water in collection barges.<br />2007 OSRI Buys Game Changing Solution for $20,000<br />Construction Engineer from Midwest suggested a technique used in the concrete industry for keeping cement fluid during large pours.<br />
  17. 17. Magic in Diversity<br />12<br />Marginal Impact of Problem Distance and Probability of Creating a Winning Solution<br />20%<br />10%<br />Probability of Solving<br />Inside Outside<br />Winning Solutions most likely from 6 disciplines away from problem!<br />
  18. 18. Reality, Diversity, and the “Long Tail”<br />13<br />
  19. 19. The InnoCentive Community & Marketing<br />
  20. 20. Solutions for Marketing Problems<br />Over 2,00 people worked on project Received over 200 submission<br />Solvers included:<br />PhD in Genetics<br />Aircraft Engineer<br />Organizational Dev Prof. <br />Seeker gave 6 awards!!!!<br />Solvers included:<br />Authors<br />Doctors<br />Students<br />
  21. 21. Crowdsourcing for T-shirts<br />
  22. 22. Crowdsourcing for Designs<br />
  23. 23. Crowdsourced Advertising Agency<br />
  24. 24. Open Innovation is Powerful and Here to Stay<br />New and Open<br />Old and Closed<br />Linear, Slow<br />Proprietary Knowledge<br />Hire the best and solve within<br />Wisdom of experts<br />Exponential, networked, quick<br />Shared Knowledge<br />Find and use the best minds anywhere<br />Wisdom of the crowds<br />
  25. 25. The Marketing opportunities are limitless….Questions? <br />THANK YOU!<br />Bonnie Kiesling<br />VP of Marketing<br />InnoCentive, Inc.<br />