Innovation Crowds: Myths and Maturity

1. Hashtag Innovation Crowds: for today #innodan Myths and Maturity Dan Keldsen, Principal at Information Architected www.InformationArchitected.com

2. About Dan • Principal at Information Architected • 16 Years in Industry, Public, Private & Non-Proﬁt • Founding Member of the Innovation Lab of Perot Systems • 2x Judge of “The Innovation Challenge” – The Worldʼs Largest MBA-based Open Innovation Project, run by Idea Crossing • Ranked One of Top 5 Most Inﬂuential Enterprise 2.0 Bloggers (by SeekOmega.com)

3. 3 Main Points for Today 1. Enough proof points to demonstrate both the need and the beneﬁt in Actively Innovating - no more excuses 2. Examples of where your peers are - and where you are likely to be lagging 3. How to best focus Crowdsourcing for Innovation - regardless of the crowd

4. First, What is Innovation? My definition doesnʼt matter... YOUR definition, or perhaps your boss or someone higher up, is what matters. Without defining Innovation in the CONTEXT of YOUR business, how can get MORE innovation, or get better at it? BTW - “More Innovation” is a recipe for disaster - FOCUS...

5. Avoid Innovation Paralysis Give yourself a License 2 Innovate License 2 Innovate E-i-T

6. Crowd Power (Cuts Both Ways)

7. The Viral Temptation

8. Do or do not... there is no try. The question is... why?

9. “innovation is over-rated, our company is doing just fine!”

10. S&P 500 - Jan 03 to Apr 10 Oct 07 Sept 08 Mar 09

11. For Those Who ARE Innovation The Ride is Safer, Mostly

12. For Innovation Masters... Apple The Rocket Ride

13. The Economic Crisis Has Caused an Increase in the Importance of Innovation in My Organization Strongly Disagree 1% Disagree 2% Undecided 13% Agree 46% Strongly Agree 23% Source: www.InformationArchitected.com (2009 Innovation Research)

14. If the Economy Isnʼt Pushing You to Innovate How about your competition? Do You Believe Your Competitors are Actively Using Crowdsourcing? (Note: Early Release Data) 66% 34% of Competition is Active Already, How Far Behind Do You Want to Be? 23% 11% No Yes, But Not Effectively Yes, and Effectively Source: www.InformationArchitected.com

15. Top Three of Top Three Beneﬁts What are the top three potential BENEFITS of Crowdsourcing to your business? (Note: Early Release Data) Top Benefits 2nd Most Important Benefits 3rd Most Important Benefits Increased Diversity Seeing New of Innovation Sources Opportunities First New Customers, 29% Reputation New Segments 43% Increased Idea and Brand 28% Ability to Generation Volume Image Outrun Customer 22% 43% Competitors Satisfaction Increased New Customers, 29% and Loyalty Innovation New Segments 43% Capacity 35% 30% Source: www.InformationArchitected.com

16. Kaizen, Lean, and 1,000,000

17. For every individual P&G researcher Estimated that there are 200 scientists/engineers elsewhere in the world who are just as good P&G determined they needed to change from "not invented here" to enthusiasm for “proudly found elsewhere" Source: P&Gʼs New Innovation Model (Harvard Business Review. 2006)

18. There are more smart people OUTSIDE of your organization, than INSIDE. Guaranteed. But there are also more people within your company who are not CURRENTLY being tapped for “innovations” than youʼre using today. Feel like doubling your odds?

19. Show Me The Innovation!

20. Planning vs Implementing In Your Organization, What Community or Communities did you target or will you target with Crowdsourcing? (Note: Early Release Data) 2008 (2 years ago) 2010 (Now) 2015 (5 years out) Subset of Employees 70% 49% 42% All Employees 73% 49% 39% Not Applicable Customers 79% 30% 21% Partners 85% 41% 29% Suppliers 90% 68% 51% Subset of Employees 10% 17% 12% All Employees 17% 26% 22% Planned Customers 15% 49% 32% Partners 11% 53% 28% Suppliers 8% 27% 23% Subset of Employees 20% 35% 46% All Employees 10% 25% 39% Implemented Customers 5% 21% 47% Partners 4% 7% 43% Suppliers 1% 5% 26% Source: www.InformationArchitected.com

21. Who to Target? Target Crowds By Where the Most Value Is Most Signiﬁcant Sources of Innovative Ideas Employees 41% Business Partners 37% Customers 35% Consultants 22% Competitors 20% Associations, etc. 17% Internal Sales and Service Units 16% Internal R&D 15% Academia 12% Source: IBM

22. Where are you weak with Innovation right now? Where are you STRONG? What’s your VIEW? Orientation to Change Manner of Processing Explorer Developer External Internal Ways of Deciding Person Task

23. Innovation Maturity and the Chasm Source: Geoffrey Moore - Dealing With Darwin

24. Good News/Bad News How Would You Rate the Use of Crowdsourcing by Your Company? (Note: Early Release Data) No Involvement 34% Some Experimentation, Not Sure of Value 34% Some Experience, Mixed Results 18% Used in Special Circumstances 10% Bad News: You’re Already Behind SOME Of The Innovation-Savvy Good News: Active Innovation Management Is Still Fairly Rare - Start Now! Source: www.InformationArchitected.com

25. Focusing Innovation Efforts Content Context Community

26. Who beneﬁts from the value of your innovation? Buyers? End users? Which end? Multiple customers? Suppliers? Employees? Partners?

27. Multiple Communities? Content Context Content Context Content Context Community Community Community Content Context Content Context Community Community

28. Top Three of Top Three Risks What are the top three potential RISKS/CONCERNS of Crowdsourcing to your business? (Note: Early Release Data) Top Risk/Concern 2nd Most Important Risk/Concern 3rd Most Important Risk/Concern Intellectual Effort Property/ Required Ownership in Managing Effort Expertise Expertise Required Concerns Community Required Effort Required in Managing 36% Relationships to Start Required to Start Community 34% Crowdsourcing in Managing Crowdsourcing Relationships 35% Community Time 25% 39% Fear of Relationships Time Required Competitor 30% Required to Start Access to to Start Crowdsourcing Community Crowdsourcing 34% and Ideas 41% 27% Source: www.InformationArchitected.com

29. If you donʼt have the tools to create & vet ideas at scale... How can you hope to compete with MASTERS of innovation? “That’s not a knife... THIS is a knife” Crocodile Dundee

30. Whereʼs the gold? Creating ideas is part of the problem, ﬁnding the BEST is the real challenge and most aren’t equipped well

31. Idea Generation Tools (Creative Thinking) Attribute Morphological Force-Fitting SCAMPER Brainstorming Listing Matrix Idea Focusing Tools (Critical Thinking) Paired Hits and Hot Sequencing: Evaluation ALoU Comparison Spots SML Matrix Analysis

32. Recent Engagements • GE (5) • HP • Sun Microsystems (3) • Centura Health • Avaya Global Systems • Kelloggʼs (4) • Velcro USA (4) • Fish and Richardson (2) • PepsiCo (3) • Association of Equipment Manufacturers (4) • United States Air Force/Air National Guard (2) • Cooper Tire (2) • Dialogic (2) (Parenthetical # indicates multiple sessions, typically classes of 20-30 people at a time)

33. Recent Engagements (Contʼd) • Univ. of Tennessee Business School (5) • Univ. of Denver Business School • University of Toronto • Ryerson University • University of Scranton • Capilano University • Time Warner • Eastman Chemical (3) • FedEx (5) • Buckeye Industries (2) • Interaction Associates (2) • Deloitte (Canada) • Colorado/Iowa/Oklahoma Performance Excellence (State Baldridge programs) (3) • Chinese Government (STM)

34. Q&A Dan Keldsen Co-founder, Principal dk@InformationArchitected.com twitter.com/dankeldsen 617-933-9655 Details on Innovation Workshop at bit.ly/bSONfr or www.informationarchitected.com/innovate Continue on twitter #innodan

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Innovation Crowds: Myths and Maturity

Innovation Crowds: Myths and Maturity