Thoughts on open innovation sandro morghen yutongo


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English version of my observations and conclusions on Open Innovation.

Presented at Hochschule Lucerne, Switzerland on Ocotober 3rd, 2012.

Interesting questions from students were:

Question: Why do you pay innovators for their time/effort rather than to follow the winner takes it all approach? What if people performe weak in a process?

Answer: Because in our process it is not possible to allocate one single author to an idea. The creative content is based on our process setup, a collective result. This is why we pay everybody equally. We don't see Innovation as a game/contest, we see it rather as a form of crowd labour. Being is hard work and it doesn't take a genius. Based on the fact that all innovators answer a whole set of subquestions throughout the process, we can diffuse the risk of receiving bad content from one person. After all, it's just not fair. In our tests we weren't facing quality issues, but of course, had to deal with people who were trying to misuse the system. However, this issue remains manageable with our platform and approach. In our tests we measured about 5% of participants who tried to add random/sabotage content. We are very convinced that we can bring this number with the right quality management tools.


Question: Are you already online?

Answer: We have a functional prototype which is online but we are going to take it down as we are finalizing our commercial version of yutongo.


Question: Are you giving support to customers with setting up a project?

Answer: Not in a consulting sense. But the app is based on a step-by-step process and we put all our strength and own creativity in reducing complexitiy and the self explanatory character of the website. You shouldn't be an expert to setup a project with yutongo.


And a bunch of more questions I unfortunately can't remember. Thanks Hochschule Lucerne for having me and for asking questions. Asking question is very good advisor if you are planning to be creative. Creativity starts with asking the right questions!

Sandro Morghen, CEO & Co-Founder of yutongo

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Thoughts on open innovation sandro morghen yutongo

  1. 1. «Thoughts on Open Innovation» Sandro Morghen, yutongo Hochschule Luzern, 03.10.2012
  2. 2. Sandro Morghen• 14 years of experience in the innovation industry• 11 years BrainStore idea factory, among the first companies worldwide to offer ideation services on a systematic scale • Head Idea Production, one of the main authors of the BrainStore creativity approach• Main Learning: creativity and innovation development is an industrial process • And: innovation is all about creativity
  3. 3. Sandro Morghen• Co-writer of first German Crowdsourcing Report (on Open/Crowd Innovation)• Contributor to
  4. 4. Sandro Morghen• More 600 than ideation projects (most >100K CHF), many fortune 500 companies: Telekom, Daimler, Nokia, GM, P&G, Henkel etc.• In Africa, Australia, Europe, USA
  5. 5. Sandro Morghen• Now: CEO & Co-Founder von • Idea Crowdsourcing application low subscription fees, self-service and a native creative process • Companies and organisations worldwide, any size
  6. 6. Crowdsourcing 2012 Crowd Crowd Crowd microtasks wisdom funding Let the crowd solve Collect knowledge, Collect funding from theworking orientated tasks predictions, crowd (e. g. «Resize 1’000 jpg live data and more files» or e.g. Wikipedia«Make a research on…» Crowd Crowd creatives innovation Develop elaborated Collects innovations and creative work like logo ideas from a crowddesign, industrial design, copy text etc. = Open Innovation
  7. 7. What is Open Innovation?  Opens innovation processes to the outside world. «Also folks from ‘outside’ have good ideas which bring value to the company».  Web driven.  Crowd driven.  External and/or internal.
  8. 8. ParticipantsHow does it work? WIN Consulting (Humans) WIN Open Innovation Idea Customer Plattform Idea atizo, innocentive and WIN Idea Creative 50 others Problem Idea Idea Corporate Innovation Plattform Ideaz. B. «Ideas for WIN Idea the next e.g. Tchibo Ideas,beverage trend Idea coming up» Open Innovation Accelerator Jury/ Customer
  9. 9. Why has it become popular?  PR, Brand Loyalty, (Social Media) Marketing.  Customer insights.  Collect many ideas. External fans, consumers, experts, creatives, nerds bring variety in innovation pipelines.  Made possible through Web 2.0 revolution
  10. 10. So far, so good.
  11. 11. Observations on OpenInnovation and some conclusions
  12. 12. What do we need so Open Innovation and related phenomen increases in volume significally and through this, the planetbecomes a little bit more creative?
  13. 13. 9 very personal observations and conclusions on Open Innovation
  14. 14. 1 Observation
  15. 15. 1 Observation Open Innovation is NOT creativity, but innovation only grows throughcreativity. Quality and sophistication of creative processes used in Open Innovation are still subject to improve. Like a lot.
  16. 16. 1 Conclusion Open Innovation needs intelligent, inspiring tools and principles for creativity driven collaborative delevopment of ideas.
  17. 17. 2 Observation
  18. 18. 2 Observation Studies show: In order to successfullylaunch an idea in the market, you need up to 4000 – 5000 single ideas and thoughts to be collected, compressed, refined and re-combined.
  19. 19. 2 Conclusion Processes in Open Innovation need to be natively designed to orchestrate aninterplay between lots of content and thereduction of the content. Quality can only grow from mass.
  20. 20. 3 Observation
  21. 21. 3 Observation Participants in Open Innovation processes act like «Idea Rambos». Lone figthers, disconnected fromothers who fight their own battle. In the moment of idea creation, Idea Rambos are alone. We call this: «Collaborative Loneliness».
  22. 22. 3 Conclusion We need agile idea intervention troups who operate in a collaborativelyconnected manner. Platforms will need to display that in their processes.
  23. 23. 4 Observation
  24. 24. 4 Observation Whoever is exposed to a brainstorming process (online or offline), is scared to share «wrong» ideas. This is an enormous blocking mechanism in creative processes.
  25. 25. 4 Conclusion Anonymization de-blocks the creativeflow and stimulates the ideation process. Processes in Open Innovation need to build on the concept of anonymization.
  26. 26. 4 Conclusion Two aspects of creative work in groups Wrong Mutual inspiration understanding of leads to more group conformity, diverse, out-of-the- negative group box and unique dynamic, scared to ideas. share «wrong» content. Eliminate group conformity, foster mutual inspiration.
  27. 27. 4 Conclusion Two aspects of creative work in groups Wrong Mutual inspiration understanding of leads to more group conformity, diverse, out-of-the- negative group box and unique dynamic, scared to ideas. share «wrong» content. Eliminate group conformity, foster mutual inspiration.
  28. 28. 5 Observation
  29. 29. 5 ObservationFor many companies and organisation,Open Innovation is like Christmas; you do it once a year, it was nice but that was it. It‘s not a cultural changer.
  30. 30. 5 Conclusion «I get help from others when I need ideas, external or internal, even also for my little daily tasks» Inject «Crowdsourcing thinking» intocompanies’ DNA; the reflex to approach creative problems collaboratively. It requires specifically designed tools.
  31. 31. 6 Observation
  32. 32. 6 Observation Compensation of innovators through the Winner-takes-it-all principle is not transparent to participants. It‘stime consuming for customers and it‘s unfair in its core.
  33. 33. 6 Conclusion We need to learn that each participation in a creative process contributes to an innovative solution.Because participants inspire each other. And each contribution needs to be compensated in a repeatable, fair and systematic way.
  34. 34. 7 Observation $$$
  35. 35. 7 Observation $$$ Innovation is a key driver for every firm. And yet: 99% of companies worldwide are excluded fromaffordable Open Innovation services.
  36. 36. 7 Conclusion We need to re-think business models:Low priced. Self-service. Self-explaining. In order to make the planet more creative, we need scaling mechanisms.
  37. 37. 8 Observation
  38. 38. 8 Observation Open Innovation today: It‘s a regional phenomenon.
  39. 39. 8 Conclusion We need global platforms. Theinterlinking of innovators from different cultural backgrounds leads to better and more diverse ideas and to an improved creative output.
  40. 40. 9 Observation
  41. 41. 9 ObservationThe option to tackle a problem frommany different angles is a key assetin creative problem solving. Currentplatforms simply ignore this option.
  42. 42. 9 Conclusion Open Innovation platforms need tointegrate multi-view-angle thinking in their creative processes.
  43. 43. Obviously, we’re working on it…
  44. 44. How does it work?
  45. 45. Case Study «Innovative mobile app» Situation
  46. 46. Case Study «Innovative mobile app» Step 1
  47. 47. Case Study «Innovative mobile app» Step 2
  48. 48. Case Study «Innovative mobile app» Step 3
  49. 49. Case Study «Innovative mobile app» Step 4
  50. 50. Case Study «Innovative mobile app» Step 5
  51. 51. Where do we stand at?• Early prototype live on (soon to be removed by «coming soon» message) • Self financed• Working on first commercial release of application• Acquired substantial seed investment; provides us some air• Commercial Launch: asap
  52. 52. Some testing experiences• Test Challenge «Mobile App Revolution» • Ca. 15 participants (Europe, USA, Asiea, South east asia) • Ca. 2500 Idea fragments, 100 complete ideas • Microsalary/Person: 5$, 10 – 15 min• Test Challenge «Dental Implants» • 276 participants, (Europe, USA, Asiea, South east asia) • Ca. 1500 Idea fragments, 550 complete ideasof • Microsalary/Person: 1$, 5 – 7 min, partly also paid per number ideas (tested several schemes)
  53. 53. Thank you for yourattention!