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«Thoughts on Open
   Innovation»
   Sandro Morghen, yutongo

 Hochschule Luzern, 03.10.2012
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
Sandro Morghen
• Co-writer of first German Crowdsourcing Report (on
  Open/Crowd Innovation)

• Contributor to crowdsouringblog.de
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
Sandro Morghen
• Now: CEO & Co-Founder von yutongo.com
   • Idea Crowdsourcing application low subscription
     fees, self-service and a native creative process
   • Companies and organisations worldwide, any size
Crowdsourcing 2012
    Crowd                         Crowd                       Crowd
   microtasks                     wisdom                     funding
   Let the crowd solve         Collect knowledge,       Collect funding from the
working 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 crowd
design, industrial design,
     copy text etc.
                                  = Open
                                Innovation
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.
Participants

How 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                      Idea
z. B. «Ideas for
                                                         WIN                   Idea
    the next                   e.g. Tchibo Ideas,
beverage trend             mystarbucksidea.force.com                   Idea
  coming up»

                                   Open Innovation
                                     Accelerator
                                                                                 Jury/
                                                                               Customer
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
So far, so good.
Observations on Open
Innovation and some
    conclusions
What do we need so Open
  Innovation and related
 phenomen increases in
  volume significally and
 through this, the planet
becomes a little bit more
        creative?
9 very personal observations
     and conclusions on
      Open Innovation
1   Observation
1   Observation




 Open Innovation is NOT creativity,
 but innovation only grows through
creativity. Quality and sophistication
 of creative processes used in Open
    Innovation are still subject to
          improve. Like a lot.
1      Conclusion




    Open Innovation needs intelligent,
     inspiring tools and principles for
      creativity driven collaborative
          delevopment of ideas.
2   Observation
2   Observation




 Studies show: In order to successfully
launch an idea in the market, you need
   up to 4000 – 5000 single ideas and
 thoughts to be collected, compressed,
       refined and re-combined.
2    Conclusion




 Processes in Open Innovation need to be
    natively designed to orchestrate an
interplay between lots of content and the
reduction of the content. Quality can only
              grow from mass.
3   Observation
3   Observation




   Participants in Open Innovation
 processes act like «Idea Rambos».
  Lone figthers, disconnected from
others who fight their own battle. In
 the moment of idea creation, Idea
   Rambos are alone. We call this:
     «Collaborative Loneliness».
3    Conclusion




 We need agile idea intervention troups
    who operate in a collaboratively
connected manner. Platforms will need to
     display that in their processes.
4   Observation
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.
4    Conclusion




  Anonymization de-blocks the creative
flow and stimulates the ideation process.
  Processes in Open Innovation need to
 build on the concept of anonymization.
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.
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.
5   Observation
5   Observation




For 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.
5    Conclusion
                          «I get help from
                        others when I need
                         ideas, external or
                        internal, even also
                         for my little daily
                               tasks»




 Inject «Crowdsourcing thinking» into
companies’ DNA; the reflex to approach
  creative problems collaboratively. It
  requires specifically designed tools.
6   Observation
6   Observation




 Compensation of innovators through
    the Winner-takes-it-all principle
 is not transparent to participants. It‘s
time consuming for customers and it‘s
            unfair in its core.
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.
7   Observation




         $$$
7   Observation




         $$$
 Innovation is a key driver for every
  firm. And yet: 99% of companies
    worldwide are excluded from
affordable Open Innovation services.
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.
8   Observation
8   Observation




       Open Innovation today:
    It‘s a regional phenomenon.
8    Conclusion




     We need global platforms. The
interlinking of innovators from different
  cultural backgrounds leads to better
    and more diverse ideas and to an
        improved creative output.
9   Observation
9   Observation




The option to tackle a problem from
many different angles is a key asset
in creative problem solving. Current
platforms simply ignore this option.
9   Conclusion




 Open Innovation platforms need to
integrate multi-view-angle thinking in
       their creative processes.
Obviously, we’re working on it…
How does it work?
Case Study «Innovative mobile app»
                               Situation
Case Study «Innovative mobile app»
                                Step 1
Case Study «Innovative mobile app»
                                Step 2
Case Study «Innovative mobile app»
                                Step 3
Case Study «Innovative mobile app»
                                Step 4
Case Study «Innovative mobile app»
                                Step 5
Where do we stand at?
• Early prototype live on www.yutongo.com (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
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)
Thank you
 for your
attention!

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Thoughts on open innovation sandro morghen yutongo

  • 1. «Thoughts on Open Innovation» Sandro Morghen, yutongo Hochschule Luzern, 03.10.2012
  • 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. Sandro Morghen • Co-writer of first German Crowdsourcing Report (on Open/Crowd Innovation) • Contributor to crowdsouringblog.de
  • 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. Sandro Morghen • Now: CEO & Co-Founder von yutongo.com • Idea Crowdsourcing application low subscription fees, self-service and a native creative process • Companies and organisations worldwide, any size
  • 6. Crowdsourcing 2012 Crowd Crowd Crowd microtasks wisdom funding Let the crowd solve Collect knowledge, Collect funding from the working 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 crowd design, industrial design, copy text etc. = Open Innovation
  • 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. Participants How 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 Idea z. B. «Ideas for WIN Idea the next e.g. Tchibo Ideas, beverage trend mystarbucksidea.force.com Idea coming up» Open Innovation Accelerator Jury/ Customer
  • 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. So far, so good.
  • 11. Observations on Open Innovation and some conclusions
  • 12. What do we need so Open Innovation and related phenomen increases in volume significally and through this, the planet becomes a little bit more creative?
  • 13. 9 very personal observations and conclusions on Open Innovation
  • 14. 1 Observation
  • 15. 1 Observation Open Innovation is NOT creativity, but innovation only grows through creativity. Quality and sophistication of creative processes used in Open Innovation are still subject to improve. Like a lot.
  • 16. 1 Conclusion Open Innovation needs intelligent, inspiring tools and principles for creativity driven collaborative delevopment of ideas.
  • 17. 2 Observation
  • 18. 2 Observation Studies show: In order to successfully launch an idea in the market, you need up to 4000 – 5000 single ideas and thoughts to be collected, compressed, refined and re-combined.
  • 19. 2 Conclusion Processes in Open Innovation need to be natively designed to orchestrate an interplay between lots of content and the reduction of the content. Quality can only grow from mass.
  • 20. 3 Observation
  • 21. 3 Observation Participants in Open Innovation processes act like «Idea Rambos». Lone figthers, disconnected from others who fight their own battle. In the moment of idea creation, Idea Rambos are alone. We call this: «Collaborative Loneliness».
  • 22. 3 Conclusion We need agile idea intervention troups who operate in a collaboratively connected manner. Platforms will need to display that in their processes.
  • 23. 4 Observation
  • 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. 4 Conclusion Anonymization de-blocks the creative flow and stimulates the ideation process. Processes in Open Innovation need to build on the concept of anonymization.
  • 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. 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. 5 Observation
  • 29. 5 Observation For 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. 5 Conclusion «I get help from others when I need ideas, external or internal, even also for my little daily tasks» Inject «Crowdsourcing thinking» into companies’ DNA; the reflex to approach creative problems collaboratively. It requires specifically designed tools.
  • 31. 6 Observation
  • 32. 6 Observation Compensation of innovators through the Winner-takes-it-all principle is not transparent to participants. It‘s time consuming for customers and it‘s unfair in its core.
  • 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. 7 Observation $$$
  • 35. 7 Observation $$$ Innovation is a key driver for every firm. And yet: 99% of companies worldwide are excluded from affordable Open Innovation services.
  • 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. 8 Observation
  • 38. 8 Observation Open Innovation today: It‘s a regional phenomenon.
  • 39. 8 Conclusion We need global platforms. The interlinking of innovators from different cultural backgrounds leads to better and more diverse ideas and to an improved creative output.
  • 40. 9 Observation
  • 41. 9 Observation The option to tackle a problem from many different angles is a key asset in creative problem solving. Current platforms simply ignore this option.
  • 42. 9 Conclusion Open Innovation platforms need to integrate multi-view-angle thinking in their creative processes.
  • 44. How does it work?
  • 45. Case Study «Innovative mobile app» Situation
  • 46. Case Study «Innovative mobile app» Step 1
  • 47. Case Study «Innovative mobile app» Step 2
  • 48. Case Study «Innovative mobile app» Step 3
  • 49. Case Study «Innovative mobile app» Step 4
  • 50. Case Study «Innovative mobile app» Step 5
  • 51. Where do we stand at? • Early prototype live on www.yutongo.com (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. 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. Thank you for your attention!