This document discusses the potential role of crowdsourcing in risk assessment. It describes how conventional innovation relies on internal teams while challenge-driven innovation engages a global network of unknown innovators. InnoCentive is presented as a pioneer in crowdsourcing problems to a worldwide community of over 100,000 solvers from various backgrounds. Challenges are used to source novel solutions, demonstrate thought leadership, and solve problems. Examples are given of past challenges addressing issues in areas like sustainability, new technologies, and healthcare.

1. © 2015 InnoCentive, Inc. All Rights Reserved
Michael Franklin
mfranklin@innocentive.com
Elaine Chin, Ph.D.
echin@innocentive.com
The potential role of Crowdsourcing in
Risk Assessment
Steven Drew
sdrew@innocentive.com
October 16, 2015

2. © 2015 InnoCentive, Inc. All Rights Reserved2
Better connected now than ever before

3. © 2015 InnoCentive, Inc. All Rights Reserved
The transition to Crowd Labour
The World has changed…again! The speed of the change is
monumental
• “If all you ever did is all you've ever done and all you will ever do...you
are average and that's not good enough in today's world...the world is
getting hyper-connected” – Thomas Friedman

4. © 2015 InnoCentive, Inc. All Rights Reserved
Conventional
Innovation
Challenge Driven
Innovation
Objectives Steer
Internal Innovation
Teams
Frame and Structure:
• Stage Gate Innovation
• Monolithic Structures
• Employ or Contract for
Resources
Economics:
• Fixed Costs
• Pay for Success & Failure
Weaknesses:
• Lack of diversity
• Difficult to Adapt
Problems Engage a
Global Ecosystem of
UNKNOWN Innovators
Frame and Structure:
• Distribute or Broadcast
needs
• Challenges
Economics:
• Variable Costs
• Pay for Performance
Opportunities:
• On-demand Talent
• Compression
• Agility and Speed
The Future of Work:
Conventional Innovation to Crowd Innovation

5. © 2015 InnoCentive, Inc. All Rights Reserved
The Challenge?
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An Open Innovation tool – Seekers ask Solvers
Ask for an impactful solution, an idea or an insight to a
problem/opportunity
Incentivize contributions from the Crowd by offering
awards - $1,000 to $1,000,000
Solvers Pre-agreement – Seekers go straight to work!

6. © 2015 InnoCentive, Inc. All Rights Reserved
Novel solutions from UNEXPECTED
fields and UNKNOWN people
FORCE MULTIPLIER; Reduce Risk
Discover new approaches and
tools
ON TAP community to research
and promote a need - SPEED
Demonstrate thought leadership
Create
awareness
Solve a
problem
The Power of Challenges
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7. © 2015 InnoCentive, Inc. All Rights Reserved7
InnoCentive; pioneer in crowdsourcing problems to a
worldwide community who provide diversity &
innovation in their ideas, insights and solutions
 Vast Global Network
• 100,000s Solvers growing ‘000s monthly
• Solvers in 200+ Countries
• Individuals, Academics and Small
Business teams
 Challenges
• Thousands posted, 70% Anonymous
• Freedom to use, IP License, IP Rights
Ownership or a Partner

8. © 2015 InnoCentive, Inc. All Rights Reserved8
Their Experience Their Education
The Crowd – 100,000s registered Solvers
growing at 2,000 to 3,000 per month
Region
Percent of
Solvers
North America 37%
APAC 33%
EMEA 27%
South America 3%
Region
Percent of
Solvers
North America 37%
APAC 33%
EMEA 27%
South America 3%

9. © 2015 InnoCentive, Inc. All Rights Reserved9
What do they do?

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Optionally Promote to a Marketplace of >15 Million ‘Solvers’
plus we can BUILD/TARGET NEW
CROWDS

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Good Challenges Consider…
11
Problem Space
Solution Space
…not only “what we want” (solutions) but also “what is
keeping us from getting it” (problems)

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Problem Space
Problem Space

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The Candle Problem:
HOW TO use the items to attach the candle to the wall, light the
candle and no melted wax on the floor or table
Group 1 Group 2

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The Candle Problem – Solution
“A mental block against using an object in a new way that is
required to solve a problem.”

15. © 2015 InnoCentive, Inc. All Rights Reserved
Problem Abstraction Tradeoffs
Abstractly
Defined
Utility of Solutions
Application
Information
Creativity of Ideas
Risk of getting inapplicable
solutions
Contextually
Defined
Optimum
How does my company improve
profitability of a ski mountain
What are novel uses of a large
inclined white plane
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16. © 2015 InnoCentive, Inc. All Rights Reserved
Limitless Challenge Uses
Marketing & Branding
Education
Product Improvement
New Market Opportunities
Sustainability
Applications for New Technology
Public Services
Product Packaging
Humanitarian
Health
New Product Ideas
Business Strategy
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Data Analysis Problem:
4 hours in advance; 50% Accuracy
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Background: Solar Particle Events (SPEs) can
dramatically affect infrastructure (e.g., power grids,
communications) as well as astronauts working in
space
Challenge: Improve Prediction of SPEs
Solution: Improved predictability from 50%
accuracy 4 hours in advance to 85% accuracy 8
hours in advance
• $30,000 award to retired Radio Engineer
• Solver now working (on various projects) with
NASA
579 Solvers from 53 Countries – 11 submissions from 5 Countries579 Solvers from 53 Countries – 11 submissions from 5 Countries

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26. © 2015 InnoCentive, Inc. All Rights Reserved
Michael Franklin
mfranklin@innocentive.com
Elaine Chin, Ph.D.
echin@innocentive.com
Thank You
Steven Drew
sdrew@innocentive.com
October 16, 2015