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Crowdsourcing Product Development


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Crowdsourcing Product Development

  1. 1. Crowdsourcing Product DevelopmentProduct Camp – Silicon ValleyApril 2, 2011@visionexecution<br />
  2. 2. There are a plethora of web-based tools to co-create new products with customers and develop relationships with experts outside your organization to drive innovation and solve product road-blocks. This session will debate the strengths and weaknesses of the various open innovation platforms that deliver experts or new ideas and identify the critical success factors to external sourcing. This session will also look at new resources to help short cut the process from concept to launch while increasing customer engagement. Participants will evaluate the best tools for building a continuous input stream to monitor trends and identify new opportunities.<br />4/2/2011<br />
  3. 3. 4/2/2011<br />NPD 2.0… It’s about access…<br />“No matter who you are, most of the smartest people work for someone else.”<br />Bill Joy, cofounder of Sun Microsystems<br />
  4. 4. 4/2/2011<br />…and trust<br />When asked what was the most significant lesson he had learned from his peer-to-peer auction site, he replied, “…that 135 million people have learned they can trust a complete stranger.”<br />Pierre Omidyar, eBay founder <br />
  5. 5. 4/2/2011<br />Shift of control<br />
  6. 6. Things to consider<br />4/2/2011<br />
  7. 7. NPD 2.0 Best Practices<br />Clear strategy for using NPD 2.0 in overall strategy<br />Plan for IP ownership/sharing/revenue model<br />Utilize opportunity to source innovation from the outside in and also put out IP for others to innovate with<br />Open Requirements and Modularity<br />Break off discrete components of a new product or business challenge and reintegrate once solution is identified<br />Build trust<br />Plan for win-win<br />Give feedback not to only to recognize their contribution but to provide additional guidance or understanding about your choices<br />Networking<br />Facilitate the exchange of ideas within the enterprise and across the globe<br />Identify talents that otherwise don’t have visibility<br />4/2/2011<br />
  8. 8. 4/2/2011<br />When do you engage with customers?<br />During which of the following stage gate phases <br />do you regularly get customer input?<br />Product Development Lifecycle<br />Vision<br />Define <br />Business<br />Define<br />Product<br />Develop<br />Product<br />Test<br />Product<br />Deliver<br />Product<br />SustainProduct<br />
  9. 9. 4/2/2011<br />NPD 2.0 Solutions at every phase of PDLC<br />Vision<br />Define <br />Business<br />Define<br />Product<br />Develop<br />Product<br />Test<br />Product<br />Deliver<br />Product<br />SustainProduct<br /><ul><li>Fellowforce
  10. 10. IdeaStorm Platform
  11. 11. Kluster
  12. 12. Spigit
  13. 13. redesignme
  14. 14.
  15. 15.
  16. 16. Innovaro
  17. 17. Innovation Exchange
  18. 18. TopCoder
  19. 19. Shapeways
  20. 20.
  21. 21. Ponoko
  22. 22. Creative Commons
  23. 23. Quirky
  24. 24. Jovoto
  25. 25. Eureka Medical
  26. 26. NineSigma
  27. 27. Yet2
  28. 28. Innocentive
  29. 29. MillionBrains
  30. 30. Communispace
  31. 31. Your Encore
  32. 32. Idea Connection
  33. 33. IdeaCrossing
  34. 34. iBridge Network
  35. 35. Innoget
  36. 36. ColSpark
  37. 37. ScoutLabs
  38. 38. BzzAgent
  39. 39. Zuberance
  40. 40. Get Satisfaction
  41. 41. Leadvine
  42. 42. Cloud MR
  43. 43. Chaordix
  44. 44. ClickIQ
  45. 45. NameThis
  46. 46. eLance
  47. 47. Crowdspring
  48. 48. Guru
  49. 49. BootB
  50. 50. Spudaroo
  51. 51. Logoworks
  52. 52. 99designs
  53. 53. Vizu
  54. 54. Fulfillment by Amazon
  55. 55. Fedex Fulfillment Services
  56. 56. LiveOps
  57. 57. uTest
  58. 58. Mob4Hire
  59. 59. 42 Projects (productivity games)
  60. 60. Feedback Army
  61. 61. Loop11
  62. 62. UserTesting
  63. 63. edopter
  64. 64. Google Trends/Google Insight for Search
  65. 65. TrendHunter
  66. 66.
  67. 67.
  68. 68. Pew Research Center
  69. 69. We Feel Fine
  70. 70. Inkling Markets
  71. 71. Intrade
  72. 72. Lumenogic
  73. 73. Ushahidi
  74. 74. Kaggle
  75. 75. ESP Game /Google Image Labeler</li></li></ul><li>Ducati Motorcycles NPD 2.0 Initiatives<br />4/2/2011<br />
  76. 76. Start your NPD 2.0 program now<br />Start somewhere<br />Leverage the no cost/low cost options to provide proof of concept<br />Target champions in your organizations to build support and then build on your successes<br />Build trust with both your internal and external partners<br />Implement NPD 2.0 in alignment with strategy and company culture<br />Compensate fairly; reward liberally<br />Develop an integrated NDP 2.0 strategy<br />Plan for what remains internal and what can be assigned to external experts or customers<br />Utilize multiple tools/multiple vendors<br />4/2/2011<br />
  77. 77. Questions<br />4/2/2011<br />
  78. 78. About the Presenter…<br />Patrina Mack, Managing Partner of Vision & Execution, consults with established and emerging technology companies in the U.S., Europe, Russia and Israel. Ms. Mack works with clients to optimize their product and business strategy to enhance customer adoption and market penetration. She has more than 25 years experience in business-to-consumer and business-to-business product, marketing and operational strategy and implementation. Her industry expertise spans the Internet, cleantech, healthcare, telecom, software, financial services, and consumer products. <br />Ms. Mack is a member of the Advisory Board for Innovation Center Denmark-Silicon Valley. She also serves as an Advisor to TechCoire and previously served as Western Regional Director for the Product Development and Management Association, and as Sustainability Mentor to CA Cleantech Open. She is a certified New Product Development Professional through the PDMA. As part of her consulting practice she leads workshops to help companies apply NPD 2.0 to optimize their product development process and increase customer engagement. <br />Prior to founding her consulting practice in 1999, Ms. Mack was responsible for the global launch of NetGravity'sSaaS solution. NetGravity, one of Forbes' ASAP Dynamic 100 Companies, introduced the first ad serving software. At her previous company, AirTouch, she was responsible for assessing and developing market opportunities for PCS wireless, international licenses and new services. Ms. Mack started her career consulting with Urban Wallace & Associates serving the consumer products and financial services industries.<br />4/2/2011<br />

Editor's Notes

  • So nowlet’s review what should be considered when opening up the innovation process internally or externally.First, do you present the entire problem or a discrete component of the problem? Framing the problem for the targeted solvers is critical to your success and a factor of how you plan to manage the IP, if there is any involved with the challenge.Do you need to go broad or deep? To some extent this will depend on the solution provider you choose and it’s an important issue to address when selecting your vendor. Some platforms vet their experts before they’re invited to be a solver and tend to be deep in select areas of expertise while others rely on votes to evaluate the credibility of a particular solver for a given subject.Are you casting a wide net or geographically specific net. New NPD 2.0 solution emerge every day around the globe and tend to be populated by the natives…you might choose to submit a challenge to a region your organization is not familiar with in order to gain more insight about entering that market. STB example.Is this a problem that can be solved by a single expert or does it need a team approach? As the NPD 2.0 platforms mature, they increasingly include capabilities to facilitate team problem solving.Is this a challenge should be solved internally or leverage knowledge outside of your organization? Prediction markets are a great example of leveraging internal expertise and many of the solutions out there can be used in an open manner or in a closed enterprise application. If you’re standardizing on one platform be sure to work with a vendor that provides both an open and enterprise solution.And lastly, the most important thing to consider is how to reward. There is an assumption out there that ideas are free – in a bad economy that’s closer to being true. As the economy improves and as you consider your internal costs for managing NPD 2.0 solutions, it’s critical to get the reward and recognition right so you’re not wasting your time. To illustrate this, Dell’s use of’s Ideastorm platform generated approximately 10,000 ideas by the community, based on 1 million unique users and more than 670,000 positive votes with approximately 4,000 comments per month. They employ full-time engagement managers to oversee this solution. The benefit is that 200 ideas were implemented by Dell as of July 2008, and 4% of the ideas were considered break-through ideas.So now that we’ve reviewed what to consider when implementing NPD 2.0, let’s now review a summary of best practices.
  • Most importantly have a clear strategy for engagingexternallyNPD 2.0 tools are relatively inexpensive but not without cost, particularly the soft cost of staff. Identify weaknesses in the organization either in terms of expertise or unacceptable costs/time delays to know where to insert NPD 2.0 tools in the process. Make sure that you leverage NPD 2.0 tools by having the right reward mechanism in place by either granting IP ownership/royalties to the solver, having a shared ownership of the IP or providing a cash prize while you retain ownership. Using NPD 2.0 resources is not very different from using an RFP process.You need to scope the project correctly. Requirements need to focus on functions and parameters to be delivered rather than preconceived solutions. You can neither be too specific nor too broad if you want to create the environment for your internal and external partners to be successful. And, if your brief stops you from making cross industry connections you’re going to miss out on big opportunities for faster, lower cost and bigger impact innovation. But most importantly you need to ensure that you can integrate the solutions produced by your challenges.Engaging your community or experts outside your organization requires a win-win attitude.This means keeping your commitments, having an open channel of communication and feedback on the ideas the community is delivering to you and ensuring that the community is recognized for their contribution. It also means being open to radical or unexpected options and recognizingthat potential solutions can come from anywhere.And lastly, take advantage of the global resource pool available to you through NPD 2.0 solutions. Don’t let your surprise about where the idea originates from keep you from recognizing the merit of the solution. NPD 2.0 tools provide great access into the hidden talents within your organization and around the world.Now, another quick poll before we look at some of the tools available to you….
  • We just saw a great example of a firm that was able to develop the right products at the right time. They didn’t implement every NPD 2.0 approach overnight but continued to build on their successes and enhancing customer engagement. So where do you start?