Organizations are increasingly turning to open innovation platforms as their source of innovation.

Open innovation platforms (or crowdsourcing platforms) are a way to involve consumers in the process of innovation. Here at IC, we have built examples pretty amazing open innovation platforms – the Aviva Community fund and the MIT Ideas Challenge that are helping prove the case. You can also check out Open Innovators for dozens of other examples of programs that work. As our fearless leader Idris Mootee recently wrote in his article What you don’t know about Crowdsourcing and why they often fail, it’s not a silver bullet for innovation. But when used in a defined way as part of the research and development process, they can be quite successful.

Solving the worlds problems one 2×2 at a time

A lot of organizations struggle to wrap their heads around open innovation platforms because they toil with their purpose in the innovation cycle – what is the role of the platform within the innovation pipeline. With that in mind, I’ve spent a bit of time sketching an organizational principal for open innovation platforms. Obviously an organization can choose to involve external parties at any point in the innovation process – but the emphasis of this thinking is focused on what would be classically viewed as research through development (as opposed to the commercialization).

Do you have a problem? X AXIS
The first decision criteria is “Is there a defined problem”.

On one side of the equation, many organizations are submitting or asking explicit questions to the audience for solving – they have a defined problem to be solved. For example, Innovation Exchange solicits “Challenges” (specific problems to solve) from major corporations. I call this “innovation inspired by the business” – the key driver of creativity is based off of a fundamental business-side need or problem.

On the other side, some organizations just want good ideas that align with their brands – they have undefined problems and look to the crowd to both explicitly state challenges and opportunities. In short, they hope the crowd both provides both self identifies the problem and articulates a solution to the problem. An example of this would be the over-mentioned “my Starbucks ideas”. I call this “inspired by invention”, as it often manifests itself through the creative ingenuity of the crowd. It could just as easily be called “Innovation inspired by needs”.

When can the crowd play? Y AXIS
The second decision criteria is “When do you involve the crowd”?

On one side of the equation, organizations involve external participants early in the innovation process. Involving customers early results in raw, often messy ideas that may or not reflect any possible reality. I think of this as a platform for actively soliciting feedback for “opportunity collection” because there tend to be a lot of undefined directions that can be pursued or that can inspire lateral thinking.

On the other side, organizations can involve participants late in the innovation process. At this point, organizations are often looking for full concepts, designs, or solutions that represent a full solution to a problem. Examples of this would be Google’s Lunar Prize, where the criteria for winning is to “successfully land a privately funded craft on the lunar surface and survive long enough to complete the mission goals of roaming about the lunar surface for at least 500 meters and sending a defined data package, called a “Mooncast”, back to Earth.”. This is an example of “solution collection” – getting many external participants to come up with multiple, well articulated solutions.

The quadrants of organization-led open innovation platforms

Based on this model for understanding open innovation platforms, there are four primary opportunities for organizations to use open innovation platforms to drive the innovation process internally.

Defined Problem + Early Involvement = Crowdstorming. Articulating a specific problem to consumers and asking for many raw responses. This is pretty much like a massive brainstorm, and works as a way to stock the innovation pipeline early. Output: Lots of raw solutions to a specific problem with varying quality. Example: Fiat Mio

Undefined Problem + Early Involvement = Researching. Ask consumers to come up with solutions to undefined problems. The real value here is the articulation of previously unknown or unmet needs, collected through the initial articulation of customer problems used as a rationale for the solution. Output: Explanation or justification of previously unarticulated consumer challenges or needs with a small number of solutions of varying quality. Example: Dell Idea Storm

Defined Problem + Late Involvement = Prototyping. When you involve the consumer at this point, you’re really asking for a specific designed solution to a problem. Depending on how late in the innovation process they are involved, the output can be anything from concept sketches to fully-functioning prototypes. Output: Depending on how late the challenge is put to the crowd, and how defined the solution must be, expect a small number of solutions. Example: Supdaroo or one of my favorite sites, threadless.

Undefined Problem + Late Involvement = Adopting. Some organizations choose to build idea orphanages, allowing external participants to submit fully thought-out and conceptualized product concepts that may or may not align with their interests. Would-be inventors can submit their concepts with the hope of the organization moving on their idea. Output: Well thought out ideas that may or may not be relevant to the organization. Example: Lego Design By Me

Yes, no maybe so?

Obviously open innovation platforms differ in terms of where they play in an organization’s innovation cycle. In practice, each of the quadrants of the open innovation platform classification isn’t mutually exclusive. But in terms of understanding where their value lies, I think it’s a good starting point.

So what do you think? Agree with the classification? Have any recommendations on how to make it better? Have any great examples of crowdsourcing applications that I’ve missed? Join the comment thread and let me know. Also, if you’re interested in Open Innovation and the Virtuous Cycle, be sure to read Henry Chesbrough’s epic book Open Innovation.

I’m sure you’ve been put in the situation before. An RFP or a project arrives on your desk that just doesn’t feel right. Maybe it doesn’t take into account fundamental human behaviours. Maybe it ignores market realities. Or maybe it’s just trying to solve a tactical problem rather than dealing with what really needs to be solved. Either way, it creates an uncomfortable situation – are you a going to tell the client they’re wrong, or are you going to do what’s asked.

The NAA Interactive Briefing

In the interactive division of the National Advertising Awards, entrants were asked to submit an innovative creative solution to the the following business problem for Sympatico.ca:

“Drive adoption of Sympatico.ca’s various assets by convincing our target audience to make Sympatico.ca or one of its sister sites, like Best Health or Auto, their homepage. The site is currently competing with U.S. and international sites like MSN and Yahoo.” (for more details, download the full briefing here)

Of the teams that responded to the challenge, half developed creative advertising campaigns consisting of a mix of traditional and social media forms. Some came up with clever campaign concepts that successfully focused on strong calls to action that supported the stated business objectives.

And the other half of the entrants told us the portal model is dead.

Dear Client, You are Wrong.

Now I don’t want this to turn into a debate around whether portal models like Sympatico.ca are dead. What I do want to ask is, if you’re put into a situation where you don’t believe that a brief is responding to the right thing for a client’s business, do you follow it?

In the past, I’ve been on both sides of the coin before. Perhaps it comes down to the difference between taking client work to get paid and taking client work to make a difference. Here’s a quick summary of your likely outcomes:

Partners Vs. Working for Approvals

A lot of agencies don’t break the brief. The hope is that once the ability to execute is proven, there will be the opportunity to show strategic worth on something else. In my opinion, this is the wrong approach to design. This is working for approvals instead of working to achieve a result.

The benefits of not working at an agency is you’re not boxed into agency scenarios. As a strategic innovation and experience design firm, clients come to us with a recognition (and expectation) that in order to strategically differentiate, you may need to go outside your comfort zone. Questioning long-standing assumptions is part of our value proposition, and as such, every brief gets broken to some extent. If your job is to solve problems, then articulating the right problem is step number one. It’s the difference between a partnership and a paycheck.

Now obviously not everybody has the opportunity to work like we do. So what do you do when the brief is wrong?

The second observation was how unhappy folks were in the life they’d created for themselves. These are intelligent, driven people. Some hated their jobs, others were in simply lost, while still others apathetic to their lives. My first response was empathy. But this quickly led to questioning. If this fairly large sampling of intelligent driven people are unhappy with their lives, how does that translate into the organizations within which they spend their days. How can organizations be innovative when those charged with leading and growing the organization exhibit lackluster and indifference?

Simply put, they can’t. Organizations stagnate and fall short on performance when they lack passion and enthusiasm. They aren’t able to focus their energy to produce tangible results. Simple problems seem enormous and complex problems insurmountable. They simply can’t be creative and as a result, innovation escapes them. Ralph Waldo Emerson is famously quoted for saying – “Enthusiasm is one of the most powerful engines of success. When you do a thing, do it with all your might. Put your whole soul into it. Stamp it with your own personality. Be active, be energetic and faithful, and you will accomplish your object. Nothing great was ever achieved without enthusiasm.” In no time in history do we need this advice more than now.

1. Passion is key to innovation and creativity.
This is true in every organization whether it provides a service, produces a product or simply attempts to better the world. Can innovation and creativity exist without passion? Perhaps … but with difficulty and likely accidentally. The birth of a game changing idea is undoubtedly inspired by excitement and spirit and will succeed only with the continuation of that passion. Target’s ClearRx prescription distribution and communication system is a great example of how innovation was driven by the focus to improve usability and consumers’ quality of care

2. Passion ensures an organization’s values are protected
To care about something deeply is to ensure the integrity of its meaning and existence are preserved. It is easy in the complexities of day-to-day operations to lose way and focus on the wrong things. This happens often when politics, alternative agendas and external forces are allowed to take over and drive decision-making. Focus, drive and the preservation of integrity ensure that the values of an organization are upheld even in the most difficult of circumstances. The Grameen Bank clearly defines its key principles of discipline, unity, courage and hard work (the first of 16 core decisions) in its endeavor to break the cycle of poverty.

3. Passionate employees translate to passionate customers
Passion is infectious. When an organization fosters passion, it exhibits in its employees who in turn carry it through in their interactions with the outside world. What better endorsement for a product or service than those who live with it day in and day out? From Apple’s geniuses to Lululemon’s educators, these employees are the last mile to your customers.

4. Passion ups the game
Competition is a great motivator. Passion an even better one. High performing organizations are filled with passionate people who create and pursue what they believe are valuable. They experiment, play and drive change. Just as passion is infectious when transferred from employees to customers so is it contagious when passed from employee to employee. This inevitably results in a higher quality of work, which leads to successful projects, which in turn inspires more passion. I don’t need to venture beyond the walls of Idea Couture to see this in action. From discussions on service design to new business models, social corporate responsibility to new research methodologies, Couturians not only “up the game” for each other, but also for our clients and collaborators.

Is not life a hundred times too short for us to bore ourselves? – Friedrich Nietzsche