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When Open Innovation Becomes A Gimmick: Lessons From Campbell Soup Company

August 24, 2009 Open Innovation 17 Comments

Let me start out by saying that it is purely accidental that I am lashing out at Campbell Soup Company in this blog post. It could have been several other companies as Campbell has not really done things that have not been done at other companies that set up programs to accept innovative ideas from external sources. While their intentions may be good, their execution is so poor that I can’t imagine they’ll have much success at this attempt at open innovation.

Here are a few of the problems I see with Campbell’s Ideas for Innovation program:

• It’s too vague and unfocused. Campbell says they want “ideas for new products, packaging, marketing, and production technologies that will help us meet the needs of our consumers and customers better, faster and more completely.” Gee, that could be almost anything, couldn’t it? Why not help your potential external partners and save everybody time by being more specific about what you’re looking for?
 
Hopefully, Campbell Soup (and other companies doing this) have set an innovation strategy and know much more specifically what areas they’re most interested in pursuing than the catch-all description above implies. By being so vague, they avoid being inundated by the type of useless and energy-wasting ideas like the one mentioned in this humorous or perhaps sarcastic post: Campbell Needs My Help

•  Turn me on, not off. Campbell says it will take you three to six months to get a reply and if they turn down your idea, you will not receive any explanation of why it has been rejected. Why not try to make it more inviting? I think the reason for both these stipulations is that Campbell is afraid of getting too many submissions, which takes me back to my first point. Bring some focus to the effort and you’ll receive ideas that are more on target and that can be reviewed faster and better. And for heaven’s sakes, if someone went to the trouble of sending in idea, you could at least develop some general categories to explain why an idea is turned down.

• It reads like an ego-trip. A press-release said this: “The Ideas for Innovation website is designed to provide an effective way for Campbell to review and evaluate unsolicited ideas by offering people who do not work for the company an easy way to submit ideas.” You ask people for their input and yet you design the entire process towards your own needs. Come on! Yes, this is your website and you are in control. But the website talks only about why this is good for Campbell. Why not mention what Campbell can bring to the table to the companies or people interested in working with them and how this can be done? This kind of behaviour is typical of large companies not caring about others than themselves and I think it will hurt them in the long run in this new era of open innovation.

• No commitment leads to wasted resources; internal resistance. The press release announcing Campbell’s Ideas for Innovation initiative mentions that external involvement is a key element to improve their innovation results. If this is a key element for them, then I really wonder why they do not put more effort into it.

Campbell does mention that they have other ways of accessing innovation from other sources. I hope this includes a pure business-to-business version that is much more attentive towards their partners compared to their Ideas for Innovation website. Unfortunately, I have not been able to find any information on this so perhaps they don’t. Perhaps Campbell uses intermediaries such as Innocentive and NineSigma. I think they can benefit from a partnership with such intermediaries if they manage to focus their efforts.

Campbell is a big company and they can easily absorb this wasted effort. I am more worried about how this can fuel internal opponents of open innovation as the the results will most likely support their arguments for not opening up to external partners. I can hear the comments now: “Geeze, all we’re getting from this program is a bunch of junk. What a waste of time!”

• Has Campbell learned anything? The website was launched in April. I wonder what they have learned. I assume they must have encountered at least some of the issues that I mention in this post since the launch five months ago. Yet, they have not made any significant chances to their approach. Perhaps they just wanted a Me-Too project when they learned about those external idea generation initiatives launched by Dell, Starbucks and many others. To me, it seems like they ended up with a bad copy leaving the impression that they do not really believe in open innovation. I am sorry to say that it gives the innovation group at Campbell a not-so-good image.

Has Campbell reached their goals with this initiative? Was this just a marketing gimmick? I cannot tell, but my gut feeling tells me that they aimed pretty low on this. They have probably received a ton of useless ideas and very few quality ideas that they have decided to move forward with. This effort has cost Campbell and all the people who submitted ideas resources that could have been spent better.

I might be wrong on many of my assumptions. Nevertheless, my message to Campbell – and to other companies working with similar initiatives – please do better than this.

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Currently there are "17 comments" on this Article:

  1. We recently completed a customer summit, and at least 2 common themes emerged that Campbell's does not seem to be following:

    1) Good ideas don't usually emerge fully baked (to use a food analogy). The best ideas evolve through comments from a group, and it doesn't sound like the Campbell's site encourages this kind of interaction and creative evolution.

    2) The most important thing you need to do with a community is be transparent about what the criteria are, how ideas are screened or judged, have a clear resolution for every submission, and finally actually implement something so the community feels like they can make a difference. Without this, no one bothers to show up for the next event.

  2. Stefan,

    I agree wholeheartedly with your assessment of Campbell Soups Innovation Program. As with most companies who have attempted a program, they look to 'outsiders' to both solve their technical issues as well as this idea to open up their door for 'unsolicited ideas'. Who in there right mind would submit an idea based on the qualifiers they stated? I buy into the concept of Open Innovation, which is a free sharing of ideas between two parties with the objective of creating value for both parties. In the case of Campbell's it is a one way street, a sure sign they do not grasp the true value of OI.

    I have started a blog on OI and the inherent value of co-creating. I invite you and your readers to comment at http://openinnovation-openoutovation.blogspot.com…

    Thanks,

    Kurt

  3. Stefan:

    Actually the Campbell Soup site is a rich source for what "not to do right" including the statement that "we review your submission to ensure that it is complete and that it fits within the scope of Campbell's current business". This means that lots of people will submit interesting ideas that through no fault of their own don't "fit" within the scope of Campbell's businesses. Campbell could have solved this by suggesting areas of interest for ideas. Second, it is a real downer to have to read all of this legal text before you can submit an idea, and there's no means to interact with other people or review the ideas. They go into a black box.

    I don't know whether to congratulate Campbell's for trying, or shake my head in frustration about the problems their site will create.

  4. Hello Stefan
    I just finished my Ph.D dissertation on Idea Generation and I think this post is an excellent example of pitfalls to avoid, I may reference it in my upcoming guide on this subject.
    The guy promoting this Cambell's event has much to learn, that why in my model I put promotion as a vita point of control which must be managed.
    People interested in my research white papers, or dissertation on idea generation (including open innovation idea generation) and visit my website at
    http://www.techrd.com/blog
    Thanks
    Brian
    Ph.D in Innovation Management From Purdue University

  5. Sergei Dovgodko says:

    Stefan,

    The mantra of "innovation" has never been more than a gimmick. The consulting industry has been trying sell it forever, either framing it as a PR/branding or a sort of a new way of management. I thought they have finally realized that people are not buying this thing anymore. Even Business Week toned it down recently.

    Open Innovation is another indication that both consultants and large corporations are still not willing to get to the real structural issues. Those issues are very uncomfortable as they point to the effects of positional power on cognitive abilities of people in charge, the role of money and other benefits in corporate design, personal interests in corporate decision making and competitive strategy.

    So we will continue to see new smoke screens emanating from the corners of the eco-system that are compensated for maintaining the current distribution of benefits.

    Sergei

  6. Claus Rode says:

    Ha, this is a great story Stefan. As Jeffrey Phillips say, it is a rich source of what NOT to do right.

    I am sure that someone at Campbells wholeheartedly wanted the initiative to succed – but they forgot to call in the experts ;-)

    I tryed to hit the "submit your idea" button and was meet with 8 points to accept or else… Secondly I am asked to enter my (and my familys – almost) information before I can enter my idea. This way of welcoming MY great idea is really a killer for all creativeness. Combine this with the fact that they say the idea has to meet certain demands before they can accept it?

    Do I need to say more?

    No, I would like to see more of the Starbucks way of doing it. It seems like they get a lot of incremental ideas throug their program. They show their customers entered ideas, customers discuss ideas and rate them online etc etc etc. True Open Innovation – I love it. (and the coffea to)

    Check it out: http://mystarbucksidea.force.com/ideaHome

    Have a creative day.

    Claus Rode

  7. Christian Wieth says:

    Great blog Stefan – I enjoyed reading it :-) – does any have examples of well executed open innovation programs (Starbucks mentioned above)? What companies are in the forefront and what are the better practices apart from those mentioned above?

  8. Hi Christian,

    You can find other examples of open innovation initiatives in this list:

    Inspiration on Innovation
    - http://stefanlindegaard.com/2009/08/03/inspiratio…

    These posts might give you some inspiration for the answers you are looking for.

    How To Approach Open Innovation: Lessons From P&G
    - http://stefanlindegaard.com/2009/08/03/inspiratio…

    Open Innovation: Major Issues
    - http://stefanlindegaard.com/category/open-innovat…

    Open Innovation: Why Mindset Matters Most
    - http://stefanlindegaard.com/category/open-innovat…

    You should also check Harvard Business Review for their articles on open innovation and in particular their articles on P&G. An example: http://hbswk.hbs.edu/archive/5258.html

    Stefan

  9. Great observations but unfortunately you understate the frustration Campbell's must be feeling. Their website was launched a long time ago, I included slides about how poor it was back in October 2008. And it had been up a few months before that.

    Most notably is the the lack of focus on the Campbell's web site and the lack of success examples anywhere on the site. Message to innovators:
    "adjust to the big corporate ego trip at Campbell's or go elsewhere."

    A similar post targeting Kellogg's (which has learned a little since):
    http://tinwhiskers.wordpress.com/2008/12/29/corpo…

  10. [...] and how not to do it, but we have a live example at Campbell Soup. First up, a tip of the hat to Stefan Lindegaard who wrote about this first. Before you accuse me of kicking a company when they are down, well, [...]

  11. OpenBusiness says:

    [...] Stefan Lindgaard has offered an interesting breakdown of Campbell’s open innovation strategy on his blog, which I think is definitely worth a read. His critique of their strategy for harnessing a community contains a number of really useful ‘what not to d’ tips for businesses of any size that are looking to get things right. [...]

  12. Jayesh says:

    Stefan – Excellent reference for the enterprises attempting to go for collaborative innovation.

    Best Regards

    Jayesh Badani | Founder & CEO ideaken – when you need to – collaborate to innovate

  13. Hi Stefan,

    Your post is right on point… Companies need to be focused, identifying their needs in a way that helps the innovator understand how to contribute.
    The bigger picture for me is that companies need to set themselves up for success by thinking through their capabilities to handle the innovations that they are seeking from the outside. My company provides an Innovation Management software solution that helps companies identify, capture and manage innovation and I've written a whitepaper on the key capabilities that companies need to put in place in order to take advantage of networked innovation. I would be interested in collaborating with you or your colleagues on projects to help companies do this right.

    Best Regards,
    Guy Henninger
    ghenninger@verticali.com http://www.verticali.com http://blog.verticali.com
    twitter: @verticali

  14. Sergei Dovgodko says:

    Stafan,

    Here is an idea: why can't Open Innovation revolve around a particular person rather than a corporation?

    For example, you have a challenge and S&P500 companies get together to help you! Openly and honestly. Wouldn't be something?

    Well, that might be too much to ask..

    How about S&500 companies openly getting together reform the Health care System for the benefits of all the US people?

  15. Ha @ Sergei I'm with you. The innovation zealots have succeeded in creating an "innovation industry" which is basically self-serving. It's a pity so many of the "knowledge management" people also find it attractive to drift that way, but I guess that's where the rivers of gold of government funding flows. I'm a big fan of continuous improvement for 99% of companies, and leave radical innovation to others who may be able to pull it off.

  16. Shomila says:

    I wondered if you had some examples of companies who had applied open innovation really well? Where I work we have started experimenting with internal crowdsourcing to get ideas from employees and I think it won't be long before we try it externally but I'm weary that there are a lot of pitfalls with corporates trying it – especially after reading your blog.
    twitter @shomila

  17. Sergei Dovgodko says:

    Shomila,

    People with experience in corporate bureaucracy could tell stories about the "wisdom" of the corporate crowd…

    There is one particular breed called the "corporate man". Those specimens are really wise from politician standpoint. Maybe they can devise some political innovation?

    The point is that ideas are actually cheap and abundant. You don't need to engage crowds. Just ask front-line people.

    What is stands in the way is the messy problems of corporate social psychology. The "innovation industry" does not seen to get it.

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