Good Reports And Articles On Open Innovation
Paul Hobcraft pointed me to the below Forrester report on how challenges from InnoCentive work. I wanted to share this report with you and I also added a couple of other reports and articles worth looking into.
The Total Economic Impact Of InnoCentive Challenges by Forrester Consulting. This report goes into detail on a specific InnoCentive challenge and offers lots of hard facts. Please note that InnoCentive hired Forrester Consulting for this assignment.
How To Implement Open Innovation: Lessons From Studying Large Multinational Companies. A great report from the University of Cambridge with solid advice on how to approach open innovation.
Managing Open Innovation – Present Findings And Future Directions by VINNOVA, a Swedish government agency for innovation systems.
These articles are also worth looking into:
• Connect & Develop: Inside Procter & Gamble’s New Model for Innovation
• The Promise (and Perils) of Open Collaboration
• How To Manage Outside Innovation
• Use Open Innovation To Cope In A Downturn
Perhaps you can share other reports, papers or articles on open innovation worth looking into?
Thanks a lot Stefan for regularly providing your insights and research results. You are my favorite blog reading.
I have look in details to the Forrester report on the Total Economic impact of Innocentive Challenges, first to find out that it was actually paid for by Innocentive itself…. However, the TEI is a good methodology applied by Forrester in evaluating ROI for a large variety of investments, so there is not much too say on it. The issue is more that while the report demonstrates well that for this (well chosen) customer, it is cheaper to use Innocentive than using internal resources, it fails to point out that actually only 50% of the challenges failed to deliver a solution. The report mentions it briefly, but is so focused on demonstrating the ROI data and positive conclusion, that it failed to consider the big picture : how good is it too save money by going through Innocentive if it does not provide you the solution….? May be I have missed something ?
hi Stefan, Thanks for some great links. Much appreciated, especially for my students.
Eric, I think you've missed the point. Innocentive is used by companies like Eli Lilly and P&G who have enormous in-house R&D resources. So the challenges that are posted are those that could not be solved in house. If 50% of those, super-tough challenges can be solved by going external and for prize money which is peanuts compared to that spent on internal R&D, then that is a super deal.
Who am I to profess expertise in the area? Well, I am a person who has worked in the R&D of companies including Electrolux and BASF and who has also won 2 Innocentive challenges so I know a thing or two about how this all works.
I think Eric arouses a good point when he writes:"…if it does not provide you the solution….?". In fact, 50% of problems are not solved leading to the fact that at least 50% of Innocentive (or anyone else doing the same job) customers are probably a bit from let down to disappointed. Can you imagine a new product/service which does not provide the expected value in 1 over 2 customers?
Of course, Innocentive is well aware of the fact that the response rate is still low. That's also why Innocentive and others kind of force their customers to offer the crowd at least two problems.
I had the chance to chat about this 50% rate of not solved problems with Alexander Orlando, formerly at Innocentive and now InnoCrowding CEO. In the end, he said that probably there is only God being able to satisfy everyone's desire.
By the way, I am a big fun and supporter of Open Innovation and believe that crowdsourcing is just a small part of it.
Here you have 2 more articles from Business Week http://bit.ly/5Qgl7M” rel=”nofollow”>:http://bit.ly/5Qgl7M and http://bit.ly/8m6oCR.