Point:  Use roving cross-functional teams to hunt for promising new product and service ideas.

Story:
In a world of large organizations and diverse global hotspots for R&D, innovation occurs everywhere.  Companies can tap those innovations through search processes, which may be cheaper and more effective than only using traditional “start from square one” R&D efforts.  The rationale: there may be no need to re-invent the wheel if the wheel already exists somewhere inside (or outside) your organization.

Here’s how multinationals General Mills and Whirlpool approached the search for innovations. General Mills formed two “innovation squads” consisting of six-to-eight employees selected from multiple functions. The squads are tasked with hunting for ideas from inside and outside the organization – one squad focuses on finding ideas internally, the other focuses on looking outside the organization.  The squads present the best ideas they’ve found to division heads. Once a quarter, the squads give their top 10 ideas to the company chairman.

For example, one squad found a patent for a new method of encapsulating calcium. The patent had been donated to a university. The squad converted it into a very successful new line of orange juice with added calcium that doesn’t taste chalky.

Similarly, Whirlpool designates some employees as innovation mentors – “i-mentors” – training them in innovation and tasking them with identifying promising new product ideas from across the organization. Whirlpool has 1000 i-mentors globally.  Most of the individuals self-identified and asked for the training, which consists of a formal training program that creates a common language for innovation and embeds innovation into an organizational competency the way Six Sigma training does. Whirlpool developed “how-to” guides for its innovators, including analysis of who has contact with whom [network analysis].

Action:

• Explicitly designate individuals or teams to look for innovations
• Provide innovation training to these cross-functional teams
• Cast a wide net when searching for good ideas
• Filter, refine, and present the best ideas for funding/implementation decisions

Sources:

“Unleashing Innovation,” Research-Technology Management, http://findarticles.com/p/articles/mi_6714/is_1_52/ai_n31337091/

Mason Carpenter and Sanjyot P. Dunung, “Harnessing the Engine of Global Innovation” in International Business, Flatworld Knowledge, August 2011 http://www.flatworldknowledge.com/pub/international-business/524265#web-524265

Jessie Scanlon, “How Whirlpool Puts New Ideas Through the Wringer,” http://www.businessweek.com/innovate/content/aug2009/id2009083_452757.ht

Peter Erickson, “Innovating on Innovation” Keynote Presentation at the Front End of Innovation Conference, Boston, MA, May 2009

Tags: Case study, How-to, Innovation, teams

Point:  Budget constraints demand frugal innovation.

Story:  In 2005, NASA’s Constellation program – tasked with designing a way to get humans to the moon and eventually to Mars – suffered a 45% reduction in R&D budgets during the process of getting Constellation running.   “We knew those resources weren’t coming back,” said Jeff Davis, Director of the Space Life Sciences Directorate at NASA’s Johnson Space Center. “We thought to ourselves, we can’t get this done just doing 45% less. We need to approach this whole program in a new way.”

Davis’ team looked for new ways to work and began exploring alliances and external innovation platforms. The team hit upon the idea of using open innovation challenges at about the same time that President Obama’s Open Government Initiative encouraged public participation and the Office of Management and Budget issued guidelines on using prizes to spur public participation to solve innovation challenges.

Using the InnoCentive platform, Davis’ team issued an open innovation challenge entitled, “Data Driven Forecasting of Solar Events,” seeking solutions for how to predict particle storms that would pose a hazard to the Constellation spacecraft above the earth’s atmosphere. An engineer from rural New Hampshire provided the winning solution. White House Chief Technology Officer Aneesh Chopra described the results:

“I share with you the results of NASA’s early experience with Innocentive’s scientific expert network platform, a platform of 200,000 scientists, where NASA said it would pose a few difficult scientific challenges.  One of the challenges was, ‘how can we forecast solar activity to better predict when to release our rockets into space?’” This was a vexing problem that NASA had been grappling with for more than 30 years.  By putting the challenge out to the public, a semi-retired radio frequency engineer living in rural New Hampshire had the opportunity to share his idea on how to address the problem. [All the engineer needed] was a simple Internet connection.  No complicated RFP, the need for a lobbyist, some convoluted process – just a smart person in our country who could help solve a difficult scientific challenge and was paid a modest $30,000 for that insight.”

Action:

• Consider open innovation methods such as external challenges as a cost-efficient way to spur innovation.
• Subdivide large R&D efforts into smaller R&D challenges that members of an open innovation crowd are more likely to be able to address
• Use a pre-existing platform to quickly reach a critical mass of solvers

Sources:
Open Innovation Marketplace, by Alpheus Bingham and Dwayne Spradlin, Financial Times Press, 2011.

Aneesh Chopra, “Rethinking Government” address to the Personal Democracy Forum 2010, posted June 12, 2010

NASA Innovation Pavilion on InnoCentive.com

Tags: Case study, Innovation, NASA, open innovation

Point: Crowdsourcing and open innovation efforts rely on participation.  Attracting participants and encouraging activity is a key success factor in obtaining and vetting new product, service and process innovation ideas.

Story: Crowdsourcing is only as good as the crowd.  Presenters at the World Research Group‘s Innovation Cubed Summit described several methods that they use to engage people for internal innovation efforts.  In particular, they talked about getting participation beyond just idea submission.

Although some innovation contests have an easy-to-score objective measure of success (such as NetFlix’s rating algorithm contest or the get-to-space Ansari X PRIZE), most participatory innovation efforts cast a wider net and have more open-ended, subjective measures of performance.  That means people need to evaluate all the submissions to find the best ones.  These broad innovation contests involve more than just submitting a great idea (the proverbial 1% inspiration).  The effort also requires the 99% perspiration to sort through hundreds or thousands of candidate ideas, score those ideas, and refine the ideas.  Motorola, for example, received 17,000 ideas in their system.  How can companies evaluate ideas?

The solution is to recruit and reward a crowd that helps curate, moderate, vote, and refine ideas even if those participants aren’t idea submitters. Kraft and PepsiCo, for example, emphasized ease-of-use in their efforts at increasing participation.  They make it very simple and intuitive to join the innovation effort, submit ideas, vote, comment, and participate in the effort.  The companies avoid the temptation of asking too many questions and putting approvals barriers on participation.

Real-time recognition also spurs interest and activity.   Both PepsiCo and Motorola post a leaderboard of “Who’s Hot” on their innovation portals.  The up-to-date ranking list enables competitive participants to see their standing at any time.  Timely updates to standings keep people more engaged than if the company ran a “submit-by-the-deadline-and-you won’t-hear-anything-for-a-month” black hole contest.  Game mechanics with well-defined ways of earning points or game currency help increase activity.

Finally, offer a sliding scale of rewards for valuable participation, not just idea submission.  Although some contests focus on rewarding a single big winner with the best idea, several of the companies at the summit sought ways to reward more of the participants in the system.  For example, PepsiCo offers participatory awards for reaching certain point totals.  Both Motorola and PepsiCo had side-contests for high levels of participation, such as “Top Voter” or “Top Point-Getter” in addition to awards for the best ideas.  Approximately 10% of PepsiCo’s 3000 participants reached some sort of award level for their participation in the open innovation efforts.

Action

• Minimize the labor, barriers, or hassles for participation in innovation efforts
• Create a transparent process with clearly-defined expectations and rewards for participation as well as idea submission
• Provide a sliding scale of rewards for all kinds of participation on the innovation process, not just one big prize for one big idea.

For further information: The next World Research Group Open Innovation Summit will be held August 10-12, 2011 in Chicago, IL.

Tags: Case study, crowdsourcing, Innovation, open innovation