Point: Innovation tournaments can be run either competitively or collaboratively, with each approach yielding better results for different purposes.

Story: In his second book, Best Practices are Stupid: 40 Ways to Out-Innovate the Competition, (named the 2011 best book on innovation by CEORead) innovation speaker Stephen Shapiro offers 40 tips on how to innovate efficiently.  His tip #11, for example, tackles the topic of innovation competitions and tournaments. The tip focuses on what role, if any, collaboration should play in these bounty-driven events.

Innovation tournaments can be run either competitively or collaboratively, Shapiro says.  In a competitive tournament, such as ones run by Cisco and LG Electronics, no participant can see rivals’ submissions.  In a collaborative tournament, such as GE’s Eco-Imagination challenges, anyone can see a submission and comment on or vote on the entry. The Netflix Prize and X Prize use a hybrid version, running the tournaments as competitions for prizes but allowing for collaboration within each submission.

Which approach generates the best solutions? Collaborative tournaments work best in areas where problems require “cumulative knowledge” or “building on best practices,” Shapiro says, citing research by Kevin Boudreau and Karim Kakhani in the Sloan Management Review. The collaborative approach lets players build on to each other ideas and create more refined ideas based on feedback from other participants.

Competition, in contrast, is most effective when the problem requires broad experimentation with an emphasis on truly new ideas rather than refined ideas  The competitive aspect means that many different ideas are pursued simultaneously. Whereas collaboration enjoys the benefits of players influencing each other, competition enjoys the benefits of players being independent of each other, thereby avoiding problems like groupthink, which might artificially narrow the ideas along the basis of the first idea suggested.  In some cases, a hybrid approach will use competition in phase one of the tournament to gather a lot of ideas and then use collaboration during a second phase to flesh out and refine the most promising ideas.

Action

• Hold an innovation tournament to access the innovative energies of suppliers, customers, and smart people from around the world.
• Use a collaborative tournament if you need ideas that are cumulatively built and more carefully refined by the players.
• Use a competitive tournament if you want a wider range of “left-field” ideas and plan to do your own refinement or hold a two-stage contest in which the second stage refines the ideas of the first.

Point: Collaboration between doctors, patients, designers and lab technicians brings healthcare delivery breakthroughs.

Story: The inspiring origins of the Mayo Clinic illustrate the timelessness of collaborative innovation. Back in the 1880s, two brothers, Will and Charles Mayo, founded the clinic with their father, Dr. William Worrall Mayo, and introduced the concept of a group practice.  The Mayos sought medical breakthroughs by bringing together doctors, laboratory experts, and business people. As the younger Will Mayo said, “In order that the sick may have the benefit of advancing knowledge, a union of forces is necessary.”

Today, we have the fruits of many medical breakthroughs but need better ways to deliver the breakthroughs in efficient and effective ways.   Many chronic diseases, like diabetes, can be treated but depend on more than just a one-shot procedure in a doctor’s office or hospital.  For these conditions, healthcare delivery requires education and engagement between doctors and patients.  The quest for new breakthroughs in healthcare delivery calls for a new round of collaborative innovation, embodied by the Mayo Clinic’s SPARC unit.

The Mayo Clinic uses SPARC to develop new services for patients.  SPARC stands for See, Plan, Act, Refine, Communicate.  Mayo believes in a fast prototyping approach: a crossfunctional team of doctors, industrial designers, patient education experts, facilities people and financial analysts work together to create new ideas and test them in the “Hub.” The collaboration includes some of the usual healthcare and research leaders, like Blue Cross Blue Shield of Minnesota, University of Minnesota, MIT, Yale, and GE Healthcare.  But it also attracts collaborators from industry, such as IDEO, Best Buy, Steelcase, Microsoft, and Cisco.

The Hub creates reconfigurable prototypes of patient check-in counters and examination rooms. The team that develops a new service can observe the prototypes in action through glass and via video.  “We take research out of the laboratory and translate it in a very quick and meaningful way right to the patient’s bedside,” said Dr. Glen Forbes, CEO of Mayo’s Rochester, MN campus. “That takes a lot of collaboration, because you’re crossing cultures and you’re often times crossing a lot of internal organization structures and silos.”

Most crucially, the Mayo Clinic engages patients to accelerate innovation.  “Our patients have a long history of participating in our research and education endeavors,” says Barbara Spurrier, Administrative Director, Mayo Clinic Center for Innovation.  The Mayo uses ethnographic techniques to analyze the quality of doctor-patient interactions, survey patients for their impressions, and talk to patient’s families.  Human-centered design thinking ensures that the innovations aren’t just technically correct, they deliver higher quality of life for patients.

Action:

• Find a gap between technology and society, such as the gap between the capabilities of a technology (e.g., a medical treatment) and the delivery of that technology (e.g., a patient’s compliance)
• Recruit collaborators from both the technology side and the people side to bridge the gap
• Create tangible and testable examples of innovations through visualization, modeling and rapid prototyping
• Use both hard science and soft science methods to gain both objective and subjective feedback for further innovations

For more information:

Mayo Clinic

Mayo Clinic Center for Innovation Partnerships

Leonard Berry and Kent Seltman, Management Lessons from Mayo Clinic: Inside One of the World’s Most Admired Service Organizations, 2008

Evan Rosen, The Culture of Collaboration: Maximizing the Time, Talent and Tools to Create Value in the Global Economy, 2009

Glenn S. Forbes, M.D.

Mayo Clinic and University of Minnesota partnership

Point:  Technology and innovation enable greater customer engagement through open-ended customizations, apps, add-on, and social features.

Story: At BIF7, John Hagel, author of The Power of Pull, highlighted what he saw as a distinction between story vs. narrative. A story is complete, self-contained, and has a beginning, middle, and end. Stories have audiences: people who passively consume the story.  In contrast, Hagel defined a “narrative” as an open-ended, unfolding sequence that continues into the future.  Narratives frame the world and the people in it.  Under this definition, narratives create participants: active co-creators in the evolving timeline of current and future events.  Whether you agree or disagree with Hagel’s particular choice of words, the key is in the interesting distinction between a closed-ended tale and an open-ended dialogue — and what that distinction means for product innovation..

Although Hagel didn’t say so directly, the concept of story v. narrative can be applied to product innovation: some products are like stories and some are like narratives. Some products are meant to simply be bought and consumed, like the beginning-middle-end of a story.  It’s a “once upon a time, someone used the product and they lived happily ever after” story.

In contrast, other products are like narratives, in which purchasing the product is just the start of a long series of interactions with that product, with related products, and even with other people. Such products let people customize, individualize, and enhance the product. Customers can tap into an ecosystem of add-ons, apps, tracking, feedback, and engagement. Customers can interact with other customers or with the company’s services for on-going enhancements.  In short, the customer joins the narrative and extends it, too..

The most obvious example of the narrative-style product is the Apple iPhone, with its “there’s an app for that” opportunities for customization and engagement. Similarly, Nike converted a consumer good — shoes — into narrative-driven product with strong participant engagement through Nike+.  A sensor in the shoe and wireless connection to an iPhone, iPod, or special watch lets users of its shoes track their exercise. People can then share their runs with others, participate in virtual races, and learn about great running routes from others..

Technology enables more and more of these kinds of narrative products. Companies can now leverage low cost or existing electronics (e.g., smartphones), low-cost software, and low-cost web/cloud services to create an ongoing customizable social experience.  Companies can also use existing social platforms (like FourSquare, Twitter, Facebook, etc.) to create a narrative environment for their product or service.

Action:

• Is your product like a closed-ended tale or can you make it like an open-ended dialogue with your customers?
• Create a brand to encompasses the customer (vs. simply defining the product or the company)
• Create optional tracking or feedback that lets customers record their piece of the narrative.
• Create optional add-ons or apps that support customization or ongoing enhancements.
• Create an ecosystem of partners and encourage open innovation around a narrative product platform.
• Create social engagement that lets customers not just use the product but also interact with the people behind the product and the other users of the product.