fostering open innovation
TRANSCRIPT
UNIVERSITA’ DEGLI STUDI DI BRESCIAFACOLTA’ DI ECONOMIA
CORSO DI LAUREA IN ECONOMIA E GESTIONE AZIENDALE
Fostering open innovation with
the power of the crowd
di Elisabetta Roncalli
ANNO ACCADEMICO 2012/2013
Fostering open innovation with the power of the crowdSource: Kickstarter.com , 2014
Kickstarter surpasses $1 billion in crowdfunding pledges
5.7 backers from 224 countries
57.000 projects fully funded
3 March 2014
Fostering open innovation with the power of the crowd
Democratizing innovation
From
Radical
Push
Closed
To
Incremental
Pull
Open
Fostering open innovation with the power of the crowdSource: Chesbrough H., Brunswicker S., May 2013
Empirical research context:open innovation and firm performances
Fostering open innovation with the power of the crowd
Potential and limits of an open innovation strategy at a firm level
“There is an inverted U-shaped curve relationship between open innovation and firm performances”
Druid Conference 2013
Fostering open innovation with the power of the crowd
Personal re-working
Critical factors of open innovation
Fostering open innovation with the power of the crowd
Can users really compete with professionals?
Source: Poetz M. K., Schreier, 2009.
User ideas score higher on average in terms of novelty and customer benefit, but lower in terms of feasibility.
Fostering open innovation with the power of the crowd
Crowdsourcing analysis
How can an organization apply collective intelligence through crowdsourcing to create a competitive advantage?
Definition
Specific goal
“Crowdsourcing is the act of taking a job traditionally performed by a designated agent and outsourcing it to an undefined, large group of people in the form of an open
call”.Howe, 2006
Business model
Three elements:1) An open call;2) The crowd;
3) The use of internet;
Fostering open innovation with the power of the crowd
The diffusion of crowdsourcing
“Crowdsourcing is crossing the chasm”Geoffrey Moore
Source: crowdsourcing.org
Fostering open innovation with the power of the crowd
The diffusion of crowdsourcing
Crowdfunding in Italy
Source: Italian crowdfunding Network
Fostering open innovation with the power of the crowd
case-history
Source: news.eyeka.net
Crowdsourcing can really pays-off compared to more traditional ways of developing marketing strategies.
The community of over 260,000 consumer-creators across 150 countries.
• 500.000 video views;• Award for the “Best social idea”; • +1.8% market share.
• The highest View-Through-Rate throughout the campaign;
• The lowest cost-to-conversion at 54% against historical average.
• Cost saving of 92% against average agency fees
Fostering open innovation with the power of the crowd
Who does really benefit?
Crowdsourcing Co-creation
Outsourcing a task to the crowd; One-to-many activity; Main goal: reducing cost and time-to-
market; The crowd creates a great idea for
you; Winning is the reward; Short-term involvement.
Creating shared value with the crowd; One-to-one activity; Main goal: creating engagement; The crowd works with you to make a
good idea great; Engagement is the reward; Long term involvement along product
life cycle. Personal re-working
Giffgaff and the Payback system
Excellent customer service:
130,000 questions asked 100% of the questions were answered by the community; The average response time for questions is within just three
minutes. The top earning giffgaffer earned over £13,000, and he is using
that to pay University;
Source: Giffgaff.comFostering open innovation with the power of the crowd
Co-creation is the new frontier
Fostering open innovation with the power of the crowd
Coca-cola - Freestyle dispenser McDonald’s -“My Burger Campaign”
Final insights
What does it mean today?
Customer Order Decoupling point. Source: Corniani M., 2008.
Fostering open innovation with the power of the crowd