case study - InnoCentive

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bang per R&D buck lies at the heart of RocheLs business. Given the size of ... Molecular Diagnostics, Diabetes Care,
-ANAGEMENT 

,ABNOTES )NSIGHTS IDEAS AND INSPIRATION FROM -,AB

)SSUE  \ *UNE 

)N THIS ISSUE 4HE IDEA EXCHANGE AT 5"3

-AKING SENSE OF YOUR MANAGEMENT MODEL

(OW DO YOU BRING INNOVATION INTO THE MAINSTREAM OF ESSENTIALLY CONSERVATIVE ORGANISATIONS 3IMON #AULKIN REPORTS ON A GROUNDBREAKING INITIATIVE AT 5"3 )NVESTMENT "ANK  P

*ULIAN "IRKINSHAW AND *ULES 'ODDARD EXPLAIN HOW ORGANISATIONS CAN DO A BETTER JOB OF USING A MANAGEMENT MODEL TO ENHANCE THEIR COMPETITIVENESS  P

$EBATING INNOVATION

*ULIAN "IRKINSHAW AND 3TUART #RAINER REPORT ON HOW 2OCHE $IAGNOSTICS IS EXPLORING AN EXPERIMENTAL APPROACH TO HARVESTING BRIGHT IDEAS  P

!N ARTICLE BY 3TEFAN 3TERN IN THE &INANCIAL 4IMES IGNITED A PUBLIC DEBATE BETWEEN -,ABS *ULIAN "IRKINSHAW AND !NDREW #AMPBELL ,AB.OTES PROVIDES AN ARMCHAIR SEAT TO THE BATTLE OF IDEAS  P

4HE &ACEBOOK 'ENERATION VS THE &ORTUNE  4HE EXPERIENCE OF GROWING UP ONLINE WILL PROFOUNDLY SHAPE THE WORKPLACE EXPECTATIONS OF h'ENERATION &v n THE &ACEBOOK 'ENERATION 'ARY (AMEL OUTLINES THE NEW REALITIES  P

#OMBINE (ARVESTING

&REEDOM BASED MANAGEMENT "ILL .OBLES AND 0AUL 3TALEY LOOK BACK OVER THE EVOLUTION OF MANAGEMENT AND CONCLUDE THAT A NEW MODEL n FREEDOM BASED MANAGEMENT n PROVIDES THE FOUNDATION FOR THE FUTURE  P

/UT AND ABOUT WITH -,AB 2ECENT AND FORTHCOMING -,AB EVENTS  P

4HE IDEA

EXCHANGE AT 5"3

(OW DO YOU BRING INNOVATION INTO THE MAINSTREAM OF ESSENTIALLY CONSERVATIVE ORGANISATIONS 3IMON #AULKIN REPORTS ON A GROUNDBREAKING INITIATIVE AT 5"3 )NVESTMENT "ANK ST BANKS ARE CREATURES OF HIERARCHY TRADITION AND CONFORMITY 4HEY ARE NOT ALONE IN THIS COURSE n SO ARE MOST COMPANIES FULL STOP n BUT THEY ARE ALONE AS WE NOW KNOW ONLY WELL IN THE SEVERITY OF THE CONSEQUENCES WHEN SUCH MANAGEMENT CONSERVATISM IS TESTED TO DESTRUCTION BY THE SYSTEMIC COMPLEXITY OF THE INDUSTRYS PRODUCTS AND PROCESSES 4HANKFULLY THERE ARE EXCEPTIONS TO THE NORM 3VENSKA (ANDELSBANKEN CONSISTENTLY THE MOST SUCCESSFUL .ORDIC BANK AND 5"3S 7EALTH -ANAGEMENT ARM HAVE BOTH MADE INNOVATIONS IN THE AREA OF PLANNING AND BUDGETING THAT CHANGE THE WAY MANAGERS THINK ABOUT THEIR BUSINESS "UT IT IS FAIR TO SAY THAT ON THE WHOLE MANAGEMENT INNOVATION HAS NOT BEEN HIGH ON TOP BANKERS AGENDA 4HIS MAKES THE ATTEMPT BY A GROUP OF hRENEGADESv AT 5"3 )NVESTMENT "ANK TO BRING INNOVATION INTO THE MAINSTREAM DOUBLY INTERESTING .OT ONLY WAS THE NOTION OF LIBERATING THE IDEAS FEELINGS AND OPINIONS OF THE WIDER EMPLOYEE BASE UNFAMILIAR IN ITSELF IN ADDITION IT STARTED AS A BOTTOM UP GRASSROOTS EXPERIMENT .%84 0!'%

4HE $AVID AND %LAINE 0OTTER #HARITABLE &OUNDATION

WWWMANAGEMENTLABORG

 \ ,ABNOTES

#OMBINE HARVESTING -IX THE WISDOM OF INTERNAL AND EXTERNAL NETWORKS AND YOU MIGHT JUST COME UP WITH BRILLIANT AND UNEXPECTED SOLUTIONS TO APPARENTLY INTRACTABLE PROBLEMS *ULIAN "IRKINSHAW AND 3TUART #RAINER REPORT ON HOW 2OCHE $IAGNOSTICS IS EXPLORING AN EXPERIMENTAL APPROACH TO HARVESTING BRIGHT IDEAS 7HEN IT COMES TO INNOVATION THE STAKES DONT COME MUCH HIGHER THAN IN THE PHARMACEUTICAL INDUSTRY )NNOVATIVE SOLUTIONS FOR SERIOUS MEDICAL PROBLEMS COME WITH AN ENORMOUS PRICE TAG 4HE 3WISS COMPANY 2OCHE SPENT  BILLION 3WISS FRANCS ON 2$ IN  ALONE n NEARLY  PER CENT OF ITS SALES "UT THERE IS ALSO A PRIZE DRUGS AND DIAGNOSTICS WHICH HELP PEOPLE LIVE LONGER HEALTHIER LIVES h4HERE IS NOT ECONOMY OF SCALE IN RESEARCH )N RESEARCH ITS ECONOMY OF IDEAS v FORMER 2OCHE #%/ &RANZ (UMER AND CURRENT CHAIRMAN OF THE BOARD OF DIRECTORS OBSERVED -AXIMISING THE BANG PER 2$ BUCK LIES AT THE HEART OF 2OCHES BUSINESS 'IVEN THE SIZE OF THE ORGANISATION n WITH   EMPLOYEES 2OCHE OPERATES IN  COUNTRIES AND HAS 2$ OPERATIONS IN %UROPE .ORTH !MERICA AND !SIA 0ACIlC AS WELL AS NUMEROUS STRATEGIC ALLIANCES IN A NETWORK OF PARTNERSHIPS AROUND THE WORLD n AND THE ISSUES IT IS DEALING WITH THIS IS ALWAYS A CONTENTIOUS AREA BOTH INTERNALLY AND EXTERNALLY 2OCHE LIKE OTHER 2$ INTENSIVE COMPANIES HAS TO BALANCE ORGANISATION WITH FREEDOM DIVERSITY WITH DIRECTION BUDGETING WITH BRILLIANCE /NE OF THOSE AT THE FOREFRONT OF EXPLORING THIS DEMANDING BALANCE IS 4OD "EDILION THE #ALIFORNIA BASED DIRECTOR OF TECHNOLOGY MANAGEMENT AT THE #HIEF 4ECHNOLOGY /FlCE OF 2OCHE $IAGNOSTICS 4HIS PART OF 2OCHE IS A WORLD LEADER IN IN VITRO DIAGNOSTICS 4HIS INCLUDES PRODUCTS USED TO TEST BLOOD AND TISSUES TO OBTAIN INFORMATION FOR EARLY DETECTION DIAGNOSIS PREVENTION AND TREATMENT MONITORING OF DISEASES 4HE RESEARCH IS HIGHLY SPECIALISED AND COMPLEX 4HE DIAGNOSTICS RESEARCH IS SEPARATED INTO lVE LARGELY SEPARATE BUSINESS AREAS n !PPLIED 3CIENCE -OLECULAR $IAGNOSTICS $IABETES #ARE 0ROFESSIONAL $IAGNOSTICS AND 4ISSUE $IAGNOSTICS %ACH HAS A COMPLEX PRODUCT PORTFOLIO WITH CUSTOMER AND TECHNOLOGY WHICH CAN OVERLAP h2OCHE IS A VAST ECOSYSTEM v SAYS 4OD "EDILION HIMSELF A SCIENTIST WITH A 0H$ IN MOLECULAR BIOLOGY AND OVER A DECADE OF EXPERIENCE IN COMMERCIAL RESEARCH

4HE POWER OF NETWORKS )N !PRIL  A CROSS FUNCTIONAL TEAM OF 2OCHE MANAGERS WAS PUT TOGETHER TO TAKE A FRESH LOOK AT THE COMPANYS INNOVATION PROCESSES 7ERE THERE SMARTER WAYS OF WORKING THAT WOULD HELP 2OCHE TO UTILISE ITS KNOWLEDGE BASE MORE EFFECTIVELY 4HE TEAM CONSISTED OF MEMBERS FROM THE 53 3WITZERLAND AND 'ERMANY AND REPRESENTED SEVERAL FUNCTIONAL AREAS THERE WERE SCIENTISTS A QUALITY CONTROL MANAGER AN ATTORNEY AN )4 SPECIALIST AND A PRODUCT PORTFOLIO MANAGER 4HE MIX WAS MOST DElNITELY THE THING h(OW WE STARTED WAS THE IDEA THAT NETWORKS ARE POWERFUL ENTITIES AND OUR HYPOTHESIS WAS THAT SMALL 2$ TEAMS COULD GAIN IMMENSELY FROM COORDINATING THEIR EFFORTS OR BEING ABLE TO REACH OUT TO THEIR COLLEAGUES ACROSS THE OTHER BUSINESS AREAS AND AT THE SAME TIME REACHING BEYOND THE TRADITIONAL CHANNELS IN BUSINESS DEVELOPMENT AND LICENSING FOR THIRD PARTIES TO THE EXTERNAL WORLD v SAYS "EDILION 4HE TEAM KNEW THIS WAS HARDLY GROUND BREAKING 4OOLS SUCH AS &ACEBOOK 7IKIS AND SO ON SUGGEST THERE IS HUGE BUSINESS POTENTIAL IN RELATIVELY MODEST TOOLS THAT ALLOW PEOPLE TO COLLABORATE MORE EFlCIENTLY AND TRANSPARENTLY 4HE ORIGINALITY FOR 2OCHE AND FOR MANY OTHER ORGANISATIONS FACED WITH SIMILAR ISSUES LIES IN ACTUALLY BRINGING NETWORKS TO LIFE AND LEVERAGING THEIR POTENTIAL .%84 0!'%

)NVENTING TOMORROWS BEST PRACTICES TODAY

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#OMBINE HARVESTING CONTINUED

4O GET A SENSE OF WHERE THE BIGGEST OPPORTUNITIES MIGHT LIE THE TEAM SENT OUT A SURVEY TO THE 2$ STAFF ACROSS 2OCHE $IAGNOSTICS  PEOPLE RESPONDED h4HE BASIC STORY EMERGING FROM THIS SURVEY v "EDILION OBSERVED hWAS THAT PEOPLE COULD SEE ENORMOUS POTENTIAL IN INCREASED COLLABORATION BUT THEY DIDNT KNOW HOW TO DO ITv 4HE NUMBER OF HIERARCHICAL LEVELS A LACK OF RESOURCES AND PRESSURE TO DELIVER WERE ALL MENTIONED AS MAJOR OBSTACLES h4HE SURVEY SUGGESTED THAT COLLABORATION WAS LATENT ALL READY TO BE HARVESTED IF WE COULD lGURE OUT HOW TO DO IT IN THE RIGHT WAY v SAYS "EDILION h4HE OVER RIDING HYPOTHESIS WAS THAT BY PUTTING MORE EYES ON THE PROBLEM BY CREATING VIRTUAL NETWORKS WE WOULD BE ABLE TO SOLVE PROBLEMS QUICKLY AND MORE EFlCIENTLY v SAYS 4OD "EDILION h4HE ORGANISING PRINCIPLE WAS THAT THEY HAD TO BE REAL PROBLEMS THINGS WE WERE ACTUALLY WORKING WITH RIGHT NOW AND WOULD HAVE VALUE IF THEY WERE SOLVEDv 7ITH A FAITH IN THE POWER OF NETWORKS A MULTI DISCIPLINARY DREAM TEAM AND A RANGE OF REAL TROUBLESOME PROBLEMS THE NEXT STEP WAS TO IDENTIFY A SUITABLE MEANS OF EXPERIMENTATION

4HE CHALLENGES ! GUIDING PRINCIPLE FOR THE TEAM WAS hYOU CANNOT FULLY UNDERSTAND SOMETHING UNTIL YOU TRY TO CHANGE ITv )N OTHER WORDS TO lND OUT WHY COLLABORATIVE INNOVATION WAS SO DIFlCULT THEY NEEDED TO DESIGN AN EXPERIMENT TO CHANGE THE NATURE OF COLLABORATION 4HEY QUICKLY HIT ON AN IMPORTANT IDEA WHY NOT CHALLENGE TWO DIFFERENT NETWORKS OF SCIENTISTS TO TACKLE THE SAME PROBLEM )F ONE GROUP MAKES MUCH BETTER PROGRESS THAN THE OTHER THEN IT SHOULD BE POSSIBLE TO ISOLATE THE FACTORS THAT MADE THE DIFFERENCE !FTER KICKING AROUND A NUMBER OF POSSIBLE DESIGNS THEY GRAVITATED TOWARDS A SIMPLE COMPARE AND CONTRAST BETWEEN AN INTERNAL 2$ COMMUNITY IE EMPLOYEES OF 2OCHE $IAGNOSTICS AND AN EXTERNAL NETWORK OF SCIENTISTS &OR THE INTERNALLY FOCUSED PROJECT THE TEAM CHALLENGED THEIR COLLEAGUES WITHIN 2$ TO OFFER UP A SET OF REAL CURRENT PROBLEMS THAT NEEDED WORK 3IX CHALLENGES WERE IDENTIlED FROM ACROSS THE "USINESS !REAS AND TOUCHING ON A VARIETY OF PROBLEMS FROM MECHANICAL ENGINEERING TO BIOCHEMISTRY 4HE TEAM BROADCAST THE SIX CHALLENGES ACROSS THE 2OCHE 2$ NETWORK IN *UNE "Y .OVEMBER THEY HAD CONTACTED OVER   MEMBERS OF THE 2$ COMMUNITY  PEOPLE LOGGED ONTO THE ONLINE SYSTEM AND READ THE CHALLENGES IN DETAIL  PROPOSALS EMERGED -ANY OF THESE PROPOSALS LACKED DETAIL BUT THERE WAS ONE REAL GEM A NOVEL SOLUTION TO EFlCIENT POWER MANAGEMENT IN A PORTABLE INSTRUMENT )T WAS ACTUALLY SOLVED BY A SCIENTIST AT A DIFFERENT SITE IN A DIFFERENT FUNCTION SO HE HADNT MADE THE CONNECTION BEFORE TO THE TEAM WORKING ON THE POWER MANAGEMENT CHALLENGE h)T WAS A BEAUTIFUL EXAMPLE OF LINKING PEOPLE ACROSS AN ORGANISATION WHO HAVE ALLIED INTERESTS ARE WORKING IN THE SAME lELD THEYRE TRYING TO SOLVE THE SAME PROBLEM AND THESE PEOPLE SIMPLY DIDNT KNOW TO ASK EACH OTHER !ND THE PROBLEM MAY HAVE BEEN SOLVED THAT SIMPLY 7ERE EXPLORING THAT NOW v SAYS "EDILION

'OING OUT 4HE SECOND PART OF THE EXPERIMENT WAS TO TAKE ONE OF THE CHALLENGES TO THE OUTSIDE WORLD "ECAUSE OF THE COST INVOLVED THE TEAM CHOSE ONE OF THE SIX CHALLENGES TO lND A MEANS OF BETTER MEASURING THE QUALITY AND AMOUNT OF A CLINICAL SPECIMEN AS IT IS PASSED THROUGH ONE OF 2OCHES AUTOMATED CHEMISTRY ANALYZERS 4HIS PROBLEM HAD IN ONE FORM OR ANOTHER BEEN WRESTLED WITH FOR MANY YEARS INVOLVING RESEARCHERS THROUGHOUT 2OCHE AND ITS EXTERNAL PARTNERS

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#OMBINE HARVESTING CONTINUED

4O MANAGE THE PROCESS OF INVITING OUTSIDERS INTO 2OCHES 2$ PROCESS THE TEAM DECIDED TO WORK WITH )NNO#ENTIVE BASED IN 7ALTHAM -ASSACHUSETTS &OUNDED IN  )NNO#ENTIVE CLAIMS TO BE THE WORLDS hlRST OPEN INNOVATION MARKETPLACEv )T IS A GLOBAL WEB COMMUNITY WHICH ENABLES SCIENTISTS ENGINEERS PROFESSIONALS AND ENTREPRENEURS TO COME UP WITH SOLUTIONS TO PROBLEMS POSED BY ORGANISATIONS INCLUDING 0ROCTER  'AMBLE %LI ,ILLY AND 3OLVAY )NNO#ENTIVE HAS AROUND   WHAT IT CALLS hSOLVERSv IN ITS NETWORK !NYONE CAN BE A SOLVER AND THEY PROVIDE THEIR IDEAS ANONYMOUSLY 9OU SIMPLY GO TO THE NETWORK SIGN UP AND AGREE TO THE TERMS AND CONDITIONS 9OU MAY BE A  YEAR 0H$ CHEMIST A GRADUATE STUDENT OR A SCIENTIlCALLY TRAINED HOUSEWIFE h4HE IDEA IS TO INCREASE THE NUMBER OF SHOTS ON GOAL 9OU NEVER KNOW WHERE A SOLUTION IS GOING TO COME FROM v SAYS "EDILION )NNO#ENTIVE BOASTS AN AVERAGE SUCCESS RATE OF  PER CENT AND AS "EDILION PUTS IT IS hVERY SENSITIVE TO THE MECHANISMS FOR HANDLING INTELLECTUAL PROPERTY 4HIS WOULD NOT HAVE BEEN DOABLE WITHOUT A VERY THOUGHTFUL APPROACH TO HOW YOU HANDLE ANY KIND OF INTELLECTUAL PROPERTY THAT EMERGES 7E WORKED WITH )NNO#ENTIVE TO RElNE THE PROPOSALv !   AWARD WAS INCLUDED IF A SOLUTION WAS PRODUCED 4HE CHALLENGE WAS POSTED ON THE )NNO#ENTIVE NETWORK AND HAD ALMOST   READERS IN TWO MONTHS 4HE RESULT WAS  PROPOSALS FROM AROUND THE WORLD 4HEIR QUANTITY AND QUALITY TOOK "EDILION AND HIS TEAM BY SURPRISE h4HE PROPOSALS WERE INCREDIBLE v HE SAYS h)N CONTRAST TO THE INTERNAL NETWORK RATHER THAN BEING ONE OR TWO LINES MANY WERE MULTIPLE PAGES 3OME PEOPLE HAD DONE EXPERIMENTS 4HERE WERE DIAGRAMS 4HERE WERE DRAWINGS THAT lLLED AN ENTIRE NOTEBOOK 7E WOULD HAVE BEEN DELIGHTED IF WE COULD HAVE GOT MUCH OF THE WORK OUT OF OUR OWN RESEARCH ORGANISATIONv 4HE PAY OFF WAS APPARENT !S 4OD "EDILION NOTED h) COULDNT PUT TEN PEOPLE IN A ROOM AND HAVE A BRAINSTORMING SESSION OR A SEMINAR FOR TWO DAYS FOR THE SAME COST WITH ALL THE TRAVEL INVOLVED !ND ) WOULD HAVE GOT A FEW HUNDRED STICKY NOTES RATHER THAN AN ENTIRE NOTEBOOK WITH  SEPARATE DETAILED PROPOSALSv !ND MOST IMPORTANT OF ALL THERE WAS A RESULT "ASICALLY IN  DAYS 2OCHE WAS ABLE TO SOLVE A PROBLEM THAT IT AND ITS PARTNER HAVE BEEN TINKERING WITH AND OPTIMIZING FOR THE LAST  YEARS 4HE SOLUTIONS PROVIDED ACTUALLY MIRRORED THE ENTIRE HISTORY OF 2OCHES 2$ PROGRAMME !LL OF THE SOLUTIONS 2OCHE HAD TRIED CAME IN )NCREDIBLY MORE THAN ONE SOLVER HIT UPON THE SAME NOVEL SOLUTION !T THE TIME OF WRITING 2OCHE IS ANALYSING EACH OF THEM .O FORMAL TECHNOLOGY TRANSFER HAS YET BEEN AGREED

-AKING SENSE OF THE RESULTS 7HAT TO MAKE OF THE lNDINGS !T lRST GLANCE YOU MIGHT EXPECT THE INTERNAL 2$ COMMUNITY TO PROVIDE BETTER QUALITY ANSWERS n THEY HAVE THE NECESSARY TECHNICAL EXPERTISE AND THE SAME OVERRIDING INTEREST IN 2OCHES WELLBEING "UT IT WAS NOT SO &OR THE MOST PART INTERNAL RESPONSES TO THE CHALLENGES WERE DISAPPOINTING -ANY WERE ONE LINERS A HANDFUL EXTENDED TO A PARAGRAPH OR TWO $ESPITE THE FACT THAT THEY GOT A SOLUTION TO ONE OF THE PROBLEMS THE 2OCHE TEAM DIDNT SEE THE INTERACTIVE DISCUSSION AND EXCHANGE OF IDEAS THAT THEY HAD ANTICIPATED 4HE MEMBERS OF THE )NNO#ENTIVE NETWORK ON THE OTHER HAND WERE MOTIVATED AND SEEMINGLY AS KNOWLEDGEABLE /BSERVES "EDILION h#LEARLY THE lNANCIAL INCENTIVE PLAYED ITS PART HERE BUT WE THINK THERE IS MORE GOING ON n PEOPLE ALSO SEEM TO GET INTRINSIC VALUE OUT OF SHARING THEIR EXPERTISE THROUGH THIS COMMUNITYv

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#OMBINE HARVESTING CONTINUED 3O WHAT IS THE LEARNING WITHIN 2OCHE h7E STILL THINK THERES A HUGE AMOUNT OF VALUE IN INTERNAL WEB BASED FORUMS 7E SIMPLY DONT KNOW HOW TO DO IT v ADMITS 4OD "EDILION (E AND HIS COLLEAGUES ARE WORKING TOGETHER TO UNDERSTAND THE DYNAMICS OF THE SYSTEM INCENTIVE STRUCTURES AS WELL AS THE KINDS AND SCOPE OF THE PROBLEMS THAT SHOULD BE POSED AND HOW QUESTIONS SHOULD BE ASKED 4HIS DOES NOT SUGGEST THAT EMPLOYEES ARE LESS INNOVATIVE BUT SIMPLY THAT THIS CHANNEL TO THEIR CREATIVITY IS NOT YET FULLY UNDERSTOOD AND IS DIFlCULT TO UTILISE

)NSIGHTS FROM 2OCHE $IAGNOSTICS 7ORK ON THE QUESTION /NE OF THE HARDEST PROBLEMS IN DESIGNING THE EXPERIMENT WAS lGURING OUT EXACTLY WHAT QUESTION TO ASK 7HEN YOURE ASKING FOR HELP SOLVING A PROBLEM HOW MUCH DETAIL DO YOU HAVE TO GIVE 4HE QUALITY OF ANSWERS IS USUALLY RELATED TO THE QUALITY OF THE QUESTIONS 3AYS 4OD "EDILION h7E HAD THE FULL SPECTRUM ON THE TEAM PEOPLE WHO BASICALLY SAID WE HAVE TO PUT IT DOWN IN A FEW SENTENCES AND OTHERS WHO WERE ADAMANT THAT WE HAD TO PROVIDE ENOUGH DETAIL AND STRUCTURE SO THAT SOMEONE WHO WASNT FAMILIAR WITH THE SPACE COULD ACTUALLY GET IN THERE AND TURN THINGS OVER 4HE LATTER APPROACH IS WHAT WE LARGELY FOLLOWEDv

"ACK OPENNESS WITH KNOWLEDGE 2OCHE FORMED AN EXPERT TEAM FOR EACH OF THE SIX CHALLENGES TO LOOK AT ANY SOLUTIONS SUBMITTED 4HE TEAMS WERE MADE UP OF PEOPLE WHO WERE CURRENTLY WORKING ON THE PROJECT AND PEOPLE WHO WERE NEW TO THE ORGANISATION 4HIS COMBINATION TURNED OUT TO BE CRITICAL h)T WAS OFTEN A REALLY EMOTIONAL HEATED DEBATE AS THESE CHALLENGES CAME IN /NE EXPERIENCED EXPERT WAS STRONGLY OPPOSED TO THE WINNING SOLUTION )T WASNT HIS SOLUTION 3O WE SAW IN A MICROCOSM WHAT PLAYS OUT ACROSS ORGANISATIONS EVERY DAYv

/PEN INNOVATION OPEN LEARNING 7HILE THE DESIGN OF THE EXPERIMENT WAS CAREFULLY STRUCTURED THERE WAS STILL PLENTY OF SCOPE FOR LEARNING ON THE JOB &OR THE 2OCHE TEAM A KEY LESSON WAS IN MARKETING .ONE WERE MARKETERS SO lRST THEY HAD TO LEARN HOW TO SELL PROMOTE AND LAUNCH A NEW INTERFACE )NITIALLY THEY THOUGHT IT WAS A QUESTION OF EXTRACTING EVERYONES EMAIL ADDRESS IN THE ORGANISATION SENDING THEM AN EMAIL DESCRIBING THE PROBLEM OR THE OPPORTUNITY AND INVITING THEM TO CLICK ON THE WEBSITE -ODEST RETURNS RESULTED n A FEW HUNDRED PEOPLE CLICKED ON THE LINK 4HE EMAIL WAS THEN SIMPLIlED AND SOME WERE SPONSORED OR SENT OUT BY THE HEADS OF 2$ ! POSTER WAS PUBLISHED AND HUNG UP ON THE WALLS OF ALL THE BUSINESS AREAS 4HE lNAL VERSION OF THE POSTER OFFERED A MODEST INCENTIVE n AN !PPLE I0OD 4OUCH

%VERYONE LIKES AN EXPERIMENT 4OD "EDILION A SCIENTIST BY TRAINING CONSTANTLY THINKS IN TERMS OF EXPERIMENTS 4HIS HE ARGUES IS AN IMPORTANT FACTOR AND A DIFFERENTIATOR IN HOW PEOPLE VIEW OPEN INNOVATION ACTIVITIES h7E SET IT UP AS AN EXPERIMENT AS AN ACTUALLY COMPARE AND CONTRAST WITH A DESIGNED INPUT AND MEASURABLE OUTPUT "ECAUSE OF THIS ) THINK WE SAW A POSITIVE RESPONSE FROM EVERYBODY THAT WE PRESENTED TO 4HAT WAS PROFOUND IT WAS QUANTITATIVELY DIFFERENT THAN THE RESPONSE TO THE AVERAGE PRESENTATION WHICH IS MORE AROUND OPINION AND SOMETIMES AROUND DATA BUT RARELY AROUND AN EXPERIMENT )T WAS VERY POWERFUL IN EXPLAINING THERES A WHOLE RANGE OF PROBLEM SOLVING THAT WE SIMPLY DONT HAVE ANY EXPERIENCE OF 7E CANT COMMENT UNTIL WE TRY ITv *ULIAN "IRKINSHAW JBIRKINSHAW LONDONEDU IS CO FOUNDER OF -,AB AND 3TUART #RAINER SCRAINER LONDONEDU IS THE EDITOR OF "USINESS 3TRATEGY 2EVIEW

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)NVENTING TOMORROWS BEST PRACTICES TODAY