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PulsePoint Group




                Building On Social Listening Centers:
                 Crowdsourcing New Product Ideas
A PulsePoint Group Study Conducted in Collaboration with The Economist Intelligence Unit (Wave I – 2012)




                                                  1
What is Social Innovation?


 Leveraging the power, insight
    and wisdom of crowds to
  generate new ideas through
  “networked brainpower” that
        produces results                         AKA:
  exponentially more valuable             crowdsourcing, co-
                                             creation, idea
 than the sum of the individual              engines, idea
                                                mining
             parts.



                       2
                              Copyright © 2012 PulsePoint Group. All rights reserved.
Did You Benefit This Morning?




Starbucks created an innovation platform, My Starbucks Idea, to generate ideas and
motivate employees to accelerate ideas already generated by the team. This led to the
development of solutions implemented throughout the word, like a splash stick to
                                                    Copyright © 2012 PulsePoint Group. All rights reserved.
prevent spills from cups.                3
“101 Reasons We Shouldn’t Do This…”

      Perceived Issues                             Reality
    Legal: IP issues that may lead       IP issues handled in guidelines
    to disputes and litigation
    HR: Violating code of ethics         Establish clear guidelines and
    and employee rights                  expectations
    Marketing: Capacity to assess        Idea management process is
    and respond to ideas                 critical
    IT: Get in line                      Executive sponsors are critical


    Everyone: Concern about the          Community managers model
    quality of ideas and their           good behavior, clear guidelines
    abusing an open channel              and effective moderation.



                                     4
                                                  Copyright © 2012 PulsePoint Group. All rights reserved.
THE FLAVORS
OF SOCIAL
INNOVATION



              Copyright © 2012 PulsePoint Group. All rights reserved.
Types of Social Innovation
                           Focused:
                          Limit ideas to
                            specific
                           challenges




 Open to All:                                                               By Invite Only:
 Anyone can                                                               Selected
 submit ideas                                                             members can
                                                                          submit ideas




                 Wide Open:
                Ability to Submit
                   Any Ideas               Copyright © 2012 PulsePoint Group. All rights reserved.
                          6
Dell IdeaStorm: “Voice of
customer”
• Michael Dell wanted to inject the “voice of the customer” back into
  the hallways at Dell.
• They quickly got stuck in the “we can’t do this” tornado until…
• Michael Dell championed the innovative platform and pushed for its
  launch.


  “A company this size is not going to be about a
     couple of people coming up with ideas. It’s
      going to be about millions of people and
       harnessing the power of those ideas.”
                                                   – CEO Michael Dell


                                   7
                                             Copyright © 2012 PulsePoint Group. All rights reserved.
Dell: Embracing “Voice Of
 Customer”
2005
   – Register, create profile
   – Submit ideas, promote or
     demote ideas, comment on
     ideas
2009
   – Storm Sessions: Dell
     employees can share an
     opportunity that needs ideas
2012
   – Extensions: Allows users to
     expand a proposed idea
   – Idea Partners: Identify Dell
     employees to get involved with
     ideas
   – Gamification: Gaming
     elements added to provide
     added value
   – Rock stars: Treat program            Copyright © 2012 PulsePoint Group. All rights reserved.
                                      8
IdeaStorm: The Numbers Speak For
Themselves
 • Founded in 2007
 • 60,000 registered users
 • More than 17,000 ideas
   (about 300 per month)
 • About 1 million votes
 • More than 500 ideas
   implemented
 • 50% of employees submit
   ideas to EmployeeStorm,
   Dell’s internal idea
   platform

                         9
                             Copyright © 2012 PulsePoint Group. All rights reserved.
Dell’s Ubuntu (Linux) Laptop

• An early Idea Storm idea suggested
  selling Ubuntu-equipped machines
  alongside their Windows counterparts.
• The idea received more than 130,000
  votes.
• Within one year of the product launch,
  Dell sold 40,000 Ubuntu machines
  without having to advertise.




                                    10
                                           Copyright © 2012 PulsePoint Group. All rights reserved.
Consulting Firm: Best Ideas to Best
Clients
• A leading global management and IT
  consulting firm is creating a managed
  service offering
• The offering: “Tap into” intellectual and
  creative assets of their employees,
  consultants and alumni to solve client
  challenges
• Positions the firm as innovative
• Builds new relationships
• Generates incremental revenue
                        11
The Model



                               Evaluate,
 Select the
               Activate         Package
 Client and                                Deliver
              Your Best           and
 Define the                                Value
                Minds           Present
 Challenges
                               New Ideas




                          12
Early Results (For One Large Client)

• 800 target consultants (20% on vacation)
• 586 active participants (>50%)
• 286 new ideas
• 13,687 page views; 1,375 posts
• 33 new ideas received
• 27 new ideas presented to client
• Potential: $30 million in incremental
  revenue

                        13
                               Copyright © 2012 PulsePoint Group. All rights reserved.
AT&T’s Innovation Pipeline:
World’s Largest Corporate Crowdsourcing Program


• Employee idea generation          “At AT&T, we believe
  and collaboration at scale
                                    great ideas can come
  and fosters a culture of
  innovation                           from anywhere”
                                                    John Donovan
• 100,000 members in 40                   Sr. Exec. Vice President,
  countries                                                  AT&T

• More than 500 ideas per
  month
• 30 executive challenges
  generated more than 200
  potential solutions each

                               14
                                        Copyright © 2012 PulsePoint Group. All rights reserved.
AT&T’s Process Works
         Tip Phase I: SOCIAL INNOVATION

  Vote      Submit, vote on, discuss and “invest in” ideas


     Collaborate   After three months, the top ideas are selected to “pitch”

                   Tip Phase II: PROTOTYPE

          Pitch      Founders develop business cases and pitch to “AT&T VC’s”

              Tip Phase III: PRODUCTION

     Develop Funded ideas are moved from prototype to production and deployment

         Tip Phase IV: COMMERCIALIZATION

 Launch A successful project could be adopted by an AT&T business unit or
        spun off into an external company


                                             15
                                                      Copyright © 2012 PulsePoint Group. All rights reserved.
Key Learnings
 1. Ensure executive sponsor and real commitment to invest in new
 ideas.

 2. Agree on and win buy-in and commitment for an Idea Management
 Process & Timing, from collection to assessment to decision and
 response.

 3. Provide “focus” for community members’ ideas based on priority
 needs and opportunities.


 4. Community manager and moderators need to be passionate,
 empowered and enabled to engage community members in real-time.


 5. Give employees the opportunity to submit ideas. They are a great
 source of ideas and can be evangelists for the initiative.


                                  16
Key Learnings
 6. Have a plan to keep the program fresh and interesting –
 brainstorms around specific topics, sharing progress, etc.

 7. Recognize top contributors on the site and in other appropriate
 forums – this is one of their top motivations.

 8. Celebrate ideas that are implemented and make a big deal out of
 their contributors.

 9. Establish Key Performance Indicators (KPIs) and make sure the
 team is assessing performance and taking steps to improve it.
 Importantly, this also should be across the idea management process.


 10. Ensure the selected software platform can’t be easily gamed,
 supports the idea management process.

                                   17
PulsePoint Group




                Building On Social Listening Centers:
                 Crowdsourcing New Product Ideas
A PulsePoint Group Study Conducted in Collaboration with The Economist Intelligence Unit (Wave I – 2012)




                                                  18

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Crowdsourcing Innovation

  • 1. PulsePoint Group Building On Social Listening Centers: Crowdsourcing New Product Ideas A PulsePoint Group Study Conducted in Collaboration with The Economist Intelligence Unit (Wave I – 2012) 1
  • 2. What is Social Innovation? Leveraging the power, insight and wisdom of crowds to generate new ideas through “networked brainpower” that produces results AKA: exponentially more valuable crowdsourcing, co- creation, idea than the sum of the individual engines, idea mining parts. 2 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 3. Did You Benefit This Morning? Starbucks created an innovation platform, My Starbucks Idea, to generate ideas and motivate employees to accelerate ideas already generated by the team. This led to the development of solutions implemented throughout the word, like a splash stick to Copyright © 2012 PulsePoint Group. All rights reserved. prevent spills from cups. 3
  • 4. “101 Reasons We Shouldn’t Do This…” Perceived Issues Reality Legal: IP issues that may lead IP issues handled in guidelines to disputes and litigation HR: Violating code of ethics Establish clear guidelines and and employee rights expectations Marketing: Capacity to assess Idea management process is and respond to ideas critical IT: Get in line Executive sponsors are critical Everyone: Concern about the Community managers model quality of ideas and their good behavior, clear guidelines abusing an open channel and effective moderation. 4 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 5. THE FLAVORS OF SOCIAL INNOVATION Copyright © 2012 PulsePoint Group. All rights reserved.
  • 6. Types of Social Innovation Focused: Limit ideas to specific challenges Open to All: By Invite Only: Anyone can Selected submit ideas members can submit ideas Wide Open: Ability to Submit Any Ideas Copyright © 2012 PulsePoint Group. All rights reserved. 6
  • 7. Dell IdeaStorm: “Voice of customer” • Michael Dell wanted to inject the “voice of the customer” back into the hallways at Dell. • They quickly got stuck in the “we can’t do this” tornado until… • Michael Dell championed the innovative platform and pushed for its launch. “A company this size is not going to be about a couple of people coming up with ideas. It’s going to be about millions of people and harnessing the power of those ideas.” – CEO Michael Dell 7 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 8. Dell: Embracing “Voice Of Customer” 2005 – Register, create profile – Submit ideas, promote or demote ideas, comment on ideas 2009 – Storm Sessions: Dell employees can share an opportunity that needs ideas 2012 – Extensions: Allows users to expand a proposed idea – Idea Partners: Identify Dell employees to get involved with ideas – Gamification: Gaming elements added to provide added value – Rock stars: Treat program Copyright © 2012 PulsePoint Group. All rights reserved. 8
  • 9. IdeaStorm: The Numbers Speak For Themselves • Founded in 2007 • 60,000 registered users • More than 17,000 ideas (about 300 per month) • About 1 million votes • More than 500 ideas implemented • 50% of employees submit ideas to EmployeeStorm, Dell’s internal idea platform 9 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 10. Dell’s Ubuntu (Linux) Laptop • An early Idea Storm idea suggested selling Ubuntu-equipped machines alongside their Windows counterparts. • The idea received more than 130,000 votes. • Within one year of the product launch, Dell sold 40,000 Ubuntu machines without having to advertise. 10 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 11. Consulting Firm: Best Ideas to Best Clients • A leading global management and IT consulting firm is creating a managed service offering • The offering: “Tap into” intellectual and creative assets of their employees, consultants and alumni to solve client challenges • Positions the firm as innovative • Builds new relationships • Generates incremental revenue 11
  • 12. The Model Evaluate, Select the Activate Package Client and Deliver Your Best and Define the Value Minds Present Challenges New Ideas 12
  • 13. Early Results (For One Large Client) • 800 target consultants (20% on vacation) • 586 active participants (>50%) • 286 new ideas • 13,687 page views; 1,375 posts • 33 new ideas received • 27 new ideas presented to client • Potential: $30 million in incremental revenue 13 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 14. AT&T’s Innovation Pipeline: World’s Largest Corporate Crowdsourcing Program • Employee idea generation “At AT&T, we believe and collaboration at scale great ideas can come and fosters a culture of innovation from anywhere” John Donovan • 100,000 members in 40 Sr. Exec. Vice President, countries AT&T • More than 500 ideas per month • 30 executive challenges generated more than 200 potential solutions each 14 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 15. AT&T’s Process Works Tip Phase I: SOCIAL INNOVATION Vote Submit, vote on, discuss and “invest in” ideas Collaborate After three months, the top ideas are selected to “pitch” Tip Phase II: PROTOTYPE Pitch Founders develop business cases and pitch to “AT&T VC’s” Tip Phase III: PRODUCTION Develop Funded ideas are moved from prototype to production and deployment Tip Phase IV: COMMERCIALIZATION Launch A successful project could be adopted by an AT&T business unit or spun off into an external company 15 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 16. Key Learnings 1. Ensure executive sponsor and real commitment to invest in new ideas. 2. Agree on and win buy-in and commitment for an Idea Management Process & Timing, from collection to assessment to decision and response. 3. Provide “focus” for community members’ ideas based on priority needs and opportunities. 4. Community manager and moderators need to be passionate, empowered and enabled to engage community members in real-time. 5. Give employees the opportunity to submit ideas. They are a great source of ideas and can be evangelists for the initiative. 16
  • 17. Key Learnings 6. Have a plan to keep the program fresh and interesting – brainstorms around specific topics, sharing progress, etc. 7. Recognize top contributors on the site and in other appropriate forums – this is one of their top motivations. 8. Celebrate ideas that are implemented and make a big deal out of their contributors. 9. Establish Key Performance Indicators (KPIs) and make sure the team is assessing performance and taking steps to improve it. Importantly, this also should be across the idea management process. 10. Ensure the selected software platform can’t be easily gamed, supports the idea management process. 17
  • 18. PulsePoint Group Building On Social Listening Centers: Crowdsourcing New Product Ideas A PulsePoint Group Study Conducted in Collaboration with The Economist Intelligence Unit (Wave I – 2012) 18