Introduction to the OPTO social production framework and cases for LEGO, DARPA, Starbucks Betacup and Jovoto.

1. INFO GB.3255: Global Sourcing and Open Innovation
21/01/12 Open Innovation + Crowdsourcing
Framework and Cases
Shaun Abrahamson
@shaunabe
shaun@mutopo.com
Slides available at: http://slidesha.re/oicsnyu

2. Social Production, Social
Entrepreneurship, Crowdsourcing,
Propaganda at mutopo.com
Angel Investor at eigen-value.com
Too many startups
MIT, University of Cape Town, Berlin
School of Creative Leadership
Who is this guy & why is he talking about Social Production?

3. Mark Zuckerberg
I think the last 5 years have been about
connecting all these people.
The next 5 years are going to be about
the crazy things you can do now that all
those people are connected
about 6 months ago
Shaun Abrahamson and thousands
of others like this
From Social Media to Social Production

4. 2001 2003
2005
2000
2006
1991 2000
2004
1996
2001 1999
A Decade of “Crazy Things You Can Do”

5. HINT:
They are
hiding in the
open
So why don’t we see more examples?

6. Who
Designed
This?
What Do
They Who
Receive? Decided To
Sell This at
Classic Open Innovation LEGO?

7. Google Maps Traffic Layer for Sao Paulo
How did
Google get
this data?
What would
an
alternative
Innovation from Openness cost?

8. ⬅
⬅
Field Guide for
Social Production

9. Social Production Field Guide Cheat Sheet
OPTO Framework Generalizes Ideas from
+ Berlin School of Creative Leadership 2009 Thesis
by Shaun Abrahamson - Causing Mass Collaboration
http://www.scribd.com/doc/16903405/Causing-Mass-Collaboration
+ Direct Open Innovation Challenge Experience including
www.300house.com, www.LifeEdited.org, www.thebetacup.com
+ Benchmark Challenge Data Collection at
www.asmbl.us
+ Ongoing Interviews and Analysis of Open Innovation Tools,
Organization and Outcomes

10. ⬅
⬅
OUTCOMES

11. Value Created
R+D Production Operations Marketing Sales
Income/Expenses
How does Social Production impact the business model?

12. R+D Production Operations Marketing Sales
+ 10 years, 1000 agreements
+ 50% ideas from outside P&G R&D?
+ 40% “solve rate” on posted challenges
+ 6 month focused challenge
+ 12 new partners, 1 acquisition
+ 4 years, 116,000 ideas received
+ 150 launched (.13%)
Pure open innovation perspective

13. R+D Production Operations Marketing Sales
Impact far beyond R + D

14. ⬅
⬅
PEOPLE

15. 101 million people on
What tasks can be performed?

16. Who should participate?

17. Stuff Money
Attention Experience
Good
Why will they participate?

18. ⬅
⬅
ORGANIZATION

19. What are the roles in the ecosystem?

20. Horse
Horse
designed
by a
committee
How are decisions being made?

21. What are some of the business challenges?

22. ⬅
⬅
TOOLS

23. My Klout My Giving (Crowdtwist)
My Creative Impact(Jovoto)
How are people evaluated?

24. How is scaffolding used to support key activities?

25. How much technology versus how much people?

26. Social Production Cheat Sheet
1 What is the impact on the business model?
2 What tasks should be performed?
3 Who should participate?
4 What do they expect for their efforts?
5 What are the roles in the ecosystem?
6 How are decisions made?
7 What are some of the business challenges?
8 How is scaffolding used for key activities?
9 How are people evaluated?
10 How much is technology (vs. people)?

27. ⬅⬅
CASES
Betacup, DARPA, Jovoto, LEGO

28. “This project was highly successful”
– Jim Hanna, Starbucks

29. R&D Inspiration (Re)Submission Selection Pilots
Recruiting Feedback

30. R&D Inspiration (Re)Submission Selection Pilots
Recruiting Feedback

31. Concept -> feedback -> store trials

32. 430 ideas
1,500 idea updates
5,000 comments
13,000 ratings
Betacup ecosystem

33. + 10,000,000
media impressions
Communication as a by-product

34. How to use large scale collaboration
to find weather balloons
(or ideas, talent, partners, leads etc)

35. Find 10 red weather balloons

36. A winning recruiting strategy

37. Different alignment and decision-making strategies
1st 2nd 3rd 5th
Balloons Found 10 9 8 8
MEGAS
Money x x x
Good x x x
Meaning x x x x
Ecosystem
Team size 5 8 1 10
Network size 5,000 1,000 50,000* 80,000**
Existing network? no no yes yes

38. + traditional media coverage of the team
+ brand recognition (MIT, Georgia Tech)
+ search rank optimization for team websites
+ deployment of mobile apps to aid participants
+ work with existing social networks
+ overall team strategy
Source: DARPA Network Challenge Project Report
http://www.eecs.harvard.edu/cs286r/papers/ProjectReport.pdf
Elements of successful social media and community building
Familiar elements of success

39. + collaboration/trading with other teams
+ extracting data from online sources
+ operations center for coordinating/decisions
+ method used to search twitter (real-time)
+ websites that motivate, encourage recruitment
+ recursive recruiting using money or charity
Source: DARPA Network Challenge Project Report
http://www.eecs.harvard.edu/cs286r/papers/ProjectReport.pdf
New elements of successful communications
Emerging elements of success

40. Understanding, evaluating and
recruiting talent to change how work
is done.

41. Ongoing data about performance

42. It’s not all about the money

43. Economic value from “Karma”

44. Working with Customers to
Create and Evolve Products

45. R+D Production Operations Marketing Sales
Different organizations for different collaborations

46. source: http://www.innovationgovernance.net/harvardbusinessreview_lego.pdf
Linking business models, value and collaboration

47. LEGO led new “platform” development

48. Customer led set development, marketing and sales

49. Customer led new business development

50. The Social Production Field Guide V1.0
A guide to understanding
Crowdsourcing, Co-creation +
Communities in the wild
Shaun Abrahamson
@shaunabe
bit.ly/spfgv1