From the classic "Extraordinary Popular Delusions and the Madness of Crowds" (from 1841) through "The Wisdom of Crowds" (2004) and the rise of Web 2.0, at a glance, it looks like ANY organization can just tap into a community, grab the best ideas and take them to market. But "crowdsourcing" isn't magic - and all too often, without planning, process, management and metrics, you're likely to end up with a "flat-lined crowd" (the "the silent majority") or outright "mob" ("innovation insanity"). Where are YOU and your COMPANY in the innovation maturity curve? Where does your community align or disengage? Find out how to assess where to start, dangers to watch out for, and how to increase the odds of successful innovation communities. Expert commentary provided by Dan Keldsen, Innovation Principal at Information Architected, and ranked as one of the Most Influential Enterprise 2.0 Bloggers by SeekOmega.com and Top Analyst Bloggers and Twitters by Technobabble 2.0, for two years running. Find him on twitter @dankeldsen. This presentation was given on Thursday April 29, 2010, on a webinar hosted by Awareness Networks. Thanks to Mike, Christine and the Awareness Team for hosting the discussion, and to the several hundred who registered and sat in on the webinar. Keep an eye on www.InformationArchitected.com for the follow-on whitepaper, with further depth on the survey-based research we'll be publishing in May 2010.

1. Hashtag Innovation Crowds:
for today
#innodan
Myths and Maturity
Dan Keldsen, Principal at Information Architected
www.InformationArchitected.com

2. About Dan
• Principal at Information Architected
• 16 Years in Industry, Public, Private & Non-Profit
• Founding Member of the
Innovation Lab of Perot Systems
• 2x Judge of “The Innovation Challenge”
– The Worldʼs Largest MBA-based Open Innovation Project,
run by Idea Crossing
• Ranked One of Top 5 Most Influential Enterprise 2.0
Bloggers (by SeekOmega.com)

3. 3 Main Points
for Today
1. Enough proof points to demonstrate both the need and
the benefit in Actively Innovating - no more excuses
2. Examples of where your peers are - and where you are
likely to be lagging
3. How to best focus Crowdsourcing for Innovation -
regardless of the crowd

4. First,
What is Innovation?
My definition doesnʼt matter...
YOUR definition, or perhaps your boss or someone higher up, is what matters.
Without defining Innovation in the CONTEXT of YOUR business, how can get
MORE innovation, or get better at it?
BTW - “More Innovation” is a recipe for disaster - FOCUS...

5. Avoid Innovation Paralysis
Give yourself a
License 2 Innovate
License 2 Innovate
E-i-T

6. Crowd Power (Cuts Both Ways)

7. The Viral Temptation

8. Do or do not...
there is no try.
The question
is... why?

9. “innovation is
over-rated, our
company is
doing just fine!”

10. S&P 500 - Jan 03 to Apr 10
Oct 07
Sept 08
Mar 09

11. For Those Who ARE Innovation
The Ride is Safer, Mostly

12. For Innovation Masters... Apple
The Rocket Ride

13. The Economic Crisis Has Caused an
Increase in the Importance of
Innovation in My Organization
Strongly Disagree 1%
Disagree 2%
Undecided 13%
Agree 46%
Strongly Agree 23%
Source: www.InformationArchitected.com (2009 Innovation Research)

14. If the Economy Isnʼt Pushing
You to Innovate
How about your competition?
Do You Believe Your Competitors are Actively Using Crowdsourcing?
(Note: Early Release Data)
66%
34% of Competition
is Active Already,
How Far Behind Do
You Want to Be?
23%
11%
No Yes, But Not Effectively Yes, and Effectively
Source: www.InformationArchitected.com

15. Top Three of Top Three Benefits
What are the top three potential BENEFITS of Crowdsourcing to your business?
(Note: Early Release Data)
Top Benefits 2nd Most Important Benefits 3rd Most Important Benefits
Increased Diversity Seeing New
of Innovation Sources Opportunities First New Customers,
29% Reputation New Segments
43%
Increased Idea and Brand 28%
Ability to
Generation Volume Image
Outrun Customer
22% 43%
Competitors Satisfaction Increased
New Customers, 29% and Loyalty Innovation
New Segments 43% Capacity
35% 30%
Source: www.InformationArchitected.com

16. Kaizen, Lean, and 1,000,000

17. For every individual
P&G researcher
Estimated that there are 200 scientists/engineers
elsewhere in the world who are just as good
P&G determined they needed to change
from "not invented here" to
enthusiasm for “proudly found elsewhere"
Source: P&Gʼs New Innovation Model (Harvard Business Review. 2006)

18. There are more smart people OUTSIDE of
your organization, than INSIDE.
Guaranteed.
But there are also more people within your
company who are not CURRENTLY being
tapped for “innovations” than youʼre using
today.
Feel like doubling your odds?

19. Show Me The Innovation!

20. Planning vs Implementing
In Your Organization, What Community or Communities did you target
or will you target with Crowdsourcing? (Note: Early Release Data)
2008 (2 years ago) 2010 (Now) 2015 (5 years out)
Subset of Employees 70% 49% 42%
All Employees 73% 49% 39%
Not Applicable Customers 79% 30% 21%
Partners 85% 41% 29%
Suppliers 90% 68% 51%
Subset of Employees 10% 17% 12%
All Employees 17% 26% 22%
Planned Customers 15% 49% 32%
Partners 11% 53% 28%
Suppliers 8% 27% 23%
Subset of Employees 20% 35% 46%
All Employees 10% 25% 39%
Implemented Customers 5% 21% 47%
Partners 4% 7% 43%
Suppliers 1% 5% 26%
Source: www.InformationArchitected.com

21. Who to Target?
Target Crowds By Where the Most Value Is
Most Significant Sources of Innovative Ideas
Employees 41%
Business Partners 37%
Customers 35%
Consultants 22%
Competitors 20%
Associations, etc. 17%
Internal Sales and Service Units 16%
Internal R&D 15%
Academia 12% Source: IBM

22. Where are you weak with Innovation
right now? Where are you STRONG?
What’s your VIEW?
Orientation to Change Manner of Processing
Explorer Developer External Internal
Ways of Deciding
Person Task

23. Innovation Maturity and the Chasm
Source: Geoffrey Moore - Dealing With Darwin

24. Good News/Bad News
How Would You Rate the Use of Crowdsourcing by Your Company?
(Note: Early Release Data)
No Involvement 34%
Some Experimentation, Not Sure of Value 34%
Some Experience, Mixed Results 18%
Used in Special Circumstances 10%
Bad News: You’re Already Behind SOME Of The Innovation-Savvy
Good News: Active Innovation Management Is Still Fairly Rare - Start Now!
Source: www.InformationArchitected.com

25. Focusing
Innovation Efforts
Content Context
Community

26. Who benefits from the
value of your
innovation?
Buyers?
End users? Which end?
Multiple customers?
Suppliers?
Employees?
Partners?

27. Multiple
Communities?
Content Context Content Context Content Context
Community Community Community
Content Context Content Context
Community Community

28. Top Three of Top Three Risks
What are the top three potential RISKS/CONCERNS of
Crowdsourcing to your business? (Note: Early Release Data)
Top Risk/Concern 2nd Most Important Risk/Concern 3rd Most Important Risk/Concern
Intellectual Effort
Property/ Required
Ownership in Managing Effort Expertise
Expertise Required
Concerns Community Required
Effort Required in Managing
36% Relationships to Start
Required to Start Community
34% Crowdsourcing
in Managing Crowdsourcing Relationships 35%
Community Time 25% 39% Fear of
Relationships Time
Required Competitor
30% Required
to Start Access to
to Start
Crowdsourcing Community
Crowdsourcing
34% and Ideas
41%
27%
Source: www.InformationArchitected.com

29. If you donʼt have the tools to
create & vet ideas at scale...
How can you hope to compete with
MASTERS of innovation?
“That’s not a knife... THIS is a knife”
Crocodile Dundee

30. Whereʼs the gold?
Creating ideas is part of the problem,
finding the BEST is the real challenge
and most aren’t equipped well

31. Idea Generation Tools (Creative Thinking)
Attribute Morphological
Force-Fitting SCAMPER Brainstorming
Listing Matrix
Idea Focusing Tools (Critical Thinking)
Paired
Hits and Hot Sequencing: Evaluation
ALoU Comparison
Spots SML Matrix
Analysis

33. Recent Engagements
• GE (5)
• HP
• Sun Microsystems (3)
• Centura Health
• Avaya Global Systems
• Kelloggʼs (4)
• Velcro USA (4)
• Fish and Richardson (2)
• PepsiCo (3)
• Association of Equipment Manufacturers (4)
• United States Air Force/Air National Guard (2)
• Cooper Tire (2)
• Dialogic (2)
(Parenthetical # indicates multiple sessions,
typically classes of 20-30 people at a time)

34. Recent Engagements (Contʼd)
• Univ. of Tennessee Business School (5)
• Univ. of Denver Business School
• University of Toronto
• Ryerson University
• University of Scranton
• Capilano University
• Time Warner
• Eastman Chemical (3)
• FedEx (5)
• Buckeye Industries (2)
• Interaction Associates (2)
• Deloitte (Canada)
• Colorado/Iowa/Oklahoma Performance Excellence
(State Baldridge programs) (3)
• Chinese Government (STM)

35. Q&A
Dan Keldsen
Co-founder, Principal
dk@InformationArchitected.com
twitter.com/dankeldsen
617-933-9655
Details on Innovation Workshop at
bit.ly/bSONfr or
www.informationarchitected.com/innovate
Continue on twitter #innodan