L6 Flashcards
Crowdsourcing for Innovation:
Problems:
Crowdsourcing for Innovation:
Problems:
1. Too many ‘good’ ideas?
Attention is limited. Organizations can only pay attention to a subset of suggestions (= investing time, effort, resources)
* Crowding reduces the chances that any particular suggestion receives attention
* Organizations with inadequate techniques for handling suggestions may:
o Miss out on key ideas
o Alienate an important audience
- NOT paying attention to more distant (further) solutions
- Ideas may not fit organizational goal
When are crowds collectively smart?
When are crowds collectively smart?
When 3 criteria are met:
1) diversity of opinion,
2) independence
3) decentralization
User’s’ Motivation to Innovate
- Often solving their own problems
- Strong intrinsic motivation
- Sensitive to ‘sense of community’
KEY ELEMENTS OF COMMUNITY DESIGN
- Shared interest:
Resource commons or common goals. - Collaborative values:
Willingness to share knowledge, contribute to the success of fellow community members, and seek fairness in community contributions and the distribution of rewards - Community-oriented leadership:
A focus on facilitating community growth and sustainability, member collaboration, and promotion of collaborative values and practices - Expandable commons:
Knowledge and other resource pools that all members can contribute to and draw from - Protocols and infrastructure that support member collaboration:
Systems, processes, and norms that support both direct and pooled collaborative relationships among members
Crowdsourcing for Innovation
What manufacturers can do:
What manufacturers can do:
* Produce user-developed innovations for general sale
* Offer user innovation kits/ product design tools / platforms
* Sell complementary products or services
Why difficult to protect Intellectual Property for crowdsourcing?
- Patenting typically not applicable
- Copyright also problematic
o Who has contributed what?
o Even if that is clear, how to enforce? - Often spanning geographical and jurisdictional boundaries
Law based Intellectual Property =
punishment= civil law penalty
- Patents = no one else may use invention without license of owner)
- Copyright = applies to writing and images, e.g., proprietary software vs. copyleft software that aims to preserve the openness of the software
- Right to protect trade secrets (e.g. employees legally bound by contract not to reveal firm’s trade secrets)
Norm-based Intellectual Property =
Norm-based Intellectual Property = operate entirely on basis of implicit social norms that are held in common by community members e.g. protection of recipe
Punishment: loss of status, shaming, denial of community benefits
Communities are useful when:
- Innovation problem involved cumulative knowledge, continuously building on past advances.
- Markets are effective when an innovation problem is best solves by broad experimentation
Closed Innovation
Characteristics:
The smart people in the field work for us
To profit from R&D we must discover it, develop it, and ship it ourselves
If we discover it ourselves, we will get it to the market first
the company that gets an innovation to the market first will win
If we create the most and the best ideas in the industry we will win
We should control our IP, so that our competitors don’t profit from our ideas
Open Innovation
Characteristics:
Not all the smart people in the field work for us. We need to work with smart people inside and ourside the company
External R&D can create significant value: internal R&D is needed to claim some portion of that externally created value
We don’t have to originate the research to profit from it
Building a better business model is better than getting to the market first
If we make the best use of internal and external ideas we will win
We should profit from other’s use of our IP, and we should also buy others’ IP whenever it advances our business model
Collaborate communities =
Collaborate communities = open-source software efforts that are governed loosely by social norms, and soft rules to encourage open access to information, transparency, joint development, and sharing of intellectual property. Members are often willing to work for free.
Business model of the platform:
Types of Platform
Integrator platform (AppStore)
1. Platform is wedged between external innovators and customers.
2. Company has a high level of control.
Product platform (Cloud computing)
1. External innovators build on top of foundation technology and then sell the resulting products to customers
2. External innovators directly transact with end-users. External innovator thus has more control. (over prices for instance)
3. Companies have less control
Two-sided (Ebay, videogames console)
1. External innovators and customers are free to transact directly with one another as long as they also affiliate with the platform owner
2. Platform facilitates the transaction, and interactors,
3. Platform owner can impose some degree of control by issuing various rules and regulations as a conditions.
Dahlander (2021) - How Open is Innovation?
Important changes in the past decades:
- Technological Development Trends
1) Technologies that generate and handle troves of data
2) Technologies that mediate interactions
3) Technologies that automate decision making
4) Technologies that expand search
–> New questions:
- Data management issues
- Ethical and legal dilemmas grounded in data ownership
- Data strategy questions - Organisational Development Trends
1.) Platforms as creators and mediators
2.) Practices to reveal internal Ideas
3.) Legal devices that expand and narrow search
4.) The drive for corporatization of commons
5.) Accelerators to obtain ideas from the outside
6.) Realizing the potential in the fringes
- Societal Developments
1.) Adjusting to global developments
2.) Relying on open innovation in times of crisis
3.) The need to address wicked problems
4.) Big science and citizen science
