Crowdsourcing and Open Innovation

One of the objectives of any company is to find a fundamentally new approach to reach and serve its customers better. And a novel approach by several successful companies is the recognition that the world is filled with brilliant people, with brilliant ideas – outside their organization! Hence, they are constantly looking for ways to work with potential partners and Crowdsourcing for Open Innovation is one such approach.

Companies such as Goldcorp and Procter & Gamble are now sharing their complexities and problems to a large group of people (a crowd), through an open innovation approach in order to solve them.

There are several benefits of leveraging the crowd and one of them is bringing the feeling and a sense of community. Communities of individuals encourage innovative problem solving. There is a continuous flow of information and provides a platform for the exchange of new ideas.

Companies often resist open innovation since most managers and teams are unaware or scared about protecting company intellectual property. They also fear the outcome of trying to integrate a crowdsourced solution into corporate operations. Also, the uncertainty of getting the right solution and the overall cost causes barriers and doubts into the mind of managers who are risk averse. This excellent article from the Harvard Business Review provides a good insight into using the crowd as an innovation partner.

Crowds with funding help launch ideas, through lower individual investment, and by sourcing garner ideas and solutions resulting in faster development of new products / services. Using the crowd for open innovation can actually be the game changer to increase brand value and get the next big breakthrough your company is looking for. Are you ready for it?

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