Leveraging the potential of employees within organizations is a significant challenge for businesses. Those companies that effectively channel the talents of their workforce often drive innovation and introduce exciting products and services. Recognizing this potential, many firms strive to harness their employees' creativity through various initiatives, yet implementing and maximizing these efforts can be complex.
In recent years, two key concepts have gained traction in the business world—open innovation and crowdsourcing. Open innovation involves collaborating and gathering ideas not only internally but also externally, tapping into a broader spectrum of creativity. Crowdsourcing, on the other hand, is a method of sourcing ideas, content, or solutions from a large group of people, often facilitated through social media.
To merge these concepts effectively, software developers have created innovative tools tailored for large enterprises with extensive employee bases. These tools allow employees to propose ideas and receive feedback from their peers. Features like ranking and leaderboards further enhance idea evaluation. Managers can track idea progress, allocate resources, and provide recognition through the software.
HYPE Innovation Management, a successful German software product, exemplifies this approach, providing a platform for idea capture and evaluation. Crowdsourcing has become a valuable avenue to supplement professional ideas, especially during the ideation stage of new product development. Platforms like Kickstarter and Indiegogo enable individuals to seek financial support from a crowd, often offering incentives in return.
Numerous businesses integrate crowdsourcing into their models, engaging a broader audience to enhance products and services. Crowdsourcing facilitates real-time feedback, allowing businesses to swiftly adapt and improve. Social media plays a vital role in this process, empowering consumers to voice their opinions and preferences. Companies often organize contests to encourage participation, seeking insights and ideas directly from their audience.
Four common crowdsourcing techniques include soliciting input on product preferences, encouraging customers to name new products, asking for variations or flavors, and involving customers in the product development process. These approaches not only foster engagement but also generate valuable insights that steer product development in the right direction.
Adapted from: Trott, P., 2008. Innovation management and new product development. Pearson education.