[OIA Market Study 2013] Ideation contests dominate the Market for Open Innovation

OIAS coverIn a series of postings, we introduce some key figures and results from
our 2013
OIA Study – A Market Report & Comparison
  of more than 160 Open Innovation Accelerators (OIAs)
— intermediaries, brokers, platforms, and consultancies for open innovation
and customer co-creation.

According to our research, service providers for open innovation
(OIAs), can be structred along two
fundamental principles:
(1) The kind of information required and (2) the
method to identify and initiate the collaboration with an external actor:

(1) The type of information searched by clients:

  • Market information is information about customer and market needs, i.e.
    information about preferences, needs, desires, satisfaction, motives, and etc.
    of the customers and users of a new (potential) product or service offering.
  • Technological information is information on (technological) solution
    possibilities, i.e. information about how to apply a technology to transform
    customer needs into new products and services best.

Our research revealed a significant difference between
OIAs and the methods applied for projects searching for market/need
information, compared to those searching for technological/solution
information. Solving of specific technological problems favors different
approaches than searching for need information. Also, both kinds demand very
different kinds of participant communities and incentive schemes.

(2) How to initiate the coordination with external participants:

  • An Open Call refers to a
    problem statement that is publicly announced, directed to a heterogeneous, and
    generally large, network of external actors. Potential solution providers
    ("solvers") decide via self-selection whether they want to
    participate in the process. The "seeker", i.e. the entity issuing the call, then
    selects the best submissions.
  • Open Search refers to a broad search for information and sources,
    conducted by the OIA with neither too concrete pre-assumptions about
    information aspects nor source details. A core idea is to actively seek for
    potential external contributors using advanced sampling methods, engaging in
    pre-screening specific characteristics (e.g., "lead user"
    characteristics), using social networks or network analysis to identify central
    actors from different domains.
  • In addition, our study revealed a third form of
    finding partners
    and initiating collaboration: a selective call. The
    selective call is a hybrid between call and search. OIAs applying this
    mechanism follow a two-step procedure. They pre-select a number of potential
    external actors who might hold the desired information and then call for
    participation within this sub-sample.

Combining these two general principles, we can
distinguish between different methods for open innovation. We call those "OIA services", as these are the
services and solutions offered by the OIA (look at this earlier post for a table):

  • Contests: Generating
    contributions to a technical and/or market related task with the objective to
    identify the "best" submission in response to an open call.
  • Workshops: Generating technical
    and/or market information by performing workshops.
  • Open market search: Searching and
    observing defined areas for market information (e.g., Netnography in online
  • Technological search: Searching and observing defined areas for technical
    information (patents, technologies, user bases).

Among these categories, we find in our 2013 market
study that the majority of OIAs focus on providing ideation contests
or other
contest for technical problem solving.

OIA graphic3

For the full picture and many more details, including detailed profiles of 160 Open Innovation Service Providers, refer to The Market for Open Innovation: The 2013
RWTH Open Innovation Accelerator Survey
, co-authored by Kathleen Diener & Frank Piller, 2nd
edition, May 2013. Lulu Publishing: Raleigh, USA

Check all options how to get the study at study.open-innovation.com

By | 2018-06-14T06:47:15+00:00 Mai 28th, 2013|OI Market Study 2013, Open/User Innovation|

About the Author:

Frank T. Piller is a Co-Director of the MIT Smart Customization Group at the MIT Media Lab, Massachusetts Institute of Technology, USA, and a chair professor of management at the Technology & Innovation Management Group of RWTH Aachen University, Germany, one of Europe’s leading institutes of technology. Before entering his recent position in Aachen, he worked at the MIT Sloan School of Management (2004-2007) and has been an associate professor of management at TUM Business School, Technische Universitaet Muenchen. Frequently quoted in The New York Times, The Economist, and Business Week, amongst others, Frank is regarded as one of the leading experts on strategies for customer-centric value creation, like mass customization, personalization, and innovation co-creation. His recent analysis of the crowdsourcing business model “Threadless” (co-authored with Susumu Ogawa), an innovative crowdsourcing business model in the fashion industry, has been elected as one of the Top-20 articles in MIT Sloan Management Review.