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Innovation 2.0

Connecting the Wisdom of Crowds to
      Product Requirements

            Dave Angelow
Business Situation
• The Challenge
  – Continue to release innovative new products that
    customers want faster than your competitors


• Product Manager Impact
  – Continued pressure to do more with less time

• Question
  – What tools or processes can help improve innovation
    without requiring time?
Core Innovation Processes
Idea Generation   Idea Evaluation/   Requirements
                                                    Release
                     Screening       Management
Innovation is Strategic PM function
Key innovation enablers
    Traditional Innovation                 Innovation 2.0
• Idea generation within small     • Crowd sourcing and global
  pockets – R&D, Marketing           idea generation – internal and
  Research, etc.                     external

• Limited feedback or validation   • Market generated content is
  of ideas from the market – ad      primary source for ideas -
  hoc idea screening                 user submit ideas as well as
                                     vote/rank importance

• Prioritization of requirements   • Requirements shared globally
  performed by limited few -         for review and prioritization =
  limited by time-zone and           participation from employees,
  geographic boundaries              suppliers, and customers
Idea Generation
                                                         •   Engaging your customer and the
                                                             marketplace to gain ideas and new
   Idea      Idea Evaluation/   Requirements
Generation      Screening       Management     Release       insights leveraging the “Wisdom of
                                                             Crowds”
                                                              –   Gain insight from Internal as well as external
                                                                  crowds (EmployeeStorm)
                                                         •   Use Web 2.0 tools to manage inputs
                                                         •   Engaging the market at large is not easy
                                                              –   Culling ideas requires knowledge and
                                                                  expertise, it’s challenging to automate
                                                              –   Ranking and prioritizing inputs – not all
                                                                  have equal value or feasibility
                                                              –   To continue on-going contributions
                                                                  incentives and rewards may be needed –
                                                                  Cisco iPrize $250,000 award, Threadless
                                                                  $2500/weekly prize
Top Idea and
expectation is
Help to
Moderate
the forum
Rewards
for Ideas
Evaluation and Screening
                                                         Obtaining ideas from the
   Idea      Idea Evaluation/   Requirements
                                               Release
                                                         crowd is one thing –
Generation      Screening       Management
                                                         screening ideas for
                                                         quality creates another
                                                         challenge

                                                         All ideas are not equal,
                                                         and voting inputs don’t
                                                         have the equal weight
                                                         (the CEO gets a greater weight
                                                         others with major contributions)
Setting weighting
criteria gives more
voting impact to
strong contributors
Top ideas selected for screening and
             disposition
Requirements Prioritization
                                                         Prioritizing and
   Idea      Idea Evaluation/   Requirements
                                               Release
                                                         managing requirements
Generation      Screening       Management
                                                         manually doesn’t scale –
                                                         time/geographic
                                                         restrictions on input
                                                         (excel-challenged)


                                                         Socializing requirements
                                                         prioritization processes
                                                         improves decision-
                                                         making
Requirements Prioritization and
        Traceability
              Global Account Team Priority

                 Support Team Priority
                      Key Strategic Customer Priority

                            R&D and Strategy Priority




                               Aggregate inputs
                               and make release
                               priority decisions
Downstream Process Connections


                 Requirements        Portfolio              Product
  Ideas          (Current release   Management
                   and backlog)
                                                           Roadmap
                                    (Kill or Keep, EOL)




      New ideas fuel the product development engine, they drive
         downstream processes like portfolio and roadmaps
Recap
• Tools can help gain insight into customers and markets,
  but not wholesale replacement
   – Competitive intelligence, Primary and secondary research
     still required
• Requirements traceability is from idea to product can
  help reduce complexity
   – Ability to respond to questions about status of specific
     requirement/feature in a release.
   – Understand the potential impact “who cares” if a feature
     must be decommited to meet a release date
• Opportunity to provide existing customers insight into
  “enhancement requests”
What Next – How to Move Forward
• Review your strategy for customer engagement
  and social networking tools
   – Blogs are for opinions and dialogue
   – Wikis are for research and knowledge sharing
   – Storms are for Idea and innovation management
• Review your current new product development
  process – end-to-end
• Identify opportunities for time-compression and
  define automation needs
• Pilot, refine and roll-out new processes and tools
References and more info
• Books
    – The Wisdom of Crowds - James Surowiecki
    – Wikinomics: How Mass Collaboration Changes Everything - Don Tapscott
• Crowdsourcing Success Stories
    – http://app.businessweek.com/UserComments/combo_review?action=getCom
      ment&productId=31795&reviewId=274689
    – http://www.sfgate.com/cgi-
      bin/article.cgi?f=/c/a/2008/07/20/BUAF11OT6T.DTL
    – http://www.businessweek.com/innovate/content/jul2006/id20060713_75584
      4.htm
• Tool Providers
    –   http://www.brightidea.com/
    –   http://www.spigit.com/
    –   https://www.salesforce.com/products/ideas/
    –   http://www.acceptsoftware.com/
BACKUP SLIDES
Core Innovation Processes and Tools
      Idea          Idea      Requirements
                                             Release
   Generation   Evaluation/   Management
                 Screening
Old vs New Time Allocation




Time Allocation
  Traditional     10-40%     0-10%   60-80%
Innovation 2.0    40-60%     0-5%    40-60%
Rewards
for Ideas
Sources of ideas – initial spark
• Dr. Winston Brill of Winston J. Brill & Associates
  has found that the majority of ideas that lead to
  successful product introductions were initiated
  through individuals working primarily by
  themselves: 43% of ideas occurred while the
  person was alone, 18% during informal
  discussions with several people, and just 2%
  through scheduled group meetings. However
  initiation only refers to the initial spark of
  invention, rather than the development of the
  workable concept

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Innovation 2.0 Crowdsourcing Ideas

  • 1. Innovation 2.0 Connecting the Wisdom of Crowds to Product Requirements Dave Angelow
  • 2. Business Situation • The Challenge – Continue to release innovative new products that customers want faster than your competitors • Product Manager Impact – Continued pressure to do more with less time • Question – What tools or processes can help improve innovation without requiring time?
  • 3. Core Innovation Processes Idea Generation Idea Evaluation/ Requirements Release Screening Management
  • 5. Key innovation enablers Traditional Innovation Innovation 2.0 • Idea generation within small • Crowd sourcing and global pockets – R&D, Marketing idea generation – internal and Research, etc. external • Limited feedback or validation • Market generated content is of ideas from the market – ad primary source for ideas - hoc idea screening user submit ideas as well as vote/rank importance • Prioritization of requirements • Requirements shared globally performed by limited few - for review and prioritization = limited by time-zone and participation from employees, geographic boundaries suppliers, and customers
  • 6. Idea Generation • Engaging your customer and the marketplace to gain ideas and new Idea Idea Evaluation/ Requirements Generation Screening Management Release insights leveraging the “Wisdom of Crowds” – Gain insight from Internal as well as external crowds (EmployeeStorm) • Use Web 2.0 tools to manage inputs • Engaging the market at large is not easy – Culling ideas requires knowledge and expertise, it’s challenging to automate – Ranking and prioritizing inputs – not all have equal value or feasibility – To continue on-going contributions incentives and rewards may be needed – Cisco iPrize $250,000 award, Threadless $2500/weekly prize
  • 7. Top Idea and expectation is Help to Moderate the forum
  • 9. Evaluation and Screening Obtaining ideas from the Idea Idea Evaluation/ Requirements Release crowd is one thing – Generation Screening Management screening ideas for quality creates another challenge All ideas are not equal, and voting inputs don’t have the equal weight (the CEO gets a greater weight others with major contributions)
  • 10. Setting weighting criteria gives more voting impact to strong contributors
  • 11. Top ideas selected for screening and disposition
  • 12. Requirements Prioritization Prioritizing and Idea Idea Evaluation/ Requirements Release managing requirements Generation Screening Management manually doesn’t scale – time/geographic restrictions on input (excel-challenged) Socializing requirements prioritization processes improves decision- making
  • 13. Requirements Prioritization and Traceability Global Account Team Priority Support Team Priority Key Strategic Customer Priority R&D and Strategy Priority Aggregate inputs and make release priority decisions
  • 14. Downstream Process Connections Requirements Portfolio Product Ideas (Current release Management and backlog) Roadmap (Kill or Keep, EOL) New ideas fuel the product development engine, they drive downstream processes like portfolio and roadmaps
  • 15. Recap • Tools can help gain insight into customers and markets, but not wholesale replacement – Competitive intelligence, Primary and secondary research still required • Requirements traceability is from idea to product can help reduce complexity – Ability to respond to questions about status of specific requirement/feature in a release. – Understand the potential impact “who cares” if a feature must be decommited to meet a release date • Opportunity to provide existing customers insight into “enhancement requests”
  • 16. What Next – How to Move Forward • Review your strategy for customer engagement and social networking tools – Blogs are for opinions and dialogue – Wikis are for research and knowledge sharing – Storms are for Idea and innovation management • Review your current new product development process – end-to-end • Identify opportunities for time-compression and define automation needs • Pilot, refine and roll-out new processes and tools
  • 17. References and more info • Books – The Wisdom of Crowds - James Surowiecki – Wikinomics: How Mass Collaboration Changes Everything - Don Tapscott • Crowdsourcing Success Stories – http://app.businessweek.com/UserComments/combo_review?action=getCom ment&productId=31795&reviewId=274689 – http://www.sfgate.com/cgi- bin/article.cgi?f=/c/a/2008/07/20/BUAF11OT6T.DTL – http://www.businessweek.com/innovate/content/jul2006/id20060713_75584 4.htm • Tool Providers – http://www.brightidea.com/ – http://www.spigit.com/ – https://www.salesforce.com/products/ideas/ – http://www.acceptsoftware.com/
  • 19. Core Innovation Processes and Tools Idea Idea Requirements Release Generation Evaluation/ Management Screening
  • 20. Old vs New Time Allocation Time Allocation Traditional 10-40% 0-10% 60-80% Innovation 2.0 40-60% 0-5% 40-60%
  • 22. Sources of ideas – initial spark • Dr. Winston Brill of Winston J. Brill & Associates has found that the majority of ideas that lead to successful product introductions were initiated through individuals working primarily by themselves: 43% of ideas occurred while the person was alone, 18% during informal discussions with several people, and just 2% through scheduled group meetings. However initiation only refers to the initial spark of invention, rather than the development of the workable concept