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LONG TAIL OF INNOVATION
  IN INTERNAL CROWDS
 …a case story of a hidden dream team!




                        Frank Hatzack and Maria Carlsen
                        @frankhatzack, @MaCarlsen
                        Innovation Office, Novozymes R&D
WHAT IS THE ‘LONG TAIL’ OF INNOVATION?

Notion that creativity has a highly skewed distribution in inventor
crowds. Breakthrough innovations are usually found in the ‘long tail’
section of the distribution curve, meaning they are rare but highly
valuable.
SETTING THE SCENE FOR OUR CASE STUDY


In Novozymes R&D we use
collaborative online idea campaigns
on a regular basis…
                                        Who scores the most successful ideas
…because they have delivered new        in such online campaigns?
  ideas which turned into projects…
                                        Are they our ‘usual inventors’?
…as well as a few potential
  breakthrough innovations.             What do high performance inventors
                                        have in common?

Hence, we have started to investigate   If they were basketball players, what
a couple of questions:                  kind of breed would they be?
THE CASE AT HAND

         Growth Bets 2011 online idea
         campaign
ONLINE PHASE




                                                                 2. Selection
                                   1. Selection




                96 inventors
                                                  25 top ideas                  5 winner ideas   MATURATION
                  222 ideas




               Participants were scientists of the global R&D organization, selected by a tiered peer
               selection system. There were more participants than the 96 active inventors. Further
               details to be published. Due to the highly complex technologies in scope of this campaign
               the external crowd option was deselected at the time being.
RELATIONSHIP BETWEEN IDEA AND INVENTOR
POPULATIONS IN THE CAMPAIGN:
Does your history in idea posting make you a top performer in the
campaign??
                 Ideas                          Inventors
top-category
 of 25 ideas                 5 winning ideas

                                                                  with a history of posting
                                                     31           ideas on the idea web


                                         ?
                                                                  with no history of posting
                                                     65           ideas on the idea web

                  197
               other ideas


                                               idea web: internal idea collection established
                                               over several years. Comprising hundreds of
                                               ideas regarding new technologies and products.
                                               About 70 - 90 ideas are posted each year.
LIMITATIONS & CAVEATS
The findings presented here are of highly preliminary
character:

 As of now we only have compared inventive performance
  in one campaign with the inventive activity records of
  only one other source, namely the idea web

 Clearly, one needs to take into account other records of
  inventiveness such as publications and IP to get a more
  granular picture (on-going)

 Also, one has to investigate more than just one idea
  campaign dataset to confirm presented conclusions

 The inventor population sample studied here is rather
  small and all our statements which go beyond strictly
  descriptive content have to be taken with a grain of salt…
THE FIRST THING WE DID WAS TO TAKE A CLOSER LOOK AT
THE INVENTORS WITH A HISTORY ON THE IDEA WEB

           Ideas                   Inventors



                                               with a history of posting
                                      31       ideas on the idea web


                         ?
                                               with no history of posting
                                      65       ideas on the idea web

            197
         other ideas
WE FOUND THAT THE IDEA DISTRIBUTION CURVE OF THIS
                  GROUP HAD AN ASSYMETRIC SHAPE WITH A LONG TAIL



                      35
                           idea web curve

                      30


                      25
                                       31 participants in the campaign had a historical record of posting a total of
no. of posted ideas




                                       149 ideas on the idea web over severall years (inventors A to AE)
                      20


                      15


                      10


                       5


                       0
                           A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z AA AB AC AD AE

                                                                               inventors
A SUB-GROUP OF EIGHT HIGHLY ACTIVE INVENTORS STOOD
                  OUT: THEY CONTRIBUTED 70% OF THE IDEAS


                      35
                           idea web curve

                      30


                      25
no. of posted ideas




                               A ‘High Activity Group’ of only 8 inventors (A – H) contributed 103 ideas to the idea
                      20       web over the years. Thus, this sub-group accounted for 70% of the ideas.

                      15


                      10


                       5


                       0
                           A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z AA AB AC AD AE

                                                                               inventors
LONG TAIL GROUP: THE REMAINING 23 INVENTORS HAD A
                  RECORD OF POSTING OCCASIONALLY OR SELDOMLY ON THE IDEA
                  WEB


                      35
                           idea web curve

                      30


                      25
no. of posted ideas




                      20


                      15


                      10

                                                           Long tail group: 23 inventors (I – AE) accounted for 46 (30%) of
                       5                                   the idea-web ideas in question

                       0
                           A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z AA AB AC AD AE

                                                                               inventors
ON-LINE CAMPAIGN OBSERVATIONS:
                 The ‘long tail group’ outperformed the ‘high activity group’ by
                 producing more top-category ideas. Also, all 5 winner ideas were ‘from
                 the tail’.
                                         ‘THE BANG IS IN THE TAIL!’
                      35
                           idea web curve

                      30


                      25
                                           x Top category idea (x= no. of top category ideas posted)
no. of posted ideas




                                           1       Winning idea
                      20


                      15

                           2
                      10                       1


                                                                                  1
                       5                                          1
                                                                  1
                                                                                                                                   campaign curve
                                                                                                                           1
                                                                      1                                                2
                                                     1                                                                     1   1           1
                                                                                                                                           1
                                                                                                                                                   1
                                                                                            1                                                  1   1
                       0                                                                        1      1   1

                           A   B   C   D       E     F    G   H   I   J   K   L   M    N    O   P      Q   R   S   T   U   V   W   X   Y   Z AA AB AC AD AE

                                                                                           inventors
IF THIS WAS BASKETBALL…
 then ‘long tail’ inventors would be the kind of hidden talent players with
 dream team potential which you were almost unaware of.

 In the present game they spectacularly outperformed the regulars by
 scoring more points with fewer shots per player

                                           … and they did all the slam dunks!

 Also, a number of players with no historic record showed up and scored 6 times!


                                           inventors with history on idea web       inventors with no
Campaign
                                                                                   history on the idea
stats                                       High actitivity   Long tail group
                                                                                           web
                   basketball terms          group (A-H)          (I-AE)
inventors          players                        8                 23                    64
total ideas        shots                         49                 68                    73
ideas/inventor     shots pr player               6.1                3.0                   1.1
top ideas          scored points                  4                 15                     6
winner ideas       slam dunks                     0                  5                     0
hit rate           shot accuracy                 8%                22%                    8%
hit probability    probability to score         50%                65%                    9%
                   in game
WHAT MOBILIZED THE HIDDEN DREAM TEAM?
We are not sure yet but a couple of reasons seem likely:




        Monetary or material incentives were not promised and can therefore be
                    ruled out. Awards were symbolic tokens only.
CONCLUSION
There are 5 good reasons to conduct internal online idea campaigns

1. Mobilize the great innovation potential of your less prominent and less outspoken
   inventors. Organizations tend to overlook their ‘hidden dream team’

2. Capture their great ideas and turn them into projects for new growth. Allow them to
   engage in this process

3. Save costs – online idea campaigns are substantially cheaper than face-to-face ones!

4. Boost an engaging innovation culture across your organization

5. Try out internal crowd sourcing first before you go external – you dodge the IP-challenge
   and you may be positively surprised



And there is a sixth one, which is detailed in another slide deck: http://slidesha.re/165rt6w


6. Leverage inventor diversity by engaging highly diverse crowds for optimal outcomes

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Long tail innovation in internal crowds - hidden dream teams in your organization

  • 1. LONG TAIL OF INNOVATION IN INTERNAL CROWDS …a case story of a hidden dream team! Frank Hatzack and Maria Carlsen @frankhatzack, @MaCarlsen Innovation Office, Novozymes R&D
  • 2. WHAT IS THE ‘LONG TAIL’ OF INNOVATION? Notion that creativity has a highly skewed distribution in inventor crowds. Breakthrough innovations are usually found in the ‘long tail’ section of the distribution curve, meaning they are rare but highly valuable.
  • 3. SETTING THE SCENE FOR OUR CASE STUDY In Novozymes R&D we use collaborative online idea campaigns on a regular basis… Who scores the most successful ideas …because they have delivered new in such online campaigns? ideas which turned into projects… Are they our ‘usual inventors’? …as well as a few potential breakthrough innovations. What do high performance inventors have in common? Hence, we have started to investigate If they were basketball players, what a couple of questions: kind of breed would they be?
  • 4. THE CASE AT HAND Growth Bets 2011 online idea campaign ONLINE PHASE 2. Selection 1. Selection 96 inventors 25 top ideas 5 winner ideas MATURATION 222 ideas Participants were scientists of the global R&D organization, selected by a tiered peer selection system. There were more participants than the 96 active inventors. Further details to be published. Due to the highly complex technologies in scope of this campaign the external crowd option was deselected at the time being.
  • 5. RELATIONSHIP BETWEEN IDEA AND INVENTOR POPULATIONS IN THE CAMPAIGN: Does your history in idea posting make you a top performer in the campaign?? Ideas Inventors top-category of 25 ideas 5 winning ideas with a history of posting 31 ideas on the idea web ? with no history of posting 65 ideas on the idea web 197 other ideas idea web: internal idea collection established over several years. Comprising hundreds of ideas regarding new technologies and products. About 70 - 90 ideas are posted each year.
  • 6. LIMITATIONS & CAVEATS The findings presented here are of highly preliminary character:  As of now we only have compared inventive performance in one campaign with the inventive activity records of only one other source, namely the idea web  Clearly, one needs to take into account other records of inventiveness such as publications and IP to get a more granular picture (on-going)  Also, one has to investigate more than just one idea campaign dataset to confirm presented conclusions  The inventor population sample studied here is rather small and all our statements which go beyond strictly descriptive content have to be taken with a grain of salt…
  • 7. THE FIRST THING WE DID WAS TO TAKE A CLOSER LOOK AT THE INVENTORS WITH A HISTORY ON THE IDEA WEB Ideas Inventors with a history of posting 31 ideas on the idea web ? with no history of posting 65 ideas on the idea web 197 other ideas
  • 8. WE FOUND THAT THE IDEA DISTRIBUTION CURVE OF THIS GROUP HAD AN ASSYMETRIC SHAPE WITH A LONG TAIL 35 idea web curve 30 25 31 participants in the campaign had a historical record of posting a total of no. of posted ideas 149 ideas on the idea web over severall years (inventors A to AE) 20 15 10 5 0 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE inventors
  • 9. A SUB-GROUP OF EIGHT HIGHLY ACTIVE INVENTORS STOOD OUT: THEY CONTRIBUTED 70% OF THE IDEAS 35 idea web curve 30 25 no. of posted ideas A ‘High Activity Group’ of only 8 inventors (A – H) contributed 103 ideas to the idea 20 web over the years. Thus, this sub-group accounted for 70% of the ideas. 15 10 5 0 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE inventors
  • 10. LONG TAIL GROUP: THE REMAINING 23 INVENTORS HAD A RECORD OF POSTING OCCASIONALLY OR SELDOMLY ON THE IDEA WEB 35 idea web curve 30 25 no. of posted ideas 20 15 10 Long tail group: 23 inventors (I – AE) accounted for 46 (30%) of 5 the idea-web ideas in question 0 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE inventors
  • 11. ON-LINE CAMPAIGN OBSERVATIONS: The ‘long tail group’ outperformed the ‘high activity group’ by producing more top-category ideas. Also, all 5 winner ideas were ‘from the tail’. ‘THE BANG IS IN THE TAIL!’ 35 idea web curve 30 25 x Top category idea (x= no. of top category ideas posted) no. of posted ideas 1 Winning idea 20 15 2 10 1 1 5 1 1 campaign curve 1 1 2 1 1 1 1 1 1 1 1 1 0 1 1 1 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE inventors
  • 12. IF THIS WAS BASKETBALL… then ‘long tail’ inventors would be the kind of hidden talent players with dream team potential which you were almost unaware of. In the present game they spectacularly outperformed the regulars by scoring more points with fewer shots per player … and they did all the slam dunks! Also, a number of players with no historic record showed up and scored 6 times! inventors with history on idea web inventors with no Campaign history on the idea stats High actitivity Long tail group web basketball terms group (A-H) (I-AE) inventors players 8 23 64 total ideas shots 49 68 73 ideas/inventor shots pr player 6.1 3.0 1.1 top ideas scored points 4 15 6 winner ideas slam dunks 0 5 0 hit rate shot accuracy 8% 22% 8% hit probability probability to score 50% 65% 9% in game
  • 13. WHAT MOBILIZED THE HIDDEN DREAM TEAM? We are not sure yet but a couple of reasons seem likely: Monetary or material incentives were not promised and can therefore be ruled out. Awards were symbolic tokens only.
  • 14. CONCLUSION There are 5 good reasons to conduct internal online idea campaigns 1. Mobilize the great innovation potential of your less prominent and less outspoken inventors. Organizations tend to overlook their ‘hidden dream team’ 2. Capture their great ideas and turn them into projects for new growth. Allow them to engage in this process 3. Save costs – online idea campaigns are substantially cheaper than face-to-face ones! 4. Boost an engaging innovation culture across your organization 5. Try out internal crowd sourcing first before you go external – you dodge the IP-challenge and you may be positively surprised And there is a sixth one, which is detailed in another slide deck: http://slidesha.re/165rt6w 6. Leverage inventor diversity by engaging highly diverse crowds for optimal outcomes