Archive for the 'Design' Category

Hey, why not let everyone help develop your products?

Friday, June 27th, 2008

Another way companies are breaking down the barriers between themselves and their customers or other folks outside is via “crowdsourcing.” That is a way to get people on the outside to provide value to the organization on their own time. It is essentially the open source model applied to more than just software.

STRIKING GOLD
The best example I know is the Goldcorp story. Their president put all their proprietary geologic data for a mine on the web and held a contest. The winners with the best ideas of where to drill would share half a million dollars. The diversity and originality of ideas they received was far beyond anything they anticipated. Years later they were still drilling sites suggested by contestants. They were mining so much gold they were the only gold mining company that was stockpiling for better prices in the future. Furthermore, their stock price went up thirty fold. (See Taylor’s book referenced below.)

ADVANTAGES
The internet and the decentralization of expertise has enabled crowd sourcing and it is typically used to develop solutions. That is at the back end of the product development process. Companies can gain key advantages via crowd sourcing.

LEVERAGE —
achieving goals not possible with a limited fixed staff

This is the advantage of scale. For example, large companies experience many more customer demands for new products than they can keep up with. Some have formed external networks to act in an advisory role or even do project work directly (as in the Goldcorp example) to develop more new products. NASA has used volunteers to process enormous amounts of data making images available months earlier and freeing up researchers to concentrate on higher end work. Google essentially uses crowdsourcing in the way it ranks pages for its search engine.

ORIGINALITY —
access to a larger number and far more diverse range of ideas than possible in-house

I think William Taylor says it best in this chapter title from his book Mavericks at Work: Ideas Unlimited: Why Nobody is as Smart as Everybody.

Inviting people from other boxes to work on your problem is a pretty easy way to get real “out of the box” thinking.

CROWDSOURCING AT THE FRONT END
I see parallels to the kind of work we do at the front end to understand the problems you should be working on in the first place. You can use crowdsourcing methods to find out what the most important problems are for you to solve, as well as to craft solutions. That is, from voice of the customer to voice of the collaborator. We have actually done both here.

For more,
“On the Edge,” by Tim Gilchrist, PMI Network, May 2007, p32.
Mavericks at Work, William C. Taylor and Polly LaBarre, Harper Collins, 2006. (See Chapter 4.)