Category: Digital Transformation

The Future of Crowdsourcing: An Interview With Bastian Unterberg of Jovoto

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Bastian Unterberg, Founder & CEO of Jovoto

Bastian Unterberg is the founder and CEO of Jovoto, a Berlin-based platform that enables global brands and enterprise businesses to solve design and innovation challenges – ranging from new product design to sustainable architecture – with a community of over 60,000 creative professionals. In 2013, Wiley published Bastian’s book, “Crowdstorm – The Future of Innovation, Ideas and Problem Solving”. Crowdstorm delves deep into the methodology Jovoto uses, and is an insightful read for anyone working with creative communities and crowdsourcing initiatives.

I met Bastian at Crowdsourcing Week 2015 in Brussels and was impressed with Jovoto on multiple fronts: the quality of brands that were sponsoring projects (Starbucks, Adidas, Coke), the commitment by Jovoto to engage and compensate their community, and the way that Jovoto encourages the community of creatives to lead crowdstorm projects – including solution selection and distribution of award funds.

This interview is the culmination of ongoing conversations I’ve had with Bastian since meeting him last fall in Brussels.

 

Q: What motivated you to start jovoto?

BU: “Towards the end of my studies at the University of Arts in Berlin I was asking myself “What’s next, how do I want to work?” Looking at various verticals across creative industries, I realized that most work environments available to me did not match my DNA and understanding about how I want to work. So much amazing talent leaves university to face a world that simply does not nurture them or help them reach their full creative potential.

Hierarchy, politics, poor feedback culture – these are some of the factors in traditional creative work environments that suppress rather than nurture creativity. And this is something that I wanted to change for myself, for my graduating classmates, and for others around the world who were looking to break free from the traditional agency model.”

Q: The concept of community is core to jovoto’s business. Can you talk about the type of people who make up the community and what motivates them to participate?

BU: “We know that by embracing the concept of community, the majority of our creatives prefer to work on jovoto rather than elsewhere. To my knowledge, there are no other open innovation platforms that listens, supports, and nurtures their community to the extent that we do.

The jovoto community consists of creatives from all over the world who value their freedom to work from wherever they are, whenever they want and with whom they find interesting. They are highly independent and rely on feedback to develop and improve. They are open to collaboration and are not afraid of working with others when they see they lack certain skills to make their ideas as good as possible. They don’t rely on one skill but are rather interdisciplinary and great problem solvers in general.

What motivates them?  Our community is motivated to participate on jovoto by many factors, but what might come surprising to many, is that earning money isn’t at the top of the list for most of them. For some it is the chance to work with great global brands on interesting tasks, for others it is the learning they get through collaboration and feedback, and then of course there are always those motivated by prize money.”

Q: There is an unusually high level of collaboration amongst community members. How did you go about building a strong community culture that values quality and contribution?

BU: “Open innovation naturally attracts a certain type of creative who are more likely to engage in collaboration in a different way. To nurture this even more, we reward certain behaviours that creates the culture which we want. Creatives who collaborate with and give great feedback to others, have opportunities to win special awards. We also have a team of creative guides who know the client and the community who also give feedback on ideas, as well as support and encourage the creatives. All of this contributes to the unique and supportive culture within our community.”

Q: Why is social impact important to you? Can you describe some of the global projects jovoto has hosted that have made a positive impact in the world?

BU: “One of the things you can observe on jovoto, is how creativity and mass-collaboration is an powerful tool to affect positive change.

I’m pretty proud of our track record in hosting important projects that will help make the world a better place. From the $300 House challenge, crowdstorming low-cost irrigation solutions for farmers in India, and the universal logo for human rights.

Last year, our most successful campaign was with Greenpeace, to put come up with campaign material to help put pressure on McDonald’s to stop their use of GM feed in poultry. The campaign was a success; McDonald’s in Germany announced in 2015 that they would stop using GM!

Corruption is another issue on the top of everyone’s list right now with the recent news about the Panama Papers. One of the ways we are engaging in the global fight to end corruption is by collaborating with Transparency International, and supporting the work that they do by helping to spread the word against grand corruption.

One of the reasons crowdstorming works in all of these cases, is that not only do projects promoting positive-impact projects tend to have a high engagement rate on the jovoto platform, but creatives participating also tend to spread the word off the platform, gaining even more visibility for important projects. It is a win-win-win situation for everyone. The creatives participating who can contribute their time and creativity to important projects, the organizations we work with who get great ideas, and for social and environmental impact.” 

Q: You’ve said that you want to grow jovoto to the point that creatives could actually make a living solely from the platform. How close are you to achieving this vision and what will it take?

BU: “We aren’t far off, actually. Just this month, our top-earner took home €11,000 EUR (over $12,000 USD).

As more and more young people are looking to alternative forms of work, and more and more global business are looking to the future and to open innovation, the chances happening are  already helping establish this new reality.

For jovoto, it is about supporting the best talent working on our platform, to reach new levels of greatness. We give creatives the chance to grow and learn and reward outstanding creative work. If you’re really good on jovoto, you can climb the creative ladder, with more invites to even more projects, some with guaranteed payment for participation. The more great clients we have, the more opportunities we can provide to creatives, and the securities we can offer scale.”

 

Q: What is your advice for those seeking to pursue a path of self employment through platforms like jovoto?

BU: “The first step is simply to participate! Submit ideas, give others feedback, and find other creatives to collaborate with.

The creatives that succeed on jovoto are usually creatives that give and listen to feedback, are genuinely helpful and supportive and engage with others. It’s an open innovation process so the more open you are, the more successful you are.”


You can find out more about Jovoto by visiting their site and their blog.

Jovoto is a client of Structure3C.

If you are interested in developing a crowdstorm project with Jovoto and are based in the US, please send me a note. Outside of the US, please reach out here

Beyond Ideas: Building Open Innovation Communities

img_0571Open Innovation Communities – where companies and customers collaborate on ideas for new products and services – can be one of the most valuable ways to invest in community engagement. Unfortunately, this type of community is also one of the most difficult to get right. Many companies have experimented with this type of  Open Innovation – Lego Ideas, Dell’s IdeaStorm, Starbucks’ My Starbucks Idea – and each of these companies have seen value from the communities. The bad news is that most companies fail because they lack the vision and commitment to see beyond the initial tactic of soliciting customer ideas.

In my community practice, I’ve seen 4 stages that are typical in the maturation of an Open Innovation Community.

  1. The Social Suggestion Box – Launch an open space for customers to give feedback or make suggestions
  2. Overwhelming Backlog – Period where the company can no longer process the backlog and may abandon the community
  3. Managed Sprints – Develop a strategy to shape feedback and ideas by introducing a more formal process and constraining topics & time
  4. Collaborative Innovation – A significant evolution of programs and platforms that layer ongoing ideation into all design and decision making
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4 Stages of “Ideas” Communities

The Four Stages of Open Innovation Communities

Stage 1. The Social Suggestion Box
Most companies start their Open Innovation Community with an open-ended call for ideas and feedback. Community members are welcome to submit any idea, and the broader community (hopefully) comments on the idea and rates the idea using a simple scale or upvote. Community managers take the most highly rated ideas to the product team for discussion, and eventually some ideas are chosen for production.

The Social Suggestion Box phase is valuable in the short term, as customers will likely have suggestions they have been holding on to since they began their relationship with the company – essentially a communal backlog, if you will. Companies become stuck in this phase when they are unable to process the backlog of ideas, manage the growing community and deliver quality ideas to internal teams (typically product) in a format and within a timeline that aligns with product roadmaps. This break between the promise of a constant stream of new ideas, and the lack of a process and the ability to shape ideas into a usable format is the key challenge.

Stage 2. Overwhelming Backlog
The equivalent of the “trough of disillusionment” from the Gartner Hype Cycle, companies in the Overwhelming Backlog phase can often find themselves with a large pile of unread ideas, a community platform in need of a serious overhaul, an innovation program that no one really values and a community in revolt.

This situation may sound extreme, but it was exactly the one I walked in to when I joined Dell in 2010. IdeaStorm, Dell’s Open Innovation Community, had launched in 2007. After enjoying 2 years of valuable idea contributions, positive PR and internal support, year 3 found IdeaStorm as a “ghost ship” community, with no leadership, vision or community management. Things became so bad that a community member posted the idea that Dell should shut IdeaStorm down. The community quickly upvoted that idea, it caught the attention of Michael Dell and my team was given the task of “making it better, fast”. I eventually hired the community member who posted the “take it down” idea to become the new community manager for IdeaStorm.

To navigate out of the mess we were in, the team immediately began research to inform our new strategy. I wanted to know the financial impact of IdeaStorm to date, understand why ideas weren’t being responded to, and to understand what the barriers were in getting ideas from the Community into the the product teams at Dell. We found that the financial impact from IdeaStorm was really high ($100s of Millions), that we lacked an agreed upon internal process for scoring and prioritizing ideas, and that we needed to create a new type of community management role to help facilitate the new process – an Idea partner that lived on the product team. The final piece of the puzzle was implementing an archiving policy for ideas that didn’t score well in the community. Within a few months we had processed the ideas backlog, started design on a new platform (with the community), and had reengaged most internal product teams.

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Stage 3. Managed Sprints
Companies come out of the Overwhelming Backlog phase with the key insight that shaping the topic, type and form of ideas they would like to receive is critical to realizing value and long term success. Many companies will implement a sprint-like approach to ideation, using phased ideation and design sessions to focus on a single topic or product.

This approach involves developing a clear business or design problem, and then breaking solution development in to smaller ideation projects that are facilitated, in sequence, over a number of weeks. The output of each sub-project helps shape the proceeding sub-project. Ideas and design concepts are generally of higher quality because the problem definition is clear, product teams participate, and community members get real-time feedback from the product team.

Dell did this successfully on IdeaStorm with Project Sputnik, co-creating a Linux-based laptop with and for developers. Other examples of the Managed Sprint stage include Unilever and General Mills. Jovoto (client), an “On Demand Creative Community”, has on of the best Managed Sprint approaches I have seen – you can find more information on their site, and in the book their CEO Bastian Unterberg coauthored, “Crowdstorm“.

Stage 4. Collaborative Innovation
In many ways, moving through Stages 1-3 are a necessary process for companies to undertake in order to develop the strategy, process, alignment, platforms and business models to move beyond what are essentially sporadic innovation campaigns.

Collaborative Innovation is an ideal state where an organization and its community of customer, partners and employees are engaged in an ongoing process to perfect existing products & services and to bring new products and services to market. We’ve talked for years about the boundaries between companies and customers disappearing – in the Collaborative Innovation stage, the boundary is permeable – customers create new products & services with the companies assets, and receive value in return (use, compensation, reputation, etc.).

There are examples of large companies partially engaged in the Collaborative Innovation stage, but none that have extended this to every part of their business.

Some examples include:

Opportunity While Other Stall

The truth is, most companies never make it beyond stage 2, “Overwhelming Backlog”. Dell, an early pioneer in the space (and my former employer) has been regressing back from Stage 3 for a few years (unfortunately). The other notable pioneer, Starbucks, has optimized My Starbucks Idea to be a very well run & designed Stage 1 community. While Communities at each stage offers some dimension of value, companies progressing through to Stages 3 & 4 will discover the most value and innovation.

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The potential opportunity for the next wave of Open Innovation Communities is incredible. Why?

  • Customers have shown they are willing to collaborate & create
  • Customers are willing to buy products still in the conceptual phase (millions of examples of crowdfunding)
  • The tools to create & share complex designs are free and relatively easy to use – see Fusion 360 & OnShape
  • Innovation platform companies have an opportunity to move beyond text / pictures / video into immersive & real-time 2d & 3d collaboration. PS – Platform companies – I would LOVE to work on this and have a ton of ideas.

Summary

Many companies could realize tremendous value from Open Innovation Communities. Most don’t because they don’t experiment, or do a poor job of planning their initiatives. Companies that commit, support and evolve their Communities see value. Beyond the current practice examples of Open Innovation Communities, the next wave will feature immersive and real-time design as a key feature. Those who wish to innovate need to be evolving their platform, programs and internal process now.

Learning More
I’m offering a session on Jolt that expands on the concepts in this post, and goes in to more strategic detail about how to build the best Open Innovation Community for your business. Feel free to book a session and chat with me about tailoring to your organization’s needs.

To Develop a Community, Think Network First

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Nevertheless, we now realize that no whole, be it a family, a business, a community, or a nation, can be managed without looking inward to the lesser wholes that combine to form it, and outward to the greater wholes of which it is a member.” 

Allan Savory, from “Holistic Management”

Need a Community? You Have (at least) One

After 15 years of designing and activating online communities, I’m still surprised when I hear from a potential client that they “need to create” an online community. Wether you realize it or not, you have and belong to many communities. Further, you intentionally or unintentionally play many roles within those communities – host, member, participant, advocate, creator, and at times, possibly even destroyer. You may be asking yourself “so, what is a community? How do I know where my community is? How do I define community?” Though typical, those are the wrong questions to start with.   

Context is King

The word “community” is problematic. It can have as many meanings as there are people in an organization to make meaning, ranging from the local geographical community, to a peer to peer technical support community, a social media page or a working group focused on solving a specific problem. I’ve held conferences where the question of a canonical definition of community was debated by some of the smartest people I know in the industry, and the question was left unanswered. Why? Two reasons: 1.) a helpful answer must be developed in the strategic context of the host organization and their extended network and 2.) community as a metaphor is often too specific and limiting – why we often see communities as a solution looking for a problem.

To expand on the Savory quote at the beginning of this post, to fully understand the potential for communities in your organization, you have to understand the actual smaller and discrete communities that make up your organization (employees, partners, alumni) , and the larger communities that your organization is a part of (industries, markets, causes, etc.). The “whole”, if you will, is really a network. Increasingly, I find starting a strategy conversation with “community” can be burdensome, and that “network” is a more helpful (and neutral) place to start.

Network as a Rubric

Why “Network”? Network, defined as “a group or system of interconnected people or things” describes a set of connected entities but does not imply or assign activities, relationships or outcomes the way “community” seems to. Using network as a blank canvas allows you to create strategy from drawing from the largest possible pool of value. Thinking “Network” means you are considering the full set of relationships among stakeholders, assets, and increasingly, artificial intelligence actors that could potentially  be developed. From the baseline of network, a more holistic strategy can be created that is inclusive of community, social, and digital innovation.

As an example of Network Thinking, I developed the graph below as part of an exercises to inventory and explore opportunities for stakeholder groups allowing access to assets in an online marketplace.

 

The Future of Networks

“What is true for the machines all around us now is true for us too: We are what we are connected to. And mastery of that connection turns out to be the modern version of Napoleon’s coup d’oeil, the essential skill of the age.”

Joshua Cooper RamoThe Seventh Sense: Power, Fortune, and Survival in the Age of Networks

One of the best books I’ve read recently is The Seventh Sense” by Joshua Cooper Ramos. In the book, Ramos describes the role of networks in the age of massive disruption that we are beginning to live through – on par with the Industrial Revolution and the Enlightenment. Ramos goes on to evangelize the need to develop a “Seventh Sense”, the ability “to look at any object and see the way in which it is changed by connection” in order to survive and thrive amidst the change. Ramos, along with recent books by Reid Hoffman and great thinking by the team at a16z represent some of the most helpful and cogent thinking on networks and network effects.

I believe we need a new and more holistic approach to develop modern communities – communities that are a significant evolution of the current support and Q&A-based silos. In my own practice I’ve begun to refer to the skills and methodologies for designing modern social networks and communities as “Network Thinking”, and I’ve begun to tag related research and writing as #FoN, or “Future of Networks”. To stay up to date, subscribe to my newsletter here.

I’m currently working with a select list of clients to build modern community and network strategies. If you would like to schedule some time to talk about how I can help, bill@structure3c.com.

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Develop Your Networked Business Pilot in Less Than an Hour: Worksheet

Many organizations are struggling to understand and respond to the changes being driven by the Collaborative (some say On Demand or Sharing) Economy. A simple way to get started is to think about 1) what assets you have to offer and 2) how digital networks enable distribution, usage of and collaboration with those assets. This process is another element of a concept I am calling “Network Thinking”.levis

I’ve developed a short exercise to help organizations think through ideas, threats and opportunities, and develop a simple plan to start pilot programs. When I facilitate this exercise at workshops and events it is designed to take 45 minutes. using time as a constraint and forcing function. I typically do a quick briefing on communities and the collaborative economy before running the exercise. If you need inspiration, I’ve added a video of a recent talk at the end of this post.

You can download the worksheet here.

Page 1: Synthesis, Threats, Opportunities & Inventory

Synthesis – 5 min
Quickly list ideas about the Collaborative / On Demand / Sharing Economy that resonate, inspire and challenge you.

Disruptive Threats – 5 min
Think through and list the disruptive threats to your business. Startups that are emerging and offering your product or service at a discount, a privileged position in a market that is eroding, etc. 

Transformational Opportunities – 5 min
Explore and list the transformational opportunities at hand, as you currently understand them. This could be a new line of business enabled by digital technologies, replacing your current distribution channel with one that is based on customers or online. 

Inventory – 10 min
Explore and list all assets available to you. 
Consider any tangible asset, including office space, IP, product archives, talent, supply chain, customer talent, etc.

The first page of the worksheet, with the sections described above:
Networked Assets Worksheet @Structure3c

Page 2: Ideation & Action Plan

Ideation Canvas – 10 min
Take the list of assets from page one and list them across the x axis on the bottom of the diagram. Going up the y axis for each stakeholder group, think about how that asset might be used by or with the stakeholder group to create new business value. A simple example is shown on the second image below. The asset “office space” could be used by Partners as a sublet or on-demand office space, or the space could be used by customers or the crowd as a makerspace.

Action Plan – 10 min
Taking inputs from page 1, and reviewing all of the ideas generated on the Ideation Canvas, list your 3 best ideas, develop a short pitch, and answer 3 key questions about getting started.

The second page of the worksheet, with the sections described above:Networked Assets Worksheet @Structure3c
The second page of the worksheet, with the ideation canvas partially completed:Networked Assets Worksheet @Structure3c

In Summary:

In less than an hour you have a solid draft of a possible Collaborative Economy initiative. You can use this output as a tool to start conversations in your organization about a pilot program, or use the Worksheet as part of an internal workshop or planning meeting.

I use this tool in many of my workshops. If you are interested in discussing my workshop offerings, or hosting a facilitated version of this exercise at your company or during a retreat, please reach out to my assistant to schedule some time to connect.

My recent session at the Online Community Tribe Meetup in SF gives an overview of the Collaborative Economy and introduces the concept of Network Thinking as a tool to help organizations explore future business models in the Collaborative Economy.