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PulsePoint Group




                  Building On Social Listening Centers:
                   Crowdsourcing New Product Ideas
A PulsePoint Group Study Conducted in Collaboration with The Economist Intelligence Unit (Wave I - 2012)
                             Presented by Paul Walker, PulsePoint Group



                                                  1
Meet Paul Walker	

                               Paul Walker is widely recognized as one of the country’s
                               leading communications and marketing digital media
                               specialists. He has more than 25 years of experience in brand
                               management, market development, business development,
                               digital media and venture investing and development.	

                               	

                               At PulsePoint Group he leads the Digital Strategy Practice,
                               which works with Global 1000 companies in areas of brand
                               and reputation management, marketing, innovation,
                               collaboration and performance management. He was the
                               chief strategist behind Dell’s IdeaStorm, the company’s widely
                               recognized crowdsourcing platform. Based on IdeaStorm and
                               his experience in venture capital at Accenture, Paul has
                               worked with a number of major organizations on innovative
                               initiatives.	


Paul has held leadership positions at WPP, Accenture and Y&R.  He is a graduate of The
University of Texas. Paul lives in Austin, Texas with his wife and two children.
Connect with Paul on Twitter, Facebook, LinkedIn and Foursquare.

                                            2
What is Social Innovation?	




 Leveraging the power, insight and
 wisdom of crowds to generate new
     ideas through “networked
 brainpower” that produces results
 exponentially more valuable than            AKA: crowdsourcing,
                                              co-creation, idea
  the sum of the individual parts.           engines, idea mining




                           3         Copyright © 2012 PulsePoint Group. All rights reserved.
Did You Benefit This Morning? 	





Starbucks created an innovation platform, My Starbucks Idea, to generate ideas and motivate
employees to accelerate ideas already generated by the team. This led to the development of
solutions implemented throughout the word, like a splash stick to prevent spills from cups.
                                            4              Copyright © 2012 PulsePoint Group. All rights reserved.
“101 Reasons We Shouldn’t Do This…”	


     Perceived Issues                                  Reality	

    Legal: IP issues that may lead to       IP issues handled in guidelines
    disputes and litigation
    HR: Violating code of ethics and        Establish clear guidelines and
    employee rights                         expectations
    Marketing: Capacity to assess           Idea management process is critical
    and respond to ideas
    IT: Get in line                         Executive sponsors are critical


    Everyone: Concern about the           Community managers model good
    quality of ideas and their abusing an behavior, clear guidelines and
    open channel                          effective moderation.	




                                        5                 Copyright © 2012 PulsePoint Group. All rights reserved.
THE FLAVORS
OF SOCIAL
INNOVATION	




                Copyright © 2012 PulsePoint Group. All rights reserved.
Types of Social Innovation	

                              Focused:
                            Limit ideas to
                          specific challenges




  Open to All:                                                                 By Invite Only:
   Anyone can                                                                Selected members
  submit ideas                                                               can submit ideas




                   Wide Open:
                  Ability to Submit
                     Any Ideas                  Copyright © 2012 PulsePoint Group. All rights reserved.
                            7
Dell IdeaStorm: “Voice of customer” 	

•  Michael Dell wanted to inject the “voice of the customer” back into the
   hallways at Dell.	

•  They quickly got stuck in the “we can’t do this” tornado until…	

•  Michael Dell championed the innovative platform and pushed for its launch.	

	

      “A company this size is not going to be about a
         couple of people coming up with ideas. It’s
          going to be about millions of people and
           harnessing the power of those ideas.”	

                                                     – CEO Michael Dell
                                                                      	





                                       8             Copyright © 2012 PulsePoint Group. All rights reserved.
Dell: Embracing “Voice Of Customer” 	

2005	

    –  Register, create profile	

    –  Submit ideas, promote or demote
       ideas, comment on ideas	

2009	

    –  Storm Sessions: Dell
       employees can share an
       opportunity that needs ideas 	

2012	

    –  Extensions: Allows users to
       expand a proposed idea	

    –  Idea Partners: Identify Dell
       employees to get involved with
       ideas	

    –  Gamification: Gaming elements
       added to provide added value	

    –  Rock stars: Treat program
       champions with excusive
       programs	

                            Copyright © 2012 PulsePoint Group. All rights reserved.
                                          9
IdeaStorm: The Numbers Speak For Themselves
 	

 • Founded in 2007	

 • 60,000 registered users	

 • More than 17,000 ideas
     (about 300 per month)	

 • About 1 million votes	

 • More than 500 ideas
     implemented 	

 • 50% of employees submit
     ideas to EmployeeStorm,
     Dell’s internal idea platform	


                                   10   Copyright © 2012 PulsePoint Group. All rights reserved.
Dell’s Ubuntu (Linux) Laptop	

	

•  An early Idea Storm idea suggested selling
   Ubuntu-equipped machines alongside their
   Windows counterparts.	

•  The idea received more than 130,000 votes. 	

•  Within one year of the product launch, Dell
   sold 40,000 Ubuntu machines without
   having to advertise.	





                                         11         Copyright © 2012 PulsePoint Group. All rights reserved.
Consulting Firm: Best Ideas to Best Clients	

•  A leading global management and IT consulting
   firm is creating a managed service offering 	

•  The offering: “Tap into” intellectual and
   creative assets of their employees, consultants
   and alumni to solve client challenges	

•  Positions the firm as innovative 	

•  Builds new relationships	

•  Generates incremental revenue	



                          12
The Model	





  Select the                     Evaluate,
                Activate
  Client and                      Package     Deliver
               Your Best
  Define the                    and Present    Value
                 Minds
  Challenges                     New Ideas




                           13
Early Results (For One Large Client)	

  	

•  800 target consultants (20% on vacation)	

•  586 active participants  (>50%)	

•  286 new ideas	

•  13,687 page views; 1,375 posts	

•  33 new ideas received	

•  27 new ideas presented to client	

•  Potential: $30 million in incremental revenue	



                             14         Copyright © 2012 PulsePoint Group. All rights reserved.
AT&T’s Innovation Pipeline: 
 World’s Largest Corporate Crowdsourcing Program	

	

•  Employee idea generation and              “At ATT, we believe great
   collaboration at scale and
                                               ideas can come from
   fosters a culture of innovation	

                                                    anywhere”
•  100,000 members in 40
                                                                   John Donovan
   countries	

                                     Sr. Exec.Vice President, ATT

•  More than 500 ideas per
   month	

•  30 executive challenges
   generated more than 200
   potential solutions each	

      	



                                        15           Copyright © 2012 PulsePoint Group. All rights reserved.
ATT’s Process Works	

         Tip Phase I: SOCIAL INNOVATION

  Vote      Submit, vote on, discuss and “invest in” ideas


     Collaborate   After three months, the top ideas are selected to “pitch”

                   Tip Phase II: PROTOTYPE

          Pitch      Founders develop business cases and pitch to “ATT VC’s”

               Tip Phase III: PRODUCTION

     Develop Funded ideas are moved from prototype to production and deployment

          Tip Phase IV: COMMERCIALIZATION

 Launch    A successful project could be adopted by an ATT business unit or spun off into
           an external company


                                                  16                 Copyright © 2012 PulsePoint Group. All rights reserved.
Key Learnings	

 1. Ensure executive sponsor and real commitment to invest in new ideas.


 2. Agree on and win buy-in and commitment for an Idea Management
 Process  Timing, from collection to assessment to decision and response.


 3. Provide “focus” for community members’ ideas based on priority needs
 and opportunities.


 4. Community manager and moderators need to be passionate, empowered
 and enabled to engage community members in real-time.


 5. Give employees the opportunity to submit ideas. They are a great source
 of ideas and can be evangelists for the initiative.


                                     17
Key Learnings	

 6. Have a plan to keep the program fresh and interesting – brainstorms
 around specific topics, sharing progress, etc.

 7. Recognize top contributors on the site and in other appropriate forums –
 this is one of their top motivations.

 8. Celebrate ideas that are implemented and make a big deal out of their
 contributors.

 9. Establish Key Performance Indicators (KPIs) and make sure the team is
 assessing performance and taking steps to improve it. Importantly, this also
 should be across the idea management process.


 10. Ensure the selected software platform can’t be easily gamed, supports the
 idea management process.

                                       18
PulsePoint Group




                  Building On Social Listening Centers:
                   Crowdsourcing New Product Ideas
A PulsePoint Group Study Conducted in Collaboration with The Economist Intelligence Unit (Wave I - 2012)
                             Presented by Paul Walker, PulsePoint Group



                                                  19

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Crowdsourcing New ideas

  • 1. PulsePoint Group Building On Social Listening Centers: Crowdsourcing New Product Ideas A PulsePoint Group Study Conducted in Collaboration with The Economist Intelligence Unit (Wave I - 2012) Presented by Paul Walker, PulsePoint Group 1
  • 2. Meet Paul Walker Paul Walker is widely recognized as one of the country’s leading communications and marketing digital media specialists. He has more than 25 years of experience in brand management, market development, business development, digital media and venture investing and development. At PulsePoint Group he leads the Digital Strategy Practice, which works with Global 1000 companies in areas of brand and reputation management, marketing, innovation, collaboration and performance management. He was the chief strategist behind Dell’s IdeaStorm, the company’s widely recognized crowdsourcing platform. Based on IdeaStorm and his experience in venture capital at Accenture, Paul has worked with a number of major organizations on innovative initiatives. Paul has held leadership positions at WPP, Accenture and Y&R.  He is a graduate of The University of Texas. Paul lives in Austin, Texas with his wife and two children. Connect with Paul on Twitter, Facebook, LinkedIn and Foursquare. 2
  • 3. What is Social Innovation? Leveraging the power, insight and wisdom of crowds to generate new ideas through “networked brainpower” that produces results exponentially more valuable than AKA: crowdsourcing, co-creation, idea the sum of the individual parts. engines, idea mining 3 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 4. Did You Benefit This Morning? Starbucks created an innovation platform, My Starbucks Idea, to generate ideas and motivate employees to accelerate ideas already generated by the team. This led to the development of solutions implemented throughout the word, like a splash stick to prevent spills from cups. 4 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 5. “101 Reasons We Shouldn’t Do This…” Perceived Issues Reality Legal: IP issues that may lead to IP issues handled in guidelines disputes and litigation HR: Violating code of ethics and Establish clear guidelines and employee rights expectations Marketing: Capacity to assess Idea management process is critical and respond to ideas IT: Get in line Executive sponsors are critical Everyone: Concern about the Community managers model good quality of ideas and their abusing an behavior, clear guidelines and open channel effective moderation. 5 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 6. THE FLAVORS OF SOCIAL INNOVATION Copyright © 2012 PulsePoint Group. All rights reserved.
  • 7. Types of Social Innovation Focused: Limit ideas to specific challenges Open to All: By Invite Only: Anyone can Selected members submit ideas can submit ideas Wide Open: Ability to Submit Any Ideas Copyright © 2012 PulsePoint Group. All rights reserved. 7
  • 8. Dell IdeaStorm: “Voice of customer” •  Michael Dell wanted to inject the “voice of the customer” back into the hallways at Dell. •  They quickly got stuck in the “we can’t do this” tornado until… •  Michael Dell championed the innovative platform and pushed for its launch. “A company this size is not going to be about a couple of people coming up with ideas. It’s going to be about millions of people and harnessing the power of those ideas.” – CEO Michael Dell 8 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 9. Dell: Embracing “Voice Of Customer” 2005 –  Register, create profile –  Submit ideas, promote or demote ideas, comment on ideas 2009 –  Storm Sessions: Dell employees can share an opportunity that needs ideas 2012 –  Extensions: Allows users to expand a proposed idea –  Idea Partners: Identify Dell employees to get involved with ideas –  Gamification: Gaming elements added to provide added value –  Rock stars: Treat program champions with excusive programs Copyright © 2012 PulsePoint Group. All rights reserved. 9
  • 10. IdeaStorm: The Numbers Speak For Themselves • Founded in 2007 • 60,000 registered users • More than 17,000 ideas (about 300 per month) • About 1 million votes • More than 500 ideas implemented • 50% of employees submit ideas to EmployeeStorm, Dell’s internal idea platform 10 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 11. Dell’s Ubuntu (Linux) Laptop •  An early Idea Storm idea suggested selling Ubuntu-equipped machines alongside their Windows counterparts. •  The idea received more than 130,000 votes. •  Within one year of the product launch, Dell sold 40,000 Ubuntu machines without having to advertise. 11 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 12. Consulting Firm: Best Ideas to Best Clients •  A leading global management and IT consulting firm is creating a managed service offering •  The offering: “Tap into” intellectual and creative assets of their employees, consultants and alumni to solve client challenges •  Positions the firm as innovative •  Builds new relationships •  Generates incremental revenue 12
  • 13. The Model Select the Evaluate, Activate Client and Package Deliver Your Best Define the and Present Value Minds Challenges New Ideas 13
  • 14. Early Results (For One Large Client)   •  800 target consultants (20% on vacation) •  586 active participants  (>50%) •  286 new ideas •  13,687 page views; 1,375 posts •  33 new ideas received •  27 new ideas presented to client •  Potential: $30 million in incremental revenue 14 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 15. AT&T’s Innovation Pipeline: World’s Largest Corporate Crowdsourcing Program •  Employee idea generation and “At ATT, we believe great collaboration at scale and ideas can come from fosters a culture of innovation anywhere” •  100,000 members in 40 John Donovan countries Sr. Exec.Vice President, ATT •  More than 500 ideas per month •  30 executive challenges generated more than 200 potential solutions each 15 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 16. ATT’s Process Works Tip Phase I: SOCIAL INNOVATION Vote Submit, vote on, discuss and “invest in” ideas Collaborate After three months, the top ideas are selected to “pitch” Tip Phase II: PROTOTYPE Pitch Founders develop business cases and pitch to “ATT VC’s” Tip Phase III: PRODUCTION Develop Funded ideas are moved from prototype to production and deployment Tip Phase IV: COMMERCIALIZATION Launch A successful project could be adopted by an ATT business unit or spun off into an external company 16 Copyright © 2012 PulsePoint Group. All rights reserved.
  • 17. Key Learnings 1. Ensure executive sponsor and real commitment to invest in new ideas. 2. Agree on and win buy-in and commitment for an Idea Management Process Timing, from collection to assessment to decision and response. 3. Provide “focus” for community members’ ideas based on priority needs and opportunities. 4. Community manager and moderators need to be passionate, empowered and enabled to engage community members in real-time. 5. Give employees the opportunity to submit ideas. They are a great source of ideas and can be evangelists for the initiative. 17
  • 18. Key Learnings 6. Have a plan to keep the program fresh and interesting – brainstorms around specific topics, sharing progress, etc. 7. Recognize top contributors on the site and in other appropriate forums – this is one of their top motivations. 8. Celebrate ideas that are implemented and make a big deal out of their contributors. 9. Establish Key Performance Indicators (KPIs) and make sure the team is assessing performance and taking steps to improve it. Importantly, this also should be across the idea management process. 10. Ensure the selected software platform can’t be easily gamed, supports the idea management process. 18
  • 19. PulsePoint Group Building On Social Listening Centers: Crowdsourcing New Product Ideas A PulsePoint Group Study Conducted in Collaboration with The Economist Intelligence Unit (Wave I - 2012) Presented by Paul Walker, PulsePoint Group 19