This is my keynote given on Aug. 27th, 2015, at Crowd Dialogue Europe in Helsinki, where I discussed about how innovation is becoming a crowd-based competitive tool and about the different kinds of crowd-innovation commonly used by large corporations a SMEs.

1. CROWD-BUSINESS IN EUROPE:
TRANSFER OF KNOW HOW
AND INNOVATION
ALESSANDRO M.LERRO
Crowd Dialogue Europe
Helsinki, Aug. 27, 2015

2. INNOVATION
CYCLICALLY AT THE TOP OF THE CORPORATE AGENDA
anticipate future needs
create a new market and value network
replace existing products or services
disrupt business models
©2015 Alessandro M. Lerro

3. MANAGEMENT:
THE INNOVATOR’S
DILEMMA*Christensen, 1997, HBR
-Focused on established business, revenues and profit
-Afraid of breakthrough innovation
-Under pressure from shareholders and investors
©2015 Alessandro M. Lerro

4. *Salter et al., 1983, HBR
USUALLY
CORPORATE V.C.
DOESN’T WORK
important innovation often arises
from outside an industry
and beyond the established players
EXPLORINGTHENEW
WHILEEXPLOITINGTHEOLD
©2015 Alessandro M. Lerro

5. FIVE WAVES
OF COMPETITIVE CHALLANGES
ENTHUSIASM vs. DILEMMA
SUPPORTING NEW CONCEPTS vs. PROTECTING REVENUES STREAMS
EACH WAVE BROUGHT NEW CONCEPTS
19701980199020052010
©2015 Alessandro M. Lerro

6. 1970
INFORMATION TECHNOLOGY
EVOLVING
FROM MAINFRAMES
TO CONSUMER DESKTOPS
Silicon Valley garages: new base for product innovation
©2015 Alessandro M. Lerro

7. 1980
BUYOUT GROUPS
ATTACKING
TRADITIONAL COMPANIES
SEEKING TO UNLOCK
THE VALUE OF
UNDERUTILIZED ASSETS
Software emerging as a major force
©2015 Alessandro M. Lerro

8. 1990
DIGITAL MANIA
THE WEBDRIVES A RADICAL
BUSINESS MODEL
INNOVATION
Nobody cared about revenues and profits
©2015 Alessandro M. Lerro

9. 2005
AFTER
DOT COMs CRASH
COMPANIES REFOCUSED
ON ORGANIC GROWTH
Customers and markets returned to be central
©2015 Alessandro M. Lerro

10. COMMON MISTAKES :
- INVESTING ONLY ON BLOCKBUSTERS
- ASSUMING THAT INNOVATION TEAMS MUST BE LED BY TECHNICAL PEOPLE
- MAKING 2 CLASSES OF CORPORATE CITIZENS
MANAGEMENT’s CONCERNS :
- HOW TO PROTECT INTELLECTUAL PROPERTY
- HOW A CROWD COULD BETTER HANDLE PROBLEMS
- HOW TO MANAGE THE PROCESS
©2015 Alessandro M. Lerro

11. 2010
CROWD-ECONOMY:
CROWDS ARE MOVING
INTO THE MAINSTREAM
IF YOU DON’T TAKE ADVANTAGE OF THE CROWD,
YOUR COMPETITORS WILL©2015 Alessandro M. Lerro

12. COMPANIES CROWD
WELL COORDINATED LOOSE AND DECENTRALIZED
SPECIALIZED KNOWLEDGE VERY DIFFERENT SKILLS
COMPANIES CROWD
SALARY INTRINSIC MOTIVATION
BONUS DESIRE TO LEARN
CAREER EMERGING AMONG PEERS
the crowd is most effective per worker©2015 Alessandro M. Lerro

13. CROWD LABOR MARKETS
CROWD COLLABORATIVE COMMUNITIES
CROWD CONTESTS
CROWD COMPLEMENTORS
CROWD-INNOVATION
AND TECH TRANSFER
*LAKHANI,2013,HBR

14. CROWD
LABOR MARKETS
Third party intermediaries
that match buyers and sellers of services,
and match SKILLS to TASKS
©2015 Alessandro M. Lerro

15. > 2,5 Million WORKERS
> 495.000 registered CLIENTS
> $ 1 Billion work annually
> 90% clients rehiring
©2015 Alessandro M. Lerro

16. CROWD
COLLABORATIVE
COMMUNITIES
Communities organized
to govern outputs
from high numbers
of contributors and aggregate them
©2015 Alessandro M. Lerro

17. COMMUNITIES MANAGEMENT CHALLENGE:
protect the
INTELLECTUAL
PROPERTY
manage
the crowd properly
©2015 Alessandro M. Lerro

18. CROWD COLLABORATIVE COMMUNITIES:
MOST EFFECTIVE WHEN: participants can accumulate and recombine ideas,
sharing information freely, with the help of technology and standard routines
©2015 Alessandro M. Lerro

19. CROWD
CONTESTSA great way to explore where
the technical frontier lies,
better than internal R&D
©2015 Alessandro M. Lerro

20. CROWD CONTESTS MANAGEMENT CHALLENGE:
translate, generalize, make it understandable
protect the
INTELLECTUAL
PROPERTY
abstract
the problem
from the
organization
©2015 Alessandro M. Lerro

21. CROWD CONTESTS:
8 WEEKS
$40,000 PRIZE
238 TEAMS
2500 PROPOSALS
+ NewYorkTimes front page
MOST EFFECTIVE WHEN: the problem is novel or complex and there is no
best practice established
©2015 Alessandro M. Lerro

22. CROWD
COMPLEMENTORS
Transforming a product into a platform
that generates complementary innovation
providing third parties’ solutions
and collecting licensing or transaction revenues
©2015 Alessandro M. Lerro

23. CROWD COMPLEMENTORS MANAGEMENT CHALLENGE:
developers agreements
are
standard practice
protect the
INTELLECTUAL
PROPERTY
API – Application Programming Interfaces
©2015 Alessandro M. Lerro

24. CROWD COMPLEMENTORS:
MOST EFFECTIVE WHEN: a great number and variety of complements is
important and makes the core product more useful
©2015 Alessandro M. Lerro

25. 1714LONGITUDEPRIZE
©2015 Alessandro M. Lerro

26. alessandrolerro