InnoCentive

Wikipedia describes InnoCentive as an "open innovation" company that takes research and development problems in a broad range of domains such as Engineering, Computer Science, Math, Chemistry, Life Sciences, Physical Sciences and Business, frames them as "challenge problems", and opens them up for anyone to solve them. It gives cash awards for the best solutions to solvers who meet the challenge criteria.

Since 2006, an agreement is signed with the Rockefeller Foundation to add a non-profit area designed to generate science and technology solutions to pressing problems in the developing world.

http://query.nytimes.com/gst/fullpage.html?res=9E04EEDE1430F931A25752C1A9619C8B63&n=Top/Reference/Times%20Topics/People/S/Schneider,%20Keith

http://webreprints.djreprints.com/1657770067525.html

http://gotastrategy.typepad.com/innovation/2007/10/open-innovation.html

Two types of people are put in contact : the seeker, who is looking for information or for somebody to solve his problem, and the solver, who is going to try to find a solution.
Everybody can join the community of seeker or solver by registering himself on the site.

For the seeker, who must face the competition with his breakthrough, the possibility of new ideas and solution will enable him to invent new products and as a consequence, to accelerate the development cycles and stay ahead of the competition through innovation and faster time to market.
Moreover, I think that an external view can be very positive for the company and this concept is positive for the company as it lows the R&D and operating costs.

For the seekers, the time saving is huge because they do not have to find an external consultant. Of course, it is not free but the guarantees are the same as when it is made offline.

Each Challenge is associated with a financial incentive, and payment is only made to the Solver who provides the solution that you select as the best for your requirements.

For the solver, it is a way to train, work and earn money. It is not automatic to be selected and to earn money for the solution you proposed but it worth the pain to try.
For people who are already working, who are maybe the more present, it is a way to face new problems and it can help them to be more efficient in their work.

How does InnoCentive make money?
By earning a commission on the fees of the solvers.
By their partnership with the Rockefeller foundation.



Who does this business compete with?
It competes with the consultant group such as those to whom companies externalize their R&D, marketing or management problems.
This competition shows that this kind of business works offline. However, the logistic is much more complicated and it costs much more to have this kind of business offline.
Nevertheless, people can be afraid by the serious of the information provided on the web.

Moreover, exist competitors online : Ninesigma.com, InnovativeXchange.com etc. (more or less 500 companies).


If I was the owner, I would expand the fields of competence and develop the concept for private users. Indeed, It seems to be a B to B business and I think that a large number of private would be interested by this concept. The prices should be adapted to the request, as it could be small requests.
Moreover, solvers should be able to help students on their thesis, at a low price. The profitability could be ensured by increase the price of the B to B business and compensate the low prices provided for students.
I my mind, it is also profitable for solvers who will always have to readapt their thought and as a consequence, who will have to be more aware of the modernization in the different fields in where they will have to work.


Companies such as EDF could use this kind of tool of R&D to face the new problems of renewable energy. I think that the advices of people external to the company can be a force as they have a certain retreat in comparison with those who work in the company.

Moreover, industries such as hospitality can ask for advices about what to do, what to change to have more guests. It is not really R&D but an external view can also be important in such a sector. In my opinion, for a hotel to succeed, the “external eye” is primordial.
http://computerworld.com.sg/ShowPage.aspx?pagetype=2&articleid=7138&pubid=3&tab=Home&issueid=121