Introducing The Hyperloop of Innovation
Open innovation yields returns on investments an order of magnitude greater than when organizations are closed, stuck in the box of their own paradigms, culture and thinking. What we call “the crowd” is one of the most effective ways to engage externally. The recent article on Harvard Business Review: Rethinking Crowdsourcing made us think further – about how there are many different crowds, and specific ways to engage them in order to benefit enterprise innovation efforts.
We invite you to consider the seven core functions of all enterprises (however they may be organized), and how each of these functional areas benefit from effective crowd engagement:
- Governance by owners, investors and board level executive management are responsible for strategy, with one overarching need: VALUE – the strategic imperative of maximizing the value of the enterprise, the value experienced by the customers of whatever the enterprise delivers, and value realized by shareholders and all other stakeholders. The key benefits of crowd engagement for the Governance function include access to equity-effective funding, improved returns on investments, enhanced customer experience of value, and therefore higher enterprise valuations.
- Operations encompass everything the enterprise does to produce, deliver and service whatever ‘products’ the enterprise delivers that is of value (hopefully) to the intended recipients, or ‘customers’. The primary need from an enterprise Ops point of view is IMPROVEMENT – doing more with less, effectiveness and efficiencies, and quality in every sense of the word. Crowd engagement can significantly improve quality, competitive advantages and supply chain efficiencies.
- Commercial functions include marketing, sales and CRM, and share GROWTH as the primary need or motivation. Crowds can provide new leads, better marketplace engagement, and massively improved customer experience.
- Innovation is the primary concern of product management and R&D within enterprises – with PROGRESS as the primary driver. Crowds can provide direct ideas, stimulate and engage creativity, lead to collaborative partnering, and serve as a highly effective mechanism for user-driven design – a proven path to high impact innovation.
- Culture is the domain of HRM – not only Human Resources or Human Capital departments, but also the act of people management as carried out by executives, managers and supervisors at all levels of an enterprise. The primary need here is EFFECTIVENESS, which actually encompasses efficiency, but is focused on doing the right things, and doing them well. The benefits of effective crowd engagement for HRM include identifying and engaging new recruits, raising the enterprise’s profile in the job market as an ‘employer of choice’, and as a way of driving improved organizational learning and development.
- Finance includes procurement, accounts, payroll and of course provides and manages the life blood of any enterprise – cash. The core need for the finance function is OPTIMIZATION – finding the right balance between investments and conservation of cash, taking the right risks and then managing them effectively, striking the right balance in the realm of employee remuneration, and ensuring the financial health of the enterprise. The financial benefits of crowd engagement include access to capital, potential cost reductions, risk identification and management, and access to outsourcing opportunities.
- Systems include IT, communications, and security – with a primary need of ASSURANCE. Crowds can help identify and mitigate cyber threats, identify attractive outsourcing opportunities, and ways to more effectively use information and communication technologies within the enterprise and externally.
In summary, there are various ways, relating to their key functions, that all kinds of enterprises, whether public or private or third sector, can benefit from crowd engagement in powerful, lasting ways. Why not get in touch to discover how to engage your Hyperloop of Innovation?