Forward-thinking companies are turning to competitions and prizes to reinvent their innovation portfolios. The idea is that the best way to identify and exploit novel solutions lies beyond the companies’ four walls. Running a successful innovation competition requires five steps:
1. Frame the problem: divide the problem into “chunks” to attract different types of participants and to reduce the effort required to enter the contest.
2. Establish the prize: whereas big cash prizes will attract many entrants, opportunities to advertise skills or build networks will spur others to join.
3. Select the participants: opening contests to non-employees encourages openness and diversity of ideas – but don’t put intellectual property at stake.
4. Define the process: look for ways to harness collaborations and learning among entrants.
5. Build the platform: ensure the right investments are made in information technology and processes, staffing and judging, and marketing.
Action Point
Action point: Consider the benefits that competitions could bring to your company’s innovation pipeline – does your company have the resources and leadership to make them a success? If your company has used competitions previously, reflect on the successes and consider what you would do differently next time.
Sources: MacCormack, A., Murray, F. and Wagner, E. (2013) Spurring Innovation Through Competitions, SMR, Autumn; Kay, L. (2012) Technological Innovation and Prize Incentives, Edward Elgar.