How to invent a new business model based on crowdsourcing: the Crowdspirit ® case

Chesbrough's work on open innovation provides a theoretical framework to understand how firms can access external knowledge in order to support their R&D processes. The author defines open innovation as a paradigm that assumes that firms can and should use both external and internal ideas and internal and external paths to market. He considers that industrial R&D is undergoing a paradigm shift from the closed to the open model. Information and communication technologies and especially web 2.0 technologies accelerate this shift in so far they provide access to collective and distributed intelligence disseminated in the “crowd”. This phenomenon named “crowdsourcing” is defined by Jeff Howe as “the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined - and generally large - network of people in the form of an open call.”Though this approach may sound appealing to firms and R&D organizations, there is little research available about the strategic use of crowdsourcing for innovation processes. In this paper we develop the argument that crowdsourcing raises a certain number of strategic issues that we discuss on the basis of a real size crowdsourcing experiment. We were associated in the project from the very outset up to the strategic analysis of a start-up: Crowdspirit. The company's concept is based on the outsourcing of the entire R&D process to a community of designers and users, in the domain of consumer electronics. Our data is made up of the minutes of three strategic workshops with the managers that we completed step by step by additional theoretical study and some benchmarking of crowdsourcing experiments on the web. Although we started this collaboration mainly to help the company design its optimal business model, this action research process has led us to address the following research questions: how can a firm create and capture value by means of a strategy based on crowdsourcing? What are the main strategic issues to be considered when a firm intends to open its innovation process through crowdsourcing? Due to the action research approach used, we do not dissociate the theoretical part from the empirical data, but rather to present our research process step by step. We therefore successively present four main phases of the strategic analysis carried out with the Crowdspirit team: (1) The emergence of the Crowdspirit business model; (2) The value creation process related to profiles of crowdspirit community of contributors (3) The challenging of the company's initial business model and (4) The creation of a new business model successively open and closed models. In the discussion we summarize the main strategic issues that emerged during the work on Crowdspirit's strategy with its managers, and interpret them on the basis of existing literature on open innovation. This leads us to complete Chesbrough's open innovation approach and Nambissan and Sawney network-centric innovation model by introducing new options for companies whose strategy is based on crowdsourcing.Open innovation, crowdsourcing, business models

How to explore new business models for technological innovations

Technological innovation projects must be accompanied by upstream strategic analysis on the related value creation model. It can be shown that generally successful technological innovations have also involved business model innovation. Exploration of new business models is however particularly difficult where there is a rupture in technology due to a lack of vision of the markets and applications to target. This article proposes a scenario-based method for exploring business models for technological innovation. The method includes overview questions on the businessmodels completed by specific questions relating the developed technology. This is followed by the definition of business model scenarios based on use scenarios in various application areas of the technology considered. The development of scenarios involves the creation of contrasting butcoherent business models and varying the elements of the retained business models (types of client, value proposition, economical logic, organisation of the value network, technological and marketing criteria specific to the technology). The method was developed to accompany a radical technological innovation in the telecommunications sector, as part of a European project. The article presents the technology under development and the way in which the authors defined the business model questionnaire and how they developed the various scenarios from uses of the technology. The approach opens both theoretical and managerial perspectives: it allows the notion of business model to be made operational by linking it to the technological innovation on one hand and its use on the other. The method should then be extended, by creating storyboards from strategic scenarios, in order to enable the project stakeholders to evaluate them.technological innovation, business model, method, scenarios

How to invent a new business model based on crowdsourcing : the Crowdspirit ® case

Chesbrough's work on open innovation provides a theoretical framework to understand how firms can access external knowledge in order to support their R&D processes. The author defines open innovation as a paradigm that assumes that firms can and should use both external and internal ideas and internal and external paths to market. He considers that industrial R&D is undergoing a paradigm shift from the closed to the open model. Information and communication technologies and especially web 2.0 technologies accelerate this shift in so far they provide access to collective and distributed intelligence disseminated in the “crowd”. This phenomenon named “crowdsourcing” is defined by Jeff Howe as “the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined - and generally large – network of people in the form of an open call.” Though this approach may sound appealing to firms and R&D organizations, there is little research available about the strategic use of crowdsourcing for innovation processes. In this paper we develop the argument that crowdsourcing raises a certain number of strategic issues that we discuss on the basis of a real size crowdsourcing experiment. We were associated in the project from the very outset up to the strategic analysis of the company. Our data is made up of the minutes of three strategic workshops with the managers that we completed step by step by additional theoretical study and some benchmarking of crowdsourcing experiments on the web. Although we started this collaboration with no other objectives than to help this company to design its optimal business model, this action research process has led us to address the following research questions: how can a firm create and capture value by means of a strategy based on crowdsourcing? What are the main strategic issues to be considered when a firm intends to open its innovation process through crowdsourcing? Due to the action research approach used, we do not dissociate the theoretical part from the empirical data, but rather to present our research process step by step. We therefore successively present the three main phases of the strategic analysis carried out with the Crowdspirit team: (1) elaboration of Crowdspirit business model; (2) value creation process related to profiles of crowdspirit community of contributors (3)Theoretical framework on business models based on crowdsourcing. In the conclusion we summarize the main strategic issues that emerged during this work on Crowdspirit's strategy with its managers, and interpret them on the basis of existing literature on open innovation. This leads us to complete Chesbrough's open innovation approach and Nambissan and Sawney network-centric innovation model by introducing new options for companies whose strategy is based on crowdsourcing.Open innovation, crowdsourcing, business models

How to explore new business models for technological innovations

International audienceTechnological innovation projects must be accompanied by upstream strategic analysis on the related value creation model. It can be shown that generally successful technological innovations have also involved business model innovation. Exploration of new business models is however particularly difficult where there is a rupture in technology due to a lack of vision of the markets and applications to target. This article proposes a scenario-based method for exploring business models for technological innovation. The method includes overview questions on the businessmodels completed by specific questions relating the developed technology. This is followed by the definition of business model scenarios based on use scenarios in various application areas of the technology considered. The development of scenarios involves the creation of contrasting butcoherent business models and varying the elements of the retained business models (types of client, value proposition, economical logic, organisation of the value network, technological and marketing criteria specific to the technology). The method was developed to accompany a radical technological innovation in the telecommunications sector, as part of a European project. The article presents the technology under development and the way in which the authors defined the business model questionnaire and how they developed the various scenarios from uses of the technology. The approach opens both theoretical and managerial perspectives: it allows the notion of business model to be made operational by linking it to the technological innovation on one hand and its use on the other. The method should then be extended, by creating storyboards from strategic scenarios, in order to enable the project stakeholders to evaluate them

Des scénarios pour explorer les modèles d'affaires

Plutôt que la continuation des tendances existantes, les modèles d'affaires dans l'innovation technologique demandent une démarche elle-même innovante et en rupture. la méthode des scénarios proposée ici se fonde sur une interrogation très ouverte sur l'offre, les clients, les ressources, le réseau de valeur et la logique de génération de revenus, qui permet d'anticiper sur les éléments qui conditionnent des arbitrages essentiels. Une fois dessinés, les scénarios seront soumis aux acteurs économiques concernés de façon à tester leur faisabilité, à les valider et les affiner.Scénarios, business models, innovation technologique

Strategic Scanning and innovative design: fuel the C/K method through Strategic Scanning information

The aim of this article is to study the role of StrategicScanning in innovation processes. We seek to answer the followingquestion: how can Strategic Scanning feed an innovative designactivity? We mobilized the C-K theory which models the logic ofcreation in companies and the method of the same name. Based ona case study of 65 participants, we conducted a Strategic Scanningstudy to feed an innovative C-K design approach. The results showthat Strategic Scanning helps to provide knowledge in a C-Kprocess. It helps either to build the knowledge base of noviceparticipants, or to validate the existing knowledge of expertparticipants. The Strategic Scanning activity also makes it possibleto start the first disjunction mechanism C→K from the C0concept. &nbsp

Projets de mise en place d’une veille anticipative : cas de six organismes du secteur public français

Le présent article relate une expérimentation de mise en place d’une veille anticipative au sein de six organismes du secteur public français et vise à mettre en lumière des enseignements utiles pour éclairer d’autres projets futurs. Sur la base d’une recherche action/intervention, l’objectif de cette recherche est d’identifier les facteurs ayant conduit ces six projets à leur succès et ceux ayant participé à l’échec lorsque ce fut le cas. L’intérêt de l’article est de mettre en avant trois résultats : le rôle décisif du middle-management, l’importance du choix du moment et l’importance d’une communication basée sur des média riches. D’un point de vu managérial, cette recherche permet de construire un début de connaissances actionnables permettant de faire des recommandations fondées à un chef de projet de veille démarrant sa tâche au sein du secteur public ainsi qu’à sa hiérarchie

Getting a Clean Shot on a Blurred Target: Improving Targeting for Strategic Scanning through Action Research in 10 French Organizations

Targeting comprises defining the part of the business environment that corresponds to organizations’ strategic objectives and priorities. Targeting is not an easy process because it includes the interaction of managers who come from different organizational units that might have a fragmentary and blurred understanding of the overall issue. Through an action research, we designed and evaluated a GSS to help managers target strategic scanning in fuzzy contexts. Evaluations through interventions in 10 French organizations allowed both participants to achieve relevant targets and researchers to propose four major improvements to targeting activities: 1) use suggested lists of actors and topics as starting points to trigger and facilitate discussions, 2) define actor and topic importance to produce useful targeting results, 3) evaluate the organization’s perceived capacity to be informed early enough, and 4) define a mechanism to signal scanning relevancy in the short, mid-, or long term. From a management perspective, our results help managers in their strategic scanning activity by 1) identifying information needs for strategically scanning fuzzy subjects, 2) reducing risk of strategic scanning failure, 3) enabling organizations to assess their scanning capabilities, 4) identifying scanning priorities according to a temporal horizon, and 5) fostering teamwork participation

Rethinking business models for innovation

One of the major challenges confronted by those in charge of technological innovation involves anticipating the value creation model sufficiently early on,in a highly uncertain context both as far as the technology itself is concerned and the potential market. Today, in many industrial sectors, the innovation boundaries have moved towards projects that are more and more exploratory and fuzzy. The simple optimisation of linear processes of the "stage-gate" type is no longer sufficient to build sustainable competitive advantages. The notion of Business Models, when applied to innovation, enables us to describe how a company creates value through innovation, generally within a business ecosystem, and how the value will be distributed between the actors involved. The authors of this book believe that the notions of Business Modelling and value creation are key to all the dimensions of successful innovation, whether technology, marketing, organisational or economically based. Rethinking Business Models for Innovation: this title describes the relationship between thinking, modelling, and also field-testing. The book is based on a series of nine recent cases of innovation involving company managers, often assisted by researchers (the co-authors of each chapter), and how they built and formalised their Business Models and then tested their strategies. After having discovered the variety of the cases, the reader will understand that every innovation situation generates specific questions about Business Models. However, we feel that we can identify three key issues that arise, more or less, in each of these projects. The chapters in this book build on these issues: the identification of sources of value and revenue models (the notion of value creation), the position of the company in the value-network or ecosystem (the sharing of value) and finally the evolution of Business MoDdels over time (the sustainability and the competitiveness of the company). The last chapter goes over all the contributions, exploring the notion of value in the Business Model approach.business model ; innovation ; value ; entrepreneurial project

: Lessons from entrepreneurial projects

International audienceOne of the major challenges confronted by those in charge of technological innovation involves anticipating the value creation model sufficiently early on,in a highly uncertain context both as far as the technology itself is concerned and the potential market. Today, in many industrial sectors, the innovation boundaries have moved towards projects that are more and more exploratory and fuzzy. The simple optimisation of linear processes of the "stage-gate" type is no longer sufficient to build sustainable competitive advantages. The notion of Business Models, when applied to innovation, enables us to describe how a company creates value through innovation, generally within a business ecosystem, and how the value will be distributed between the actors involved. The authors of this book believe that the notions of Business Modelling and value creation are key to all the dimensions of successful innovation, whether technology, marketing, organisational or economically based. Rethinking Business Models for Innovation: this title describes the relationship between thinking, modelling, and also field-testing. The book is based on a series of nine recent cases of innovation involving company managers, often assisted by researchers (the co-authors of each chapter), and how they built and formalised their Business Models and then tested their strategies. After having discovered the variety of the cases, the reader will understand that every innovation situation generates specific questions about Business Models. However, we feel that we can identify three key issues that arise, more or less, in each of these projects. The chapters in this book build on these issues: the identification of sources of value and revenue models (the notion of value creation), the position of the company in the value-network or ecosystem (the sharing of value) and finally the evolution of Business MoDdels over time (the sustainability and the competitiveness of the company). The last chapter goes over all the contributions, exploring the notion of value in the Business Model approach.L'innovation technologique, qu'elle soit conduite par des start-ups ou par de grandes entreprises, n'est plus une condition suffisante de la création de valeur. Créer de la valeur sur des marchés nouveaux nécessite le plus souvent de repenser l'organisation de l'entreprise, sa façon de faire des affaires, ses partenariats stratégiques, autrement dit, son business model. Cet ouvrage se veut un guide pour les porteurs de projets d'innovation en leur fournissant des outils de compréhension et d'analyse de la dimension stratégique de leur projet. Les études de cas présentées sont le fruit d'une collaboration étroite entre les porteurs de chacun des projets et des chercheurs en management de l'innovation reconnus. Au travers de ces cas, trois grandes problématiques sont abordées : l'identification des sources de valeur chez les clients potentiels, la position que l'entreprise pourra prendre dans son écosystème et enfin l'évolution des business models dans le temps. Sur chacun des cas, le lecteur aura accès à une compréhension fine des problèmes stratégiques posés par l'innovation ainsi que des outils de management mis en œuvre pour aider à réfléchir et à agir. (http://www.rethinkingbusinessmodel.net/