Here's an Idea: Let Everyone Have Ideas!
If you have been following along here the last two years, this piece from the Times offers nothing new. On the other hand, if you are new to this site/blog or social network software, idea management, idea exchages, or idea markets, the article is a basic opening to the new world of open innovation.
Anyway, the big idea is that there is a market place for ideas. Funny, I just blogged about social network software and the flat world idea and included a couple of links to posts from last year. They focus on idea markets and idea exchanges using social network software with our e-comm and auctions components - Ideascape. To learn more more these concepts, simply use the 'related tags', click on categories, read my most recent blog posts, or give me a call, 973.433.4007.
"Here's an Idea: Let Everyone Have Ideas"
By WILLIAM C. TAYLOR - He's from Fast Co., but the article appeared in the NY Times.
"LIKE many top executives, James R. Lavoie and Joseph M. Marino keep a close eye on the stock market. But the two men, co-founders of Rite-Solutions, a software company that builds advanced — and highly classified — command-and-control systems for the Navy, don't worry much about Nasdaq or the New York Stock Exchange.
Instead, they focus on an internal market where any employee can propose that the company acquire a new technology, enter a new business or make an efficiency improvement. These proposals become stocks, complete with ticker symbols, discussion lists and e-mail alerts. Employees buy or sell the stocks, and prices change to reflect the sentiments of the company's engineers, computer scientists and project managers — as well as its marketers, accountants and even the receptionist.
"We're the founders, but we're far from the smartest people here," Mr. Lavoie, the chief executive, said during an interview at Rite-Solutions' headquarters outside Newport, R.I. "At most companies, especially technology companies, the most brilliant insights tend to come from people other than senior management. So we created a marketplace to harvest collective genius."
Most companies operate under the assumption that big ideas come from a few big brains: the inspired founder, the eccentric inventor, the visionary boss. But there's a fine line between individual genius and know-it-all arrogance. What happens when rivals become so numerous, when technologies move so quickly, that no corporate honcho can think of everything? Then it's time to invent a less top-down approach to innovation, to make it everybody's business to come up with great ideas.
That's a key lesson behind the rise of open source technology, most notably Linux. A ragtag army of programmers organized into groups, wrote computer code, made the code available for anyone to revise and, by competing and cooperating in a global community, reshaped the market for software. The brilliance of Linux as a model of innovation is that
it is powered by the grass-roots brilliance of the thousands of programmers who created it.
According to Tim O'Reilly, the founder and chief executive of O'Reilly Media, the computer book publisher, and an evangelist for open source technologies, creativity is no longer about which companies have the most visionary executives, but who has the most compelling "architecture of participation." That is, which companies make it easy, interesting and rewarding for a wide range of contributors to offer ideas, solve problems and improve products?
"Would this have happened if it were just up to the guys at the top?" Mr. Marino asked. "Absolutely not. But we could not ignore the fact that so many people were rallying around the idea. This system removes the terrible burden of us always having to be right."
Another virtue of the stock market, Mr. Lavoie added, is that it finds good ideas from unlikely sources. Among Rite-Solutions' core
technologies are pattern-recognition algorithms used in military applications, as well as for electronic gambling systems at casinos, a big market for the company. A member of the administrative staff, with no technical expertise, thought that this technology might also be used in educational settings, to create an entertaining way for students to learn history or math.
She started a stock called Win/Play/Learn (symbol: WPL), which attracted a rush of investment from engineers eager to turn her idea into a product. Their enthusiasm led to meetings with Hasbro,up the road in Pawtucket, and Rite-Solutions won a contract to help it build its VuGo multimedia system, introduced last Christmas.
Mr. Lavoie called this innovation an example of the "quiet genius"that goes untapped inside most organizations. "We would have never connected those dots," he said. "But one employee floated an idea, lots of employees got passionate about it and that led to a new line of business."
The next frontier is to tap the quiet genius that exists outside organizations — to attract innovations from people who are prepared to work with a company, even if they don't work for it. An intriguing case in point is InnoCentive, a virtual research and development lab through which major corporations invite scientists and engineers worldwide to contribute ideas and solve problems they haven't been able to crack themselves."