Here’s a typical case of what is sometimes called “transactional open innovation” (TOI) or “crowdsourcing innovation” and what hypios calls open problem-solving: a company advertises a problem and broadcasts it to a wide audience in the hopes of finding a workable solution. Experts, often in relevant academic or industrial fields, are given incentive to respond to the call with solutions. The company pays the price agreed with the problem-solver and adopts his or her chosen solution.
Posting problems, challenges, or needs (according to preferred nomenclature) can happen through an intermediary or—if your company is famous enough and can mobilize a lot of resources—through a corporate portal (like RB’s Idealink or P&G’s Connect & Develop). Seems simple enough.
While this describes what often happens in the first experiments with open innovation, it misses out on several important elements in what you can really make happen in Open Problem Solving if the process is well designed.
The main point I want to make here is this: although the desired solution waiting at the end of the process can be tremendously valuable, finding a solution is by no means the only good thing you can get out of it. At every stage of the process, there is value in Open Problem-Solving. With the right approach and mindset, this value can be captured. Even if no solution is retained, investment in Open Problem-Solving can be worthwhile.
In fact, there are even cases in which Open Problem-Solving helps companies find the solution they were looking for, but which still leave value on the table. In other words, there is more in it for you than just a solution.
The first thing to notice is that—contrary to common conception—culture change doesn’t have to happen in the entire company for an experiment in open problem-solving to be valuable. It could happen even within a small division of the company. The rationale for starting with an experiment where a first success-case can be produced is that it’s a way to test the approach. If this case is well documented, it can then be used systematically to spread a culture change in the rest of the organization.
0. Preliminary: Overcoming Solution Fixedness
Being obsessed with solutions only is very common. It took us a while to understand that looking for solutions can be a heuristic to make innovation and problem-solving processes more efficient and satisfactory—not only a means to a solution. The positive results occurred first simply as secondary benefits of customers’ use of hypios. We then thought about how we might systematically capture the value generated along the way: bad process design focuses only on the end of the process rather on making the process itself valuable. In this scenario the process seems to many people to be too long, and the culture change too important, to make companies feel that it justifies their investment—especially if they feel that they risk not getting a solution.
Here are several perks to Open Problem-Solving whether you get a solution or not.
1. Determining how original your internal research actually was
Capturing how many experts looked at your problem and from what fields they came, and correlating this number with the number of actual solutions submitted, will give you an indication of the difficulty of the problem. The experts that offer a solution will provide further indications: because these people are external to your company, they don’t know everything you did or didn’t try in the past. If they offer only solutions which you have already tried, and know to be inadequate, there are two possible explanations. The most likely case is that problem-description didn’t respect one of the principles for good problem-description: to explain the solution in terms of function and not in terms of realisation. There was probably something to the problem description that limited the potential input by solvers to the kind of solutions you had already tried. If you are sure that this wasn’t the case, you have a very good indication that your R&D team had done a thorough job exploring solutions. If the opposite is true, and you get vast numbers of solutions which had never been tried or even imagined, then your R&D team’s innovation capacity may benefit from a new perspective.
2. Fostering a more open culture in innovation
Raising your employees’ awareness of open problem-solving will help them put Describe and Search (DAS) before Define and Try (DAT) What does this mean? DAT is the old paradigm of problem solving: using this technique, companies rely only on internal research and development to find solutions. The nature of the problem is, as the name suggests, defined, and then a path is tried in the hopes of fining a solution that works. This is highly inefficient, and likely to generate the same kinds of hypothetical solutions every time DAS is different. It works on the axiom that one of the main impediments to problem-solving is lack of information. But the fact that the needed information is unavailable does not mean that it doesn’t exist. The best way to track it down is to see whether someone, somewhere, has the information and can tell you about it before you try to figure it out yourself. This means going outside the company or environment in which the problem appeared, in other words: overcoming what’s sometimes called the local search bias. When this becomes a habit, a real culture shift occurs.
3. Learning to look for ideas from outside the box
The general idea behind getting external input is well-known, and is discussed in some detail here. But what does this mean in Open Problem-Solving? Even if no solution is produced, your employees will have interacted with experts from other fields. These experts will have approached your problem with a fresh perspective, without being influenced by old, entrenched habits of thought embedded in your corporate R&D culture. Your researchers will be inspired by the fresh looks of the outsiders: getting such ideas and thinking them through to evaluate them, will help your researchers think of exploring new paths themselves.
4. Using solution approaches to explore new domains
To be specific, you can use the direction where solutions came from as an indicator of where to look for solutions and potential solvers for your problems. Maybe the solution from the paper industry that was suggested by a solver for your food science problem wasn’t right, but the idea that there could be a solution from the paper industry for this kind of problem is probably sound.
5. Learning how best to describe new problems
To look for solutions outside your corporate walls, your employees will need to formulate exactly what the nature of a problem is so that it can be widely understood by potential experts. But greater clarity for the sake of experts has a favourable internal consequence which is perhaps not immediately obvious: your company will get more insight into these problems. This will lead to more efficient recognition and expression of problems, and coming up with future solutions will be easier. By describing the problem to someone else, who is not within the context of the problem, you will be forced to make it clearer, even if only for yourself.
6. Broadcasting problems more easily
Even if you don’t find the solution you originally wanted through the first posting, you will actually get a description of the problem that is clear and well written and can be shared both across silos inside the company and with partners outside.
I said before that there is value at every stage of Open Innovation. So it’s also true that each of these three points above can be broken down into other advantages. Every single element, even if isolated, has value. Even if the process of Open Innovation stopped (for instance) at the stage of merely describing the problem, there would still be value. As Einstein famously answered when he was asked what he would do if he had one hour to save the world: I’d spend 55 minutes on understanding the problem and 5 minutes on solving it. Any amount of close reflection on the precise nature of a problem is time well spent. Even the questions that potential solvers will inevitably ask you about your company and its problems will be valuable and possibly also transformative. They will force you to think about issues that only an outsider would be likely to notice. It might even turn out that the problem you thought you had wasn’t the problem in the first place.
If companies only focus on the solution, if they construe this as the only valuable thing that can come from Open Problem-Solving or Open Innovation, they will be disappointed if this solution does not come. Similarly, if a solution is found but discarded, the company will seem to have wasted its time and money. It is better to think of Open Innovation as a process of development or maturation within R&D: a fundamental cultural shift in a company’s approach to thinking about problems.
To focus only on the solution is to miss out on a great deal of value along the way.
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