Innocentive: Finding the right solution

Launched in 2001 by Alpheus Bingham and Jill Panetta, Innocentive is based in Waltham, Massachussets.

It works as a platform for seekers and solvers.

Seekers can be companies (for example: Procter & Gamble, Eli Lily), engineers, scientists, business people, inventors, government agencies and other thinkers. They post issues in any discipline, such as Chemistry, Engineering, Maths, Physical sciences, business, etc, on the Innocentive website.

Solvers can be anyone, who wants to solve the problem by finding the right solution. The challenge is posted and has a deadline of 60days to 5 months, depending on the complexity of the problem.

Registered solvers represent more than 60 different scientific disciplines and are about 135 000. About 35% are located in Asia-Pacific region, 26% in North America, 15% in Western Europe, 9% in Eastern Europe and Russia.

Solvers send their solution and the most appropriate or the right solution is awarded, and the reward is from 5000$ up to 1000 000$. Sometimes, it may happen that this solution is not found.

Both Seekers’ and Solvers’ identity are kept confidential and Innocentive guarantees also the protection of Intellectual Property.

In fact, Innocentive uses internet to connect seekers who formulate complex issues, and solvers to “evaluate promising solution”.

Since 2006, the company is in partnership with the Rockefeller Foundation, in order to find solution due to problems faced in developing countries, for the non-profit sector.

The revenues of Innocentive are mainly the annual access fee of the Companies (seekers) of 80 000$ to post anonymously their issues. When the best solution is rewarded to the solver, Innocentive has a commission of 20% or more.

The benefit for Seeker companies is that they do not have to invest a lot in Research & Development. They can find solutions, for example to innovate, by the “grand talent” from all around the world. It is an outsourcing of their R&D issues. It also reduces risk of research failure and enable them to save time.

Innocentive’s main competitors are NineSigma and YourEncore.

Example of problems posted on the website to be solved:

• INNOCENTIVE 5644660 Theoretical-IP Transfer 386 project rooms open

Solar-powered wireless routers

POSTED: NOV 28, 2007 DEADLINE: JAN 28, 2008 $20,000 USD
A design for a solar-powered wireless router composed of low-cost, readily available hardware and software components is needed. The router is to become part of a reliable Internet communication network connecting metropolises and remote towns in developing countries. This challenge sponsored by the Rockefeller Foundation requires only a written proposal.

• INNOCENTIVE 5658154 Ideation 289 project rooms open

Marketing video aimed at recruiting new Solvers

POSTED: NOV 29, 2007 DEADLINE: FEB 29, 2008 $5,000 USD
This challenge is looking for creation of marketing videos aimed at energizing the recruitment of new InnoCentive Solvers. There will be two winning videos: one chosen by the InnoCentive staff and the other by the whole InnoCentive Solver community. Both winning videos will be used in future marketing campaigns.

Advantages of this business model:

• Connecting the most creative minds.
• The guarantee of confidentiality of both seekers and solvers.
• Seekers spent less in time and money to have the best solution for their problem.
  

Disadvantages:

• It is difficult to evaluate the cost for the solvers for a specific issue.
• Some companies may be “reticent” to post their R&D issues on internet.
• Good ideas sent by solvers not chosen, would be lost
  

The business model could exist offline, but with internet, can connect talented people from all around the world, with those in need of this talent.

It is a sustainable business model as issues will always form part of the everyday life of companies and organisations. It helps them to improve their business technologies and to find innovations, and thus be more competitive.

It is a great idea, to have stretched the business to non-profit organisations, which can help developing countries to progress faster.

Somehow, Innocentive could make more online and offline advertising, as I personally did not know this great model. Furthermore, Innocentive should reward good ideas received from solvers, which can be used to solve other problems, not yet defined.

Innocentive can be very useful to start-ups, in innovative sectors.

Sources:
http://www.innocentive.com/
http://en.wikipedia.org/wiki/InnoCentive
http://pubs.acs.org/cen/business/84/8426bus1.html