Category Archives: ReviewScale

Don’t Just Expect Success, Plan On it

When asked, the majority of business leaders will tell you, without hesitation, that their corporation is innovating. Right now, innovation in every industry is driven by leaders tapping into employee experience, customer creativity, and outside expert knowledge through crowdsourcing, and supporting the new and unexpected ideas. But with this expanded network, how do you select the most fruitful ideas for implementation?

Kickstarter’s stats page proudly displays their successes: 63,507 funded projects and $1,160,829,721 pledged. This number is on the rise – I bet it will have risen even by the time you read this. With so much consumer support, you’d think that funded projects would be a sure thing.

Not all funded projects, on Kickstarter or its myriad competitors, make it to the market. Crowdfunding can get the ball rolling, but green entrepreneurs can fall victim to their newness before products make it to market. When products don’t make it to deadline the fans that bought it quickly grow disgruntled, and the results are sadly predictable. Hit the ground running – the planning must start before the campaign, and continue throughout fundraising and production.

According to the Washington Post, in interviewing 100 chief innovation officers from corporations around the globe, Fahrenheit 212 discovered that for 45% of the sample less than 10% of innovation projects ever made it to market, and for 21% of the sample only 10-25%. Only 14% of those sampled could say that 50% or more of their corporations innovations were finalized and entered the market.

Remember Crystal Pepsi and New Coke? Even well established companies, with a dedicated customer base and an array of successful products can fail when they launch new products. Fortunately, Pepsi and Coke managed the failure expertly, and re-won the hearts of their fans before they self-destructed.

For innovation to be disruptive, it must go public – implementation of strategies and systems, and introduction of products to the market. Planning must happen at every step. Know what ideas to implement before you dedicate resources to them with decision matrix software, such as ReviewScale from IdeaScale. Evaluate innovative ideas with known constraints and measurable values. Learn more about putting innovation in it’s place with our webinar introducing the brand new ReviewScale decision matrix software.

A Case of ROI and the Crowd

netflixCrowdsourcing the public can bring to light ideas that would never have surfaced through internal exploration. The more open your innovation campaign, the greater the quantity and diversity of the resulting data. But what to do with all of this data? You can look at the most popular ideas for implementation, but will they be successful? Do the ideas most popular with the crowd translate into innovations with the highest ROI?

In 2006, Netflix issued a public challenge: improve the predictive rating system that recommends movies for Netflix users. Specifically, improve upon the accuracy of Cinematch, the system used by Netflix at that time, by at least 10%. Offering $1,000,000 as a reward, the only rule Netflix established was that those who submitted must explain and make publicly available how they solved the puzzle.

After nearly three years, the 10% barrier was finally surpassed. Although Netflix issued the grand prize check at a publicized event, the algorithms that won the award were never implemented. According to Netflix, the winning system was tested, and the output simply did not warrant the time it would take to implement – the return on investment was not strong enough.

By the time the prize had been claimed, Netflix’s instant watch option had grown from a side feature to the main event. Streaming videos through devices such as a roku or xbox had changed the format through which viewers made their selection. In a blog response to the win, Netflix explains that 75% of viewer choices are now made based on recommendations from the system. Even more interesting, Netflix found that viewers made significantly different choices when using instant watch for videos they would be viewing immediately, than for rentals they would receive and watch in the future. The prize winning algorithms would only have improved accuracy for physical video rentals, which had become the minority.

Opening the innovation and ideation process to the crowd is a great way to test the public pulse. But ROI is a complex metric, and requires a deeper evaluation of the crowdsourced data. On Tuesday June 10th, IdeaScale’s CEO, Rob Hoehn, will introduce ReviewScale – our new decision matrix software that ensures ROI. Sign up for the webinar now, and discover how ReviewScale can guide you through the implementation stage to success.