How Not to Implement Open Innovation
by Stefan Lindegaard
Let me start out by saying that it is purely accidental that I am lashing out at Campbell Soup Company in this blog post. It could have been several other companies as Campbell has not really done things that have not been done at other companies that set up programs to accept innovative ideas from external sources. While their intentions may be good, their execution is so poor that I can't imagine they'll have much success at this attempt at open innovation.
Here are a few of the problems I see with Campbell's Ideas for Innovation program:
It's too vague and unfocused
Turn me on, not off
No commitment leads to wasted resources; internal resistance
Has Campbell learned anything?
Conclusion
Has Campbell reached their goals with this initiative? Was this just a marketing gimmick? I cannot tell, but my gut feeling tells me that they aimed pretty low on this. They have probably received a ton of useless ideas and very few quality ideas that they have decided to move forward with. This effort has cost Campbell and all the people who submitted ideas resources that could have been spent better.
I might be wrong on many of my assumptions. Nevertheless, my message to Campbell - and to other companies working with similar initiatives - please do better than this.
Stefan Lindegaard is a speaker, network facilitator and strategic advisor who focus on the topics of open innovation, intrapreneurship and how to identify and develop the people who drive innovation.
Let me start out by saying that it is purely accidental that I am lashing out at Campbell Soup Company in this blog post. It could have been several other companies as Campbell has not really done things that have not been done at other companies that set up programs to accept innovative ideas from external sources. While their intentions may be good, their execution is so poor that I can't imagine they'll have much success at this attempt at open innovation.Here are a few of the problems I see with Campbell's Ideas for Innovation program:
It's too vague and unfocused
- Campbell says they want "ideas for new products, packaging, marketing, and production technologies that will help us meet the needs of our consumers and customers better, faster and more completely." Gee, that could be almost anything, couldn't it? Why not help your potential external partners and save everybody time by being more specific about what you're looking for?
- Hopefully, Campbell Soup Company (and other companies doing this) have set an innovation strategy and know much more specifically what areas they're most interested in pursuing than the catch-all description above implies. By being so vague, they avoid being inundated by the type of useless and energy-wasting ideas like the one mentioned in this humorous or perhaps sarcastic post: Campbell Needs My Help
Turn me on, not off
- Campbell says it will take you three to six months to get a reply and if they turn down your idea, you will not receive any explanation of why it has been rejected. Why not try to make it more inviting? I think the reason for both these stipulations is that Campbell is afraid of getting too many submissions, which takes me back to my first point. Bring some focus to the effort and you'll receive ideas that are more on target and that can be reviewed faster and better. And for heaven's sakes, if someone went to the trouble of sending in idea, you could at least develop some general categories to explain why an idea is turned down.
- It reads like an ego-trip. A press-release said this: "The Ideas for Innovation website is designed to provide an effective way for Campbell to review and evaluate unsolicited ideas by offering people who do not work for the company an easy way to submit ideas." You ask people for their input and yet you design the entire process towards your own needs. Come on! Yes, this is your website and you are in control. But the website talks only about why this is good for Campbell. Why not mention what Campbell can bring to the table to the companies or people interested in working with them and how this can be done? This kind of behaviour is typical of large companies not caring about others than themselves and I think it will hurt them in the long run in this new era of open innovation.
No commitment leads to wasted resources; internal resistance
- The press release announcing Campbell's Ideas for Innovation initiative mentions that external involvement is a key element to improve their innovation results. If this is a key element for them, then I really wonder why they do not put more effort into it.
- Campbell does mention that they have other ways of accessing innovation from other sources. I hope this includes a pure business-to-business version that is much more attentive towards their partners compared to their Ideas for Innovation website. Unfortunately, I have not been able to find any information on this so perhaps they don't. Perhaps Campbell uses intermediaries such as Innocentive and NineSigma. I think they can benefit from a partnership with such intermediaries if they manage to focus their efforts.
- Campbell is a big company and they can easily absorb this wasted effort. I am more worried about how this can fuel internal opponents of open innovation as the the results will most likely support their arguments for not opening up to external partners. I can hear the comments now: "Geeze, all we're getting from this program is a bunch of junk. What a waste of time!"
Has Campbell learned anything?
- The website was launched in April. I wonder what they have learned. I assume they must have encountered at least some of the issues that I mention in this post since the launch five months ago. Yet, they have not made any significant chances to their approach. Perhaps they just wanted a Me-Too project when they learned about those external idea generation initiatives launched by Dell, Starbucks and many others. To me, it seems like they ended up with a bad copy leaving the impression that they do not really believe in open innovation. I am sorry to say that it gives the innovation group at Campbell a not-so-good image.
Conclusion
Has Campbell reached their goals with this initiative? Was this just a marketing gimmick? I cannot tell, but my gut feeling tells me that they aimed pretty low on this. They have probably received a ton of useless ideas and very few quality ideas that they have decided to move forward with. This effort has cost Campbell and all the people who submitted ideas resources that could have been spent better.
I might be wrong on many of my assumptions. Nevertheless, my message to Campbell - and to other companies working with similar initiatives - please do better than this.
Stefan Lindegaard is a speaker, network facilitator and strategic advisor who focus on the topics of open innovation, intrapreneurship and how to identify and develop the people who drive innovation.Labels: Innovation, Open Innovation, Stefan Lindegaard











2 Comments:
Don't necessarily blame the poor execution of this initiative on Campbell's marketing and innovation teams. What may be going on is that the business people really want this, but the lawyers think it's too risky. As such, Campbell's "Open Innovation" initiative was drafted from the framework of minimizing legal risk, not fostering real and effective idea generation from external sources.
As a "rule breaking" senior IP lawyer at a major consumer products company, I worked with a team of innovation people to come up with a program that sounded very much like this one. (We cribbed from other idea submission policies at consumer products companies, and I expect Campbell's did too.) While we were motivated toward identifying real opportunities for bringing externally sourced products and technology, the team understood that the existing corporate infrastructure was not enthusiastic about the idea. We thus intentionally aimed low and created many gatekeeper functions and heavy expectation management features (ala: it will take us 3-6 months to get back to you). We did this because we knew that the heavily risk adverse other lawyers who had to sign off on the idea submission policy would put the kibbosh on anything that was perceived as too risky. Our team thought that we could put a toe in the door and later make more progress on developing more aggressive means to integrate externally sourced ideas into our company's consumer product pipelines. After spending 2 months (and countless corporate hours) on an admittedly lame website idea submission policy, the head of the IP department spiked the program behind the scenes as "too risky."
I came into this consumer products company with many years of experience in collaborations and joint ventures, along with the attendant IP issues that arise in such issues. As someone with this perspective, I can assure any lawyer that Open Innovation with proper safeguards and management of expectations does not create risk. (And, P&G wouldn't be doing this if their lawyers hadn't vetted their Open Innovation program "6 ways to Sunday"). But for many lawyers--especially the frequently conservatively-natured IP lawyers--new and different things are all too frequently perceived as creating unmanageable risk. Open Innovation is new and, as such, will not be accepted by those lawyers who see their jobs as mitigating risk for their corporate employers. Accordingly, in those organizations where the lawyers drive or can veto business decisions, Open Innovation cannot really succeed.
So, in closing, in Campbell's case (as well as many other companies) the real impediment to Open Innovation may be their risk adverse corporate lawyers.
Sorry Jackie, in layman's terms, if you ask for people's suggestions, can you not do this with no obligation to accept or reject them? Is this not an area that does not need lawyers trying to feed off it? If you do want to accept someone's suggestion, surely if it pays then the company should then be prepared to give some consideration to the person who made the suggestion?
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