Great article in today's Chicago Tribune about the results of IBM's InnovationJam.
What is a Jam? In essence, it is a gigantic online brainstorming session. It is a way to gather ideas from thousands of individuals (in these cases, employees) through free-flowing conversations that work toward collective goals. It is modeled after the idea of musicians participating in "jam sessions."
In 2003, IBM successfully used a Jam to reexamine the company's values.
This year's InnovationJam was the company's most ambitious ever, involving 53,000 people in 77 countries and resulted in 37,000 ideas. The jam was conducted at the urging of Chairman and CEO Sam Palmisano who said: "There's no hierarchy to this kind of
creative collaboration. Whether you're a senior
executive, a scientist, a business consultant or even a 13-year-old
child of an IBMer, everyone gets to be heard."
According to the article:
" IBM managers then used automation to
winnow the 37,000 offerings down to 300 defined ideas. Finally, more
than 50 employees came to IBM's Watson Research Center to work in teams
for most of a week to further combine and trim ideas to around 30."
IBM has pledged $100 million to support the ideas coming out of the jam. I imagine this is a fraction of their existing R&D budget.
This is a slightly different tactic than Kraft has taken with its approach to innovation. Kraft is using what is referred to as "open innovation," and accepting ideas from external sources through its Web site.
What does all this mean?
Call it the wisdom of crowds approach to innovation, or crowdsourcing - whatever it is, it is just good business. The rate of innovation needed to stay competitive in the global economy is directly proportional to the rate of replication that currently exists. The idea here is that any edge will be fleeting, so innovation must be constant. The more people you can involve in a system of constructive innovation, the better your odds to produce successes more often.
What this demonstrates is that engaging employees is about far more than boosting moral and reciting the company values, it is about empowering employees to contribute to the advancement of the business.
Is there a risk here? Absolutely. With the IBM jam, 67 clients were allowed to look in on the jam, and competitors could have been looking in on certain aspects to steal or copy. For Kraft, individuals are free to take ideas elsewhere or develop them themselves.
The model here is incredibly similar to the model that I believe most public relations firms should be taking. Use whatever resources you have to aggregate information - technology, employees, etc. - and make your money by doing smarter things with that information than other people do. You will win in three ways:
- Traditional companies will not be open to new information and therefore will have a limited view of problem solving and difficulty finding innovative solutions.
- A more open process helps develop a community around the innovation process that will reduce the risks and boost the possibility of success (while minimizing resource investment.)
- Overall, an increase in information flow makes you more knowledgeable, involved and relevant in the marketplace, giving you a brand advantage.
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