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Bargaining with the Devil

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Q. For what other products/services might the open innovation model work? How might you leverage or exploit this model for innovation and product development for one of these products?

A. There are a host of products where the open innovation model might work. These include: 1. Product Platforms: A partially developed product platform is introduced with the purpose of providing a development platform for further innovation. eg. development of an Application Programming Interface (API) like Android or Linux. 2. Idea Competitions: Typically used by Internet based companies to exploit inexpensive access to large quantity of innovative ideas, usually through events like hackathons. 3. Collaborative Product design: eg. Threadless, Spreadshirt and Quirky 4. Peer Production and P2P learning: Falls under crowdsourcing domain. eg. Youtube, Wikipedia and Yahoo! Answers.

Let us consider the example of an Idea Competition like a Hackathon or Hack fest to see how it affects the product development of an Internet company like Facebook. Facebook, since its inception has held more than 30 hack fests, or ‘hackathons’, as they are popularly called. These events serve the following purposes: a. As a recruiting event b. To utilize the massive intellectual capacity of a crowd in innovation and development up with new ideas c. To utilize intellectual economies of scale to find loopholes and software bugs in the final product d. As a social event 2
At Facebook, hackathons regularly held at their corporate office in Palo Alto, California have led to the development of features like the ‘Like button’, ‘Timeline’ and ‘Facebook Chat’. Other companies that regularly use open innovation and Hackathons include Google, Bitly and Yahoo!.

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