Megan O’Neil at the Chronicle of Philanthropy: “Government agencies and philanthropic organizations are increasingly staging competitions as a way generate interest in solving difficult technological, social, and environmental problems, according to a new report.
“The Craft of Prize Design: Lessons From the Public Sector” found that well-designed competitions backed by cash incentives can help organizations attract new ideas, mobilize action, and stimulate markets.
“Incentive prizes have transformed from an exotic open innovation to a proven innovation strategy for the public, private, and philanthropic sectors,” the report says.
Produced by Deloitte Consulting’s innovation practice, the report was financially supported by Bloomberg Philanthropies and the Case; Joyce; John S. and James L. Knight; Kresge; and Rockefeller foundations.
The federal government has staged more than 350 prize competitions during the past five years to stimulate innovation and crowdsource solutions, according to the report. And philanthropic organizations are also fronting prizes for competitions promoting innovative responses to questions such as how to strengthen communities and encourage sustainable energy consumption.
One example cited by the report is the Talent Dividend Prize, sponsored by CEOs for Cities and the Kresge Foundation, which awards $1-million to the city that most increases its college graduation rate during a four-year period. A second example is the MIT Clean Energy Prize, co-sponsored by the U.S. Department of Energy, which offered a total of $1 million in prize money. Submissions generated $85 million in capital and research grants, according to the report.
A prize-based project should not be adopted when an established approach to solve a problem already exists or if potential participants don’t have the interest or time to work on solving a problem, the report concludes. Instead, prize designers must gauge the capacity of potential participants before announcing a prize, and make sure that it will spur the discovery of new solutions.”
Lessons in Mass Collaboration
Elizabeth Walker, Ryan Siegel, Todd Khozein, Nick Skytland, Ali Llewellyn, Thea Aldrich, and Michael Brennan in the Stanford Social Innovation Review: “significant advances in technology in the last two decades have opened possibilities to engage the masses in ways impossible to imagine centuries ago. Beyond coordination, today’s technological capability permits organizations to leverage and focus public interest, talent, and energy through mass collaborative engagement to better understand and solve today’s challenges. And given the rising public awareness of a variety of social, economic, and environmental problems, organizations have seized the opportunity to leverage and lead mass collaborations in the form of hackathons.
Hackathons emerged in the mid-2000s as a popular approach to leverage the expertise of large numbers of individuals to address social issues, often through the creation of online technological solutions. Having led hundreds of mass collaboration initiatives for organizations around the world in diverse cultural contexts, we at SecondMuse offer the following lessons as a starting point for others interested in engaging the masses, as well as challenges others’ may face.
What Mass Collaboration Looks Like
An early example of a mass collaborative endeavor was Random Hacks of Kindness (RHoK), which formed in 2009. RHoK was initially developed in collaboration with Google, Microsoft, Yahoo!, NASA, the World Bank, and later, HP as a volunteer mobilization effort; it aimed to build technology that would enable communities to respond better to crises such as natural disasters. In 2012, nearly 1,000 participants attended 30 events around the world to address 176 well-defined problems.
In 2013, NASA and SecondMuse led the International Space Apps Challenge, which engaged six US federal agencies, 400 partner institutions, and 9,000 global citizens through a variety of local and global team configurations; it aimed to address 58 different challenges to improve life on Earth and in space. In Athens, Greece, for example, in direct response to the challenge of creating a space-deployable greenhouse, a team developed a modular spinach greenhouse designed to survive the harsh Martian climate. Two months later, 11,000 citizens across 95 events participated in the National Day of Civic Hacking in 83 different US cities, ultimately contributing about 150,000 person-hours and addressing 31 federal and several state and local challenges over a single weekend. One result was Keep Austin Fed from Austin, Texas, which leveraged local data to coordinate food donations for those in need.
Strong interest on the part of institutions and an enthusiastic international community has paved the way for follow-up events in 2014.
Benefits of Mass Collaboration
The benefits of this approach to problem-solving are many, including:
- Incentivizing the use of government data. As institutions push to make data available to the public, mass collaboration can increase the usefulness of that data by creating products from it, as well as inform and streamline future data collection processes.
- Increasing transparency. Engaging citizens in the process of addressing public concerns educates them about the work that institutions do and advances efforts to meet public expectations of transparency.
- Increasing outcome ownership. When people engage in a collaborative process of problem solving, they naturally have a greater stake in the outcome. Put simply, the more people who participate in the process, the greater the sense of community ownership. Also, when spearheading new policies or initiatives, the support of a knowledgeable community can be important to long-term success.
- Increasing awareness. Engaging the populace in addressing challenges of public concern increases awareness of issues and helps develop an active citizenry. As a result, improved public perception and license to operate bolster governmental and non-governmental efforts to address challenges.
- Saving money. By providing data and structures to the public, and allowing them to build and iterate on plans and prototypes, mass collaboration gives agencies a chance to harness the power of open innovation with minimal time and funds.
- Harnessing cognitive surplus. The advent of online tools allowing for distributed collaboration enables citizens to use their free time incrementally toward collective endeavors that benefit local communities and the nation.
Challenges of Mass Collaboration
Although the benefits can be significant, agencies planning to lead mass collaborations should be aware of several challenges:
- Investing time and effort. A mass collaboration is most effective when it is not a one-time event. The up-front investment in building a collaboration of supporting partner organizations, creating a robust framework for action, developing the necessary tools and defining the challenges, and investing in implementation and scaling of the most promising results all require substantial time to secure long-term commitment and strong relationships.
- Forging an institution-community relationship. Throughout the course of most engagements, the power dynamic between the organization providing the frameworks and challenges and the groupings of individuals responding to the call to action can shift dramatically as the community incorporates the endeavor into their collective identity. Everyone involved should embrace this as they lay the foundation for self-sustaining mass collaboration communities. Once participants develop a firmly entrenched collective identity and sense of ownership, the convening organization can fully tap into its collective genius, as they can work together based on trust and shared vision. Without community ownership, organizers need to allot more time, energy, and resources to keep their initiative moving forward, and to battle against volunteer fatigue, diminished productivity, and substandard output.
- Focusing follow-up. Turning a massive infusion of creative ideas, concepts, and prototypes into concrete solutions requires a process of focused follow-up. Identifying and nurturing the most promising seeds to fruition requires time, discrete skills, insight, and—depending on the solutions you scale—support from a variety of external organizations.
- Understanding ROI. Any resource-intensive endeavor where only a few of numerous resulting products ever see the light of day demands deep consideration of what constitutes a reasonable return on investment. For mass collaborations, this means having an initial understanding of the potential tangible and intangible outcomes, and making a frank assessment of whether those outcomes meet the needs of the collaborators.
Technological developments in the last century have enabled relationships between individuals and institutions to blossom into a rich and complex tapestry…”
User motivation and knowledge sharing in idea crowdsourcing
MIIA KOSONEN et al, Int. J. Innov. Mgt.: “We investigate how the propensity to trust, intrinsic motivation, and extrinsic motivation drive the intentions of individuals to share knowledge in idea crowdsourcing. Building on motivation theories and Uses & Gratifications (U&G) approach, we conducted a web-based survey within IdeasProject, an open innovation and brainstorming community dedicated to harvesting ideas. Based on a sample of 244 users, our research shows that the key driver of knowledge-sharing intentions is made up of two intrinsic motivations — social benefits and learning benefits. We also found that recognition from the host company affects intention to share knowledge. From the management point of view, the relative importance of social integrative benefits calls for better facilities available for users to be able to help each other in formulating and developing their ideas. Learning and creativity could be inspired by feedback from professionals and experts, while providing insight into technological advances and features dealing with the current tasks.”
Working Together in a Networked Economy
Yochai Benkler at MIT Technology Review on Distributed Innovation and Creativity, Peer Production, and Commons in a Networked Economy: “A decade ago, Wikipedia and open-source software were treated as mere curiosities in business circles. Today, these innovations represent a core challenge to how we have thought about property and contract, organization theory and management, over the past 150 years.
For the first time since before the Industrial Revolution, the most important inputs into some of the most important economic sectors are radically distributed in the population, and the core capital resources necessary for these economic activities have become widely available in wealthy countries and among the wealthier populations of emerging economies. This technological feasibility of social production generally, and peer production — the kind of network collaboration of which Wikipedia is the most prominent example — more specifically, is interacting with the high rate of change and the escalating complexity of global innovation and production systems.
Increasingly, in the business literature and practice, we see a shift toward a range of open innovation and models that allow more fluid flows of information, talent, and projects across organizations.
Peer production, the most significant organizational innovation that has emerged from Internet-mediated social practice, is large-scale collaborative engagement by groups of individuals who come together to produce products more complex than they could have produced on their own. Organizationally, it combines three core characteristics: decentralization of conception and execution of problems and solutions; harnessing of diverse motivations; and separation of governance and management from property and contract.
These characteristics make peer production highly adept at experimentation, innovation, and adaptation in changing and complex environments. If the Web was innovation on a commons-based model — allocating access and use rights in resources without giving anyone exclusive rights to exclude anyone else — Wikipedia’s organizational innovation is in problem-solving.
Wikipedia’s user-generated content model incorporates knowledge that simply cannot be managed well, either because it is tacit knowledge (possessed by individuals but difficult to communicate to others) or because it is spread among too many people to contract for. The user-generated content model also permits organizations to explore a space of highly diverse interests and tastes that was too costly for traditional organizations to explore.
Peer production allows a diverse range of people, regardless of affiliation, to dynamically assess and reassess available resources, projects, and potential collaborators and to self-assign to projects and collaborations. By leaving these elements to self-organization dynamics, peer production overcomes the lossiness of markets and bureaucracies, and its benefits are sufficient that the practice has been widely adopted by firms and even governments.
In a networked information economy, commons-based practices and open innovation provide an evolutionary model typified by repeated experimentation and adoption of successful adaptation rather than the more traditional, engineering-style approaches to building optimized systems.
Commons-based production and peer production are edge cases of a broader range of openness strategies that trade off the freedom of these two approaches and the manageability and appropriability that many more-traditional organizations seek to preserve. Some firms are using competitions and prizes to diversify the range of people who work on their problems, without ceding contractual control over the project. Many corporations are participating in networks of firms engaging in a range of open collaborative innovation practices with a more manageable set of people, resources, and projects to work with than a fully open-to-the-world project. And the innovation clusters anchored around universities represent an entrepreneurial model at the edge of academia and business, in which academia allows for investment in highly uncertain innovation, and the firms allow for high-risk, high-reward investment models.
To read the full article, click here.“
United States federal government use of crowdsourcing grows six-fold since 2011
at E Pluribus Unum: “Citizensourcing and open innovation can work in the public sector, just as crowdsourcing can in the private sector. Around the world, the use of prizes to spur innovation has been booming for years. The United States of America has been significantly scaling up its use of prizes and challenges to solving grand national challenges since January 2011, when, President Obama signed an updated version of the America COMPETES Act into law.
According to the third congressionally mandated report released by the Obama administration today (PDF/Text), the number of prizes and challenges conducted under the America COMPETES Act has increased by 50% since 2012, 85% since 2012, and nearly six-fold overall since 2011. 25 different federal agencies offered prizes under COMPETES in fiscal year 2013, with 87 prize competitions in total. The size of the prize purses has also grown as well, with 11 challenges over $100,000 in 2013. Nearly half of the prizes conducted in FY 2013 were focused on software, including applications, data visualization tools, and predictive algorithms. Challenge.gov, the award-winning online platform for crowdsourcing national challenges, now has tens of thousands of users who have participated in more than 300 public-sector prize competitions. Beyond the growth in prize numbers and amounts, Obama administration highlighted 4 trends in public-sector prize competitions:
- New models for public engagement and community building during competitions
- Growth software and information technology challenges, with nearly 50% of the total prizes in this category
- More emphasis on sustainability and “creating a post-competition path to success”
- Increased focus on identifying novel approaches to solving problems
The growth of open innovation in and by the public sector was directly enabled by Congress and the White House, working together for the common good. Congress reauthorized COMPETES in 2010 with an amendment to Section 105 of the act that added a Section 24 on “Prize Competitions,” providing all agencies with the authority to conduct prizes and challenges that only NASA and DARPA has previously enjoyed, and the White House Office of Science and Technology Policy (OSTP), which has been guiding its implementation and providing guidance on the use of challenges and prizes to promote open government.
“This progress is due to important steps that the Obama Administration has taken to make prizes a standard tool in every agency’s toolbox,” wrote Cristin Dorgelo, assistant director for grand challenges in OSTP, in a WhiteHouse.gov blog post on engaging citizen solvers with prizes:
In his September 2009 Strategy for American Innovation, President Obama called on all Federal agencies to increase their use of prizes to address some of our Nation’s most pressing challenges. Those efforts have expanded since the signing of the America COMPETES Reauthorization Act of 2010, which provided all agencies with expanded authority to pursue ambitious prizes with robust incentives.
To support these ongoing efforts, OSTP and the General Services Administration have trained over 1,200 agency staff through workshops, online resources, and an active community of practice. And NASA’s Center of Excellence for Collaborative Innovation (COECI) provides a full suite of prize implementation services, allowing agencies to experiment with these new methods before standing up their own capabilities.
Sun Microsystems co-founder Bill Joy famously once said that “No matter who you are, most of the smartest people work for someone else.” This rings true, in and outside of government. The idea of governments using prizes like this to inspire technological innovation, however, is not reliant on Web services and social media, born from the fertile mind of a Silicon Valley entrepreneur. As the introduction to the third White House prize report notes:
“One of the most famous scientific achievements in nautical history was spurred by a grand challenge issued in the 18th Century. The issue of safe, long distance sea travel in the Age of Sail was of such great importance that the British government offered a cash award of £20,000 pounds to anyone who could invent a way of precisely determining a ship’s longitude. The Longitude Prize, enacted by the British Parliament in 1714, would be worth some £30 million pounds today, but even by that measure the value of the marine chronometer invented by British clockmaker John Harrison might be a deal.”
Centuries later, the Internet, World Wide Web, mobile devices and social media offer the best platforms in history for this kind of approach to solving grand challenges and catalyzing civic innovation, helping public officials and businesses find new ways to solve old problem. When a new idea, technology or methodology that challenges and improves upon existing processes and systems, it can improve the lives of citizens or the function of the society that they live within….”
Potholes and Big Data: Crowdsourcing Our Way to Better Government
Phil Simon in Wired: “Big Data is transforming many industries and functions within organizations with relatively limited budgets.
Consider Thomas M. Menino, up until recently Boston’s longest-serving mayor. At some point in the past few years, Menino realized that it was no longer 1950. Perhaps he was hobnobbing with some techies from MIT at dinner one night. Whatever his motivation, he decided that there just had to be a better, more cost-effective way to maintain and fix the city’s roads. Maybe smartphones could help the city take a more proactive approach to road maintenance.
To that end, in July 2012, the Mayor’s Office of New Urban Mechanics launched a new project called Street Bump, an app that allows drivers to automatically report the road hazards to the city as soon as they hear that unfortunate “thud,” with their smartphones doing all the work.
The app’s developers say their work has already sparked interest from other cities in the U.S., Europe, Africa and elsewhere that are imagining other ways to harness the technology.
Before they even start their trip, drivers using Street Bump fire up the app, then set their smartphones either on the dashboard or in a cup holder. The app takes care of the rest, using the phone’s accelerometer — a motion detector — to sense when a bump is hit. GPS records the location, and the phone transmits it to an AWS remote server.
But that’s not the end of the story. It turned out that the first version of the app reported far too many false positives (i.e., phantom potholes). This finding no doubt gave ammunition to the many naysayers who believe that technology will never be able to do what people can and that things are just fine as they are, thank you. Street Bump 1.0 “collected lots of data but couldn’t differentiate between potholes and other bumps.” After all, your smartphone or cell phone isn’t inert; it moves in the car naturally because the car is moving. And what about the scores of people whose phones “move” because they check their messages at a stoplight?
To their credit, Menino and his motley crew weren’t entirely discouraged by this initial setback. In their gut, they knew that they were on to something. The idea and potential of the Street Bump app were worth pursuing and refining, even if the first version was a bit lacking. Plus, they have plenty of examples from which to learn. It’s not like the iPad, iPod, and iPhone haven’t evolved considerably over time.
Enter InnoCentive, a Massachusetts-based firm specializing in open innovation and crowdsourcing. The City of Boston contracted InnoCentive to improve Street Bump and reduce the amount of tail chasing. The company accepted the challenge and essentially turned it into a contest, a process sometimes called gamification. InnoCentive offered a network of 400,000 experts a share of $25,000 in prize money donated by Liberty Mutual.
Almost immediately, the ideas to improve Street Bump poured in from unexpected places. This crowd had wisdom. Ultimately, the best suggestions came from:
- A group of hackers in Somerville, Massachusetts, that promotes community education and research
- The head of the mathematics department at Grand Valley State University in Allendale, MI.
- An anonymous software engineer
…Crowdsourcing roadside maintenance isn’t just cool. Increasingly, projects like Street Bump are resulting in substantial savings — and better government.”
The Challenges of Challenge.Gov: Adopting Private Sector Business Innovations in the Federal Government
I Mergel, SI Bretschneider, C Louis, J Smith at the HICSS ’14 Proceedings of the 2014 47th Hawaii International Conference on System Sciences: “As part of the Open Government Initiative in the U.S. federal government, the White House has introduced a new policy instrument called “Challenges and Prizes”, implemented as Challenge.gov that allows federal departments to run Open Innovation (OI) contests. This initiative was motivated by similar OI initiatives in the private sector and to enhance innovativeness and performance among federal agencies. Here we first define the underlying theoretical concepts of OI, crowd sourcing and contests and apply them to the existing theory of public ness and the creation of public goods. We then analyze over 200 crowd sourcing contests on CHALLENGE.GOV and conclude that federal departments and agencies use this policy instrument for four different purpose: awareness, service, knowledge and technical solutions. We conclude that Challenge.gov is currently used as an innovative format to inform and educate the public about public management problems and less frequently to solicit complex technological solutions from problem solvers.”
The United States Releases its Second Open Government National Action Plan
Nick Sinai and Gayle Smith at the White House: “Since his first full day in office, President Obama has prioritized making government more open and accountable and has taken substantial steps to increase citizen participation, collaboration, and transparency in government. Today, the Obama Administration released the second U.S. Open Government National Action Plan, announcing 23 new or expanded open-government commitments that will advance these efforts even further.
…, in September 2011, the United States released its first Open Government National Action Plan, setting a series of ambitious goals to create a more open government. The United States has continued to implement and improve upon the open-government commitments set forth in the first Plan, along with many more efforts underway across government, including implementing individual Federal agency Open Government Plans. The second Plan builds on these efforts, in part through a series of key commitments highlighted in a preview report issued by the White House in October 2013, in conjunction with the Open Government Partnership Annual Summit in London.
Among the highlights of the second National Action Plan:
- “We the People”: The White House will introduce new improvements to the We the People online petitions platform aimed at making it easier to collect and submit signatures and increase public participation in using this platform. Improvements will enable the public to perform data analysis on the signatures and petitions submitted to We the People, as well as include a more streamlined process for signing petitions and a new Application Programming Interface (API) that will allow third-parties to collect and submit signatures from their own websites.
- Freedom of Information Act (FOIA) Modernization: The FOIA encourages accountability through transparency and represents an unwavering national commitment to open government principles. Improving FOIA administration is one of the most effective ways to make the U.S. Government more open and accountable. Today, we announced five commitments to further modernize FOIA processes, including launching a consolidated online FOIA service to improve customers’ experience, creating and making training resources available to FOIA professionals and other Federal employees, and developing common FOIA standards for agencies across government.
- The Global Initiative on Fiscal Transparency (GIFT): The United States will join GIFT, an international network of governments and non-government organizations aimed at enhancing financial transparency, accountability, and stakeholder engagement. The U.S. Government will actively participate in the GIFT Working Group and seek opportunities to collaborate with stakeholders and champion greater fiscal openness and transparency in domestic and global spending.
- Open Data to the Public: Over the past few years, government data has been used by journalists to uncover variations in hospital billings, by citizens to learn more about the social services provided by charities in their communities, and by entrepreneurs building new software tools to help farmers plan and manage their crops. Building on the U.S. Government’s ongoing open data efforts, new commitments will make government data even more accessible and useful for the public, including by reforming how Federal agencies manage government data as a strategic asset, launching a new version of Data.gov to make it even easier to discover, understand, and use open government data, and expanding access to agriculture and nutrition data to help farmers and communities.
- Participatory Budgeting: The United States will promote community-led participatory budgeting as a tool for enabling citizens to play a role in identifying, discussing, and prioritizing certain local public spending projects, and for giving citizens a voice in how taxpayer dollars are spent in their communities. This commitment will include steps by the U.S. Government to help raise awareness of the fact that participatory budgeting may be used for certain eligible Federal community development grant programs.
Other initiatives launched or expanded today include: increasing open innovation by encouraging expanded use of challenges, incentive prizes, citizen science, and crowdsourcing to harness American ingenuity, as well as modernizing the management of government records by leveraging technology to make records less burdensome to manage and easier to use and share. There are many other exciting open-government initiatives described in the second Plan — and you can view them all here.”
Government Digital Service: the best startup in Europe we can't invest in
Saul Klein in the Guardian: “Everyone is rightly excited about the wall of amazing tech-enabled startups being born in Europe and Israel, disrupting massive industries including media, marketing, fashion, retail, travel, finance and transportation. However, there’s one incredibly disruptive startup based in London that is going after one of the biggest markets of all, and is so opaque it is largely unknown in the world of business – and, much to my chagrin, it’s also impossible to invest in.
It’s not a private company, it wasn’t started by “conventional” tech entrepreneurs and the market (though huge) is decidedly unsexy.
Its name is the Government Digital Service (GDS) and it is disrupting the British public sector in an energetic, creative and effective way. In less than two years GDS has hired over 200 staff (including some of the UK’s top digital talent), shipped an award-winning service, and begun the long and arduous journey of completely revolutionising the way that 62 million citizens interact with more than 700 services from 24 government departments and their 331 agencies.
It’s a strange world we live in when the government is pioneering the way that large complex corporations reinvent themselves to not just massively reduce cost and complexity, but to deliver better and more responsive services to their customers and suppliers.
So what is it that GDS knows that every chairman and chief executive of a FTSE100 should know? Open innovation.
1. Open data
• Leads to radical and remarkable transparency like the amazing Transactions Explorer designed by Richard Sargeant and his team. I challenge any FTSE100 to deliver the same by December 2014, or even start to show basic public performance data – if not to the internet, at least to their shareholders and analysts.
• Leads to incredible and unpredictable innovation where public data is shared and brought together in new ways. In fact, the Data.gov.uk project is one of the world’s largest data sources of public data with over 9,000 data sets for anyone to use.
2. Open standards
• Deliver interoperability across devices and suppliers
• Provide freedom from lock-in to any one vendor
• Enable innovation from a level playing field of many companies, including cutting-edge startups
• The Standards Hub from the Cabinet Office is an example of how the government aims to achieve open standards
3. Cloud and open source software and services
• Use of open source, cloud and software-as-a-service solutions radically reduces cost, improves delivery and enables innovation
4. Open procurement
• In March 2011, the UK government set a target to award 25% of spend with third-party suppliers to SMEs by March 2015.”
BBC throws weight behind open data movement
The Telegraph: “The BBC has signed Memoranda of Understanding (MoUs) with the Europeana Foundation, the Open Data Institute, the Open Knowledge Foundation and the Mozilla Foundation, supporting free and open internet technologies…
The agreements will enable closer collaboration between the BBC and each of the four organisations on a range of mutual interests, including the release of structured open data and the use of open standards in web development, according to the BBC.
One aim of the agreement is to give clear technical standards and models to organisations who want to work with the BBC, and give those using the internet a deeper understanding of the technologies involved.
The MoUs also bring together several existing areas of research and provide a framework to explore future opportunities. Through this and other initiatives, the BBC hopes to become a catalyst for open innovation by publishing clear technical standards, models, expertise and – where feasible – data.
The BBC has been publishing linked open data for some time, most notably as part of the /programmes service, where machine-readable information about the programme schedule is made available online.
It also helped to deliver the Olympics Data Service, which underpinned 10,490 athlete pages on the BBC sport website during the 2012 Olympics….
“The BBC has been at the forefront of technological innovation around broadcasting and online for many years delivering the benefits of new technologies to licence fee payers, offering new services and products to audiences around the world, and creating public value in the digital economy,” said James Purnell, BBC Director of Strategy and Digital.”