Open Innovation & Crowdsourcing: B2B versus B2C

40 Examples of Open Innovation & CrowdsourcingWhat are the differences and similarities on open innovation between B2B and B2C companies? This is a question I often run into during my talks and consulting engagements. Here you get some of my views.

Differences:

Crowdsourcing works better for B2C companies.

This is pretty obvious, as B2B companies do not interact directly with consumers and end-users.

This also leads many people to believe that crowdsourcing is all you need to consider when it comes to open innovation for B2C companies. This is dangerous. The key is to being able to bring more external input into an innovation process and integrate this with internal resources. This needs to go further than input from just consumers and end-users.

B2C companies have a more open mindset.

You can argue that B2C companies have a different mindset. Having to work directly with consumers and end-users seems to foster a more experimenting and open mindset when it comes to bringing out new products and services.

In theory, this should make B2C companies more open when it comes to innovating how they innovate, but in reality they can get as stuck in their traditional ways of doing things as B2B companies.

Similarities:

The real work happens behind the scenes.

So what if B2B companies are better at crowdsourcing. The real work starts behind the scenes and this goes for both types of companies. Even though you have good access to external input, you still have to integrate this into your organization in order to bring out better innovation. This is hard work.

They share many of the same issues and challenges.

Corporate innovation units in both types of companies share many of the issues and challenges including:

• getting executives to buy into and commit to innovation 
• developing an innovation strategy 
• building a strong innovation culture
 • making business units engage in innovation 
• improving communication with regards to the corporate innovation capabilities 
• merging external and internal resources to bring out better innovation
 • moving beyond incremental innovation and bring out more disruptive innovation

The approaches to these issues and challenges are quite similar regardless of the type of company.

More and more innovation happens through communities.

The future innovation winners will be those that manage to bring together current and potential innovation partners (companies rather than individuals) in eco-systems and communities. The big challenge is how to make such communities work and this goes for both types of companies.

Challenge-driven innovation can help both types of companies.

Service providers such as NineSigma, InnoCentive and IdeaConnection focus on challenge-driven innovation in which they help companies (seekers) connect with individuals as well as other companies (solvers) in order to get their problems solved. Such an approach can be applied within many different kinds of business functions and thus it can bring value to both types of companies.

In an earlier discussion on this, Kevin McFarthing also added that B2B companies have a much smaller number of customers, each of whom buys a lot. He stated that it’s true that B2C companies go via retailers who certainly have an influence, but large customers are very important in the definition of the innovation portfolio for B2B companies. This is a valid observation by McFarthing.

What do you think?

Clearworks

Wait! Before you go…

Choose how you want the latest innovation content delivered to you:

This entry was posted in Growth, Innovation, Open Innovation, Strategy and tagged , , , , . Bookmark the permalink.

4 Responses to Open Innovation & Crowdsourcing: B2B versus B2C

  1. Pingback: Open Innovation & Crowdsourcing: B2B versus...

  2. Pingback: Open Innovation & Crowdsourcing: B2B versus B2C | Business and Software Strategy for Globalisation

  3. Bry says:

    Slick analysis Stefan. Maybe crowdsourcing is more suited for ideation / divergent phase, and challenges or expert marketplace more efficent when you’re looking for specific solutions to a problem?

  4. Pingback: Open Innovation & Crowdsourcing: B2B versus...

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Batterii - A premium Innovation Excellence sponsor

Keep Up to Date

  • FeedBurner
  • LinkedIn
  • Twitter
  • Facebook
  • Slideshare
  • Email
  • YouTube
  • IPhone
  • Amazon Kindle
  • Stumble Upon

Innovation Authors - Braden Kelley, Julie Anixter and Rowan Gibson

Your hosts, Braden Kelley, Julie Anixter and Rowan Gibson, are innovation writers, speakers and strategic advisors to many of the world’s leading companies.

“Our mission is to help you achieve innovation excellence inside your own organization by making innovation resources, answers, and best practices accessible for the greater good.”