InnoCentive is a Waltham, Massachusetts-based crowdsourcing company that accepts by commission research and development problems in engineering, computer science, math, chemistry, life sciences, physical sciences and business. The company frames these as "challenge problems" for anyone to solve. It gives cash awards for the best solutions to solvers who meet the challenge criteria.
How does the model work?
InnoCentive adopts the electronic marketplace business model.
Innocentive earns through-
Subscription fees paid by seekers.
A commission of reward given to the solver.
Through consultancy services that it offers.
Through Partnerships like Rockefeller
It’s business model can be divided into-
The seeker-Has access to a large database of innovative thinkers. They do not have to hire specialised staff to find solutions.
The solver-Gets access to a large database of companies in the desired field. He does not need any fee to post his ideas and earns money if his solution is selected.
The owner-Earns money through rewards and fees. He also gets money in order to help non-profit organizations and recognition.
What makes it special?
The Value Proposition that the business model offers is two-fold: Firstly, InnoCentive allows Seeker organizations to reduce their R&D budget by tapping into the wisdom and innovative capacity of a network of more than 200,000 Solvers in order to find solutions to their difficult problems (Challenges). Secondly, InnoCentive gives the opportunity to Solvers to focus on a range of challenging problems of their interest with the hope of receiving a financial reward.
Action Oriented insights
How can InnoCentive improve it’s business model?
Opening a more visible platform for consultancy in improving efficiency of innovation process in organizations.
Online selling platform for books and seminars.
Diversifying and making the website available in a wide variety of languages.
Invest more in advertising and PR.
Letting companies hire solvers on a short term basis.