SOURCE: INNOCENTIVE, INC.

InnoCentive, Inc.

April 27, 2010 08:58 ET

InnoCentive Announces Unprecedented ROI for Organizations Embracing a Multi-Platform Open Innovation Approach to R&D

Third-Party Study Illustrates How Global Company Yielded 182 Percent Return on Investment in 60 Days

WALTHAM, MA--(Marketwire - April 27, 2010) -  InnoCentive, Inc., the world leader in open innovation, today shared proof that organizations that leverage a multi-channel open innovation approach to research and development realize an exponentially greater Return on Investment (ROI) when compared to organizations that do not adopt open innovation. This finding is illustrated in a new InnoCentive-commissioned study conducted by Forrester Consulting. Forrester's study proved that a multinational agricultural company achieved a ROI of 182 percent with payback in less than two months as a result of deploying InnoCentive Challenges, InnoCentive@Work and Open iNnovation Rapid Adoption Methods and Practices (ONRAMP) training. In addition to financial returns, the study reveals that this global organization realized qualitative benefits including greater efficiencies, cost savings, and productivity. The complete Forrester Consulting study, titled, "The Total Economic Impact™ Of InnoCentive's Enterprise Solution: Challenges, InnoCentive@Work and ONRAMP," is available to download at no cost.

"We've already proven that prize-based problem solving improves the speed and efficiency of innovation while lowering the cost -- this study takes our proven results to the next level," said InnoCentive CEO Dwayne Spradlin. "This international brand is using internal open innovation to extract more value from existing resources and combining this with external efforts for maximum impact and exponential financial gain. They are carving the path to the future of R&D for global organizations everywhere."

The company in this study is an $11 billion dollar agri-business company with more than 14,000 employees in major research and production centers around the globe. The organization realized multiple quantifiable benefits as a result of working with InnoCentive. The value of these benefits is estimated at $11.86 million (risk-adjusted, present value) over three years. Measurable benefits include:

- Efficiency savings as a result of successful Challenges
- Cost avoidance of the licensing effort and legal fees required for IP transfer
- Researcher productivity savings

Forrester's study also shows that the company realized significant qualitative benefits including:
- Improved internal collaboration and research process
- Access to external talent, otherwise non-existent in-house
- Facilitation of cultural change to new ways of innovation
- Ability to transform "high risk projects" into "low risk, low cost Challenges"

In October 2009, InnoCentive announced the findings of another commissioned study conducted by Forrester Consulting that examined the TEI and potential ROI that enterprises may realize from partnering with InnoCentive. Global consumer goods company SCA achieved an ROI of 74 percent with payback in less than three months as a result of posting innovation Challenges to the InnoCentive Global Marketplace. The study is available to download at no cost.

ONRAMP is a suite of training and implementation services designed to help Seeker companies adopt open innovation rapidly and successfully with planning, education, communication and reporting services to better manage the open innovation process, fine-tune planning and measure ROI. InnoCentive@Work is an internal, Web-based community for problem solving, customized and hosted by InnoCentive for its Seeker organizations. InnoCentive@Work enables companies to tap into their employee knowledge base, bridging silos between departments and making it easier to identify and recognize innovative contributors. Employees post Challenges to the internal company site, allowing coworkers to view and collaborate on each other's proposed solutions.

To get a full understanding of the costs, risks, payback and business value of investing in open innovation with InnoCentive, or to learn more about InnoCentive and how to become a Seeker and post InnoCentive Challenges, visit www.innocentive.com.

About InnoCentive, Inc.
Since 2001, InnoCentive has helped corporate, government, and non-profit organizations to better innovate through crowdsourcing, strategic consulting services and internal Software-as-a-Service offerings. The company built the first global Web community for open innovation where organizations or "Seekers" submit complex problems or "Challenges" for resolution to a "Solver" community of more than 200,000 engineers, scientists, inventors, business professionals, and research organizations in more than 200 countries. Prizes for winning solutions are financial awards up to US $1,000,000. Committed to unleashing diverse thinking, InnoCentive continues to introduce new products and services exemplifying a new corporate model where return to investors and individual passion go hand in hand with solving mankind's most pressing problems. http://www.innocentive.com/

Contact Information

  • For more information contact:
    Karyn Martin
    Emerge PR
    Email Contact
    617-729-3173

    Connie French
    InnoCentive Marketing Director
    Email Contact