Outside Innovation

Open Innovation: Combining World-Class Skills with Local Knowledge

One of the most seductive forms of open innovation is to recruit the best minds in the world to work on really tough problems. Often this is done in the form of competitions. And, when the goal of the competition is to make the world a better place by solving a tough social problem, they tend to attract world-class talent as well as considerable press. What’s great is when the people who are attracted to address these challenges have a lot of local knowledge, because without that local knowledge and context, the designs are often fatally flawed.

Two such competitions caught my eye this month:

* Local Motors Goes International: Still Time to Vote on Five Great Vehicle Designs

Shell is sponsoring this competition with Local Motors for the design of appropriate vehicles for five different cities in the world. Each vehicle is supposed to be able to be built from locally sourced materials, be environmentally friendly, and to address a social issue that is specific to the city. It’s really fascinating to look through the entries and to read about both the problems being addressed and the local materials being promoted. It’s also great that in each case, the competitors include designers from the local regions who are familiar with the local traffic and road conditions as well as with the local materials.

Among my favorite designs are:

Local Motors: Reinventing the Car Industry from the Outside In

One of the most inspiring "stories" at the Business Innovation Factory's fifth annual summit, BIF-5, in Providence, Rhode Island was told by Jay Rogers, the founder of an innovative new American car company, Local Motors (www.local-motors.com). Jay is an ex-marine whose grandfather instilled in him a passion for cars. His grandfather owned, among other companies, Indian Motorcycles. Jay grew up in a car-mad family. His experience fighting in Iraq convinced him that the U.S. needed to shed its dependence on foreign oil. So he has invented a new kind of car company.

The cars are made out of easily assembled, lightweight composite materials to reduce fuel consumption. The car chassis is licensed from an existing mass-producer of cars (the first one uses a BMW chassis). The "proprietary open source" car designs are contributed by world-class industrial and automotive designers participating in open competitions on the Local-Motors Web site. The designs are submitted, evolved, voted on, and critiqued by car fans, designers, and prospective customers (customers' votes count more). The car designs are specific to each region of the country. The community also participates in the design-to-build phase through an open prototyping process for each new model. Each phase is photographed, commented upon and posted, with trade-offs discussed.

Once each local car model is in production in its micro-factory, each customer helps assemble his own car at this local sales/manufacturing facility/service location. (Think Build-a-Bear for cars!). As Jay Rogers explained: your car is the second most expensive investment most people make in their lives; why shouldn't you have an amazing experience and an amazing car?