IP Soup
Posted in innovation, SAP on September 10th, 2008 by dan
Years ago, innovation took place in locked basements behind steel doors with retinal scanners. With the publication of Wikinomics crowd sourced innovation has slowly become commonplace. Companies ranging from P&G to Big Pharma now try and incent external people into solving their pressing R&D problems. This model can work pretty well — just ask P&G about the Swiffer.
This week SAP announced a "partnership" with Innocentive a company that facilitates crowd sourcing of ideas and solutions. The company has received a fair bit of press over the million dollar prize to find the gene responsible for Lou Gehrig’s Disease(ALS). The company was originally founded around helping Pharma companies reduce R&D spending. David Ritter, the CTO, said, "R&D spending at Pharma companies was growing faster then revenue, that is not sustainable."
Clients of Innocentive (Seekers) put challenges up on the company’s site to deliver either ideas or complete solutions to some of these R&D challenges. One of Innocentive’s differentiators appears to be their ability to make the Seekers secure that the IP they are receiving is clear of claims. I however, worry more about the implications of competing for a prize, being a Solver.
The company receives all entries for their review so that they can select the best one and reward the prize. This probably works well in a space like Pharma or real goods where infringing on a patent is more obvious, a compound has a composition or a product does something and looks a certain way. With software this is a bit more muddled. The exact implementation of the software isn’t as important as what it actually does and why it is an improvement. Additionally, software is compiled, obfuscated and it can be hard to even prove if someone has stolen or not stolen code. Ask SCO and IBM about how much it costs to sort that out.
More troubling, Mr. Ritter noted that "The bulk of problems on Innocentive are submitted anonymously, because they don’t want to "tip" their hat to the problems they are working on." Which makes it even hard to find where your software idea or algorithm went.
When pressed on this Mr. Ritter conceded that there was a certain amount of faith the Solvers are putting into both Innocentive and their clients. Personally, given my knowledge of SAP I would feel perfectly safe in giving in an idea and if it did not win, not having to check every new product for some of my ideas. I don’t know if this is true for every person or every company.
Photo courtesy of soldiersmediacenter
