The Million-Dollar Idea in Everyone

Stephen Key, successful inventor himself, interviews Mike Collins on the concept of Open Innovation, mistakes inventors often make, and how to profit in this Open Innovation Environment.

Listen to the Interview with Mike

Why did you decide to write this book?

I'm tired of seeing people throw their money away following traditional invention advice. The old school approach of starting a business, getting funding, paying for intellectual property, creating production-ready prototypes, etc. still works, but is no longer the only way to bring a product to market. We live in an emerging world of open innovation where companies big and small are finally recognizing the value of getting input from people beyond the walls of their R&D laboratories. This environment (and a range of technologies that facilitate open innovation) creates opportunities for people with good ideas to profit without investing so heavily.

What exactly is "open innovation?"

The concept of open innovation comes from the computer industry and a time when some software companies decided to make their source code available to the people who use it. In doing so, the companies discovered that programmers not only adopted the software quickly but they tinkered with the code and fed fixes back to the developers as well. As a result, the overall quality of the software improved, benefitting both the users and the company.

How does "open innovation" relate to inventing?

Although the terminology started as technical jargon, open innovation now generically refers to the notion of allowing outsiders the opportunity to contribute, participate, and profit in a previously closed environment. Inventors, in particular, are being invited into the inner circle more and more each day as smart companies create opportunities for people to submit product ideas, share their creativity, influence the types of products and services offered-and be compensated for their input. At BIG, for example, we've helped clients like Staples, Kraft, Avon, Unilever, Thomson, Bell Sports, and others develop over 60 new products and services.

Do you have to be an inventor to participate in open innovation?

Absolutely not! The open innovation movement is broader than just companies seeking inventive new products. New user-driven businesses allow anybody to create content and showcase their talents in order to gain recognition and to make money in environments that have been traditionally off-limits. And for those who don't want to wait for an invitation or for the right user-driven business to emerge, technologies that facilitate open innovation are changing the rules of entrepreneurship as well. At an astounding rate, anybody can go from obscurity to recognized expert by writing a blog, creating a web site or participating in social media outlets.

You use the term "everyday expert" quite a bit in this book. What does that mean?

Up until a few years ago, to be considered an expert in anything you had to possess certain credentials, work in an industry for most of your career, or reach the pinnacle of success in some venue. But we are now in the era of the amateur where anybody with an Internet connection can give advice, share an opinion, endorse a product, and influence a community with nothing more than everyday experience. Look at Amazon.com, for example. One regular person's review on a book can influence whether or not thousands of prospective customers will decide to buy it. And that is just a simple illustration. In researching this book, I've talked to several everyday experts who took their personal interests in things like knitting, snowboarding, Alzheimer's Disease, hot sauce, traveling with children, coaching basketball, decorative painting, and a variety of other things and have become recognized (and paid) experts on these subjects.

Why is it important to see yourself as an everyday expert?

Being an everyday expert means you no longer have to wait to start making money from the things you already know-the things you've always wanted to do. You don't have to save money to open a restaurant if you have always dreamed of cooking for a living. You don't have to be discovered by a talent scout if you've longed for the chance to have people hear your music. And you don't have to earn a degree in horticulture to make money teaching people how to plant bulbs. You simply need to embrace your expertness, set yourself up online, and start developing a personal brand.

What are three things people can do today to start participating in open innovation?

1. Figure out what your niche will be. I have a chapter in the book in which I take the reader through a personal inventory where they are asked not only about the things they like to do or are good at, but also to think about their relationships, their location, their cultural background, and a variety of other things that make them unique. Profitable niches are often a combination of a few things rather than one specific talent. Being a good tennis player, for example, is a talent. But being a mom who used tennis to reduce postpartum depression is a unique perspective and is insight others might be interested in knowing.
   
   
2. Find the right opportunity for you. In the book, I describe a spectrum of ways people can participate in open innovation-going from open innovation contests, insight opportunities, and user-driven businesses on up to the full-scale entrepreneur who launches a web site, writes a blog, has his own MySpace page, and sells products as well. I always suggest starting out small so you can test your abilities, adapt to the market, and experiment with what it is you really want to do. An aspiring writer, for example, might first try his hand at writing for Helium (a user-driven business) before deciding to self-publish a book just to see if his writing is ready and if the subject matter he's considering resonates with others.
   
   
3. Experiment. The beginning stage of any new venture is a time for experimentation, both for you and for the business you're trying to create. Most entrepreneurs (myself included), ultimately succeed in creating dream jobs only after the initial strategy gets derailed. So whether you decide to participate in open innovation as time permits or are planning to create a full-time business allowing you to quit your current career, be prepared to take an evolutionary approach so you can adapt to the things you'll learn both about yourself and about the niche you're trying to create.