Hundreds of years ago, only those who belonged at the top of the career ladder had access to information and research and development. There was little interaction with employees since management expected them to do their job based on practices established by the management themselves.
Fast forward to today: employees can share their opinions, come up with ideas, and help the company in the promotion of a product.
This is what crowdsourced innovation management is about and below are the 5 advantages of crowdsourced innovation management
1. Improved Employee Sentiment
You may have the capital to start your own business, but employees will always be the life-blood of every organization. This is why it is important to not only treat and pay employees well but also make them feel they are valued – and this crowdsourced innovation can offer that. Otherwise, their setbacks could impact their performance, which could be passed on to your customers.
It doesn’t matter where you work or what industry you belong to, keeping your employees engaged would lead to boost in employees’ morale, which could translate to improved services and better results. This keeps your customers happy and pleased too.
2. Enhanced Competitive Advantage
You know that crowdsourced innovation management boosts your employee’s morale and sense of worth in the company. This could show in their attitude and actions towards their work – but it doesn’t end there.
Engaging your employees in the development and decision-making of a product or service increases your competitive advantage, because their suggestions will likely result in new product offerings and service improvements that will help you stay ahead of the competition.
3. Decreased Turnover of Employees
When you are a business owner, one of the biggest challenges you will face is to retain employees. The good news is crowdsourced innovated management can help you minimize that and encourage employee retention.
How is that possible?
Through crowdsourcing, you are able to make employees feel that they are valued. Seeking their opinion and valuing their importance especially during times of change in the organization makes them feel that they are valued in the company. As a result, they are less likely to leave since they are in an organization that knows their worth.
4. Develop Crowdfunding
Imagine this: you have a product in mind that you want to include in your line. After brainstorming, a team starts to develop a prototype and will be passed on to another department for testing. This team will make some comments and send the prototype back for revision and re-testing. This cycle goes on until you develop the perfect product for production – and all steps entail funds.
The good thing about crowdsourcing is you can minimize your costs. At the same time, other departments may set aside part of their budgets to give way to the product because they believe in it and they contributed to it.
5. Opportunity to Refine and Perfect Great Ideas
An idea, no matter how great it sounds, is not perfect in the beginning. Through crowdsourcing, you are able to take advantage of the experience, expertise, and ingenuity of other people in the industry. You are able to pool resources, find out what works and what doesn’t, and come up with a product that showcases the brilliance and excellence of your employees.
The best part is you can minimize trial and error efforts since you were able to combine efforts and the brilliance of the people around you. Remember that no matter how brilliant a person is, he can never know everything.
The bottom line is two heads are better than one and this crowdsourced innovation management is a perfect example of that. Listen to what other people have to say, keep an open mind, and who knows, that simple idea could lead to higher profits. Plus, your employees are happy too.
This post is a guest post by Paul Gilbert. Paul Gilbert is a professional blogger, an enthusiast who loves to write on several subjects including Insurance, personal injury, workers compensation & social security disability. He is also a part-time consultant at Zea Proukou, providing solutions & support to injured workers for claiming workplace injury benefits under Workers’ Compensation.