But even the current level of trading strongly supports the company's goals. There is now a well-filtered list of ideas for the review boards to address, Levy says. A quarter of the reviewed ideas are now pursued, up from 10% before TIX. And the average number of days for a decision to be reached on a new idea has plummeted from 180 to less than 80.
Those improvements have propped up the bottom line, according to Levy. He says the combined revenue from product-based ideas and cost savings from internal innovations is "conservatively" 5 to 10 times TIX administration costs, which largely involve two to three dedicated employees. The cost to purchase and implement prediction-market software — called Foresight Server, from Consensus Point — was "under $100,000," he says.
But additional, softer benefits were key goals for the program, too. These have been realized through collaboration forums that allow employees to see and comment on others' ideas, which are thus improved by the crowd's input. The forums facilitate people from disparate regions and company organizations forming relationships, working together on ideas, and avoiding duplication of effort, Levy says. Motorola actually introduced the forums in 2005 along with the voting mechanism, but participation spiked after TIX was introduced and continues to rise.
The bottom line, says Levy: "TIX has proved to be an excellent conduit for enabling collaborative innovation and creating new value for Motorola in a fun and enjoyable way that encourages participation at a minimal cost."
Reader Comments» Post a comment