Effect of Ideagoras on Internal R&D

Since ideagoras have become a virtually limitless source for R&D, some companies have been able to reduce their budget for internal R&D employees. In essence, the effect of ideagoras on internal R&D has equalled the same amount of spending, but with that budget split between internal R&D operations and external R&D opportunities through ideagoras.

The difference is that the budget for sourcing R&D through ideagoras can be used more effectively and as an investment. The contrast is similar to the contrast in pay-per-action advertising and banner advertising. When companies can define and spec-out a project with a known end goal or product, they can better calculate the payoff and make better investment decisions. This is different than hiring a local R&D staff, and hoping that they can collectively come up with the right solutions in the right time. With ideagoras, companies can post the specific problem to thousands, at little to no cost, and only pony up the real expense if and when a correct pre-determined solution or outcome is satisfied.

Companies no longer have to motivate, develop, and retain all of their best people internally. Great internal talent will still be needed, but can be done on a smaller scale. The effect of ideagoras is that smart companies can, increasingly, assume that many of the best people are to be found outside of their corporate walls and outside of their corporation’s geographic location. The effect of ideagoras on the equation is that corporations now have an “eBay for innovation” where a massive amount of unique talent is no more than a few clicks away.

Today’s ideagoras, like yet2 and innocentive, have yet to paralell eBay in size, the base has been built, and the sky is the limit.