Technology is updating at the speed of light. Businesses that update with the rapidly changing times have a better chance at survival than those that do not update. Mindtree is banking on this philosophy as it has roped in internal enterprise crowdsourcing.
The need to grow and stay tuned to the latest technological advancement has lead Mindtree toward enterprise crowdsourcing. The company that is worth over $437 million did not have to look far for innovative ideas to stay ahead of the trend. The company employs over 12,000 employees and the combination of incentive and keen minds lead to some revolutionary ideas.
Through the internal enterprise crowdsourcing, the company has successfully launched two service business models based on the ideas churned out by employees. The first attempt at utilizing its own vast employee reserve was successful when 120 ideas viable ideas were put forth. The shortlisted idea was immensely successful at generating sales worth over $50 million spread over a period of five years.
Fresh ideas to revolutionize the business
Currently the company is engaged in another bout of crowdsourcing. This year, the company is looking forward to generating further more ideas that can be transformed into money minting machines. Instead of placing all their bets on just one shortlisted idea, the big-wigs of the company are looking to shortlist two or three ideas out of the 200 that they are hoping to receive.
This need to look for fresh ideas to revolutionize the business model stems from a need to stay ahead of the competition and to serve businesses that are already ahead of the technology curve. Srinivasan Janakiraman Chief Technology Officer and President of Mindtree was quoted as saying, “Our customers are not only looking for services, but solutions and proactive value-add from us. We felt Mindtree has reached a certain level of maturity and it is time for us to create a platform to meet such aspirations.”
Mindtree’s crowdsourcing –a product based ide
The successful idea that has spurred the whole crowdsourcing efforts was a product idea that would analyze digital surveillance feed from multiple video cameras and project a pattern. The product idea bridged the gap between the old analog and the new digital. The implementation of the product allowed Mindtree to tide into the new era of digital products.
The application of the revolutionary idea is limited to security in the current scenario. Mindtree is however, looking to expand the reach of the product into the retail industry avenue. The product will be able to analyze consumer behavior, a matter of widespread scrutiny.
The success of the product pushed Mindtree to launch the 5/50 crowdsourcing program, an acronym for the potential to bring in $50 million sales in a period of five years. The program begun in 2011 also features incentives to further motivate employees to think out of the box.
If the idea becomes a viable business module, the employee stands to receive a reward, which is nearly ten to twenty times the variable pay for the employee. The employees in fact are treated more like entrepreneurs rather than idea manufacturing workers. They are asked to formulate a business plan as an entrepreneur would. The employees can utilize the services of the chief strategy officer and a dedicated team to shape the business plan.
As with the digital surveillance idea, the security software and cloud management software VMUnify was a result of an employee’s business plan from 2011. The company expects both software to break even in the next year. With two customers already, the VMUnify has already settled in for the long haul.
Nasscom president Som Mittall commented about Mindtree’s use of internal crowdsourcing when he said, “Clients are asking what more can you deliver and service providers often look within the organization for new ideas. We hope to see more and more of this.” The industry body remains hopeful that crowdsourcing is the answer to generating larger revenue faster while attracting a larger, newer client base across the industry.