The Crowd Can Be Your Special Sauce
The importance of diversity in innovation
Innovation doesn’t live in a single department or job title. It thrives when ideas collide from unexpected angles. As someone that’s innovated across multiple industries, I probably understand that better than most. Someone mentions that monitoring the condition of engineers’ tools is a complex task, and my brain instantly leaps to that computer vision project simplifying the search for damage on aircraft turbines I led a few years back. But I’m not unique, everyone has their own backgrounds, skills and experience which shape the way they think about problems, and the solutions they think of to solve them. That’s why, for corporate innovation leaders looking to move the dial, crowdsourcing has quietly become one of the most effective ways to bring in fresh, high-impact thinking. Done well, it can unlock ideas from people who see the world differently: your customers, your partners, niche experts, and yes, even startups.
But this isn't just about flinging a Google Form out into the world and hoping for gold. Crowdsourcing done right is as much about the how as the who. New ways of gaining these critical insights are emerging. Take a project I led for a local authority, working with Nesta’s Centre for Collective Intelligence Design. We wanted to better understand what kinds of interventions people would get behind to speed up the path to net zero. We used an immersive game that put people into a world where they could better experience and understand what it would be like, and then got their feedback. It was so much more powerful than a form filled with uniformed assumptions, people could see it, understand it, and get behind it. You can read more about this on my past projects page here.
But still corporates must not neglect the who, especially when involving smaller companies and startups, there is a responsibility to think beyond free ideas and ensure the process is fair, reciprocal and worthwhile for everyone involved.
Why Crowdsourcing Works
At its core, crowdsourcing is about opening up the innovation process to a wider group of contributors. It gives you access to fresh perspectives. People from different backgrounds and industries often see problems in unexpected ways, and that leads to surprising solutions. If your internal teams are running dry on ideas, a crowd can bring that burst of lateral thinking you didn’t know you needed.
It also gives you access to very specific kinds of expertise. Not every problem needs a generalist brainstorm. Sometimes you need the insight of someone who has solved the exact same issue, but in a completely different industry. Crowdsourcing lets you find those people.
It also brings in end users. There’s nothing quite like hearing directly from the people who actually use your product or service. When they’re involved in the innovation process, the results are more relevant, more grounded, and more likely to stick. Letting users help to define their experience can be transformative, even life changing. I can tell you, first hand, that there’s nothing that allows you to grasp the power of user led innovation like seeing technology help people have more choice over their care, and gain greater independence, going from being bed-bound to active and healthy.
Beyond that, you’ll often spot emerging trends and pain points earlier than you would through traditional research. A large and varied group can act like a kind of informal early warning system.
And finally, crowdsourcing lets you improve on ideas collaboratively. When contributors can build on each other’s thinking, the result is more refined, more practical, and more tested from the start.
When It Works Best
The best examples of crowdsourcing have three things in common: a clear problem to solve, the right people contributing, and a fair, well-structured process.
Take LEGO, for example. Their "LEGO Ideas" platform invites fans to submit product designs. If a design receives enough votes, LEGO reviews it and may turn it into a real product. Crucially, they give contributors a share of the revenue. It’s a smart way to bring in community-led ideas while rewarding the people behind them.
KPMG also got it right with their Global Generative AI Innovation Challenge. They invited employees, clients and partners from around the world to suggest real-world AI applications. More than 10,000 people participated, and many of the best ideas made their way into the company’s broader strategy. What worked wasn’t just the size of the group, but the quality of the engagement and the clear commitment to follow through.
The Startup Factor: Be Inclusive, Not Extractive
When crowdsourcing involves startups, and it should, it’s important to understand what they’re bringing and what they’re giving up. Startups aren’t mini versions of large companies. They’re running lean teams and tight budgets. Every event they attend or idea they submit is time they could be spending building their business.
It’s common to see corporates run hackathons or idea competitions and invite startups to take part. But sometimes there’s no reward, no support, no feedback, and no intention of deeper collaboration. And I get it. We’re all trying to drive value for our organisations. When you’re dealing with other big companies as suppliers, it’s normal to get a few free licenses here, some consultancy hours there. But when you are dealing with companies who are building, the value of the resources you take from them in unpaid events is magnified, they can’t just swallow it like a Microsoft or an Accenture can. Startups leave those sessions having handed over their best thinking with little in return.
That’s not just poor practice. It leaves a bad impression and damages your reputation in the startup ecosystem.
If you genuinely want startups to contribute to your innovation pipeline, it has to be a two-way street. Offer fair value for the input they provide. That doesn’t always mean cash up front, but it could mean access to a paid pilot, funding, a co-development agreement, or shared ownership of intellectual property. Be transparent about how you’ll use the ideas and what participants can expect in return. If someone takes the time to submit something, make sure you get back to them, even if the answer is “not right now.”
And above all, make sure the whole thing is real. If your crowdsourcing programme is just for show, or more about brand image than actual innovation, people will spot it very quickly.
How to Design a Strong Crowdsourcing Programme
If you want your crowdsourcing initiative to deliver value, there are a few fundamentals that make all the difference.
First, start with a clear question. The more specific you are, the more useful the answers will be. A broad question like “How can we innovate in 2025?” will get you generic responses. A tighter focus like “How might we reduce packaging waste in our consumer goods by 30 percent without raising costs?” gives people something concrete to work with.
Second, make sure you’re reaching the right audience. Not everyone will have something useful to say about every problem. Think carefully about who you want to hear from and tailor your outreach accordingly.
Third, give contributors enough background to do a good job. Explain the context. Share what’s already been tried. Set some boundaries. If people understand your goals and constraints, their suggestions will be much more useful.
Fourth, make it a two-way conversation. If someone contributes an idea, keep them in the loop. Let them know what happened next. Highlight the best contributions publicly. Thank people. It’s basic, but often overlooked.
Fifth, structure your rewards fairly. That might mean public recognition, a share of revenue, a formal partnership, or something else entirely. Just make sure people feel it was worth their time. That’s especially important when dealing with small businesses or independent experts.
And finally, when you find a good idea, bring the originator into the process. Co-develop it. Build with them, not just for them. You’ll get a better outcome, and you’ll keep them engaged for the long term.
Common Pitfalls
As useful as crowdsourcing can be, there are some very avoidable ways to make it fail.
One is being too vague. If you don’t know what you’re asking, people won’t know what to give you.
Another is not following up. If people send in their ideas and never hear back, they’ll stop bothering.
Worse still is asking for unpaid input from people who rely on their expertise to make a living, like startups and freelancers, without offering anything in return. That’s not just bad manners, it’s damaging to future relationships.
And don’t forget the internal dynamic. Teams may feel threatened by outside input. If they’re not brought in early and given a role in the process, they may resist or even ignore the best ideas. Engagement feels like ownership, and if you can foster that it can lead to evangelism within the organisation.
Final Thoughts
Crowdsourcing isn’t a shortcut. But if you do it properly, it’s one of the most powerful ways to expand your innovation inputs, bring new voices to the table, and uncover insights you might never have found on your own.
What makes it work is the same thing that makes any partnership work: clarity, fairness and follow-through. When people know why they’re involved, what’s expected, and how they’ll benefit, they’ll bring their best.
The most transformative ideas often come from the edges. People who aren’t in the room every day, but who bring a completely different lens. Crowdsourcing is your invitation to them. So if you’re serious about innovation, open the door wide and make sure there’s a proper seat at the table.