In the open innovation and crowdsourcing area, a challenge is generally understood as an open contest with the goal of finding new or optimized solutions for a specific, well-defined problem.


Co-Creation is referred to as an open innovation process, which companies use to actively include external actors such as experts or suppliers, but primarily customers and users, into their product development in order to satisfy their needs and maximize the utility of their products in the user experience. The term is often used in various contexts.


Collaboration is in the current linguistic usage a – usually economic – way of working together as individuals, groups of people or as organizations.

In contrast to cooperation, which refers to the parallel work on separate subtasks due to the division of labor, collaboration means the joint and iterative work on the same task by two or more people, which leads to an increase of quality in the end result.


A Crowd is generally referred to as a short-term accumulation of people responding to shared stimuli and engaged some form collective behavior.

In times of the web 2.0 the concept of the Crowd especially points to the possibilities of involving a large number of external players in crowdsourcing methods into the creation of added value via the internet.


Crowdfunding is a form of financing, which enables companies or project groups to accumulate small amounts of money from a large number of people instead of taking on board few large investors.

It can be distinguished between a reward-based approach, which offers (oftentimes a symbolic) goody or a prototype in return for an investment, and an equity-based approach, which offers the investor company shares.

Crowdfunding companies like Kickstarter, indiegogo, Startnext or Bergfürst offer access to the crowd to get funding for companies or non-profit projects such as creating art or music.


We at innosabi define Crowdsourced Innovation as opening up innovation processes for scalable collaboration with external players.

The approach combines Open Innovation with community-driven Crowdsourcing in order to potentially increase value creation in every phase of the innovation process and to decrease innovation risk.

You can find more detailed information in our book.


Crowdsourcing is the division and outsourcing of tasks to a crowd (meaning a large, undefined group of people) in the form of an open call over the internet.

The term was coined by WIRED editor Jeff Howe in his 2006 article “The Rise of Crowdsourcing”.


The IKEA Effect is defined as the increase in the subjective valuation of self-made products. Thus, an item has a higher value for a person, who actively participated in its completion.


In association with open innovation and crowdsourcing, incentives are a form of participant compensation and thus a vital aspect in the project structure and community maintenance.

Incentives are extrinsic motivational factors, such as money, rewards or individual recognition, in contrast to intrinsic motivational factors such as individual utility or having fun performing a task.


An innovation is in the business sense a new development in the product, service or process domain, which actually is successfully implemented. Thus it is an invention, which is able to assert itself in the market and to penetrate the market.


A company’s innovation management is responsible for the introduction of new processes and products and deals with the planning and management of innovation processes, which belong to the core activities of a company.

The goal of launching product and process innovations can be heightening efficiency, improving the competitive situation or increasing the value of the company in general.


Lead Users are users, which are a step ahead of the mass market with their needs and expect a high utility by satisfying that need. Oftentimes Lead Users possess the skills to realize their own ideas and thus become innovators themselves.

The term Lead User was coined in 1986 by the economist Eric von Hippel.


see Pico Jobs


Open Innovation is the opening up of innovation processes for the knowledge and abilities of external players. End-users, prospective customers, or experts are integrated into the innovation processes in order to help organizations understand user needs and wishes, or to be able to identify new ideas and technologies.

The term Open Innovation was coined by the US-American economist Henry Chesbrough in 2003.


Pico Jobs are very small tasks, which can be derived from product and service development processes and solved by a crowd, meaning a large number of customers, users and consumers via the internet.

Due to the Pico Job method, which can be accessed via our Supercharger module, new ideas and feedback of hundreds of consumers can influence the development of new product concepts, over night.


The production process of a prototype, meaning a functional version for optimization of an aspired end result, is referred to as prototyping. Originating in software development, prototyping is supposed to help visualize, test or explore certain aspects of the possible results of a development process – such as usability – in many different areas of innovation nowadays.


Swarm intelligence aka collective intelligence is in a business context a phenomenon, which occurs when a heterogeneous crowd of people processes and unites independently collected information in social interaction and arrives at a collaborative solution, which and individual could not have arrived at.


Tagging is a form of categorizing or assigning keywords to information in order to link information or to find it more easily. Social Tagging occurs, when the keywords, so called tags, can be assigned freely by all users of the information.


Usability generally describes the ease of use or user friendliness of an item, software or another kind of system. The higher the Usability, the higher the quality of usage and the end user satisfaction. While good Usability is oftentimes hardly perceived, bad Usability is noticed right away.


Oftentimes mentioned together with Usability, User Experience expands the term by adding aesthetic and emotional factors. Hence, User Experience includes whether a user likes the design or how fun something is to use.


User Innovation refers to innovations, which were not developed by professional producers but by individual users, mostly in order to solve individual problems or to optimize existing products for personal usage. Oftentimes, User Innovators are willing to share their ideas with producers. See also “Lead User”.


Virtual or E-Collaboration is the technology-based, intra- or interorganizational collaboration of actors who are separated due to temporal or spatial limitations.