InnoCentive

InnoCentive has been launched in 2001 by Jill Panetta and Alpheus Bingham.

This “open innovation” company takes R&D problems in diverse domains such as Engineering, Computer Science, Math, Chemistry, Business… InnoCentive frames this problems as “Challenges” and opens up to people who can try to solve them. The best solution is rewarded by cash.

In December 2006 the company signed an agreement with Rockefeller Founadation to add a non-profit area designed to generate science and technology to pressing problems in the developing world.

InnoCentive calls the scientists who attempt the problems "solvers" and the companies these problems come from as "seekers".

http://en.wikipedia.org/wiki/InnoCentive

For the InnoCentive’s customers, the great advantage is to reduce their cost of R&D.

For the solvers the advantage is the reward. In fact, it is an easy way to get money.

The company earns money with the problems that are posted, because the seekers have to pays for it.

The customer group served is in most cases companies who are mostly the seekers. According to the solvers, individuals are the main segment.

The competitors of InnoCentive are:
NineSigma
Yet2.com
YourEncore

I think, this model could not be apply offline or at a little scale which could be a company, a university…
In fact, InnoCentive is a success thanks to internet. It is easy to reach. It is fast to pay to put a problem on line.

In the hospitality industry, this business could be a great opportunity. In fact more and more hotels have their own blog. They could put “problems” online and ask to the guests to try a solve them, or to put their ideas. For example, if a hotel want to improve the service or the design of the rooms, the hotel can put online the “problem” and guests can then give their ideas, advice… as they are users of the hotel, so they know what they want.