FREQUENTLY ASKED QUESTIONS (FAQ)
A challenge is a generic term used for a business related issue that a company wishes to resolve. We refer to them in the context of innovation related issues spanning the entire innovation cycle from ideation—invention—to commercialization and business outcome delivery.
A project is an issue that has a known solution to it and a company knows how to solve it. All that is needed are resources and project management capabilities. However, a challenge is an issue that company may not know how to solve. In other words, a project is the result of a resource gap in a company whereas a challenge is typically the result of capability and resource gaps combined. Therefore, even if a company could acquire the resources needed chances are they will not be able to solve the challenge satisfactorily and deliver on the expected business outcomes.
In a nutshell, a standard challenge is a single challenge solved by an innovator in the Cenergim expert ecosystem without requiring concierge services whereas a managed challenge is a complex challenge that may represent a portfolio of challenges that require multiple parties to co-create together to solve it. Managed challenges also require a dedicated project manager offered through our concierge services to ensure success.
Unlike other platforms—Crowdsourcing and Open Innovation—that require open posting and bidding, Cenergim uses a discreet posting and by invitation only method. Therefore, no one can see your challenges. The only people who have access to the information are the Cenergim staff and the screened and invited Innovators who are selected to solve it.
Escrow is a service that is provided by a regulated third party payment processing system. We use it to ensure fair play and create trust between the challenger and the innovator. Once a challenge is awarded, the challenger must deposit the entire reward amount to our escrow partner before the innovator begins work. Innovators and Cenergim are paid in a lump sum or in installments depending on whether a challenge has milestones to achieve or not. Cenergim uses this model as a part of its vetting process to ensure that only fully committed and qualified parties use the service. Challengers are ensured by offering them an outcome-based model where they only pay for services rendered and innovators are guaranteed payment for challenges solved.
Outcome-based is a business model based on the ‘pay-per-use’ philosophy where buyers and sellers—Challengers and Innovators—agree on specific outcomes to be delivered. This is in contrast to the traditional output-based models like hourly or project-based that produce outputs but may not deliver the desired outcomes.
1) challenge specific information;
2) general provisions;
3) each party’s obligations;
4) escrow instructions and payment terms;
6) intellectual property (IP) rights and transfer agreements;
7) confidentiality agreement.
Therefore, Challengers should make every reasonable effort to offer competitive rewards that incentivize Innovators to accept and complete challenges at a level that is consistent with Cenergim’s quality standards. Offering low rewards that are significantly below competitive market rates may result in Challenges not being accepted by Innovators or challenges being disqualified by Cenergim as their resolution may require Innovators to provide services that do not adhere with Cenergim’s quality of service standards.
Managed Services Team
Selecting an innovator
Second, we use experts with many years of domain expertise to interview and certify the nominees. These experts have many years of hands on experience either solving innovation challenges themselves or hiring and managing providers and teams to do it. By tapping into the wisdom of these experts we significantly improve our selection process. This is in stark contrast to some other platforms that use methods like: self-certification, third party reviews, key word search, and last but not list using inexperience people or recruiters to conduct interviews.
Second, innovation is a complex multi-disciplinary process that requires significant knowledge and expertise. Hence, we have to ensure that our ecosystem members possess the right capabilities.
Third, we primarily target the capability gap and our goal is to help companies solve complex challenges that they cannot solve themselves. Therefore, we need to ensure that our ecosystem members possess the right capabilities to co-create the right solutions and outcomes.
Last but not least, we use an outcome-based model which means that we do not get paid unless our Innovators solve the challenge. So, our success is tied to the performance of our Innovators. Thus, we need to ensure that they can get the job done.
If as a Challenger you believe that you may need help in properly defining a challenge, we recommend that you select one of our Success Plans to ensure success. If you choose not use this service, you agree that you have warranted that you have the capability to do so. As a result, you will forfeit any future claims or disputes that may arise as a result of misunderstandings or lack of clarity.
Subcontracting or third party assistance
Second, once a Challenger and Innovator enter into a Challenge Agreement, the Innovator must comply with the intellectual property (IP) terms that warrants that they do possess such IP and are willing to transfer it if necessary to the Challenger. Since, Innovators do not own their contractor’s IP and cannot guarantee such a transfer, they are prohibited from working with any contractor with whom such an agreement does not exist.
Third, in order to receive the reward innovators should accept Cenergim’s escrow partner’s Term of Service which only recognizes one party as the recipient.
Once a challenge is awarded to an Innovator and the Parties have entered into a Challenge Agreement, cancellation of such challenge will be governed by the terms of the Challenge Agreement.
Payment Service Fee
|Last Updated: April 8, 2020|
|Cenergim Innovation Ecosystem|
|Cenergim Ecosystem consists of an exclusive community of vetted innovators, entrepreneurs, and domain experts providing services to innovators who collaboratively co-innovate new ideas, products, and solutions to complex innovation challenges.|
|Joining as a Challenger|
|Any technology-based innovator can join for free by registering on our platform and discreetly submit a free challenge to our innovation ecosystem.|
|Joining as an Innovator or a Domain Expert—‘Innovator’|
|Unlike Challengers, Innovators must go through a stringent vetting and qualification process to join our ecosystem. During the registration process we require a private invitation code that can only be provided by our staff or members of our community to validate the nomination process. Currently, there are three ways to join:|
|Switching roles as a Challenger to an Innovator|
|Challengers who also wish to act as an Innovator and solve challenges can edit their profile and request to play multiple roles. However, they also need to go through the same qualification process explained earlier.|
|Switching roles as an Innovator to a Challenger|
|Innovators can also play multiple roles and act as a Challenger and submit their challenges. However, they do not need to go through a qualification process.|
|Cenergim reward program|
|Members can collect points in multiple ways:|
|The table below illustrates the type of activities and points for each activity.|
|Keeping track of your points
|This is done automatically by our system. Your total points and tier level are posted on the left corner bottom of your profile.|
|Tiered compensation model
|Our model has five (5) tiers. As you collect more points, you qualify for a higher tier. Similarly, you qualify for a higher percentage of commissions and discounts. The table below summarizes the tiers:|
|Example 1: Innovator qualifying for a cash reward|
|nnovator X has collected 741 points by nominating new members and engaging in co-marketing activates. This means that X is now a Platinum member and qualifies for 15% discount or cash reward based on the terms explained in our Terms of Service.
Let’s assume that X is selected to solve a $65,000 challenge. According to our Terms of Service X will be paid $48,750 which equals the challenge amount minus 25% fee—$16,250. However, as a Platinum member, X qualifies for 15% cash reward or a total of $2,437.50 ($16,250 x 15%). Therefore, X is paid a total of $51,187.50 ($48,750 + $2,437.50).
|Example 2: Challenger qualifying for a discount|
|Challenger Y submits a challenge for $65,000 on February 1st, 2020. On that day Y has 741 points and qualifies as a Platinum member.
Y’s challenge is accepted by Cenergim and is solved by Innovator X on March 10th, 2020. Y chooses to receive a discount and is entitled to $2,437.50 ($65,000 x 25% x 15%) or 15% discount offered by Cenergim. Y will receive a check for $2,437.50 at the end of the March 2020.
|Example 3: Point expiration|
|On 01/01/2020 Innovator X registers on the Cenergim platform and receives his private ID code. On the same day X sends out 50 nominations. On 02/01/2020 ten (10) of X’s nominations register and complete their profile. X receives 10×3 + 10×4 = 70 points. X continues different activities and collects 2,300 points within a year. On 02/01/2021 X’s original points collected on 02/01/2020 are expired and deducted from X’s reward account. Hence, on 02/01/2021 X has a remaining balance of 2,230 points.|