How internal hackathons spark innovation from within

Internal hackathons and innovation challenges are becoming an increasingly popular strategy for companies seeking to foster creativity and drive innovation. According to a recent Deloitte innovation survey, 48% of organisations are conducting hackathons and pitch contests to advance their innovation agendas. And Gartner recommends hackathons as a way to quickly increase AI literacy and skills across the organisation.

Many think hackathons are exclusively for tech professionals. But bringing together employees from various departments to work together, solve problems and come up with innovative solutions has immersive benefits to both the employee and the organisation. In this article, we will explore the concept of internal hackathons for all functions of the organisation, their benefits, and why they are rapidly gaining traction in the corporate world.

What exactly is an internal hackathon?

First things first, let's get clear on what an internal hackathon is. An internal hackathon is an event where employees from different departments within the same company come together to collaborate, brainstorm, and create innovative solutions. Unlike traditional hackathons that are usually tech-focused and involve external participants, internal hackathons are all about tapping into the collective creativity and expertise of your own team. Whether you do them in-person or virtual, it's a great way to solve problems, spark new ideas, and encourage teamwork across the whole organisation.

Why are they increasing in popularity?

With AI disrupting every market and every job, internal hackathons are quickly gaining popularity. Organisations are recognizing their power to drive innovation and collaboration. In today’s fast-paced business environment where companies need to quickly adapt to change, these events provide a dedicated space for employees to think creatively and solve problems together.

Here are a few reasons why companies are increasingly leveraging internal hackathons:

Driving innovation
Perhaps the most significant benefit of internal hackathons is their ability to drive innovation. With almost every company facing an Innovation Imperative, a digital mindset is crucial for survival and growth. Organisations have to embrace new technologies, foster a culture of continuous learning, and be agile in adapting to change. Organisations that prioritise innovation and integrate it into their core strategies are better positioned to thrive in a digital economy. By providing a platform for brainstorming and experimentation, hackathons encourage employees to think creatively and explore new ideas without the fear of failure. This can lead to the development of new products, improved processes, and enhanced services that give your company a competitive edge.

Uncovering hidden ideas
Internal hackathons provide a platform for employees to showcase skills and talents that might not be evident in their day-to-day roles. Employees who typically work within the confines of their specific job descriptions suddenly have the freedom to think outside the box and bring forward their ideas. And who knows your business better than your own employees? Tapping into their knowledge and giving them a voice can uncover ideas you may not otherwise hear. Plus it boosts their confidence and contributes new perspectives that can lead to groundbreaking solutions.

Fostering collaboration
These events encourage cross-departmental collaboration in a unique way. Employees who might not typically work together get the chance to combine their unique perspectives and expertise, leading to fresh ideas and innovative solutions. This collaboration often breaks down silos within the organisation, creating a more integrated and cooperative work environment. When employees from diverse backgrounds and skill sets come together, the potential for creative problem-solving is significantly amplified.

Quick problem-solving
With a focused time frame and specific challenges to address, internal hackathons can fast-track the problem-solving process. Teams often come up with viable solutions to longstanding issues within just a day or two. The intense, time-bound nature of hackathons pushes participants to think quickly and efficiently, often producing highly innovative and practical solutions that might not have emerged in a more prolonged, traditional project timeline. These events give employees the time and space to focus on solving one (or a few) challenges while harnessing the collective intelligence of the group. It's hard to replicate that in any other day-to-day setting.

Boosting morale and engagement
Hackathons are fun! They break the monotony of regular work routines and provide an exciting and competitive environment. This can significantly boost employee morale and engagement. In a time when employees find themselves increasingly isolated and lonely, giving them the chance to interact and connect with one another outside of the typical meeting or passing in the hallway can help to increase happiness at work. And when employees see that their ideas are valued and that they have the opportunity to contribute to significant projects, it enhances their job satisfaction and commitment to the company. The excitement and camaraderie that develop during a hackathon can lead to a more positive and dynamic workplace culture.

Honing soft skills
Soft skills like critical thinking, communication and problem solving are becoming increasingly important in the age of AI. The fast-paced, high-pressure nature of hackathons and innovation challenges require participants to think on their feet, analyse problems from multiple angles, and devise creative solutions quickly. Teams have to communicate effectively, share ideas, and negotiate with each other to align their efforts towards a common goal. This collaborative process not only enhances their ability to work with others but also strengthens their leadership and interpersonal skills. And the iterative nature of hackathons—where ideas are constantly refined and tested—encourages resilience, adaptability and a growth mindset.

With AI disrupting every market and every job, internal hackathons are quickly gaining popularity. Organisations are recognizing their power to drive innovation and collaboration. In today’s fast-paced business environment where companies need to quickly adapt to change, these events provide a dedicated space for employees to think creatively and solve problems together.

Real-world internal hackathon success stories

To give you a better idea of the impact internal hackathons can have, here are a few success stories from companies that have achieved impressive results:

• Facebook: Facebook's hackathon culture has resulted in the development of some of the platform's most popular features, such as the "Like" button and Facebook Chat. By fostering an environment of creativity and collaboration, hackathons have enabled employees to experiment and innovate, leading to impactful technological advancements within the company.

• Spotify: Spotify's hackathons, known as "Hack Weeks," have been instrumental in fostering innovation and collaboration among employees, leading to the development of features like Discover Weekly and Spotify Connect. By providing a dedicated time for experimentation and creative problem-solving, these events have helped Spotify continuously improve its platform and stay ahead in the competitive music streaming industry.

• Okta: Hackathons at Okta have significantly contributed to fostering a culture of innovation, leading to the creation of new features and improvements in their identity and access management solutions. By encouraging employees to collaborate and think outside the box, these events have enabled Okta to stay competitive and continuously enhance its product offerings.

• Culture Amp: Culture Amp's internal hackathons have spurred innovation and strengthened team collaboration, leading to the development of practical initiatives like the Junior Engineering Program. This successful experience, praised by CEO Didier Elzinga, led them to explore connecting all their global offices through a future hackathon.

• Lloyds Banking Group: Lloyds run a series of hackathons called Reboot that help drive the bank’s technological advancement and create a technology learning culture. Hundreds of colleagues gather to share ideas, learn about new technology, and take part in coding competitions to generate innovative solutions, learn new skills and have some fun.

• Tinder: Tinder hackathons are pivotal for innovation, bringing together employees from all departments to develop and implement new ideas quickly. Notable projects from their hackathons include a backend testing tool in the app's testing environment that significantly enhanced efficiency, "Swipe Night," an interactive, swipe-based story experience within the app, and a panic button that shares a user’s location with emergency services.

Tips to make sure your internal hackathon is a success

Now that you understand the benefits of hosting internal hackathons, let's talk about the how. Running a successful internal hackathon requires careful planning and execution and like any event with many moving parts, it is prone to common pitfalls. Here are some key steps to ensure your event hits the mark:

• Set clear goals: What do you want to achieve with your hackathon? Whether it's developing new product ideas, improving processes, or solving specific problems, having strong, specific goals will guide the entire event and help ensure its a success.

• Choose the right theme: Pick a theme that aligns with your goals and objectives and resonates with your employees. This could be anything from sustainability to digital transformation or customer experience.

• Assemble diverse teams: Encourage participation from various departments. The more diverse the teams and their perspective, the more innovative the solutions.

• Provide resources and support: Ensure participants have access to the tools, data, and support they need. This might include providing APIs, access to software, or having mentors available for guidance.

• Create the energy: While the focus is on innovation, it's important to keep the atmosphere light, energetic and enjoyable. If you’re in-person, provide plenty of snacks, play some music, and maybe even offer swag for participants. If you are virtual, make sure to weave in time for ice breakers, guided activities, polls, and gamification to keep participants engaged throughout the event.

• Facilitate and manage time: Keep the event on track with a well-structured schedule. Regular check-ins and clear deadlines will help keep everyone focused and productive.

• Offer solution feedback: Before the start of the event, develop judging criteria and line up a panel of judges to evaluate each solution. Have them rate each submission and provide feedback to help teams understand what they did well and what could have been improved. Crowdsourcing votes for solutions is also a great way to get everyone involved.

• Recognise and reward: At the end of the hackathon, have teams present their solutions. Celebrate their hard work with recognition and rewards. This could be anything from gift cards to additional project funding for the winning team.

• Report on the outcomes: After the event, pull together a report of the event and include key metrics, participant feedback and how you tracked against the original goals set. Share this summary with your executive team so they can see the results and you can make the case for doing it again.

Measuring success of internal hackathons

What kind of metrics should you include in your post-event report? Here are a few to consider:

• Participation and Engagement: How many employees participated, and how engaged were they throughout the event?

• Quality of Solutions: Evaluate the solutions developed during the hackathon. Are they viable and innovative? How did the judges rate them? How did they score against the criteria outlined?

• Implementation Rate: How many solutions are moving to the next step of the implementation process? How many of the solutions are being implemented or further developed?

• Employee Feedback: Gather feedback from participants to understand what they learned, what worked well and what could be improved for future events.

• Outcome vs. Goals: Compare the results to the original goals set. Did you successfully achieve those goals? If not, what were the reasons why? And were there other outcomes that you didn’t foresee but were still valuable?

Leverage internal hackathons to drive innovation

Internal hackathons are more than just a trend—they’re a powerful tool for driving innovation and engagement. They offer a unique way to harness the collective creativity of employees and drive meaningful change from within. By creating a fun, collaborative environment where employees can brainstorm and build together, companies can unlock new levels of creativity. Imagine sprinkling this magic into some of your best customers as a value-add for for a major win-win

So, if your organisation hasn’t yet jumped on the internal hackathon bandwagon, now might be the perfect time to start. Not only will you uncover hidden talents and foster collaboration, but you’ll also pave the way for ground breaking solutions that can propel your business forward.

Ready to host your own internal hackathon? Better call Suru.