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Why Companies Are Hosting Internal Hackathons

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Why Companies Are Hosting Internal Hackathons

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Companies constantly seek an edge and ways to inspire their employees to innovate. One strategy is to host internal hackathons centered around a theme, encouraging teams to tackle a particular problem together. This not only introduces fresh ideas and problem-solving methods but also fosters collaboration and idea-sharing among staff.

Brandon Kessler, CEO and co-founder of DevPost—a company specializing in organizing and managing internal and external hackathons—has observed firsthand how these events help companies drive their employees to address significant challenges.

“Innovation and collaboration are unequivocally the two main value propositions of running internal hackathons, and almost everyone desires both,” Kessler stated. He highlighted that generating new ideas is the primary goal of these events.

“Let’s give everyone the autonomy to generate ideas and solve problems more efficiently,” he added. “Today, innovation is essentially synonymous with AI. Of the 1,200 hackathons we held last year, perhaps only 10 were not focused on AI. The rise of AI hackathons is unprecedented.”

When a group converges in a room (or virtually) to focus on a specific issue, positive outcomes usually follow. “Involvement across disciplines, innovation, and collaborating with different stakeholders are the hallmarks of hackathons,” Kessler noted.

Netta Retter, director of innovation programs at Okta, discovered the value of internal hackathons during her previous role at Facebook, which she has since integrated into her current position.

“Facebook recognized early on the power of hackathons to nurture a culture of broad innovation, influencing both what was built and how it was constructed. Okta has also deeply embraced this hack culture,” Retter shared.

This approach has recently extended to exploring AI’s potential to enhance the company’s products and services. The hackathons help unite Okta’s remote-first workforce in tackling these issues.

“We’ve cultivated a strong global hack culture. Diving into generative AI particularly showcased how hackathons can introduce new tools and allow everyone to utilize them. They significantly influence what we create and how we create it in a grassroots manner, which is quite remarkable,” Retter stated.

Chris Aidan, VP of innovation and inclusive and emerging technologies at Estée Lauder, views hackathons similarly, but given his role, they often address more human-centric issues, such as improving breast cancer detection or assisting vision-impaired individuals with makeup application. The process remains consistent, regardless of the goal.

“We conduct one public-inclusive hackathon annually, alongside internal hackathons aimed at specific business units or brand challenges,” Aiden explained. They also hold brainstorming sessions—termed idea-a-thons—which involve creating no-code or low-code solutions.

Retter emphasizes the significance of involving diverse roles, both technical and non-technical, in bringing new ideas to fruition. “Diverse roles lead to better products and innovation. Diversity in hackathons is crucial,” she remarked.

“Regardless of technical expertise or the brilliance of what is built, without diverse perspectives and varied experiences, pointing out different uses for the creations, the impact is diminished,” she concluded.

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