Given the scale and scope of consumer conversations on social media, it is both possible and challenging for organizations to identify valuable ideas from those conversations that could lead to successful innovations. We examine how a large retailer developed a new capability to leverage public social media conversations for innovation through a process of filtering, assessing, converting, and deploying. By inductively developing a process model of how the retailer managed to convert consumer conversations on social media into organiza- tional innovation, our study sheds light on the microfoundations of this important capability.