4th Annual Open Innovation Summit September 11, 2012                                 Jose A. Briones, Ph.D.SPOTS Tracking ...
Agenda Background Open Innovation Services and Software Case Studies:    FVA Group of German engineering companies    ...
Acknowledgments   Frank T. Piller     RWTH Technology & Innovation Management Group, RWTH Aachen,      Germany   Barbar...
Objective   Weigh the pros and cons of turning to a    technology provider to help solve your OI    needs   Understand t...
Objective   But which is the right method for open innovation?   Which are the criteria to plan an open innovation    pr...
Clayton M. Christensen•“There’s a better way formanagement teams to grow theircompanies. But they will need thecourage to ...
www.Brioneja.com                   Twitter: @Brioneja
The Open Innovation Paradigm        www.Brioneja.com                           Twitter: @Brioneja
Open Innovation Management   What are the options to implement an    Open Innovation program?    Go at it alone:      ○ ...
Open Innovation Services vs. Software   Open Innovation Services offer a    communities of experts in a variety of    fie...
Open Innovation Services       www.Brioneja.com              Source: Frank T. Piller                          Twitter: @B...
Case Study: Piloting open innovation (co-creation with technical experts) inthe German industry Group of German engineeri...
In the project, we selected five problems                      Frank T. Pillerfrom companies and the FVA research         ...
www.Brioneja.com                   Twitter: @Brioneja                                        14
The solutions in general were both from                         Frank T. Pillersources new to the companies and did       ...
Return on openinnovationData from VDMA project intextile machinery industry                                             Fr...
Open Innovation Software   Spigit     SpigitEngage for Facebook,      organizations can engage their      customers in s...
Open Innovation Software   Imaginatik    Innovation Central     collaboration platform allows     organizations to inclu...
Smarty Ears’ Open InnovationProgram   Smarty Ears is the largest    app publishing company in    the segment of speech an...
How The Program Works                             Just like in traditional publishing,                              there...
Open Innovation ProgramResults                                 ~10 ideas for new                                  apps/mo...
P&G   Connect and Develop – Model for Open    Innovation Launched in 2000   P&G needs are posted on website in classifie...
P&G Today – BW Magazine Sep. 7, 2012   P&G CEO Lafley decentralized R&D, making    business-unit heads responsible for de...
P&G Today – BW Magazine Sep. 7, 2012   Spending on research and development in fiscal    2012 ended June 30 was $2.03 bil...
P&G Today – BW Magazine Sep. 7, 2012   By the time McDonald became CEO in 2009, the    number of what the company conside...
Keys to Success   OI is a way to speed up time to market and increase    probability of success   OI includes sourcing f...
Lessons Learned   Using the right approach    to open innovation is    critical for success     The SpyroTek™ Method for ...
Questions for the Panel/Audience   Q1. What is the "customer job" (Clay Christensen sense)    that needs to be filled by ...
Questions for the Panel/Audience   Q6. What does it mean to "evaluate" an idea?   Q7. How to say no to an idea, and not ...
Resources   Making Open Innovation Work. Author: Stefan Lindegaard   Open Services Innovation. Henry Chesbrough   A Gui...
Contact Information Jose A. Briones, Ph.D. Brioneja@SpyroTek.com Twitter: @Brioneja www.Brioneja.com             www.B...
Upcoming SlideShare
Loading in...5
×

The Market for Open Innovation Platforms: Deciding If and Where to Invest - Jose Briones

3,576

Published on

Open innovation became a key success factor for many companies today. But which is the right method for open innovation? Which are the criteria to plan an open innovation project? Which intermediary or service provider has specific knowledge and expertise in, e.g., crowdsourcing, the lead user method, Netnography, idea contests, technology scouting, or broadcast search? This interactive debate will analyze different platforms that are meant to accelerate innovation. You will leave with a better understanding of the options that are out there and whether it makes sense for you to invest in a certain platform. In reaching their conclusion, innovation professionals must:

Weigh the pros and cons of turning to a technology provider to help solve your OI needs
Understand the landscape of open innovation intermediaries and platforms
Make the most of your investment in an OI platform

Published in: Business, Technology
0 Comments
6 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
3,576
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
6
Embeds 0
No embeds

No notes for slide

The Market for Open Innovation Platforms: Deciding If and Where to Invest - Jose Briones

  1. 1. 4th Annual Open Innovation Summit September 11, 2012 Jose A. Briones, Ph.D.SPOTS Tracking Systems / SpyroTek Peformance Solutions Twitter: @Brioneja
  2. 2. Agenda Background Open Innovation Services and Software Case Studies: FVA Group of German engineering companies in the automotive industry – Dr. Frank Piller Smarty Ears Use of Open Innovation for Development of iPad Apps P&G Yesterday vs. Today www.Brioneja.com Twitter: @Brioneja
  3. 3. Acknowledgments Frank T. Piller  RWTH Technology & Innovation Management Group, RWTH Aachen, Germany Barbara L. Fernandes  CEO – Smarty Ears LLC BW Magazine Sep. 7, 2012 www.Brioneja.com Twitter: @Brioneja
  4. 4. Objective Weigh the pros and cons of turning to a technology provider to help solve your OI needs Understand the landscape of open innovation intermediaries and platforms Make the most of your investment in an OI platform www.Brioneja.com Twitter: @Brioneja
  5. 5. Objective But which is the right method for open innovation? Which are the criteria to plan an open innovation project? Which intermediary or service provider has specific knowledge and expertise in, e.g., crowdsourcing, the lead user method, Netnography, idea contests, technology scouting, or broadcast search? www.Brioneja.com Twitter: @Brioneja
  6. 6. Clayton M. Christensen•“There’s a better way formanagement teams to grow theircompanies. But they will need thecourage to challenge some of theparadigms of financial analysis andthe willingness to developalternative methodologies” www.Brioneja.com Twitter: @Brioneja
  7. 7. www.Brioneja.com Twitter: @Brioneja
  8. 8. The Open Innovation Paradigm www.Brioneja.com Twitter: @Brioneja
  9. 9. Open Innovation Management What are the options to implement an Open Innovation program? Go at it alone: ○ Website and social media Engage an Open Innovation platform ○ Open innovation software ○ Open innovation services www.Brioneja.com Twitter: @Brioneja
  10. 10. Open Innovation Services vs. Software Open Innovation Services offer a communities of experts in a variety of fields. Problems are posted for a fee to get feedback from the community Open Innovation Software/Platforms relies in the company’s customer base and a broader reach www.Brioneja.com Twitter: @Brioneja
  11. 11. Open Innovation Services www.Brioneja.com  Source: Frank T. Piller Twitter: @Brioneja
  12. 12. Case Study: Piloting open innovation (co-creation with technical experts) inthe German industry Group of German engineering companies in the automotive industry: Suppliers and users of driving systems (gear boxes, power train , etc.), organized in industry association (called "FVA") Frank T. Piller Many of them are world market leaders in RWTH Technology & Innovation Management Group, RWTH their sector Aachen, Germany Very engineering driven, successful, very “We took some "German" engineers. Typical example of problems they could not solve before and "local search" ! "crowd-sourced" these Problem: For some technical problems, they problems to external did not find sufficient solution problem solvers via an intermediary (broker)” Project with our group: Pilot co-creation for technical problem solving ==> www.Brioneja.com Twitter: @Brioneja
  13. 13. In the project, we selected five problems Frank T. Pillerfrom companies and the FVA research RWTH Technology & Innovationconsortium to be "broadcasted" by Management Group, RWTH Aachen, GermanyNineSigma. www.Brioneja.com Twitter: @Brioneja Source: David Feitler 2010
  14. 14. www.Brioneja.com Twitter: @Brioneja 14
  15. 15. The solutions in general were both from Frank T. Pillersources new to the companies and did RWTH Technology & Innovation Management Group, RWTHcontain a new technological solution Aachen, GermanyEvaluation of solution proposals by project steering committees Institution Solution Technology RFP new known new known ? 66198 23 3 16 6 4 66204 10 0 3 7 0 66207 7 0 6 0 1 66201 33 2 22 8 5 www.Brioneja.com Twitter: @Brioneja
  16. 16. Return on openinnovationData from VDMA project intextile machinery industry Frank T. Piller RWTH Technology & InnovationDirect cost of OI project Management Group, RWTH€ 18 000 ,- + approx. 2 person Aachen, GermanymonthsEstimated value of realizedsolution€ 375 000,-ROI : approx. 2000%Quality of solution:Fit to www.Brioneja.com requirement: 89% inaverage of suited solutions Twitter: @Brioneja
  17. 17. Open Innovation Software Spigit  SpigitEngage for Facebook, organizations can engage their customers in social co-creation by tapping customer insights through idea generation, free thought, campaigns, contests, and game dynamics. Ryma  Ideascope integrates customer feedback with other systems like Help Desk, Customer Relationship Management (CRM), Demand Management www.Brioneja.com Twitter: @Brioneja
  18. 18. Open Innovation Software Imaginatik Innovation Central collaboration platform allows organizations to include or exclude whichever groups or individuals are most appropriate for the topic Nosco Idea management software Publish, rate and collaborate on ideas www.Brioneja.com Twitter: @Brioneja
  19. 19. Smarty Ears’ Open InnovationProgram Smarty Ears is the largest app publishing company in the segment of speech and language development.  Over 40 total Apps  Most for iPhone and iPad but some for Android. Promotion is via Social Media and Website www.Brioneja.com Twitter: @Brioneja
  20. 20. How The Program Works  Just like in traditional publishing, there are authors to books/therapy materials and there are publishers.  Smarty Ears is the App publisher and the submitter is the author  Submitters continue to own the idea and materials they provide, and therefore they get paid royalties for it.  The final application, coding, and any art work developed belongs to Smarty Ears. www.Brioneja.com  Typical contract is 5 to 10 years Twitter: @Brioneja
  21. 21. Open Innovation ProgramResults  ~10 ideas for new apps/month  1 out of 10 becomes an app.  10 new apps are a result of this process  More apps to market - faster  Recent app release from Open Innovation program “Fun and Functional” is currently on top 50 educational app list on www.Brioneja.com iTunes Twitter: @Brioneja
  22. 22. P&G Connect and Develop – Model for Open Innovation Launched in 2000 P&G needs are posted on website in classified categories, and then anyone can propose their ideas and get assessed by a specialized team. By 2006, 35% of all P&G products had an external component vs. 15% in 2000 R&D productivity increased 60% www.Brioneja.com Twitter: @Brioneja
  23. 23. P&G Today – BW Magazine Sep. 7, 2012 P&G CEO Lafley decentralized R&D, making business-unit heads responsible for developing new items. R&D chief Brown says that inadvertently slowed innovation by more closely tying research spending to immediate profit concerns. Between 2003 and 2008, the sales of new product rollouts shrank by half. www.Brioneja.com Twitter: @Brioneja
  24. 24. P&G Today – BW Magazine Sep. 7, 2012 Spending on research and development in fiscal 2012 ended June 30 was $2.03 billion, or 2.4 percent of sales, the same as the prior year and down from 3 percent of sales in 2006 P&G’s most recent homegrown blockbusters -- Swiffer cleaning devices, Crest Whitestrips, and Febreze odor fresheners -- all went on sale at least a decade ago. www.Brioneja.com Twitter: @Brioneja
  25. 25. P&G Today – BW Magazine Sep. 7, 2012 By the time McDonald became CEO in 2009, the number of what the company considered to be big product breakthroughs had fallen to an average of fewer than six per year as unit heads focused on short-term results and smaller inventions McDonald has said he hopes cost-cutting will free up more money for product development  Assembled a team of researchers, marketing managers and senior executives from across the company to chart a bolder innovation course.  Created new business creation and innovation unit www.Brioneja.com Twitter: @Brioneja
  26. 26. Keys to Success OI is a way to speed up time to market and increase probability of success OI includes sourcing for products, technology, intellectual property and ideas. OI is NOT outsourcing. OI requires constant interactions between companies and inventors. It requires huge partnering capabilities on both sides. OI will not decrease a company’s costs – it will only move it among line items. R&D budget may be less over time, but Legal and Business Development budgets will increase immediately. Source: Open Innovation – Paradigm Shift or Program? September 21, 2009 by Suzanne Harrison www.Brioneja.com Twitter: @Brioneja
  27. 27. Lessons Learned Using the right approach to open innovation is critical for success The SpyroTek™ Method for Innovation Management Depends on the type of Quadrant IV Resources Launch Roadmap/Timeline Quadrant I problem/industry Level Idea Generation Risk Analysis 3 Open Innovation is NOT Customer 2 VOC Testing 1 a substitute for R&D and Time Time a long-term innovation Supply Chain Analysis Technology Assessment program Value in Use Analysis Business Case Regulatory Must use a non-linear Quadrant III Prototype Development IP Strategy Quadrant II Resources management approach Twitter: @Brioneja www.Brioneja.com designed for radical or disruptive innovation, e.g. www.Brioneja.com Spiral Approach Twitter: @Brioneja
  28. 28. Questions for the Panel/Audience Q1. What is the "customer job" (Clay Christensen sense) that needs to be filled by innovation management software? Q2. Which employees are "right" for participating in the innovation process? Q3. How do you find high potential ideas from a high volumes of them? Q4. What are some models for engaging employees in a process that falls outside their "day jobs"? Q5. Isnt this a popularity contest for ideas, and what company would operate that way? www.Brioneja.com Twitter: @Brioneja
  29. 29. Questions for the Panel/Audience Q6. What does it mean to "evaluate" an idea? Q7. How to say no to an idea, and not discourage future participation? Q8. What are some best practices for running an employee innovation program? Q9. What about expanding beyond employees, and bringing customers directly into the innovation process? Q10. Where does a crowdsourced innovation management platform fit within the enterprise software ecosystem? www.Brioneja.com Twitter: @Brioneja
  30. 30. Resources Making Open Innovation Work. Author: Stefan Lindegaard Open Services Innovation. Henry Chesbrough A Guide to Open Innovation and Crowdsourcing. Paul Sloane The Open Innovation Marketplace. A. Bingham and D. Spradlin Open Innovation – Paradigm Shift or Program? September 21, 2009 by Suzanne Harrison Innovation Killers, 2008 - HBR http://hbr.org/product/innovation-killers-how-financial- tools-destroy-you/an/R0801F-PDF-ENG?Ntt=innoation%2520killers The Market for Open Innovation – Frank T. Piller, K. Diener The Spiral Approach to Disruptive Innovation Management. Jose A. Briones. www.Brioneja.com Twitter: @Brioneja
  31. 31. Contact Information Jose A. Briones, Ph.D. Brioneja@SpyroTek.com Twitter: @Brioneja www.Brioneja.com www.Brioneja.com Twitter: @Brioneja

×