Innovation is not everything, it is the only thing

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CloudOps Summit 2013, Frankfurt, 25.09.2013 …

CloudOps Summit 2013, Frankfurt, 25.09.2013
Lightning Talk by
Prof. Sabine Brunswicker, Purdue University, Research Center for Open Digital Innovation

More in: Technology , Business
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  • 1. INNOVATION IS NOT EVERYTHING, IT IS THE ONLY THING AND IT IS AN OPEN AND DIGITAL THING LIGHTENING TALKS CLOUDOPS SUMMIT 2013 Prof. Sabine Brunswicker Purdue University, Fraunhofer Society
  • 2. INNOVATION IS ALMOST EVERYTHING INNOVATION IS NOT JUST ABOUT A NEW TECHNOLOGY, IT IS A LOT MORE www ANY IDEA OR CHANGE TO A SYSTEM Business Model New Product New Service New Process Cloud On- Demand Service
  • 3. …CAPTURING VALUE FROM IT INNOVATION IS ABOUT CREATING VALUE INNOVATION IS THE ONLY THING
  • 4. Innovation is often thought of as being about R&D, special people, control, and lots of time…. INNOVATION IS THE ONLY THING
  • 5. THE INNOVATION GAME HAS CHANGED¹ Source: 1) Chesbrough (2003)
  • 6. INNOVATION HAS CHANGED Success Stories Trend towards Open Innovation SINCE 2003, FIRMS ENGAGE IN SO CALLED “OPEN INNOVATION PRACTICES” Google Search Open Innovation : 10/2011 > 8 Mio Hits 05/2013 > 700 Mio Hits
  • 7. INNOVATION IS AN OPEN THING OPEN INNOVATION DESCRIBES A COGNITIVE FRAMEWORK FOR A FIRM’S STRATEGY TO PROFIT FROM INNOVATION Open Model existing market new market other firm’s market idea sourcing running/successful innovation projectsdiscarded innovation projects Closed Model market + + + new product/ service internal innovation resources internal innovation resources external innovation resources technology sourcing co-development partnerships spin-out Source: Brunswicker (2011); see also Chesbrough (2003, 2006)
  • 8. OPENNESS COMES IN DIFFERENT FORMS LARGE FIRMS LIKE GE EXPERIMENT WITH START-UP COMPETITIONS AND IDEA CONTESTS TO IMPLEMENT INBOUND OPEN INNOVATION AND CREATE NEW INNOVATION ECOSYSTEMS Challenge  Powering the Grid  Powering your Home B2B Entrants  Opportunity to develop commercial relationship with GE GE investment  Nearly 4000 ideas  75,013 entrepreneurs  23 partnerships ($ 200 USD investment) Source: www.ge.com, Chesbrough (2012) California Management Review Co- investment & venture partners  Emerald Capital  Foundation Capital  ….
  • 9. OPENNESS IS NOT A FAD IN OUR NEW EXECUTIVE SURVEY WE FOUND THAT OPEN INNOVATION IS ON THE RISE; IT RECEIVES INCREASING MANAGEMENT SUPPORT AT THE TOP EXECUTIVE LEVEL Executive study UC Berkeley and Fraunhofer  Study among the largest firms in Europe and US  Firm criteria: >1000 employees and >250 million USD in sales  Key informants: CEO, COO, or CTO at headquarter  Data collection October– December 2012  125 datasets Adoption of open innovation Abandonment Open innovation experience Management support Intensity 78% practice open innovation today No firm has abandoned open innovation Median of 5 years 71 % have increased management support 82 % have increased open innovation activity
  • 10. .---BUT IT IS HARD THE CHANGE FROM CLOSED TO OPEN IS HARD; IT REQUIRES NEW CAPABILITIES, NEW ROLES AND CULTURAL VALUES 3.69 4.55 4.53 4.53 4.89 5.26 3.61 4.28 4.49 4.6 4.97 5.6 1 2 3 4 5 6 7 Avoidance of external or already existing knowledge Effectiveness of intellectual property protection Identifying new innovation sources Protecting internal critical know-how Management of external relationship with innovation sources Managing the organizational change internally Challenges of engaging in open innovation (mean values, 1=not important to 7= highly important) when firm's started today Not important Highly important Source: Open Innovation Executive Survey Fraunhofer & UC Berkeley; n = 91
  • 11. THE SHIFT CONTINUES FINAL SLIDE WITH “WEB” AND NEW MODELS OF INNOVATION The GRAVITY IS SHIFTING EVEN MORE… ..people-centric & decentralized innovation ecosystems
  • 12. WE SHIFT TOWARDS ECOSYSTEMS THE SHIFT TOWARDS OPENNESS IS CONTINUING; IT REQUIRES MORE EXPERIMENTATION Shifttowardsopenness Phase 1 Phase 2 Phase 3 Phase 4 Source: CAS 2010; Ehrenmann & Brunswicker (2012) Closed System Firm-centric innovation networks New infrastructures New decentralized innovation ecosystems Interne Technologie- Basis Aktueller Markt Aktueller Markt Gescheiterte Ideen/ abgebrochene Projekte Erfolgreiche Ideen/ erfolgreiche Projekte Interne Technologie- Basis Aktueller Markt Aktueller Markt Gescheiterte Ideen/ abgebrochene Projekte Erfolgreiche Ideen/ erfolgreiche Projekte Gescheiterte Ideen/ abgebrochene Projekte Erfolgreiche Ideen/ erfolgreiche Projekte
  • 13. TODAY INNOVATION REMAINS THE ONLY THING BUT WE HAVE TO LEARN MORE New facilitation skills and leadership capabilities New infrastructures for innovation Experimentation (rather than control) Lifecycle-oriented innovation ecosystems
  • 14. INNOVATION IS AN OPEN AND DIGITAL THING „If you’re not failing every now and again, it’s a sign you’re not doing anything very innovative.“ Woody Allen Contact: Prof. Sabine Brunswicker, sbrunswi@purdue.edu