Innovation and Open Innovation

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  • Really interesting Damian, thanks ​!

    Given your interest, I think you'll be very much interested in this list of emerging Open Innovation research: http://www.openinnovation.eu/07-05-2013/768/

    And in this new research too:

    - The Contours of Crowd Capability
    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2324637

    Powerful stuff!
       Reply 
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  • Kiva - Despite being only 39 months old it has raised over $87m, funding over 213,000
    entrepreneurs. They have over 500,000 lenders worldwide.
    Ebbsfleet United Football Club was bought by approximately 26,000
    people each paying £35 - £910,000
    Zopa - have over 300,000 members and total disbursals have reached £50m.
  • Innovation and Open Innovation

    1. 1. Damian Gordon Innovation and Open Innovation
    2. 2. Invention and Innovation Idea
    3. 3. Invention and Innovation Technology Idea
    4. 4. Product Invention and Innovation Technology Idea
    5. 5. Business Product Invention and Innovation Technology Idea
    6. 6. Sustainable Business Business Product Invention and Innovation Technology Idea
    7. 7. Sustainable Business Business Product Invention and Innovation Technology Idea
    8. 8. Diffusion of Innovations  Developed by Everett Rogers  Diffusion is the process by which an innovation is communicated through certain channels over time among the members of a social system.
    9. 9. 2º 3º 4º 5º RANKING MUNDIAL DE USUÁRIOS DE INTERNET 1º 6º Knowledge Person becomes aware of an innovation and has some idea of how it functions Persuasion Person forms a favorable or unfavorable attitude toward the innovation Decision Person engages in activities that lead to a choice to adopt or reject the innovation Implementation Person puts an innovation into use Confirmation Person evaluates the results of an innovation- decision already made Adoption of Innovation Step Process
    10. 10. Adoption of Innovation over time
    11. 11. Adoption of Innovation over time
    12. 12. Adoption of Innovation over time
    13. 13. 2º 3º 4º 5º RANKING MUNDIAL DE USUÁRIOS DE INTERNET 1º 6º Relative advantage Compatibility Complexity of transition Possibility of testing Visibility of benefits Adoption probability grows if innovation has clear advantages for product, service or current behavior The more innovation is consistent with pre-existing higher the adoption probability Complex changes involved in innovation, reduce adoption likelihood A chance to try an innovation before making a final decision increase adoption likelihood The more obvious innovation benefits the greater adoption likelihood 5 Critical Factors Influencing Innovation Diffusion
    14. 14. Innovation  Following Joseph Schumpeter’s 1934 book “The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle” innovation is distinguished from invention by the fact that innovation is usually applied successfully in practice.
    15. 15. Innovation - Diffusion  When innovation occurs, innovations may be spread from the innovator to other individuals and groups.  This process has been proposed that the life cycle of innovations can be described using the 's-curve' or diffusion curve. The s-curve maps growth of revenue or productivity against time.
    16. 16. Innovation - Diffusion  In the early stage of a particular innovation, growth is relatively slow as the new product establishes itself.  At some point customers begin to demand and the product growth increases more rapidly.  New incremental innovations or changes to the product allow growth to continue.  Towards the end of its life cycle growth slows and may even begin to decline. In the later stages, no amount of new investment in that product will yield a normal rate of return.
    17. 17. Innovation - Diffusion  The s-curve derives from an assumption that new products are likely to have "product Life". i.e. a start-up phase, a rapid increase in revenue and eventual decline.  But in fact the great majority of innovations never get off the bottom of the curve, and never produce normal returns.
    18. 18. Innovation - Diffusion  Innovative companies will typically be working on new innovations that will eventually replace older ones. Successive s-curves will come along to replace older ones and continue to drive growth upwards. In the figure above the first curve shows a current technology. The second shows an emerging technology that current yields lower growth but will eventually overtake current technology and lead to even greater levels of growth. The length of life will depend on many factors.
    19. 19. Open Innovation  Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology”.  The boundaries between a firm and its environment have become more permeable; innovations can easily transfer inward and outward.
    20. 20. Open Innovation  The central idea behind open innovation is that in a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research, but should instead buy or license processes or inventions (e.g. patents) from other companies. In addition, internal inventions not being used in a firm's business should be taken outside the company (e.g., through licensing, joint ventures, spin-offs)
    21. 21. Open Innovation Idea Generation Selection Execution Commercialization
    22. 22. Open Innovation Idea Generation Selection Execution Commercialization
    23. 23. Open Innovation Idea Generation Selection Execution Commercialization
    24. 24. Open Innovation Idea Generation Selection Execution Commercialization Develop New ideas
    25. 25. Open Innovation Idea Generation Selection Execution Commercialization Ideas and innovations from inside the organisation patents and innovations from outside the organisation Develop New ideas
    26. 26. Open Innovation Idea Generation Selection Execution Commercialization Ideas and innovations from inside the organisation patents and innovations from outside the organisation Develop New ideas
    27. 27. Open Innovation Idea Generation Selection Execution Commercialization Ideas and innovations from inside the organisation patents and innovations from outside the organisation Select Successful Ideas Develop New ideas
    28. 28. Open Innovation Idea Generation Selection Execution Commercialization Ideas and innovations from inside the organisation patents and innovations from outside the organisation Select Successful Ideas Develop New ideas Technology Licensing IN
    29. 29. Open Innovation Idea Generation Selection Execution Commercialization Ideas and innovations from inside the organisation patents and innovations from outside the organisation Select Successful Ideas Develop New ideas Technology Licensing IN
    30. 30. Open Innovation Idea Generation Selection Execution Commercialization Ideas and innovations from inside the organisation patents and innovations from outside the organisation Select Successful Ideas Prototypes and Production Develop New ideas Technology Licensing IN
    31. 31. Open Innovation Idea Generation Selection Execution Commercialization Ideas and innovations from inside the organisation patents and innovations from outside the organisation Select Successful Ideas Prototypes and Production IP Licensing IN IP Licensing OUT Develop New ideas Technology Licensing IN
    32. 32. Open Innovation Idea Generation Selection Execution Commercialization Ideas and innovations from inside the organisation patents and innovations from outside the organisation Select Successful Ideas Prototypes and Production IP Licensing IN IP Licensing OUT Develop New ideas Technology Licensing IN
    33. 33. Open Innovation Idea Generation Selection Execution Commercialization Ideas and innovations from inside the organisation patents and innovations from outside the organisation Select Successful Ideas Prototypes and Production IP Licensing IN IP Licensing OUT Product brought to market Develop New ideas Technology Licensing IN
    34. 34. Open Innovation Idea Generation Selection Execution Commercialization Ideas and innovations from inside the organisation patents and innovations from outside the organisation Select Successful Ideas Prototypes and Production IP Licensing IN IP Licensing OUT Product brought to market Technology Spin-offs Develop New ideas Technology Licensing IN
    35. 35. Crowdfunding
    36. 36. The Status Quo  Venture capital difficult to find for smaller requirements  Debt finance hard to come by  Business angels – limited investments – Typically a syndicate each investing £10k - £100k  What if there was a way to have say 5000 angels each investing £10?  What if anyone could become a business angel?
    37. 37. • Crowdfunding is an approach to raising the capital required for a new project or enterprise by appealing to large numbers of people for small donations • Crowdfunding examples • Kiva.org - $325m funding raised, >777,000 lenders, ~800,000 entrepreneurs • Kickstarter.com – >24,000 projects funded, > $250m pledged to-date, 2m people have pledged Crowdfunding
    38. 38. Three Types of Crowdfunding 1. Donations, Philanthropy and Sponsorship where there is no expected financial return – Kickstarter, IndieGoGo, RocketHub, Faithfunder, CharitySub, ChipIn, Catchafire 1. Lending/Borrowing – KIVA, RateSetter, Funding Circle 1. Investment in exchange for equity, profit or revenue sharing – Profounder, AppBackr, PeerBackers, Quirky, GrowVC
    39. 39. Fast Growing Retail Business  Funding Circle is a UK clearinghouse for semi- anonymous lenders and borrowers (bank)  Primarily for expanding existing small businesses  Variable loan rates/term  Average return 8.3%  Funding Circle does the credit check, rates risk  Lender amounts small  $40 million in transactions to date
    40. 40. Common Crowdfunding Mistakes 1. Asking for Too Much… or Too Little 2. A Bad Promo Video: too long, not clear on the benefits, no humour, no excitement 3. No Clear Itemized Budget 4. Poor or Overpriced Perks 5. Failing to Promote Your Project to Your Social Media Network 6. Failing to Inspire - No Good Story or Hook 7. Giving Up Too Early

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